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, 2012 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | (Click Here) | The Chairman's message to shareholders. |
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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
(Acting chairman's photo appears here)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to
January 31, 2012 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 1,026.30 | $ 6.16 |
HypotheticalA | | $ 1,000.00 | $ 1,019.05 | $ 6.14 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 1,024.70 | $ 7.43 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.41 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,022.20 | $ 9.91 |
HypotheticalA | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.96% | | | |
Actual | | $ 1,000.00 | $ 1,021.90 | $ 9.96 |
HypotheticalA | | $ 1,000.00 | $ 1,015.28 | $ 9.93 |
Institutional Class | .95% | | | |
Actual | | $ 1,000.00 | $ 1,027.10 | $ 4.84 |
HypotheticalA | | $ 1,000.00 | $ 1,020.36 | $ 4.82 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 11.3 | 9.4 |
Public Storage | 7.5 | 7.3 |
Ventas, Inc. | 7.2 | 6.8 |
Prologis, Inc. | 5.9 | 5.0 |
Digital Realty Trust, Inc. | 4.6 | 2.7 |
Boston Properties, Inc. | 4.5 | 4.7 |
Equity Residential (SBI) | 4.2 | 3.6 |
SL Green Realty Corp. | 4.0 | 4.5 |
Essex Property Trust, Inc. | 3.8 | 3.9 |
Camden Property Trust (SBI) | 3.8 | 0.3 |
| 56.8 | |
Top Five REIT Sectors as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 17.2 | 15.8 |
REITs - Malls | 15.8 | 15.2 |
REITs - Office Buildings | 14.5 | 18.1 |
REITs - Industrial Buildings | 14.5 | 13.5 |
REITs - Health Care Facilities | 10.6 | 11.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2012 * | As of July 31, 2011 ** |
 | Stocks 96.1% | | | Stocks 97.3% | |
 | Convertible
Securities† 0.0% | | | Convertible
Securities 0.1% | |
 | Short-Term
Investments and
Net Other Assets 3.9% | | | Short-Term
Investments and
Net Other Assets 2.6% | |
* Foreign investments | 0.7% | | ** Foreign investments | 1.1% | |
† Amount represents less than 0.1%. | | | |
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 2.3% |
Health Care Facilities - 2.3% |
Brookdale Senior Living, Inc. (a) | 175,051 | | $ 3,080,898 |
Emeritus Corp. (a) | 395,865 | | 6,911,803 |
Sunrise Senior Living, Inc. (a)(d) | 295,992 | | 2,104,503 |
TOTAL HEALTH CARE FACILITIES | | 12,097,204 |
REAL ESTATE INVESTMENT TRUSTS - 92.4% |
REITs - Apartments - 17.2% |
AvalonBay Communities, Inc. | 41,282 | | 5,614,765 |
Camden Property Trust (SBI) | 313,486 | | 20,219,847 |
Education Realty Trust, Inc. | 1,131,212 | | 12,103,968 |
Equity Residential (SBI) | 367,135 | | 21,862,889 |
Essex Property Trust, Inc. | 140,722 | | 20,263,968 |
Post Properties, Inc. | 239,512 | | 10,703,791 |
TOTAL REITS - APARTMENTS | | 90,769,228 |
REITs - Health Care Facilities - 10.6% |
HCP, Inc. | 256,811 | | 10,793,766 |
Health Care REIT, Inc. | 125,344 | | 7,170,930 |
Healthcare Realty Trust, Inc. | 12,600 | | 265,482 |
Ventas, Inc. | 648,069 | | 37,788,903 |
TOTAL REITS - HEALTH CARE FACILITIES | | 56,019,081 |
REITs - Hotels - 5.2% |
Chesapeake Lodging Trust | 460,798 | | 7,847,390 |
DiamondRock Hospitality Co. | 625,083 | | 6,588,375 |
Host Hotels & Resorts, Inc. | 477,534 | | 7,841,108 |
LaSalle Hotel Properties (SBI) | 48,600 | | 1,314,630 |
Sunstone Hotel Investors, Inc. (a) | 401,891 | | 3,733,567 |
TOTAL REITS - HOTELS | | 27,325,070 |
REITs - Industrial Buildings - 14.5% |
DCT Industrial Trust, Inc. | 751,100 | | 4,146,072 |
Prologis, Inc. | 976,357 | | 30,960,280 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Industrial Buildings - continued |
Public Storage | 285,241 | | $ 39,608,565 |
Stag Industrial, Inc. | 148,000 | | 1,773,040 |
TOTAL REITS - INDUSTRIAL BUILDINGS | | 76,487,957 |
REITs - Malls - 15.8% |
CBL & Associates Properties, Inc. | 904,540 | | 15,711,860 |
Simon Property Group, Inc. | 437,692 | | 59,464,837 |
The Macerich Co. | 150,846 | | 8,190,938 |
TOTAL REITS - MALLS | | 83,367,635 |
REITs - Management/Investment - 4.6% |
Digital Realty Trust, Inc. (d) | 341,950 | | 24,230,577 |
REITs - Mobile Home Parks - 0.6% |
Sun Communities, Inc. | 76,700 | | 3,076,437 |
REITs - Office Buildings - 14.5% |
Alexandria Real Estate Equities, Inc. | 53,741 | | 3,891,386 |
Boston Properties, Inc. | 227,749 | | 23,697,283 |
Corporate Office Properties Trust (SBI) | 42,700 | | 1,034,621 |
Douglas Emmett, Inc. (d) | 671,200 | | 14,034,792 |
Highwoods Properties, Inc. (SBI) | 391,025 | | 12,939,017 |
SL Green Realty Corp. | 287,622 | | 21,148,846 |
TOTAL REITS - OFFICE BUILDINGS | | 76,745,945 |
REITs - Shopping Centers - 9.4% |
Acadia Realty Trust (SBI) | 470,000 | | 9,879,400 |
DDR Corp. | 1,178,837 | | 16,338,681 |
Equity One, Inc. | 236,693 | | 4,461,663 |
Excel Trust, Inc. | 174,100 | | 2,211,070 |
Glimcher Realty Trust | 545,266 | | 5,250,912 |
Kite Realty Group Trust | 416,731 | | 2,083,655 |
Vornado Realty Trust | 120,588 | | 9,753,157 |
TOTAL REITS - SHOPPING CENTERS | | 49,978,538 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 488,000,468 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.4% |
Real Estate Operating Companies - 1.4% |
Brookfield Properties Corp. | 222,230 | | $ 3,836,252 |
Forest City Enterprises, Inc. Class A (a) | 277,667 | | 3,645,768 |
TOTAL REAL ESTATE OPERATING COMPANIES | | 7,482,020 |
TOTAL COMMON STOCKS (Cost $412,599,102) | 507,579,692 |
Convertible Preferred Stocks - 0.0% |
| | | |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0% |
Real Estate Services - 0.0% |
Grubb & Ellis Co.: | | | |
12.00% (e)
(Cost $527,100) | 5,271 | | 18,290 |
Money Market Funds - 8.5% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 22,251,610 | | 22,251,610 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 22,671,440 | | 22,671,440 |
TOTAL MONEY MARKET FUNDS (Cost $44,923,050) | 44,923,050 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $458,049,252) | | 552,521,032 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (24,429,935) |
NET ASSETS - 100% | $ 528,091,097 |
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 $18,290 or 0.0% 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 | $ 9,943 |
Fidelity Securities Lending Cash Central Fund | 165,500 |
Total | $ 175,443 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 507,579,692 | $ 507,579,692 | $ - | $ - |
Convertible Preferred Stocks | 18,290 | - | 18,290 | - |
Money Market Funds | 44,923,050 | 44,923,050 | - | - |
Total Investments in Securities: | $ 552,521,032 | $ 552,502,742 | $ 18,290 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $22,494,836) - See accompanying schedule: Unaffiliated issuers (cost $413,126,202) | $ 507,597,982 | |
Fidelity Central Funds (cost $44,923,050) | 44,923,050 | |
Total Investments (cost $458,049,252) | | $ 552,521,032 |
Receivable for investments sold | | 3,594,374 |
Receivable for fund shares sold | | 1,720,518 |
Dividends receivable | | 248,960 |
Distributions receivable from Fidelity Central Funds | | 4,312 |
Prepaid expenses | | 1,173 |
Other receivables | | 2,667 |
Total assets | | 558,093,036 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,678,483 | |
Payable for fund shares redeemed | 1,143,238 | |
Accrued management fee | 234,362 | |
Distribution and service plan fees payable | 111,139 | |
Other affiliated payables | 134,722 | |
Other payables and accrued expenses | 28,555 | |
Collateral on securities loaned, at value | 22,671,440 | |
Total liabilities | | 30,001,939 |
| | |
Net Assets | | $ 528,091,097 |
Net Assets consist of: | | |
Paid in capital | | $ 456,570,127 |
Distributions in excess of net investment income | | (17,629) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (22,933,181) |
Net unrealized appreciation (depreciation) on investments | | 94,471,780 |
Net Assets | | $ 528,091,097 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($170,031,005 ÷ 9,401,195 shares) | | $ 18.09 |
| | |
Maximum offering price per share (100/94.25 of $18.09) | | $ 19.19 |
Class T:
Net Asset Value and redemption price per share ($77,005,763 ÷ 4,259,500 shares) | | $ 18.08 |
| | |
Maximum offering price per share (100/96.50 of $18.08) | | $ 18.74 |
Class B:
Net Asset Value and offering price per share ($9,886,132 ÷ 552,903 shares)A | | $ 17.88 |
| | |
Class C:
Net Asset Value and offering price per share ($48,392,478 ÷ 2,711,287 shares)A | | $ 17.85 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($222,775,719 ÷ 12,238,135 shares) | | $ 18.20 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,946,535 |
Income from Fidelity Central Funds | | 175,443 |
Total income | | 5,121,978 |
| | |
Expenses | | |
Management fee | $ 1,271,087 | |
Transfer agent fees | 682,725 | |
Distribution and service plan fees | 624,060 | |
Accounting and security lending fees | 90,741 | |
Custodian fees and expenses | 12,809 | |
Independent trustees' compensation | 1,495 | |
Registration fees | 82,479 | |
Audit | 24,884 | |
Legal | 962 | |
Miscellaneous | 1,980 | |
Total expenses before reductions | 2,793,222 | |
Expense reductions | (70) | 2,793,152 |
Net investment income (loss) | | 2,328,826 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (12,388,879) | |
Foreign currency transactions | (588) | |
Total net realized gain (loss) | | (12,389,467) |
Change in net unrealized appreciation (depreciation) on investment securities | | 26,173,596 |
Net gain (loss) | | 13,784,129 |
Net increase (decrease) in net assets resulting from operations | | $ 16,112,955 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,328,826 | $ 2,958,826 |
Net realized gain (loss) | (12,389,467) | 54,414,285 |
Change in net unrealized appreciation (depreciation) | 26,173,596 | 34,015,366 |
Net increase (decrease) in net assets resulting
from operations | 16,112,955 | 91,388,477 |
Distributions to shareholders from net investment income | (2,394,693) | (3,454,847) |
Distributions to shareholders from net realized gain | (12,354,208) | - |
Total distributions | (14,748,901) | (3,454,847) |
Share transactions - net increase (decrease) | 37,360,971 | 12,993,567 |
Total increase (decrease) in net assets | 38,725,025 | 100,927,197 |
| | |
Net Assets | | |
Beginning of period | 489,366,072 | 388,438,875 |
End of period (including distributions in excess of net investment income of $17,629 and undistributed net investment income of $48,238, respectively) | $ 528,091,097 | $ 489,366,072 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31,2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.24 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .12 | .19 | .27 | .30 | .18 |
Net realized and unrealized gain (loss) | .31 | 3.37 | 5.46 | (6.86) | (1.24) | (.17) |
Total from investment operations | .40 | 3.49 | 5.65 | (6.59) | (.94) | .01 |
Distributions from net investment income | (.08) | (.13) | (.18) | (.36) | (.26) | (.18) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.55) | (.13) | (.18) | (.39) | (1.34) I | (1.68) |
Net asset value, end of period | $ 18.09 | $ 18.24 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 |
Total Return B, C, D | 2.63% | 23.63% | 60.38% | (40.19)% | (5.66)% | (.65)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.21% A | 1.19% | 1.23% | 1.27% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.21% A | 1.19% | 1.23% | 1.25% | 1.22% | 1.25% |
Expenses net of all reductions | 1.21% A | 1.18% | 1.22% | 1.25% | 1.21% | 1.25% |
Net investment income (loss) | 1.05% A | .69% | 1.45% | 2.73% | 1.71% | .81% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 170,031 | $ 178,978 | $ 117,929 | $ 62,422 | $ 109,442 | $ 117,831 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.24 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 | .07 | .15 | .25 | .26 | .12 |
Net realized and unrealized gain (loss) | .32 | 3.38 | 5.47 | (6.87) | (1.24) | (.16) |
Total from investment operations | .38 | 3.45 | 5.62 | (6.62) | (.98) | (.04) |
Distributions from net investment income | (.07) | (.11) | (.14) | (.33) | (.17) | (.13) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.54) | (.11) | (.14) | (.36) | (1.26) I | (1.63) |
Net asset value, end of period | $ 18.08 | $ 18.24 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 |
Total Return B, C, D | 2.47% | 23.28% | 60.02% | (40.33)% | (5.88)% | (.89)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.46% A | 1.44% | 1.49% | 1.54% | 1.47% | 1.50% |
Expenses net of fee waivers, if any | 1.46% A | 1.44% | 1.49% | 1.50% | 1.47% | 1.50% |
Expenses net of all reductions | 1.46% A | 1.44% | 1.48% | 1.50% | 1.47% | 1.49% |
Net investment income (loss) | .79% A | .43% | 1.19% | 2.48% | 1.45% | .57% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,006 | $ 76,785 | $ 59,529 | $ 40,276 | $ 81,938 | $ 100,621 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.05 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .09 | .20 | .17 | .01 |
Net realized and unrealized gain (loss) | .31 | 3.35 | 5.42 | (6.81) | (1.23) | (.16) |
Total from investment operations | .33 | 3.34 | 5.51 | (6.61) | (1.06) | (.15) |
Distributions from net investment income | (.03) | (.06) | (.09) | (.27) | (.10) | (.05) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.48) |
Total distributions | (.50) | (.06) | (.09) | (.30) | (1.19) I | (1.53) |
Net asset value, end of period | $ 17.88 | $ 18.05 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 |
Total Return B, C, D | 2.22% | 22.69% | 59.14% | (40.60)% | (6.37)% | (1.45)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.95% A | 1.94% | 1.98% | 2.04% | 1.96% | 2.02% |
Expenses net of fee waivers, if any | 1.95% A | 1.94% | 1.98% | 2.00% | 1.96% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.93% | 1.97% | 2.00% | 1.96% | 2.00% |
Net investment income (loss) | .30% A | (.07)% | .70% | 1.98% | .96% | .07% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,886 | $ 11,542 | $ 12,078 | $ 7,933 | $ 16,879 | $ 25,114 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.03 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .09 | .19 | .17 | .01 |
Net realized and unrealized gain (loss) | .30 | 3.35 | 5.43 | (6.81) | (1.23) | (.16) |
Total from investment operations | .32 | 3.34 | 5.52 | (6.62) | (1.06) | (.15) |
Distributions from net investment income | (.03) | (.07) | (.10) | (.27) | (.11) | (.05) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.50) | (.07) | (.10) | (.30) | (1.19) I | (1.55) |
Net asset value, end of period | $ 17.85 | $ 18.03 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 |
Total Return B, C, D | 2.19% | 22.69% | 59.28% | (40.64)% | (6.35)% | (1.45)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.96% A | 1.94% | 1.98% | 2.01% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.96% A | 1.94% | 1.98% | 2.00% | 1.96% | 2.00% |
Expenses net of all reductions | 1.96% A | 1.93% | 1.97% | 2.00% | 1.96% | 2.00% |
Net investment income (loss) | .30% A | (.07)% | .71% | 1.98% | .96% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,392 | $ 47,406 | $ 31,204 | $ 13,226 | $ 24,984 | $ 36,854 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.36 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .16 | .23 | .30 | .34 | .24 |
Net realized and unrealized gain (loss) | .31 | 3.39 | 5.47 | (6.90) | (1.23) | (.17) |
Total from investment operations | .42 | 3.55 | 5.70 | (6.60) | (.89) | .07 |
Distributions from net investment income | (.11) | (.15) | (.20) | (.38) | (.35) | (.24) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.58) | (.15) | (.20) | (.41) | (1.44) H | (1.74) |
Net asset value, end of period | $ 18.20 | $ 18.36 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 |
Total Return B, C | 2.71% | 23.92% | 60.75% | (40.03)% | (5.39)% | (.37)% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .95% A | .93% | .97% | 1.01% | .95% | .98% |
Expenses net of fee waivers, if any | .95% A | .93% | .97% | 1.00% | .95% | .98% |
Expenses net of all reductions | .95% A | .92% | .96% | 1.00% | .95% | .97% |
Net investment income (loss) | 1.30% A | .94% | 1.71% | 2.98% | 1.97% | 1.09% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 222,776 | $ 174,655 | $ 167,699 | $ 55,177 | $ 72,780 | $ 12,259 |
Portfolio turnover rate F | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F 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, 2012 (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, except for exchanges and reinvestments. 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
Semiannual Report
3. Significant Accounting Policies - continued
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, 2012, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards 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 | $ 99,809,196 |
Gross unrealized depreciation | (15,848,859) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 83,960,337 |
| |
Tax cost | $ 468,560,695 |
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 $166,813,084 and $147,632,011, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 191,115 | $ 1,711 |
Class T | .25% | .25% | 170,276 | - |
Class B | .75% | .25% | 47,417 | 35,563 |
Class C | .75% | .25% | 215,252 | 41,502 |
| | | $ 624,060 | $ 78,776 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 21,792 |
Class T | 2,313 |
Class B* | 10,260 |
Class C* | 3,286 |
| $ 37,651 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 230,602 | .30 |
Class T | 104,535 | .31 |
Class B | 14,194 | .30 |
Class C | 64,806 | .30 |
Institutional Class | 268,588 | .30 |
| $ 682,725 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,493 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $633 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund
Semiannual Report
8. Security Lending - continued
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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, 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 $165,500, including $257 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 $64 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
From net investment income | | |
Class A | $ 763,443 | $ 1,134,674 |
Class T | 271,106 | 470,285 |
Class B | 17,337 | 48,095 |
Class C | 91,539 | 150,722 |
Institutional Class | 1,251,268 | 1,651,071 |
Total | $ 2,394,693 | $ 3,454,847 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders - continued
| Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
From net realized gain | | |
Class A | $ 4,374,052 | $ - |
Class T | 1,941,846 | - |
Class B | 284,191 | - |
Class C | 1,220,926 | - |
Institutional Class | 4,533,193 | - |
Total | $ 12,354,208 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2012 | Year ended
July 31,
2011 | Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
Class A | | | | |
Shares sold | 2,035,863 | 4,653,877 | $ 33,603,988 | $ 78,524,629 |
Reinvestment of distributions | 306,584 | 65,899 | 4,881,217 | 1,031,857 |
Shares redeemed | (2,751,375) | (2,832,440) | (44,131,558) | (47,536,681) |
Net increase (decrease) | (408,928) | 1,887,336 | $ (5,646,353) | $ 32,019,805 |
Class T | | | | |
Shares sold | 618,488 | 1,651,686 | $ 10,141,864 | $ 27,537,800 |
Reinvestment of distributions | 136,645 | 29,190 | 2,174,079 | 457,660 |
Shares redeemed | (705,055) | (1,467,042) | (11,314,210) | (24,575,305) |
Net increase (decrease) | 50,078 | 213,834 | $ 1,001,733 | $ 3,420,155 |
Class B | | | | |
Shares sold | 46,394 | 93,823 | $ 757,120 | $ 1,516,799 |
Reinvestment of distributions | 17,389 | 2,787 | 272,976 | 43,338 |
Shares redeemed | (150,206) | (274,854) | (2,420,880) | (4,557,495) |
Net increase (decrease) | (86,423) | (178,244) | $ (1,390,784) | $ (2,997,358) |
Class C | | | | |
Shares sold | 321,994 | 1,010,530 | $ 5,195,702 | $ 16,785,045 |
Reinvestment of distributions | 76,897 | 8,844 | 1,206,066 | 137,459 |
Shares redeemed | (317,385) | (504,158) | (5,079,050) | (8,281,154) |
Net increase (decrease) | 81,506 | 515,216 | $ 1,322,718 | $ 8,641,350 |
Institutional Class | | | | |
Shares sold | 4,403,324 | 4,421,526 | $ 69,912,865 | $ 73,745,390 |
Reinvestment of distributions | 225,690 | 72,024 | 3,617,447 | 1,131,385 |
Shares redeemed | (1,902,184) | (6,191,578) | (31,456,655) | (102,967,160) |
Net increase (decrease) | 2,726,830 | (1,698,028) | $ 42,073,657 | $ (28,090,385) |
Semiannual Report
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.
At the end of the period, Strategic Advisers Small-Mid Cap Fund was the owner of record of 11% of the total outstanding shares of the Fund.
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
(Fidelity Investment logo)(registered trademark)
AREI-USAN-0312
1.789731.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | (Click Here) | The Chairman's message to shareholders. |
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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
(Acting chairman's photo appears here)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to
January 31, 2012 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 1,026.30 | $ 6.16 |
HypotheticalA | | $ 1,000.00 | $ 1,019.05 | $ 6.14 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 1,024.70 | $ 7.43 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.41 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,022.20 | $ 9.91 |
HypotheticalA | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.96% | | | |
Actual | | $ 1,000.00 | $ 1,021.90 | $ 9.96 |
HypotheticalA | | $ 1,000.00 | $ 1,015.28 | $ 9.93 |
Institutional Class | .95% | | | |
Actual | | $ 1,000.00 | $ 1,027.10 | $ 4.84 |
HypotheticalA | | $ 1,000.00 | $ 1,020.36 | $ 4.82 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 11.3 | 9.4 |
Public Storage | 7.5 | 7.3 |
Ventas, Inc. | 7.2 | 6.8 |
Prologis, Inc. | 5.9 | 5.0 |
Digital Realty Trust, Inc. | 4.6 | 2.7 |
Boston Properties, Inc. | 4.5 | 4.7 |
Equity Residential (SBI) | 4.2 | 3.6 |
SL Green Realty Corp. | 4.0 | 4.5 |
Essex Property Trust, Inc. | 3.8 | 3.9 |
Camden Property Trust (SBI) | 3.8 | 0.3 |
| 56.8 | |
Top Five REIT Sectors as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 17.2 | 15.8 |
REITs - Malls | 15.8 | 15.2 |
REITs - Office Buildings | 14.5 | 18.1 |
REITs - Industrial Buildings | 14.5 | 13.5 |
REITs - Health Care Facilities | 10.6 | 11.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2012 * | As of July 31, 2011 ** |
 | Stocks 96.1% | | | Stocks 97.3% | |
 | Convertible
Securities† 0.0% | | | Convertible
Securities 0.1% | |
 | Short-Term
Investments and
Net Other Assets 3.9% | | | Short-Term
Investments and
Net Other Assets 2.6% | |
* Foreign investments | 0.7% | | ** Foreign investments | 1.1% | |
† Amount represents less than 0.1%. | | | |
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 2.3% |
Health Care Facilities - 2.3% |
Brookdale Senior Living, Inc. (a) | 175,051 | | $ 3,080,898 |
Emeritus Corp. (a) | 395,865 | | 6,911,803 |
Sunrise Senior Living, Inc. (a)(d) | 295,992 | | 2,104,503 |
TOTAL HEALTH CARE FACILITIES | | 12,097,204 |
REAL ESTATE INVESTMENT TRUSTS - 92.4% |
REITs - Apartments - 17.2% |
AvalonBay Communities, Inc. | 41,282 | | 5,614,765 |
Camden Property Trust (SBI) | 313,486 | | 20,219,847 |
Education Realty Trust, Inc. | 1,131,212 | | 12,103,968 |
Equity Residential (SBI) | 367,135 | | 21,862,889 |
Essex Property Trust, Inc. | 140,722 | | 20,263,968 |
Post Properties, Inc. | 239,512 | | 10,703,791 |
TOTAL REITS - APARTMENTS | | 90,769,228 |
REITs - Health Care Facilities - 10.6% |
HCP, Inc. | 256,811 | | 10,793,766 |
Health Care REIT, Inc. | 125,344 | | 7,170,930 |
Healthcare Realty Trust, Inc. | 12,600 | | 265,482 |
Ventas, Inc. | 648,069 | | 37,788,903 |
TOTAL REITS - HEALTH CARE FACILITIES | | 56,019,081 |
REITs - Hotels - 5.2% |
Chesapeake Lodging Trust | 460,798 | | 7,847,390 |
DiamondRock Hospitality Co. | 625,083 | | 6,588,375 |
Host Hotels & Resorts, Inc. | 477,534 | | 7,841,108 |
LaSalle Hotel Properties (SBI) | 48,600 | | 1,314,630 |
Sunstone Hotel Investors, Inc. (a) | 401,891 | | 3,733,567 |
TOTAL REITS - HOTELS | | 27,325,070 |
REITs - Industrial Buildings - 14.5% |
DCT Industrial Trust, Inc. | 751,100 | | 4,146,072 |
Prologis, Inc. | 976,357 | | 30,960,280 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Industrial Buildings - continued |
Public Storage | 285,241 | | $ 39,608,565 |
Stag Industrial, Inc. | 148,000 | | 1,773,040 |
TOTAL REITS - INDUSTRIAL BUILDINGS | | 76,487,957 |
REITs - Malls - 15.8% |
CBL & Associates Properties, Inc. | 904,540 | | 15,711,860 |
Simon Property Group, Inc. | 437,692 | | 59,464,837 |
The Macerich Co. | 150,846 | | 8,190,938 |
TOTAL REITS - MALLS | | 83,367,635 |
REITs - Management/Investment - 4.6% |
Digital Realty Trust, Inc. (d) | 341,950 | | 24,230,577 |
REITs - Mobile Home Parks - 0.6% |
Sun Communities, Inc. | 76,700 | | 3,076,437 |
REITs - Office Buildings - 14.5% |
Alexandria Real Estate Equities, Inc. | 53,741 | | 3,891,386 |
Boston Properties, Inc. | 227,749 | | 23,697,283 |
Corporate Office Properties Trust (SBI) | 42,700 | | 1,034,621 |
Douglas Emmett, Inc. (d) | 671,200 | | 14,034,792 |
Highwoods Properties, Inc. (SBI) | 391,025 | | 12,939,017 |
SL Green Realty Corp. | 287,622 | | 21,148,846 |
TOTAL REITS - OFFICE BUILDINGS | | 76,745,945 |
REITs - Shopping Centers - 9.4% |
Acadia Realty Trust (SBI) | 470,000 | | 9,879,400 |
DDR Corp. | 1,178,837 | | 16,338,681 |
Equity One, Inc. | 236,693 | | 4,461,663 |
Excel Trust, Inc. | 174,100 | | 2,211,070 |
Glimcher Realty Trust | 545,266 | | 5,250,912 |
Kite Realty Group Trust | 416,731 | | 2,083,655 |
Vornado Realty Trust | 120,588 | | 9,753,157 |
TOTAL REITS - SHOPPING CENTERS | | 49,978,538 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 488,000,468 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.4% |
Real Estate Operating Companies - 1.4% |
Brookfield Properties Corp. | 222,230 | | $ 3,836,252 |
Forest City Enterprises, Inc. Class A (a) | 277,667 | | 3,645,768 |
TOTAL REAL ESTATE OPERATING COMPANIES | | 7,482,020 |
TOTAL COMMON STOCKS (Cost $412,599,102) | 507,579,692 |
Convertible Preferred Stocks - 0.0% |
| | | |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0% |
Real Estate Services - 0.0% |
Grubb & Ellis Co.: | | | |
12.00% (e)
(Cost $527,100) | 5,271 | | 18,290 |
Money Market Funds - 8.5% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 22,251,610 | | 22,251,610 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 22,671,440 | | 22,671,440 |
TOTAL MONEY MARKET FUNDS (Cost $44,923,050) | 44,923,050 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $458,049,252) | | 552,521,032 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (24,429,935) |
NET ASSETS - 100% | $ 528,091,097 |
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 $18,290 or 0.0% 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 | $ 9,943 |
Fidelity Securities Lending Cash Central Fund | 165,500 |
Total | $ 175,443 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 507,579,692 | $ 507,579,692 | $ - | $ - |
Convertible Preferred Stocks | 18,290 | - | 18,290 | - |
Money Market Funds | 44,923,050 | 44,923,050 | - | - |
Total Investments in Securities: | $ 552,521,032 | $ 552,502,742 | $ 18,290 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $22,494,836) - See accompanying schedule: Unaffiliated issuers (cost $413,126,202) | $ 507,597,982 | |
Fidelity Central Funds (cost $44,923,050) | 44,923,050 | |
Total Investments (cost $458,049,252) | | $ 552,521,032 |
Receivable for investments sold | | 3,594,374 |
Receivable for fund shares sold | | 1,720,518 |
Dividends receivable | | 248,960 |
Distributions receivable from Fidelity Central Funds | | 4,312 |
Prepaid expenses | | 1,173 |
Other receivables | | 2,667 |
Total assets | | 558,093,036 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,678,483 | |
Payable for fund shares redeemed | 1,143,238 | |
Accrued management fee | 234,362 | |
Distribution and service plan fees payable | 111,139 | |
Other affiliated payables | 134,722 | |
Other payables and accrued expenses | 28,555 | |
Collateral on securities loaned, at value | 22,671,440 | |
Total liabilities | | 30,001,939 |
| | |
Net Assets | | $ 528,091,097 |
Net Assets consist of: | | |
Paid in capital | | $ 456,570,127 |
Distributions in excess of net investment income | | (17,629) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (22,933,181) |
Net unrealized appreciation (depreciation) on investments | | 94,471,780 |
Net Assets | | $ 528,091,097 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($170,031,005 ÷ 9,401,195 shares) | | $ 18.09 |
| | |
Maximum offering price per share (100/94.25 of $18.09) | | $ 19.19 |
Class T:
Net Asset Value and redemption price per share ($77,005,763 ÷ 4,259,500 shares) | | $ 18.08 |
| | |
Maximum offering price per share (100/96.50 of $18.08) | | $ 18.74 |
Class B:
Net Asset Value and offering price per share ($9,886,132 ÷ 552,903 shares)A | | $ 17.88 |
| | |
Class C:
Net Asset Value and offering price per share ($48,392,478 ÷ 2,711,287 shares)A | | $ 17.85 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($222,775,719 ÷ 12,238,135 shares) | | $ 18.20 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,946,535 |
Income from Fidelity Central Funds | | 175,443 |
Total income | | 5,121,978 |
| | |
Expenses | | |
Management fee | $ 1,271,087 | |
Transfer agent fees | 682,725 | |
Distribution and service plan fees | 624,060 | |
Accounting and security lending fees | 90,741 | |
Custodian fees and expenses | 12,809 | |
Independent trustees' compensation | 1,495 | |
Registration fees | 82,479 | |
Audit | 24,884 | |
Legal | 962 | |
Miscellaneous | 1,980 | |
Total expenses before reductions | 2,793,222 | |
Expense reductions | (70) | 2,793,152 |
Net investment income (loss) | | 2,328,826 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (12,388,879) | |
Foreign currency transactions | (588) | |
Total net realized gain (loss) | | (12,389,467) |
Change in net unrealized appreciation (depreciation) on investment securities | | 26,173,596 |
Net gain (loss) | | 13,784,129 |
Net increase (decrease) in net assets resulting from operations | | $ 16,112,955 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,328,826 | $ 2,958,826 |
Net realized gain (loss) | (12,389,467) | 54,414,285 |
Change in net unrealized appreciation (depreciation) | 26,173,596 | 34,015,366 |
Net increase (decrease) in net assets resulting
from operations | 16,112,955 | 91,388,477 |
Distributions to shareholders from net investment income | (2,394,693) | (3,454,847) |
Distributions to shareholders from net realized gain | (12,354,208) | - |
Total distributions | (14,748,901) | (3,454,847) |
Share transactions - net increase (decrease) | 37,360,971 | 12,993,567 |
Total increase (decrease) in net assets | 38,725,025 | 100,927,197 |
| | |
Net Assets | | |
Beginning of period | 489,366,072 | 388,438,875 |
End of period (including distributions in excess of net investment income of $17,629 and undistributed net investment income of $48,238, respectively) | $ 528,091,097 | $ 489,366,072 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31,2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.24 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .12 | .19 | .27 | .30 | .18 |
Net realized and unrealized gain (loss) | .31 | 3.37 | 5.46 | (6.86) | (1.24) | (.17) |
Total from investment operations | .40 | 3.49 | 5.65 | (6.59) | (.94) | .01 |
Distributions from net investment income | (.08) | (.13) | (.18) | (.36) | (.26) | (.18) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.55) | (.13) | (.18) | (.39) | (1.34) I | (1.68) |
Net asset value, end of period | $ 18.09 | $ 18.24 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 |
Total Return B, C, D | 2.63% | 23.63% | 60.38% | (40.19)% | (5.66)% | (.65)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.21% A | 1.19% | 1.23% | 1.27% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.21% A | 1.19% | 1.23% | 1.25% | 1.22% | 1.25% |
Expenses net of all reductions | 1.21% A | 1.18% | 1.22% | 1.25% | 1.21% | 1.25% |
Net investment income (loss) | 1.05% A | .69% | 1.45% | 2.73% | 1.71% | .81% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 170,031 | $ 178,978 | $ 117,929 | $ 62,422 | $ 109,442 | $ 117,831 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.24 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 | .07 | .15 | .25 | .26 | .12 |
Net realized and unrealized gain (loss) | .32 | 3.38 | 5.47 | (6.87) | (1.24) | (.16) |
Total from investment operations | .38 | 3.45 | 5.62 | (6.62) | (.98) | (.04) |
Distributions from net investment income | (.07) | (.11) | (.14) | (.33) | (.17) | (.13) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.54) | (.11) | (.14) | (.36) | (1.26) I | (1.63) |
Net asset value, end of period | $ 18.08 | $ 18.24 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 |
Total Return B, C, D | 2.47% | 23.28% | 60.02% | (40.33)% | (5.88)% | (.89)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.46% A | 1.44% | 1.49% | 1.54% | 1.47% | 1.50% |
Expenses net of fee waivers, if any | 1.46% A | 1.44% | 1.49% | 1.50% | 1.47% | 1.50% |
Expenses net of all reductions | 1.46% A | 1.44% | 1.48% | 1.50% | 1.47% | 1.49% |
Net investment income (loss) | .79% A | .43% | 1.19% | 2.48% | 1.45% | .57% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 77,006 | $ 76,785 | $ 59,529 | $ 40,276 | $ 81,938 | $ 100,621 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.05 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .09 | .20 | .17 | .01 |
Net realized and unrealized gain (loss) | .31 | 3.35 | 5.42 | (6.81) | (1.23) | (.16) |
Total from investment operations | .33 | 3.34 | 5.51 | (6.61) | (1.06) | (.15) |
Distributions from net investment income | (.03) | (.06) | (.09) | (.27) | (.10) | (.05) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.48) |
Total distributions | (.50) | (.06) | (.09) | (.30) | (1.19) I | (1.53) |
Net asset value, end of period | $ 17.88 | $ 18.05 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 |
Total Return B, C, D | 2.22% | 22.69% | 59.14% | (40.60)% | (6.37)% | (1.45)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.95% A | 1.94% | 1.98% | 2.04% | 1.96% | 2.02% |
Expenses net of fee waivers, if any | 1.95% A | 1.94% | 1.98% | 2.00% | 1.96% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.93% | 1.97% | 2.00% | 1.96% | 2.00% |
Net investment income (loss) | .30% A | (.07)% | .70% | 1.98% | .96% | .07% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,886 | $ 11,542 | $ 12,078 | $ 7,933 | $ 16,879 | $ 25,114 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.03 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .09 | .19 | .17 | .01 |
Net realized and unrealized gain (loss) | .30 | 3.35 | 5.43 | (6.81) | (1.23) | (.16) |
Total from investment operations | .32 | 3.34 | 5.52 | (6.62) | (1.06) | (.15) |
Distributions from net investment income | (.03) | (.07) | (.10) | (.27) | (.11) | (.05) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.50) | (.07) | (.10) | (.30) | (1.19) I | (1.55) |
Net asset value, end of period | $ 17.85 | $ 18.03 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 |
Total Return B, C, D | 2.19% | 22.69% | 59.28% | (40.64)% | (6.35)% | (1.45)% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.96% A | 1.94% | 1.98% | 2.01% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.96% A | 1.94% | 1.98% | 2.00% | 1.96% | 2.00% |
Expenses net of all reductions | 1.96% A | 1.93% | 1.97% | 2.00% | 1.96% | 2.00% |
Net investment income (loss) | .30% A | (.07)% | .71% | 1.98% | .96% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,392 | $ 47,406 | $ 31,204 | $ 13,226 | $ 24,984 | $ 36,854 |
Portfolio turnover rate G | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.36 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .16 | .23 | .30 | .34 | .24 |
Net realized and unrealized gain (loss) | .31 | 3.39 | 5.47 | (6.90) | (1.23) | (.17) |
Total from investment operations | .42 | 3.55 | 5.70 | (6.60) | (.89) | .07 |
Distributions from net investment income | (.11) | (.15) | (.20) | (.38) | (.35) | (.24) |
Distributions from net realized gain | (.47) | - | - | (.03) | (1.09) | (1.50) |
Total distributions | (.58) | (.15) | (.20) | (.41) | (1.44) H | (1.74) |
Net asset value, end of period | $ 18.20 | $ 18.36 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 |
Total Return B, C | 2.71% | 23.92% | 60.75% | (40.03)% | (5.39)% | (.37)% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .95% A | .93% | .97% | 1.01% | .95% | .98% |
Expenses net of fee waivers, if any | .95% A | .93% | .97% | 1.00% | .95% | .98% |
Expenses net of all reductions | .95% A | .92% | .96% | 1.00% | .95% | .97% |
Net investment income (loss) | 1.30% A | .94% | 1.71% | 2.98% | 1.97% | 1.09% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 222,776 | $ 174,655 | $ 167,699 | $ 55,177 | $ 72,780 | $ 12,259 |
Portfolio turnover rate F | 65% A | 63% | 60% | 98% | 86% | 84% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F 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, 2012 (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, except for exchanges and reinvestments. 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
Semiannual Report
3. Significant Accounting Policies - continued
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, 2012, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards 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 | $ 99,809,196 |
Gross unrealized depreciation | (15,848,859) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 83,960,337 |
| |
Tax cost | $ 468,560,695 |
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 $166,813,084 and $147,632,011, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 191,115 | $ 1,711 |
Class T | .25% | .25% | 170,276 | - |
Class B | .75% | .25% | 47,417 | 35,563 |
Class C | .75% | .25% | 215,252 | 41,502 |
| | | $ 624,060 | $ 78,776 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 21,792 |
Class T | 2,313 |
Class B* | 10,260 |
Class C* | 3,286 |
| $ 37,651 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 230,602 | .30 |
Class T | 104,535 | .31 |
Class B | 14,194 | .30 |
Class C | 64,806 | .30 |
Institutional Class | 268,588 | .30 |
| $ 682,725 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,493 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $633 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund
Semiannual Report
8. Security Lending - continued
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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, 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 $165,500, including $257 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 $64 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
From net investment income | | |
Class A | $ 763,443 | $ 1,134,674 |
Class T | 271,106 | 470,285 |
Class B | 17,337 | 48,095 |
Class C | 91,539 | 150,722 |
Institutional Class | 1,251,268 | 1,651,071 |
Total | $ 2,394,693 | $ 3,454,847 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders - continued
| Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
From net realized gain | | |
Class A | $ 4,374,052 | $ - |
Class T | 1,941,846 | - |
Class B | 284,191 | - |
Class C | 1,220,926 | - |
Institutional Class | 4,533,193 | - |
Total | $ 12,354,208 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2012 | Year ended
July 31,
2011 | Six months ended
January 31,
2012 | Year ended
July 31,
2011 |
Class A | | | | |
Shares sold | 2,035,863 | 4,653,877 | $ 33,603,988 | $ 78,524,629 |
Reinvestment of distributions | 306,584 | 65,899 | 4,881,217 | 1,031,857 |
Shares redeemed | (2,751,375) | (2,832,440) | (44,131,558) | (47,536,681) |
Net increase (decrease) | (408,928) | 1,887,336 | $ (5,646,353) | $ 32,019,805 |
Class T | | | | |
Shares sold | 618,488 | 1,651,686 | $ 10,141,864 | $ 27,537,800 |
Reinvestment of distributions | 136,645 | 29,190 | 2,174,079 | 457,660 |
Shares redeemed | (705,055) | (1,467,042) | (11,314,210) | (24,575,305) |
Net increase (decrease) | 50,078 | 213,834 | $ 1,001,733 | $ 3,420,155 |
Class B | | | | |
Shares sold | 46,394 | 93,823 | $ 757,120 | $ 1,516,799 |
Reinvestment of distributions | 17,389 | 2,787 | 272,976 | 43,338 |
Shares redeemed | (150,206) | (274,854) | (2,420,880) | (4,557,495) |
Net increase (decrease) | (86,423) | (178,244) | $ (1,390,784) | $ (2,997,358) |
Class C | | | | |
Shares sold | 321,994 | 1,010,530 | $ 5,195,702 | $ 16,785,045 |
Reinvestment of distributions | 76,897 | 8,844 | 1,206,066 | 137,459 |
Shares redeemed | (317,385) | (504,158) | (5,079,050) | (8,281,154) |
Net increase (decrease) | 81,506 | 515,216 | $ 1,322,718 | $ 8,641,350 |
Institutional Class | | | | |
Shares sold | 4,403,324 | 4,421,526 | $ 69,912,865 | $ 73,745,390 |
Reinvestment of distributions | 225,690 | 72,024 | 3,617,447 | 1,131,385 |
Shares redeemed | (1,902,184) | (6,191,578) | (31,456,655) | (102,967,160) |
Net increase (decrease) | 2,726,830 | (1,698,028) | $ 42,073,657 | $ (28,090,385) |
Semiannual Report
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.
At the end of the period, Strategic Advisers Small-Mid Cap Fund was the owner of record of 11% of the total outstanding shares of the Fund.
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
(Fidelity Investment logo)(registered trademark)
ARE-USAN-0312
1.789730.109
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, 2012
(Fidelity Cover Art)
Contents
Semiannual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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
(Acting chairman's photo appears here)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(Acting chairman's signature appears here)
James C. Curvey
Acting Chairman
Semiannual Report
Fidelity Advisor Biotechnology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.37% | | | |
Actual | | $ 1,000.00 | $ 1,143.00 | $ 7.38 |
Hypothetical A | | $ 1,000.00 | $ 1,018.25 | $ 6.95 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,141.40 | $ 8.88 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.12% | | | |
Actual | | $ 1,000.00 | $ 1,139.70 | $ 11.40 |
Hypothetical A | | $ 1,000.00 | $ 1,014.48 | $ 10.74 |
Class C | 2.12% | | | |
Actual | | $ 1,000.00 | $ 1,138.30 | $ 11.39 |
Hypothetical A | | $ 1,000.00 | $ 1,014.48 | $ 10.74 |
Institutional Class | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,145.10 | $ 5.72 |
Hypothetical A | | $ 1,000.00 | $ 1,019.81 | $ 5.38 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Gilead Sciences, Inc. | 10.6 | 9.8 |
Amgen, Inc. | 10.1 | 15.7 |
Biogen Idec, Inc. | 6.1 | 5.6 |
Celgene Corp. | 4.2 | 3.5 |
Alexion Pharmaceuticals, Inc. | 4.0 | 5.2 |
Vertex Pharmaceuticals, Inc. | 3.4 | 4.4 |
Regeneron Pharmaceuticals, Inc. | 3.2 | 1.4 |
BioMarin Pharmaceutical, Inc. | 2.6 | 3.8 |
Medivation, Inc. | 2.3 | 0.7 |
Idenix Pharmaceuticals, Inc. | 2.2 | 1.2 |
| 48.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
 | Biotechnology | 94.1% | |
 | Pharmaceuticals | 5.7% | |
 | Life Sciences Tools & Services | 0.4% | |
 | Health Care Equipment & Supplies | 0.0% | |
 | All Others*,† | (0.2)% | |
As of July 31, 2011 |
| Biotechnology | 89.6% | |
| Pharmaceuticals | 7.0% | |
| Health Care Equipment & Supplies | 0.1% | |
| All Others* | 3.3% | |
* Includes short-term investments and net other assets. |
† Short-term Investments and Net Other Assets are not included in the pie chart. |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% |
| Shares | | Value |
BIOTECHNOLOGY - 94.1% |
Biotechnology - 94.1% |
Acadia Pharmaceuticals, Inc. (a) | 88,492 | | $ 134,508 |
Achillion Pharmaceuticals, Inc. (a) | 39,301 | | 435,848 |
Acorda Therapeutics, Inc. (a) | 50,157 | | 1,280,508 |
ADVENTRX Pharmaceuticals, Inc. (a)(d) | 37,232 | | 25,634 |
Aegerion Pharmaceuticals, Inc. (a) | 38,913 | | 668,914 |
Affymax, Inc. (a) | 30,959 | | 247,362 |
Agenus, Inc. (a)(d) | 21,665 | | 60,229 |
Agenus, Inc. warrants 1/9/18 (a)(e) | 452,000 | | 44,924 |
Alexion Pharmaceuticals, Inc. (a) | 48,748 | | 3,741,896 |
Alkermes PLC (a) | 52,061 | | 979,267 |
Allos Therapeutics, Inc. (a) | 169,028 | | 261,993 |
Alnylam Pharmaceuticals, Inc. (a) | 58,398 | | 675,081 |
AMAG Pharmaceuticals, Inc. (a) | 46,071 | | 756,486 |
Amarin Corp. PLC ADR (a)(d) | 6,700 | | 54,672 |
Amgen, Inc. | 141,496 | | 9,608,993 |
Amicus Therapeutics, Inc. (a) | 36,298 | | 235,937 |
Amylin Pharmaceuticals, Inc. (a) | 71,203 | | 1,013,219 |
Anacor Pharmaceuticals, Inc. (a) | 22,150 | | 154,829 |
Ardea Biosciences, Inc. (a) | 21,000 | | 381,990 |
Arena Pharmaceuticals, Inc. (a)(d) | 201,900 | | 357,363 |
ARIAD Pharmaceuticals, Inc. (a)(d) | 89,006 | | 1,312,839 |
ArQule, Inc. (a) | 54,506 | | 430,597 |
AVEO Pharmaceuticals, Inc. (a)(d) | 19,452 | | 256,377 |
AVI BioPharma, Inc. (a) | 1,905 | | 1,714 |
Biogen Idec, Inc. (a) | 49,128 | | 5,793,174 |
BioInvent International AB (a) | 31,900 | | 87,699 |
BioMarin Pharmaceutical, Inc. (a) | 69,004 | | 2,461,373 |
Bionovo, Inc. (a) | 73,900 | | 11,964 |
Bionovo, Inc. warrants 2/2/16 (a) | 56,850 | | 4,966 |
Biospecifics Technologies Corp. (a) | 1,244 | | 23,661 |
BioTime, Inc. (a)(d) | 32,817 | | 189,682 |
Catalyst Pharmaceutical Partners, Inc. (a)(d) | 99,709 | | 106,689 |
Catalyst Pharmaceutical Partners, Inc. warrants 4/30/17 (a) | 8,557 | | 4,757 |
Celgene Corp. (a) | 54,169 | | 3,938,086 |
Cell Therapeutics, Inc. (a) | 650,869 | | 715,956 |
Cell Therapeutics, Inc. warrants 7/6/16 (a) | 46,404 | | 27,074 |
Celldex Therapeutics, Inc. (a) | 65,600 | | 311,600 |
Cepheid, Inc. (a) | 30,600 | | 1,348,236 |
Chelsea Therapeutics International Ltd. (a) | 11,860 | | 53,370 |
Clovis Oncology, Inc. | 800 | | 15,192 |
Codexis, Inc. (a) | 47,542 | | 264,809 |
Cubist Pharmaceuticals, Inc. (a) | 29,392 | | 1,199,781 |
Dendreon Corp. (a)(d) | 116,928 | | 1,587,882 |
Dynavax Technologies Corp. (a) | 69,900 | | 243,252 |
Emergent BioSolutions, Inc. (a) | 17,500 | | 296,975 |
Enzon Pharmaceuticals, Inc. (a)(d) | 29,534 | | 210,577 |
Exact Sciences Corp. (a) | 45,300 | | 423,102 |
Exelixis, Inc. (a) | 63,245 | | 336,463 |
|
| Shares | | Value |
Genomic Health, Inc. (a) | 16,728 | | $ 464,202 |
Geron Corp. (a)(d) | 8,061 | | 15,961 |
Gilead Sciences, Inc. (a) | 205,643 | | 10,043,606 |
Halozyme Therapeutics, Inc. (a)(d) | 60,500 | | 638,880 |
Horizon Pharma, Inc. (d) | 29,700 | | 117,909 |
Human Genome Sciences, Inc. (a)(d) | 97,908 | | 963,415 |
Idenix Pharmaceuticals, Inc. (a)(d) | 158,340 | | 2,120,173 |
ImmunoGen, Inc. (a)(d) | 44,555 | | 629,117 |
Incyte Corp. (a)(d) | 53,938 | | 954,703 |
InterMune, Inc. (a) | 72,029 | | 1,080,435 |
Ironwood Pharmaceuticals, Inc.
Class A (a) | 87,228 | | 1,308,420 |
Isis Pharmaceuticals, Inc. (a) | 50,610 | | 412,978 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 48,400 | | 164,076 |
Lexicon Pharmaceuticals, Inc. (a) | 458,061 | | 664,188 |
Ligand Pharmaceuticals, Inc. Class B (a) | 34,174 | | 425,466 |
MannKind Corp. (a)(d) | 52,246 | | 141,064 |
Medivation, Inc. (a) | 38,913 | | 2,156,169 |
Metabolix, Inc. (a)(d) | 28,030 | | 74,280 |
Momenta Pharmaceuticals, Inc. (a) | 31,866 | | 499,978 |
Myrexis, Inc. (a) | 302 | | 858 |
Myriad Genetics, Inc. (a) | 14,589 | | 345,176 |
Neurocrine Biosciences, Inc. (a) | 39,906 | | 371,126 |
NewLink Genetics Corp. | 20,100 | | 139,695 |
Novavax, Inc. (a) | 129,455 | | 195,477 |
Novelos Therapeutics, Inc. (a) | 137,600 | | 66,048 |
Novelos Therapeutics, Inc. warrants 11/30/16 (a) | 137,600 | | 1,908 |
NPS Pharmaceuticals, Inc. (a) | 97,378 | | 747,863 |
OncoGenex Pharmaceuticals, Inc. (a) | 10,805 | | 150,190 |
Oncothyreon, Inc. (a)(d) | 4,574 | | 31,149 |
ONYX Pharmaceuticals, Inc. (a) | 38,039 | | 1,557,317 |
Opko Health, Inc. (a)(d) | 129,700 | | 682,222 |
OREXIGEN Therapeutics, Inc. (a)(d) | 165,108 | | 452,396 |
PDL BioPharma, Inc. (d) | 81,188 | | 518,791 |
Pharmacyclics, Inc. (a)(d) | 36,300 | | 667,194 |
PolyMedix, Inc. (a) | 357,066 | | 337,427 |
PolyMedix, Inc. warrants 4/10/16 (a) | 163,833 | | 80,855 |
Progenics Pharmaceuticals, Inc. (a) | 92,600 | | 892,664 |
PROLOR Biotech, Inc. (a)(d) | 50,116 | | 312,724 |
Protalix BioTherapeutics, Inc. (a) | 56,855 | | 322,936 |
Protox Therapeutics, Inc. (a) | 138,000 | | 49,544 |
Puma Biotechnology, Inc. unit (e) | 32,887 | | 123,326 |
Raptor Pharmaceutical Corp. (a)(d) | 94,051 | | 673,405 |
Regeneron Pharmaceuticals, Inc. (a) | 33,404 | | 3,035,087 |
Rigel Pharmaceuticals, Inc. (a) | 61,670 | | 602,516 |
Sangamo Biosciences, Inc. (a)(d) | 26,728 | | 92,212 |
Savient Pharmaceuticals, Inc. (a)(d) | 81,455 | | 206,081 |
Seattle Genetics, Inc. (a)(d) | 51,634 | | 977,432 |
SIGA Technologies, Inc. (a)(d) | 101,286 | | 335,257 |
Spectrum Pharmaceuticals, Inc. (a)(d) | 97,576 | | 1,372,894 |
Sunesis Pharmaceuticals, Inc. (a) | 21,236 | | 29,306 |
Synageva BioPharma Corp. (a) | 12,000 | | 426,360 |
Synergy Pharmaceuticals, Inc. unit (a) | 20,600 | | 167,478 |
Common Stocks - continued |
| Shares | | Value |
BIOTECHNOLOGY - CONTINUED |
Biotechnology - continued |
Synta Pharmaceuticals Corp. (a)(d) | 51,965 | | $ 240,598 |
Theravance, Inc. (a)(d) | 31,278 | | 554,872 |
Threshold Pharmaceuticals, Inc. (a)(d) | 95,166 | | 124,667 |
Threshold Pharmaceuticals, Inc. warrants 3/16/16 (a) | 35,146 | | 16,017 |
Trius Therapeutics, Inc. (a)(d) | 57,653 | | 320,551 |
United Therapeutics Corp. (a) | 26,752 | | 1,315,663 |
Verastem, Inc. | 8,200 | | 90,200 |
Vertex Pharmaceuticals, Inc. (a) | 88,315 | | 3,263,239 |
Vical, Inc. (a) | 241,277 | | 846,882 |
ZIOPHARM Oncology, Inc. (a)(d) | 135,779 | | 720,986 |
| | 89,111,109 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.0% |
Health Care Equipment - 0.0% |
Alsius Corp. (a) | 14,200 | | 0 |
Aradigm Corp. (a) | 351,440 | | 45,687 |
| | 45,687 |
LIFE SCIENCES TOOLS & SERVICES - 0.4% |
Life Sciences Tools & Services - 0.4% |
BG Medicine, Inc. | 43,000 | | 260,150 |
ChromaDex, Inc. | 143,866 | | 132,357 |
| | 392,507 |
PHARMACEUTICALS - 5.6% |
Pharmaceuticals - 5.6% |
AcelRx Pharmaceuticals, Inc. | 62,800 | | 200,332 |
Akorn, Inc. (a) | 17,079 | | 195,725 |
Auxilium Pharmaceuticals, Inc. (a) | 31,758 | | 631,031 |
AVANIR Pharmaceuticals Class A (a)(d) | 242,280 | | 712,303 |
Corcept Therapeutics, Inc. (a) | 69,600 | | 238,728 |
Elan Corp. PLC sponsored ADR (a) | 47,120 | | 641,303 |
Jazz Pharmaceuticals PLC (a) | 8,843 | | 411,200 |
NuPathe, Inc. (a) | 900 | | 1,971 |
Optimer Pharmaceuticals, Inc. (a)(d) | 21,317 | | 276,481 |
Pacira Pharmaceuticals, Inc. (d) | 7,169 | | 77,497 |
Santarus, Inc. (a) | 51,325 | | 251,493 |
Ventrus Biosciences, Inc. (a) | 41,095 | | 365,746 |
ViroPharma, Inc. (a) | 24,474 | | 729,080 |
XenoPort, Inc. (a) | 46,025 | | 192,845 |
Zogenix, Inc. (a) | 125,489 | | 331,291 |
| | 5,257,026 |
TOTAL COMMON STOCKS (Cost $75,586,325) |
94,806,329
|
Convertible Preferred Stocks - 0.1% |
| Shares | | Value |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
Agios Pharmaceuticals, Inc. Series C (e)
(Cost $68,706) | 13,990 | | $ 68,706 |
Money Market Funds - 11.4% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 1,342,160 | | 1,342,160 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 9,507,935 | | 9,507,935 |
TOTAL MONEY MARKET FUNDS (Cost $10,850,095) |
10,850,095
|
TOTAL INVESTMENT PORTFOLIO - 111.6% (Cost $86,505,126) | | 105,725,130 |
NET OTHER ASSETS (LIABILITIES) - (11.6)% | | (11,001,918) |
NET ASSETS - 100% | $ 94,723,212 |
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 $236,956 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Agenus, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
Agios Pharmaceuticals, Inc. Series C | 11/16/11 | $ 68,706 |
Puma Biotechnology, Inc. unit | 10/4/11 | $ 123,326 |
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 | $ 691 |
Fidelity Securities Lending Cash Central Fund | 108,842 |
Total | $ 109,533 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 94,806,329 | $ 94,502,502 | $ 180,501 | $ 123,326 |
Convertible Preferred Stocks | 68,706 | - | - | 68,706 |
Money Market Funds | 10,850,095 | 10,850,095 | - | - |
Total Investments in Securities: | $ 105,725,130 | $ 105,352,597 | $ 180,501 | $ 192,032 |
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) | - |
Cost of Purchases | 192,032 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 192,032 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $8,988,839) - See accompanying schedule: Unaffiliated issuers (cost $75,655,031) | $ 94,875,035 | |
Fidelity Central Funds (cost $10,850,095) | 10,850,095 | |
Total Investments (cost $86,505,126) | | $ 105,725,130 |
Receivable for investments sold | | 335,190 |
Receivable for fund shares sold | | 608,105 |
Distributions receivable from Fidelity Central Funds | | 18,712 |
Prepaid expenses | | 180 |
Other receivables | | 1,286 |
Total assets | | 106,688,603 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,151,462 | |
Payable for fund shares redeemed | 180,271 | |
Accrued management fee | 44,987 | |
Distribution and service plan fees payable | 35,273 | |
Other affiliated payables | 20,784 | |
Other payables and accrued expenses | 24,679 | |
Collateral on securities loaned, at value | 9,507,935 | |
Total liabilities | | 11,965,391 |
| | |
Net Assets | | $ 94,723,212 |
Net Assets consist of: | | |
Paid in capital | | $ 71,580,535 |
Accumulated net investment loss | | (349,332) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 4,272,005 |
Net unrealized appreciation (depreciation) on investments | | 19,220,004 |
Net Assets | | $ 94,723,212 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($38,771,992 ÷ 3,851,434 shares) | | $ 10.07 |
| | |
Maximum offering price per share (100/94.25 of $10.07) | | $ 10.68 |
Class T:
Net Asset Value and redemption price per share ($20,689,348 ÷ 2,118,507 shares) | | $ 9.77 |
| | |
Maximum offering price per share (100/96.50 of $9.77) | | $ 10.12 |
Class B:
Net Asset Value and offering price per share ($5,858,002 ÷ 635,681 shares)A | | $ 9.22 |
| | |
Class C:
Net Asset Value and offering price per share ($19,997,785 ÷ 2,169,348 shares)A | | $ 9.22 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($9,406,085 ÷ 902,939 shares) | | $ 10.42 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 126,089 |
Income from Fidelity Central Funds (including $108,842 from security lending) | | 109,533 |
Total income | | 235,622 |
| | |
Expenses | | |
Management fee | $ 202,766 | |
Transfer agent fees | 109,196 | |
Distribution and service plan fees | 179,825 | |
Accounting and security lending fees | 14,750 | |
Custodian fees and expenses | 6,277 | |
Independent trustees' compensation | 232 | |
Registration fees | 50,048 | |
Audit | 22,756 | |
Legal | 168 | |
Miscellaneous | 299 | |
Total expenses before reductions | 586,317 | |
Expense reductions | (2,118) | 584,199 |
Net investment income (loss) | | (348,577) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 6,695,331 | |
Foreign currency transactions | (37) | |
Total net realized gain (loss) | | 6,695,294 |
Change in net unrealized appreciation (depreciation) on investment securities | | 4,341,908 |
Net gain (loss) | | 11,037,202 |
Net increase (decrease) in net assets resulting from operations | | $ 10,688,625 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (348,577) | $ (708,078) |
Net realized gain (loss) | 6,695,294 | 5,234,202 |
Change in net unrealized appreciation (depreciation) | 4,341,908 | 11,018,770 |
Net increase (decrease) in net assets resulting from operations | 10,688,625 | 15,544,894 |
Share transactions - net increase (decrease) | 9,394,377 | 6,522,296 |
Redemption fees | 7,070 | 3,193 |
Total increase (decrease) in net assets | 20,090,072 | 22,070,383 |
| | |
Net Assets | | |
Beginning of period | 74,633,140 | 52,562,757 |
End of period (including accumulated net investment loss of $349,332 and accumulated net investment loss of $755, respectively) | $ 94,723,212 | $ 74,633,140 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.81 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.07) H | (.08) I | (.08) | (.09) J | (.09) |
Net realized and unrealized gain (loss) | 1.29 | 2.21 | (.19) | (.79) | 1.20 | .51 |
Total from investment operations | 1.26 | 2.14 | (.27) | (.87) | 1.11 | .42 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 10.07 | $ 8.81 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 |
Total Return B,C,D | 14.30% | 32.08% | (3.89)% | (11.14)% | 15.95% | 6.17% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 1.37% A | 1.35% | 1.39% | 1.40% | 1.37% | 1.42% |
Expenses net of fee waivers, if any | 1.37% A | 1.35% | 1.39% | 1.40% | 1.37% | 1.40% |
Expenses net of all reductions | 1.37% A | 1.34% | 1.38% | 1.40% | 1.37% | 1.40% |
Net investment income (loss) | (.72)% A | (.91)% H | (1.15)% I | (1.27)% | (1.24)% J | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,772 | $ 30,639 | $ 20,154 | $ 19,858 | $ 18,249 | $ 13,081 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.29)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.56 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.09) H | (.09) I | (.09) | (.11) J | (.11) |
Net realized and unrealized gain (loss) | 1.25 | 2.15 | (.19) | (.78) | 1.18 | .51 |
Total from investment operations | 1.21 | 2.06 | (.28) | (.87) | 1.07 | .40 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.77 | $ 8.56 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 |
Total Return B,C,D | 14.14% | 31.69% | (4.13)% | (11.37)% | 15.64% | 5.96% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 1.66% A | 1.64% | 1.69% | 1.71% | 1.69% | 1.75% |
Expenses net of fee waivers, if any | 1.65% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.99)% A | (1.21)% H | (1.41)% I | (1.52)% | (1.53)% J | (1.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,689 | $ 16,454 | $ 11,684 | $ 13,356 | $ 15,123 | $ 13,008 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.55)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.09 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) H | (.12) I | (.12) | (.14) J | (.14) |
Net realized and unrealized gain (loss) | 1.19 | 2.04 | (.18) | (.75) | 1.13 | .50 |
Total from investment operations | 1.13 | 1.92 | (.30) | (.87) | .99 | .36 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.22 | $ 8.09 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 |
Total Return B,C,D | 13.97% | 31.12% | (4.64)% | (11.85)% | 14.96% | 5.52% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.17% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.09% | 2.13% | 2.15% | 2.12% | 2.15% |
Net investment income (loss) | (1.47)% A | (1.66)% H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,858 | $ 5,849 | $ 6,297 | $ 7,377 | $ 11,044 | $ 12,656 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.79)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (2.04)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.10 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) H | (.12) I | (.12) | (.13) J | (.14) |
Net realized and unrealized gain (loss) | 1.18 | 2.04 | (.17) | (.75) | 1.12 | .50 |
Total from investment operations | 1.12 | 1.92 | (.29) | (.87) | .99 | .36 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.22 | $ 8.10 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 |
Total Return B,C,D | 13.83% | 31.07% | (4.48)% | (11.85)% | 14.96% | 5.52% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.16% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.09% | 2.13% | 2.15% | 2.12% | 2.15% |
Net investment income (loss) | (1.47)% A | (1.66)% H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,998 | $ 15,787 | $ 11,421 | $ 12,426 | $ 13,323 | $ 11,813 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.79)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (2.04)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.10 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.05) G | (.06) H | (.06) | (.07) I | (.07) |
Net realized and unrealized gain (loss) | 1.34 | 2.28 | (.19) | (.82) | 1.23 | .53 |
Total from investment operations | 1.32 | 2.23 | (.25) | (.88) | 1.16 | .46 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital D,K | - | - | - | - | - | - |
Net asset value, end of period | $ 10.42 | $ 9.10 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 |
Total Return B,C | 14.51% | 32.46% | (3.51)% | (11.00)% | 16.35% | 6.66% |
Ratios to Average Net Assets E,J | | | | | | |
Expenses before reductions | 1.06% A | 1.04% | 1.07% | 1.11% | 1.06% | 1.06% |
Expenses net of fee waivers, if any | 1.06% A | 1.04% | 1.07% | 1.11% | 1.06% | 1.06% |
Expenses net of all reductions | 1.06% A | 1.03% | 1.06% | 1.11% | 1.06% | 1.06% |
Net investment income (loss) | (.40)% A | (.60)% G | (.83)% H | (.98)% | (.94)% I | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,406 | $ 5,903 | $ 3,008 | $ 1,901 | $ 1,117 | $ 991 |
Portfolio turnover rate F | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.73)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.97)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
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 | $ 23,928,884 |
Gross unrealized depreciation | (5,951,258) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 17,977,626 |
| |
Tax cost | $ 87,747,504 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (1,530,367) |
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 $51,259,248 and $39,568,886, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 37,599 | $ 512 |
Class T | .25% | .25% | 40,633 | - |
Class B | .75% | .25% | 26,119 | 19,590 |
Class C | .75% | .25% | 75,474 | 11,579 |
| | | $ 179,825 | $ 31,681 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 13,380 |
Class T | 5,746 |
Class B* | 3,244 |
Class C* | 1,338 |
| $ 23,708 |
* 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
Average
Net Assets* |
Class A | $ 44,555 | .30 |
Class T | 27,380 | .34 |
Class B | 7,843 | .30 |
Class C | 22,545 | .30 |
Institutional Class | 6,873 | .24 |
| $ 109,196 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $578 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $98 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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
Semiannual Report
8. Security Lending - continued
of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $437 from securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class T | 1.65% | $ 1,259 |
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 $859 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,596,631 | 1,294,694 | $ 13,765,262 | $ 10,912,748 |
Shares redeemed | (1,223,809) | (838,372) | (9,862,892) | (6,529,914) |
Net increase (decrease) | 372,822 | 456,322 | $ 3,902,370 | $ 4,382,834 |
Class T | | | | |
Shares sold | 431,162 | 489,230 | $ 3,582,516 | $ 3,897,385 |
Shares redeemed | (235,743) | (364,605) | (1,897,995) | (2,767,714) |
Net increase (decrease) | 195,419 | 124,625 | $ 1,684,521 | $ 1,129,671 |
Class B | | | | |
Shares sold | 87,604 | 84,075 | $ 712,777 | $ 609,091 |
Shares redeemed | (174,673) | (381,301) | (1,380,543) | (2,636,098) |
Net increase (decrease) | (87,069) | (297,226) | $ (667,766) | $ (2,027,007) |
Class C | | | | |
Shares sold | 499,221 | 539,125 | $ 4,090,008 | $ 4,217,149 |
Shares redeemed | (279,963) | (438,419) | (2,110,008) | (3,130,462) |
Net increase (decrease) | 219,258 | 100,706 | $ 1,980,000 | $ 1,086,687 |
Institutional Class | | | | |
Shares sold | 510,746 | 436,761 | $ 4,658,548 | $ 3,719,527 |
Shares redeemed | (256,480) | (225,982) | (2,163,296) | (1,769,416) |
Net increase (decrease) | 254,266 | 210,779 | $ 2,495,252 | $ 1,950,111 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 935.40 | $ 6.81 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 933.60 | $ 8.02 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 931.10 | $ 10.44 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 931.00 | $ 10.44 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 936.10 | $ 5.60 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 20.5 | 12.9 |
QUALCOMM, Inc. | 17.2 | 9.9 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.9 | 10.9 |
Juniper Networks, Inc. | 4.4 | 1.5 |
Polycom, Inc. | 4.1 | 3.5 |
Motorola Solutions, Inc. | 3.4 | 0.0 |
Brocade Communications Systems, Inc. | 3.1 | 2.1 |
Harris Corp. | 2.5 | 1.1 |
Nokia Corp. sponsored ADR | 2.4 | 0.0 |
F5 Networks, Inc. | 2.4 | 0.3 |
| 64.9 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Communications Equipment | 83.7% | |
 | Semiconductors & Semiconductor Equipment | 6.4% | |
 | Electronic Equipment & Components | 2.5% | |
| Software | 2.4% | |
 | Internet Software & Services | 2.2% | |
| All Others* | 2.8% | |
As of July 31, 2011 |
| Communications Equipment | 75.0% | |
| Software | 8.5% | |
| Wireless Telecommunication Services | 7.9% | |
| Semiconductors & Semiconductor Equipment | 2.4% | |
| Computers & Peripherals | 1.1% | |
| All Others* | 5.1% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 83.7% |
Communications Equipment - 83.7% |
Acme Packet, Inc. (a) | 6,771 | | $ 197,916 |
ADTRAN, Inc. | 779 | | 26,977 |
Alcatel-Lucent SA sponsored ADR (a) | 59,757 | | 103,977 |
Anaren, Inc. (a) | 4,400 | | 76,648 |
Aruba Networks, Inc. (a)(d) | 11,540 | | 255,957 |
Brocade Communications Systems, Inc. (a) | 72,859 | | 408,739 |
Calix Networks, Inc. (a) | 4,900 | | 37,093 |
Ciena Corp. (a)(d) | 3,209 | | 46,691 |
Cisco Systems, Inc. | 138,224 | | 2,713,339 |
Comtech Telecommunications Corp. | 6,500 | | 200,590 |
F5 Networks, Inc. (a) | 2,665 | | 319,107 |
Finisar Corp. (a) | 9,859 | | 199,743 |
Harris Corp. | 8,100 | | 332,100 |
InterDigital, Inc. | 3,400 | | 126,888 |
JDS Uniphase Corp. (a) | 3,800 | | 48,222 |
Juniper Networks, Inc. (a) | 27,588 | | 577,417 |
Motorola Solutions, Inc. | 9,847 | | 456,999 |
NETGEAR, Inc. (a) | 6,300 | | 250,866 |
Nokia Corp. sponsored ADR (d) | 63,405 | | 319,561 |
Oclaro, Inc. (a) | 7,675 | | 31,775 |
PC-Tel, Inc. | 3,000 | | 22,320 |
Plantronics, Inc. | 1,600 | | 59,584 |
Polycom, Inc. (a) | 27,499 | | 548,605 |
QUALCOMM, Inc. | 38,681 | | 2,275,216 |
Research In Motion Ltd. (a) | 5,600 | | 93,128 |
Riverbed Technology, Inc. (a) | 11,758 | | 281,487 |
Sycamore Networks, Inc. (a) | 3,800 | | 73,796 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 69,920 | | 648,158 |
ViaSat, Inc. (a) | 6,000 | | 285,240 |
Wi-Lan, Inc. | 12,400 | | 70,733 |
| | 11,088,872 |
COMPUTERS & PERIPHERALS - 0.5% |
Computer Hardware - 0.5% |
Apple, Inc. (a) | 154 | | 70,298 |
ELECTRICAL EQUIPMENT - 0.6% |
Electrical Components & Equipment - 0.6% |
Prysmian SpA | 5,000 | | 75,076 |
ELECTRONIC EQUIPMENT & COMPONENTS - 2.5% |
Electronic Components - 0.8% |
Vishay Intertechnology, Inc. (a) | 8,700 | | 106,836 |
Electronic Manufacturing Services - 1.7% |
Fabrinet (a) | 600 | | 9,882 |
Flextronics International Ltd. (a) | 21,700 | | 149,079 |
TE Connectivity Ltd. | 2,000 | | 68,200 |
| | 227,161 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 333,997 |
|
| Shares | | Value |
INTERNET SOFTWARE & SERVICES - 2.2% |
Internet Software & Services - 2.2% |
Akamai Technologies, Inc. (a) | 8,100 | | $ 261,225 |
Rackspace Hosting, Inc. (a) | 800 | | 34,728 |
| | 295,953 |
MEDIA - 0.4% |
Advertising - 0.4% |
Digital Generation, Inc. (a) | 3,300 | | 45,870 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.4% |
Semiconductor Equipment - 1.0% |
ASML Holding NV | 3,100 | | 133,269 |
Semiconductors - 5.4% |
Altera Corp. | 5,100 | | 202,929 |
Analog Devices, Inc. | 5,200 | | 203,476 |
Marvell Technology Group Ltd. (a) | 2,300 | | 35,719 |
ON Semiconductor Corp. (a) | 4,500 | | 39,150 |
Skyworks Solutions, Inc. (a) | 1,900 | | 41,002 |
Texas Instruments, Inc. | 4,200 | | 135,996 |
Xilinx, Inc. | 1,600 | | 57,360 |
| | 715,632 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 848,901 |
SOFTWARE - 2.4% |
Application Software - 0.5% |
BroadSoft, Inc. (a)(d) | 1,100 | | 30,668 |
Citrix Systems, Inc. (a) | 500 | | 32,605 |
| | 63,273 |
Systems Software - 1.9% |
Allot Communications Ltd. (a) | 1,600 | | 25,216 |
Microsoft Corp. | 4,900 | | 144,697 |
Oracle Corp. | 2,900 | | 81,780 |
| | 251,693 |
TOTAL SOFTWARE | | 314,966 |
TOTAL COMMON STOCKS (Cost $12,576,463) |
13,073,933
|
Money Market Funds - 3.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 152,858 | | $ 152,858 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 323,450 | | 323,450 |
TOTAL MONEY MARKET FUNDS (Cost $476,308) |
476,308
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $13,052,771) | | 13,550,241 |
NET OTHER ASSETS (LIABILITIES) - (2.3)% | | (303,670) |
NET ASSETS - 100% | $ 13,246,571 |
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 | $ 132 |
Fidelity Securities Lending Cash Central Fund | 27,141 |
Total | $ 27,273 |
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 | 86.9% |
Sweden | 4.9% |
Finland | 2.4% |
Canada | 1.2% |
Singapore | 1.1% |
Netherlands | 1.0% |
Others (Individually Less Than 1%) | 2.5% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $310,065) - See accompanying schedule: Unaffiliated issuers (cost $12,576,463) | $ 13,073,933 | |
Fidelity Central Funds (cost $476,308) | 476,308 | |
Total Investments (cost $13,052,771) | | $ 13,550,241 |
Receivable for investments sold | | 142,043 |
Receivable for fund shares sold | | 12,518 |
Dividends receivable | | 2,722 |
Distributions receivable from Fidelity Central Funds | | 640 |
Prepaid expenses | | 69 |
Receivable from investment adviser for expense reductions | | 2,047 |
Other receivables | | 358 |
Total assets | | 13,710,638 |
| | |
Liabilities | | |
Payable for investments purchased | $ 45,838 | |
Payable for fund shares redeemed | 55,501 | |
Accrued management fee | 6,208 | |
Distribution and service plan fees payable | 5,737 | |
Other affiliated payables | 3,789 | |
Other payables and accrued expenses | 23,544 | |
Collateral on securities loaned, at value | 323,450 | |
Total liabilities | | 464,067 |
| | |
Net Assets | | $ 13,246,571 |
Net Assets consist of: | | |
Paid in capital | | $ 14,803,389 |
Accumulated net investment loss | | (60,811) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,993,496) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 497,489 |
Net Assets | | $ 13,246,571 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,857,407 ÷ 546,528 shares) | | $ 8.89 |
| | |
Maximum offering price per share (100/94.25 of $8.89) | | $ 9.43 |
Class T:
Net Asset Value and redemption price per share ($3,813,059 ÷ 441,279 shares) | | $ 8.64 |
| | |
Maximum offering price per share (100/96.50 of $8.64) | | $ 8.95 |
Class B:
Net Asset Value and offering price per share ($810,179 ÷ 99,304 shares)A | | $ 8.16 |
| | |
Class C:
Net Asset Value and offering price per share ($2,917,554 ÷ 357,780 shares)A | | $ 8.15 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($848,372 ÷ 92,736 shares) | | $ 9.15 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 39,399 |
Interest | | 22 |
Income from Fidelity Central Funds (including $27,141 from security lending) | | 27,273 |
Total income | | 66,694 |
| | |
Expenses | | |
Management fee | $ 42,084 | |
Transfer agent fees | 23,607 | |
Distribution and service plan fees | 38,476 | |
Accounting and security lending fees | 3,070 | |
Custodian fees and expenses | 2,007 | |
Independent trustees' compensation | 57 | |
Registration fees | 47,860 | |
Audit | 25,003 | |
Legal | 52 | |
Miscellaneous | 91 | |
Total expenses before reductions | 182,307 | |
Expense reductions | (57,595) | 124,712 |
Net investment income (loss) | | (58,018) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,812,437) | |
Foreign currency transactions | (597) | |
Total net realized gain (loss) | | (1,813,034) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (108,304) | |
Assets and liabilities in foreign currencies | 19 | |
Total change in net unrealized appreciation (depreciation) | | (108,285) |
Net gain (loss) | | (1,921,319) |
Net increase (decrease) in net assets resulting from operations | | $ (1,979,337) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (58,018) | $ (190,541) |
Net realized gain (loss) | (1,813,034) | 1,590,280 |
Change in net unrealized appreciation (depreciation) | (108,285) | (1,230,510) |
Net increase (decrease) in net assets resulting from operations | (1,979,337) | 169,229 |
Distributions to shareholders from net realized gain | (401,208) | - |
Share transactions - net increase (decrease) | (7,804,051) | 8,972,466 |
Redemption fees | 603 | 1,851 |
Total increase (decrease) in net assets | (10,183,993) | 9,143,546 |
| | |
Net Assets | | |
Beginning of period | 23,430,564 | 14,287,018 |
End of period (including accumulated net investment loss of $60,811 and accumulated net investment loss of $2,793, respectively) | $ 13,246,571 | $ 23,430,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.73 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.06) | (.11) | .02 H | (.08) | (.09) |
Net realized and unrealized gain (loss) | (.62) | 1.12 | 1.50 | (.56) | (1.45) | 2.29 |
Total from investment operations | (.64) | 1.06 | 1.39 | (.54) | (1.53) | 2.20 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.89 | $ 9.73 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 |
Total Return B,C,D | (6.46)% | 12.23% | 19.09% | (6.91)% | (16.43)% | 30.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.14% A | 1.64% | 1.90% | 3.15% | 2.25% | 2.24% |
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 | 1.39% | 1.38% | 1.40% | 1.39% | 1.40% |
Net investment income (loss) | (.51)% A | (.60)% | (1.32)% | .26% H | (.91)% | (1.00)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,857 | $ 8,787 | $ 4,860 | $ 3,476 | $ 2,459 | $ 2,825 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.48 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.09) | (.13) | - H,J | (.10) | (.11) |
Net realized and unrealized gain (loss) | (.61) | 1.11 | 1.46 | (.55) | (1.42) | 2.26 |
Total from investment operations | (.64) | 1.02 | 1.33 | (.55) | (1.52) | 2.15 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.64 | $ 9.48 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 |
Total Return B,C,D | (6.64)% | 12.06% | 18.65% | (7.16)% | (16.59)% | 29.90% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.46% A | 1.97% | 2.20% | 3.52% | 2.62% | 2.57% |
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% | 1.63% | 1.65% | 1.65% | 1.64% |
Net investment income (loss) | (.75)% A | (.85)% | (1.57)% | .01% H | (1.16)% | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,813 | $ 4,607 | $ 3,273 | $ 2,396 | $ 2,138 | $ 3,271 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.99 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.13) | (.16) | (.03) H | (.14) | (.14) |
Net realized and unrealized gain (loss) | (.58) | 1.06 | 1.39 | (.53) | (1.36) | 2.18 |
Total from investment operations | (.63) | .93 | 1.23 | (.56) | (1.50) | 2.04 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.16 | $ 8.99 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 |
Total Return B,C,D | (6.89)% | 11.54% | 18.01% | (7.58)% | (16.94)% | 29.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.90% A | 2.47% | 2.68% | 3.98% | 3.03% | 3.00% |
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% | 2.13% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (1.25)% A | (1.35)% | (2.07)% | (.49)% H | (1.67)% | (1.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 810 | $ 1,316 | $ 1,408 | $ 1,281 | $ 1,219 | $ 2,225 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.98 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.13) | (.16) | (.03) H | (.14) | (.14) |
Net realized and unrealized gain (loss) | (.58) | 1.05 | 1.40 | (.53) | (1.37) | 2.18 |
Total from investment operations | (.63) | .92 | 1.24 | (.56) | (1.51) | 2.04 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.15 | $ 8.98 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 |
Total Return B,C,D | (6.90)% | 11.41% | 18.18% | (7.59)% | (17.06)% | 29.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.90% A | 2.40% | 2.67% | 3.63% | 3.02% | 2.98% |
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 | 2.14% | 2.13% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (1.26)% A | (1.35)% | (2.07)% | (.49)% H | (1.67)% | (1.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,918 | $ 5,866 | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | (.04) | (.09) | .03 G | (.06) | (.07) |
Net realized and unrealized gain (loss) | (.64) | 1.16 | 1.52 | (.56) | (1.47) | 2.33 |
Total from investment operations | (.65) | 1.12 | 1.43 | (.53) | (1.53) | 2.26 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.15 | $ 10.00 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 |
Total Return B,C | (6.39)% | 12.61% | 19.19% | (6.64)% | (16.16)% | 30.58% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | 1.75% A | 1.22% | 1.54% | 2.44% | 1.94% | 1.87% |
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 | 1.13% A | 1.14% | 1.13% | 1.15% | 1.14% | 1.15% |
Net investment income (loss) | (.25)% A | (.35)% | (1.07)% | .51% G | (.66)% | (.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 848 | $ 2,855 | $ 1,717 | $ 957 | $ 229 | $ 324 |
Portfolio turnover rate F | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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. 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
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 | $ 1,223,376 |
Gross unrealized depreciation | (960,404) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 262,972 |
| |
Tax cost | $ 13,287,269 |
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 $8,467,444 and $16,233,273, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 6,967 | $ 41 |
Class T | .25% | .25% | 9,508 | - |
Class B | .75% | .25% | 4,509 | 3,382 |
Class C | .75% | .25% | 17,492 | 5,337 |
| | | $ 38,476 | $ 8,760 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 1,058 |
Class T | 806 |
Class B* | 2,593 |
Class C* | 1,482 |
| $ 5,939 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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
Average
Net Assets* |
Class A | $ 8,505 | .30 |
Class T | 6,771 | .36 |
Class B | 1,386 | .31 |
Class C | 5,489 | .31 |
Institutional Class | 1,456 | .23 |
| $ 23,607 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $1,511 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $24 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 20,762 |
Class T | 1.65% | 15,351 |
Class B | 2.15% | 3,398 |
Class C | 2.15% | 13,042 |
Institutional Class | 1.15% | 3,877 |
| | $ 56,430 |
Semiannual Report
8. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,165 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net realized gain | | |
Class A | $ 136,672 | $ - |
Class T | 94,407 | - |
Class B | 23,930 | - |
Class C | 101,740 | - |
Institutional Class | 44,459 | - |
Total | $ 401,208 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 52,836 | 848,465 | $ 460,277 | $ 9,277,193 |
Reinvestment of distributions | 15,026 | - | 125,915 | - |
Shares redeemed | (424,065) | (506,493) | (3,607,261) | (5,495,871) |
Net increase (decrease) | (356,203) | 341,972 | $ (3,021,069) | $ 3,781,322 |
Class T | | | | |
Shares sold | 65,496 | 222,009 | $ 560,926 | $ 2,346,633 |
Reinvestment of distributions | 11,468 | - | 93,466 | - |
Shares redeemed | (121,625) | (122,895) | (1,028,340) | (1,276,707) |
Net increase (decrease) | (44,661) | 99,114 | $ (373,948) | $ 1,069,926 |
Class B | | | | |
Shares sold | 9 | 48,553 | $ 69 | $ 469,014 |
Reinvestment of distributions | 3,015 | - | 23,244 | - |
Shares redeemed | (50,183) | (76,689) | (397,202) | (748,333) |
Net increase (decrease) | (47,159) | (28,136) | $ (373,889) | $ (279,319) |
Class C | | | | |
Shares sold | 23,854 | 468,878 | $ 187,885 | $ 4,767,947 |
Reinvestment of distributions | 10,744 | - | 82,834 | - |
Shares redeemed | (329,846) | (191,799) | (2,594,781) | (1,863,160) |
Net increase (decrease) | (295,248) | 277,079 | $ (2,324,062) | $ 2,904,787 |
Institutional Class | | | | |
Shares sold | 11,828 | 497,180 | $ 102,072 | $ 5,828,732 |
Reinvestment of distributions | 2,747 | - | 23,680 | - |
Shares redeemed | (207,315) | (405,041) | (1,836,835) | (4,332,982) |
Net increase (decrease) | (192,740) | 92,139 | $ (1,711,083) | $ 1,495,750 |
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 Consumer Discretionary Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,019.00 | $ 7.11 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,016.80 | $ 8.36 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,014.60 | $ 10.89 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,014.60 | $ 10.89 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,019.80 | $ 5.38 |
Hypothetical A | | $ 1,000.00 | $ 1,019.81 | $ 5.38 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
McDonald's Corp. | 6.6 | 4.9 |
The Walt Disney Co. | 5.7 | 3.1 |
Comcast Corp. Class A | 5.0 | 0.0 |
Amazon.com, Inc. | 4.9 | 5.8 |
Home Depot, Inc. | 3.8 | 0.0 |
Lowe's Companies, Inc. | 3.8 | 5.3 |
Time Warner, Inc. | 3.7 | 3.8 |
Starbucks Corp. | 3.7 | 2.8 |
Ford Motor Co. | 3.6 | 0.0 |
Bed Bath & Beyond, Inc. | 3.4 | 2.9 |
| 44.2 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Specialty Retail | 25.5% | |
| Media | 23.1% | |
| Hotels, Restaurants & Leisure | 18.8% | |
| Textiles, Apparel & Luxury Goods | 8.3% | |
| Internet & Catalog Retail | 5.6% | |
| All Others* | 18.7% | |
As of July 31, 2011 |
| Hotels, Restaurants & Leisure | 22.8% | |
| Specialty Retail | 20.8% | |
| Media | 20.0% | |
| Internet & Catalog Retail | 9.6% | |
| Textiles, Apparel & Luxury Goods | 5.3% | |
 | All Others* | 21.5% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
| Shares | | Value |
AUTO COMPONENTS - 1.6% |
Auto Parts & Equipment - 1.6% |
Delphi Automotive PLC | 8,000 | | $ 214,640 |
Gentex Corp. | 29,090 | | 781,648 |
| | 996,288 |
AUTOMOBILES - 4.6% |
Automobile Manufacturers - 4.6% |
Bayerische Motoren Werke AG (BMW) | 7,042 | | 602,280 |
Ford Motor Co. | 174,153 | | 2,162,980 |
| | 2,765,260 |
DIVERSIFIED CONSUMER SERVICES - 2.7% |
Education Services - 0.9% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 9,800 | | 513,618 |
Specialized Consumer Services - 1.8% |
Sotheby's Class A (Ltd. vtg.) | 11,506 | | 385,796 |
Steiner Leisure Ltd. (a) | 2,964 | | 146,362 |
Weight Watchers International, Inc. (d) | 7,435 | | 566,027 |
| | 1,098,185 |
TOTAL DIVERSIFIED CONSUMER SERVICES | | 1,611,803 |
HOTELS, RESTAURANTS & LEISURE - 18.8% |
Casinos & Gaming - 3.2% |
Las Vegas Sands Corp. | 30,471 | | 1,496,431 |
Las Vegas Sands Corp. warrants 11/16/13 (a) | 410 | | 294,963 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 10,700 | | 119,305 |
| | 1,910,699 |
Hotels, Resorts & Cruise Lines - 0.3% |
Wyndham Worldwide Corp. | 5,300 | | 210,728 |
Restaurants - 15.3% |
Arcos Dorados Holdings, Inc. | 6,000 | | 129,000 |
BJ's Restaurants, Inc. (a) | 9,610 | | 480,788 |
Bravo Brio Restaurant Group, Inc. (a) | 7,400 | | 142,450 |
Darden Restaurants, Inc. | 8,263 | | 379,024 |
Denny's Corp. (a) | 24,860 | | 106,649 |
Dunkin' Brands Group, Inc. (a)(d) | 10,400 | | 287,560 |
McDonald's Corp. | 40,572 | | 4,018,657 |
Ruth's Hospitality Group, Inc. (a) | 76,599 | | 474,148 |
Starbucks Corp. | 46,218 | | 2,215,229 |
Texas Roadhouse, Inc. Class A | 66,325 | | 1,005,487 |
| | 9,238,992 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 11,360,419 |
HOUSEHOLD DURABLES - 1.9% |
Home Furnishings - 1.1% |
Tempur-Pedic International, Inc. (a) | 10,299 | | 687,046 |
|
| Shares | | Value |
Homebuilding - 0.8% |
Lennar Corp. Class A (d) | 22,911 | | $ 492,357 |
TOTAL HOUSEHOLD DURABLES | | 1,179,403 |
INTERNET & CATALOG RETAIL - 5.6% |
Internet Retail - 5.6% |
Amazon.com, Inc. (a) | 15,263 | | 2,967,738 |
Groupon, Inc. Class A (a)(d) | 19,450 | | 396,586 |
| | 3,364,324 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Bankrate, Inc. | 6,904 | | 161,485 |
Google, Inc. Class A (a) | 498 | | 288,895 |
| | 450,380 |
LEISURE EQUIPMENT & PRODUCTS - 0.9% |
Leisure Products - 0.9% |
Hasbro, Inc. | 14,822 | | 517,436 |
MEDIA - 23.1% |
Broadcasting - 3.7% |
CBS Corp. Class B | 43,523 | | 1,239,535 |
Discovery Communications, Inc. (a) | 8,800 | | 377,344 |
Liberty Media Corp. Capital Series A (a) | 7,562 | | 623,184 |
| | 2,240,063 |
Cable & Satellite - 8.7% |
Comcast Corp. Class A | 114,382 | | 3,041,417 |
DIRECTV (a) | 4,995 | | 224,825 |
DISH Network Corp. Class A | 16,750 | | 467,660 |
Sirius XM Radio, Inc. (a)(d) | 427,034 | | 892,501 |
Time Warner Cable, Inc. | 4,739 | | 349,359 |
Virgin Media, Inc. | 11,300 | | 269,392 |
| | 5,245,154 |
Movies & Entertainment - 10.7% |
News Corp. Class A | 40,237 | | 757,663 |
The Walt Disney Co. | 88,758 | | 3,452,686 |
Time Warner, Inc. | 59,976 | | 2,222,711 |
| | 6,433,060 |
TOTAL MEDIA | | 13,918,277 |
MULTILINE RETAIL - 4.6% |
General Merchandise Stores - 4.6% |
Dollar Tree, Inc. (a) | 12,015 | | 1,018,992 |
Target Corp. | 34,413 | | 1,748,525 |
| | 2,767,517 |
SOFTWARE - 0.5% |
Home Entertainment Software - 0.5% |
Take-Two Interactive Software, Inc. (a) | 10,300 | | 160,680 |
Zynga, Inc. (d) | 16,200 | | 170,100 |
| | 330,780 |
Common Stocks - continued |
| Shares | | Value |
SPECIALTY RETAIL - 25.5% |
Apparel Retail - 6.2% |
Body Central Corp. (a) | 7,100 | | $ 190,848 |
Express, Inc. (a) | 16,600 | | 359,224 |
Foot Locker, Inc. | 17,257 | | 452,824 |
Inditex SA | 1,557 | | 135,833 |
Limited Brands, Inc. | 27,697 | | 1,159,396 |
TJX Companies, Inc. | 21,372 | | 1,456,288 |
| | 3,754,413 |
Automotive Retail - 3.4% |
Advance Auto Parts, Inc. | 19,020 | | 1,457,693 |
AutoZone, Inc. (a) | 1,800 | | 626,184 |
| | 2,083,877 |
Computer & Electronics Retail - 0.9% |
Best Buy Co., Inc. | 22,700 | | 543,665 |
Home Improvement Retail - 8.2% |
Home Depot, Inc. | 52,000 | | 2,308,280 |
Lowe's Companies, Inc. | 85,353 | | 2,290,021 |
Lumber Liquidators Holdings, Inc. (a) | 15,625 | | 333,750 |
| | 4,932,051 |
Homefurnishing Retail - 4.2% |
Bed Bath & Beyond, Inc. (a) | 33,452 | | 2,030,536 |
Mattress Firm Holding Corp. (d) | 6,100 | | 201,483 |
Pier 1 Imports, Inc. (a) | 17,700 | | 275,235 |
| | 2,507,254 |
Specialty Stores - 2.6% |
Tiffany & Co., Inc. | 6,380 | | 407,044 |
Tractor Supply Co. | 8,935 | | 721,680 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 5,950 | | 453,509 |
| | 1,582,233 |
TOTAL SPECIALTY RETAIL | | 15,403,493 |
TEXTILES, APPAREL & LUXURY GOODS - 8.3% |
Apparel, Accessories & Luxury Goods - 4.4% |
Michael Kors Holdings Ltd. | 4,600 | | 142,370 |
PVH Corp. | 8,133 | | 627,786 |
|
| Shares | | Value |
Ralph Lauren Corp. | 4,800 | | $ 729,600 |
Vera Bradley, Inc. (a)(d) | 10,594 | | 379,477 |
VF Corp. | 5,800 | | 762,642 |
| | 2,641,875 |
Footwear - 3.9% |
Deckers Outdoor Corp. (a) | 5,000 | | 404,250 |
NIKE, Inc. Class B | 18,648 | | 1,939,206 |
| | 2,343,456 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 4,985,331 |
TOTAL COMMON STOCKS (Cost $52,205,611) |
59,650,711
|
Money Market Funds - 6.8% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 857,743 | | 857,743 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,248,475 | | 3,248,475 |
TOTAL MONEY MARKET FUNDS (Cost $4,106,218) |
4,106,218
|
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $56,311,829) | | 63,756,929 |
NET OTHER ASSETS (LIABILITIES) - (5.6)% | | (3,383,247) |
NET ASSETS - 100% | $ 60,373,682 |
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 | $ 254 |
Fidelity Securities Lending Cash Central Fund | 29,203 |
Total | $ 29,457 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 59,650,711 | $ 59,355,748 | $ 294,963 | $ - |
Money Market Funds | 4,106,218 | 4,106,218 | - | - |
Total Investments in Securities: | $ 63,756,929 | $ 63,461,966 | $ 294,963 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,146,840) - See accompanying schedule: Unaffiliated issuers (cost $52,205,611) | $ 59,650,711 | |
Fidelity Central Funds (cost $4,106,218) | 4,106,218 | |
Total Investments (cost $56,311,829) | | $ 63,756,929 |
Receivable for investments sold | | 1,371,597 |
Receivable for fund shares sold | | 183,293 |
Dividends receivable | | 31,806 |
Distributions receivable from Fidelity Central Funds | | 13,369 |
Prepaid expenses | | 120 |
Other receivables | | 1,191 |
Total assets | | 65,358,305 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,468,222 | |
Payable for fund shares redeemed | 178,692 | |
Accrued management fee | 31,676 | |
Distribution and service plan fees payable | 17,042 | |
Other affiliated payables | 13,383 | |
Other payables and accrued expenses | 27,133 | |
Collateral on securities loaned, at value | 3,248,475 | |
Total liabilities | | 4,984,623 |
| | |
Net Assets | | $ 60,373,682 |
Net Assets consist of: | | |
Paid in capital | | $ 52,804,826 |
Accumulated net investment loss | | (11,838) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 135,755 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 7,444,939 |
Net Assets | | $ 60,373,682 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($20,997,882 ÷ 1,371,960 shares) | | $ 15.31 |
| | |
Maximum offering price per share (100/94.25 of $15.31) | | $ 16.24 |
Class T:
Net Asset Value and redemption price per share ($9,767,607 ÷ 663,844 shares) | | $ 14.71 |
| | |
Maximum offering price per share (100/96.50 of $14.71) | | $ 15.24 |
Class B:
Net Asset Value and offering price per share ($2,935,388 ÷ 217,743 shares)A | | $ 13.48 |
| | |
Class C:
Net Asset Value and offering price per share ($7,806,984 ÷ 577,726 shares)A | | $ 13.51 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($18,865,821 ÷ 1,175,905 shares) | | $ 16.04 |
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 Consumer Discretionary Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 420,914 |
Interest | | 1 |
Income from Fidelity Central Funds (including $29,203 from security lending) | | 29,457 |
Total income | | 450,372 |
| | |
Expenses | | |
Management fee | $ 138,043 | |
Transfer agent fees | 68,201 | |
Distribution and service plan fees | 95,482 | |
Accounting and security lending fees | 9,767 | |
Custodian fees and expenses | 9,734 | |
Independent trustees' compensation | 162 | |
Registration fees | 38,796 | |
Audit | 27,564 | |
Legal | 112 | |
Miscellaneous | 225 | |
Total expenses before reductions | 388,086 | |
Expense reductions | (16,633) | 371,453 |
Net investment income (loss) | | 78,919 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $2,532) | 408,074 | |
Foreign currency transactions | (4,705) | |
Total net realized gain (loss) | | 403,369 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $6,492) | 711,594 | |
Assets and liabilities in foreign currencies | 403 | |
Total change in net unrealized appreciation (depreciation) | | 711,997 |
Net gain (loss) | | 1,115,366 |
Net increase (decrease) in net assets resulting from operations | | $ 1,194,285 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 78,919 | $ (180,164) |
Net realized gain (loss) | 403,369 | 5,895,581 |
Change in net unrealized appreciation (depreciation) | 711,997 | 6,053,008 |
Net increase (decrease) in net assets resulting from operations | 1,194,285 | 11,768,425 |
Distributions to shareholders from net investment income | (82,290) | - |
Distributions to shareholders from net realized gain | (2,716,672) | - |
Total distributions | (2,798,962) | - |
Share transactions - net increase (decrease) | 8,715,377 | (7,894,650) |
Redemption fees | 2,015 | 1,559 |
Total increase (decrease) in net assets | 7,112,715 | 3,875,334 |
| | |
Net Assets | | |
Beginning of period | 53,260,967 | 49,385,633 |
End of period (including accumulated net investment loss of $11,838 and accumulated net investment loss of $8,467, respectively) | $ 60,373,682 | $ 53,260,967 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.00 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.02) | (.02) | .04 | .02 | .02 H |
Net realized and unrealized gain (loss) | .14 | 3.27 | 2.51 | (1.16) | (3.09) | 1.83 |
Total from investment operations | .17 | 3.25 | 2.49 | (1.12) | (3.07) | 1.85 |
Distributions from net investment income | (.03) | - | - | (.03) | - | (.05) |
Distributions from net realized gain | (.83) | - | - | - | (1.41) | (2.30) |
Total distributions | (.86) | - | - | (.03) | (1.41) | (2.35) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.31 | $ 16.00 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 |
Total Return B,C,D | 1.90% | 25.49% | 24.27% | (9.81)% | (21.24)% | 11.67% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.47% A | 1.39% | 1.44% | 1.62% | 1.40% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.38% | 1.39% | 1.40% | 1.40% | 1.39% |
Net investment income (loss) | .44% A | (.15)% | (.15)% | .42% | .15% | .11% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,998 | $ 23,447 | $ 19,423 | $ 13,010 | $ 11,899 | $ 19,708 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.43 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.06) | (.05) | .01 | (.01) | (.02) H |
Net realized and unrealized gain (loss) | .12 | 3.17 | 2.43 | (1.12) | (3.00) | 1.79 |
Total from investment operations | .13 | 3.11 | 2.38 | (1.11) | (3.01) | 1.77 |
Distributions from net investment income | (.02) | - | - | (.02) | - | (.03) |
Distributions from net realized gain | (.83) | - | - | - | (1.39) | (2.30) |
Total distributions | (.85) | - | - | (.02) | (1.39) | (2.33) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.71 | $ 15.43 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 |
Total Return B,C,D | 1.68% | 25.24% | 23.94% | (10.04)% | (21.41)% | 11.43% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.73% A | 1.66% | 1.71% | 1.89% | 1.64% | 1.69% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.64% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.64% | 1.65% | 1.62% | 1.61% |
Net investment income (loss) | .19% A | (.40)% | (.40)% | .17% | (.08)% | (.10)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,768 | $ 9,897 | $ 8,018 | $ 6,738 | $ 9,095 | $ 14,787 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.23 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.12) | (.10) | (.03) | (.07) | (.10) H |
Net realized and unrealized gain (loss) | .10 | 2.93 | 2.26 | (1.06) | (2.81) | 1.70 |
Total from investment operations | .08 | 2.81 | 2.16 | (1.09) | (2.88) | 1.60 |
Distributions from net realized gain | (.83) | - | - | - | (1.33) | (2.30) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.48 | $ 14.23 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 |
Total Return B,C,D | 1.46% | 24.61% | 23.33% | (10.53)% | (21.80)% | 10.82% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.22% A | 2.15% | 2.21% | 2.38% | 2.14% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.14% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.14% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.31)% A | (.90)% | (.90)% | (.33)% | (.60)% | (.64)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,935 | $ 3,170 | $ 3,643 | $ 3,550 | $ 5,090 | $ 11,081 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.26 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.12) | (.10) | (.03) | (.07) | (.10) H |
Net realized and unrealized gain (loss) | .10 | 2.94 | 2.27 | (1.07) | (2.81) | 1.71 |
Total from investment operations | .08 | 2.82 | 2.17 | (1.10) | (2.88) | 1.61 |
Distributions from net realized gain | (.83) | - | - | - | (1.34) | (2.30) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.51 | $ 14.26 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 |
Total Return B,C,D | 1.46% | 24.65% | 23.41% | (10.61)% | (21.77)% | 10.88% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.22% A | 2.11% | 2.12% | 2.38% | 2.15% | 2.16% |
Expenses net of fee waivers, if any | 2.15% A | 2.11% | 2.12% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.09% | 2.11% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.31)% A | (.86)% | (.87)% | (.33)% | (.60)% | (.64)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,807 | $ 7,341 | $ 9,288 | $ 2,955 | $ 3,430 | $ 8,051 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.72 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .03 | .02 | .06 | .06 | .06 G |
Net realized and unrealized gain (loss) | .14 | 3.42 | 2.60 | (1.20) | (3.22) | 1.89 |
Total from investment operations | .20 | 3.45 | 2.62 | (1.14) | (3.16) | 1.95 |
Distributions from net investment income | (.05) | - | (.01) | (.04) | - | (.06) |
Distributions from net realized gain | (.83) | - | - | - | (1.41) | (2.30) |
Total distributions | (.88) | - | (.01) | (.04) | (1.41) | (2.36) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.04 | $ 16.72 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 |
Total Return B,C | 1.98% | 26.00% | 24.62% | (9.59)% | (21.09)% | 12.04% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | 1.06% A | 1.03% | 1.09% | 1.15% | 1.14% | 1.15% |
Expenses net of fee waivers, if any | 1.06% A | 1.03% | 1.09% | 1.15% | 1.14% | 1.15% |
Expenses net of all reductions | 1.05% A | 1.01% | 1.08% | 1.15% | 1.14% | 1.14% |
Net investment income (loss) | .78% A | .22% | .16% | .67% | .40% | .36% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,866 | $ 9,406 | $ 9,013 | $ 5,990 | $ 398 | $ 1,385 |
Portfolio turnover rate F | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is 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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 foreign currency transactions, certain foreign taxes, deferred trustees compensation, 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 | $ 8,060,075 |
Gross unrealized depreciation | (1,116,612) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,943,463 |
| |
Tax cost | $ 56,813,466 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $50,987,362 and $45,727,813, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 25,025 | $ 1,254 |
Class T | .25% | .25% | 22,650 | - |
Class B | .75% | .25% | 14,293 | 10,720 |
Class C | .75% | .25% | 33,514 | 6,593 |
| | | $ 95,482 | $ 18,567 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 1,913 |
Class T | 1,280 |
Class B* | 2,049 |
Class C* | 361 |
| $ 5,603 |
* 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
5. 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
Average
Net Assets* |
Class A | $ 30,507 | .30 |
Class T | 14,322 | .32 |
Class B | 4,341 | .30 |
Class C | 10,009 | .30 |
Institutional Class | 9,022 | .17 |
| $ 68,201 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,472 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $68 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 7,192 |
Class T | 1.65% | 3,817 |
Class B | 2.15% | 1,062 |
Class C | 2.15% | 2,330 |
| | $ 14,401 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $2,232 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 44,402 | $ - |
Class T | 11,934 | - |
Institutional Class | 25,954 | - |
Total | $ 82,290 | $ - |
From net realized gain | | |
Class A | $ 1,117,697 | $ - |
Class T | 525,372 | - |
Class B | 185,641 | - |
Class C | 423,815 | - |
Institutional Class | 464,147 | - |
Total | $ 2,716,672 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 237,900 | 665,093 | $ 3,438,963 | $ 10,095,802 |
Reinvestment of distributions | 76,740 | - | 1,020,698 | - |
Shares redeemed | (407,837) | (723,296) | (5,816,225) | (10,778,369) |
Net increase (decrease) | (93,197) | (58,203) | $ (1,356,564) | $ (682,567) |
Class T | | | | |
Shares sold | 53,500 | 187,572 | $ 745,357 | $ 2,764,268 |
Reinvestment of distributions | 40,961 | - | 523,233 | - |
Shares redeemed | (72,138) | (196,717) | (988,977) | (2,907,152) |
Net increase (decrease) | 22,323 | (9,145) | $ 279,613 | $ (142,884) |
Class B | | | | |
Shares sold | 13,748 | 40,939 | $ 169,530 | $ 519,870 |
Reinvestment of distributions | 13,190 | - | 154,193 | - |
Shares redeemed | (31,992) | (137,051) | (403,549) | (1,818,569) |
Net increase (decrease) | (5,054) | (96,112) | $ (79,826) | $ (1,298,699) |
Class C | | | | |
Shares sold | 127,867 | 588,992 | $ 1,640,233 | $ 8,103,013 |
Reinvestment of distributions | 33,472 | - | 392,295 | - |
Shares redeemed | (98,361) | (885,890) | (1,240,984) | (12,399,353) |
Net increase (decrease) | 62,978 | (296,898) | $ 791,544 | $ (4,296,340) |
Institutional Class | | | | |
Shares sold | 837,357 | 346,649 | $ 12,503,594 | $ 5,583,185 |
Reinvestment of distributions | 13,483 | - | 188,283 | - |
Shares redeemed | (237,516) | (463,053) | (3,611,267) | (7,057,345) |
Net increase (decrease) | 613,324 | (116,404) | $ 9,080,610 | $ (1,474,160) |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,047.00 | $ 7.20 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,045.80 | $ 8.49 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,043.40 | $ 11.04 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,043.40 | $ 11.04 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,047.90 | $ 5.92 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Marvell Technology Group Ltd. | 9.1 | 10.6 |
Texas Instruments, Inc. | 8.6 | 2.7 |
Broadcom Corp. Class A | 8.3 | 9.7 |
Freescale Semiconductor Holdings I Ltd. | 3.6 | 3.1 |
Intersil Corp. Class A | 3.6 | 3.5 |
Intel Corp. | 3.6 | 7.8 |
ON Semiconductor Corp. | 3.5 | 3.4 |
Advanced Micro Devices, Inc. | 2.9 | 4.9 |
Skyworks Solutions, Inc. | 2.7 | 1.3 |
NXP Semiconductors NV | 2.7 | 3.4 |
| 48.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Semiconductors & Semiconductor Equipment | 83.8% | |
| Electronic Equipment & Components | 5.4% | |
| Communications Equipment | 2.7% | |
| Computers & Peripherals | 2.4% | |
| Internet Software & Services | 0.7% | |
| All Others* | 5.0% | |
As of July 31, 2011 |
| Semiconductors & Semiconductor Equipment | 88.2% | |
| Electronic Equipment & Components | 4.0% | |
| Communications Equipment | 3.4% | |
| Computers & Peripherals | 3.0% | |
| Internet Software & Services | 0.3% | |
| All Others* | 1.1% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 2.7% |
Communications Equipment - 2.7% |
Juniper Networks, Inc. (a) | 5,700 | | $ 119,301 |
QUALCOMM, Inc. | 5,534 | | 325,510 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 3,200 | | 29,664 |
| | 474,475 |
COMPUTERS & PERIPHERALS - 2.4% |
Computer Storage & Peripherals - 2.4% |
NetApp, Inc. (a) | 900 | | 33,966 |
SanDisk Corp. (a) | 8,086 | | 370,986 |
Synaptics, Inc. (a) | 130 | | 4,980 |
| | 409,932 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.4% |
Electronic Components - 1.8% |
Aeroflex Holding Corp. (a) | 15,668 | | 198,514 |
Amphenol Corp. Class A | 110 | | 5,987 |
Corning, Inc. | 8,671 | | 111,596 |
| | 316,097 |
Electronic Manufacturing Services - 3.5% |
Benchmark Electronics, Inc. (a) | 4,121 | | 70,881 |
Fabrinet (a) | 1,388 | | 22,860 |
Flextronics International Ltd. (a) | 37,195 | | 255,530 |
Jabil Circuit, Inc. | 3,654 | | 82,800 |
TE Connectivity Ltd. | 1,900 | | 64,790 |
TTM Technologies, Inc. (a) | 8,868 | | 108,810 |
Viasystems Group, Inc. (a) | 12 | | 204 |
| | 605,875 |
Technology Distributors - 0.1% |
Avnet, Inc. (a) | 200 | | 6,974 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 928,946 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Google, Inc. Class A (a) | 200 | | 116,022 |
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 - 81.5% |
Semiconductor Equipment - 9.1% |
Advanced Energy Industries, Inc. (a) | 15 | | 160 |
Amkor Technology, Inc. (a)(d) | 68,574 | | 392,929 |
Applied Materials, Inc. | 3,274 | | 40,205 |
ASML Holding NV | 4,410 | | 189,586 |
Cabot Microelectronics Corp. (a) | 50 | | 2,521 |
Cohu, Inc. | 20 | | 263 |
Cymer, Inc. (a) | 6,632 | | 330,207 |
Entegris, Inc. (a) | 8,851 | | 84,793 |
|
| Shares | | Value |
KLA-Tencor Corp. | 1,130 | | $ 57,777 |
Lam Research Corp. (a) | 7,458 | | 317,636 |
MEMC Electronic Materials, Inc. (a) | 8,762 | | 40,042 |
Nanometrics, Inc. (a) | 340 | | 6,885 |
Nova Measuring Instruments Ltd. (a) | 220 | | 1,890 |
Teradyne, Inc. (a) | 330 | | 5,396 |
Tessera Technologies, Inc. (a) | 4,624 | | 91,555 |
Ultratech, Inc. (a) | 210 | | 6,143 |
| | 1,567,988 |
Semiconductors - 72.4% |
Advanced Micro Devices, Inc. (a) | 73,234 | | 491,400 |
Alpha & Omega Semiconductor Ltd. (a) | 7,197 | | 66,788 |
Altera Corp. | 9,749 | | 387,913 |
Analog Devices, Inc. | 2,780 | | 108,781 |
Applied Micro Circuits Corp. (a) | 6,383 | | 49,979 |
Atmel Corp. (a) | 20,216 | | 196,297 |
Avago Technologies Ltd. | 8,986 | | 304,985 |
BCD Semiconductor Manufacturing Ltd. ADR | 21,295 | | 86,884 |
Broadcom Corp. Class A | 41,829 | | 1,436,408 |
Cirrus Logic, Inc. (a) | 2,630 | | 53,731 |
Cree, Inc. (a) | 2,190 | | 55,692 |
Cypress Semiconductor Corp. | 7,915 | | 136,098 |
Entropic Communications, Inc. (a) | 8,300 | | 48,472 |
Exar Corp. (a) | 200 | | 1,336 |
Fairchild Semiconductor International, Inc. (a) | 19,741 | | 275,979 |
First Solar, Inc. (a) | 78 | | 3,298 |
Freescale Semiconductor Holdings I Ltd. (d) | 39,054 | | 623,692 |
Himax Technologies, Inc. sponsored ADR | 21,438 | | 29,799 |
Intel Corp. | 23,300 | | 615,586 |
Intermolecular, Inc. | 7,117 | | 59,925 |
International Rectifier Corp. (a) | 6,389 | | 145,669 |
Intersil Corp. Class A | 55,176 | | 621,282 |
JA Solar Holdings Co. Ltd. ADR (a) | 18,550 | | 32,648 |
Linear Technology Corp. | 30 | | 1,000 |
LSI Corp. (a) | 3,357 | | 25,412 |
MagnaChip Semiconductor Corp. | 7,500 | | 72,900 |
Marvell Technology Group Ltd. (a) | 101,096 | | 1,570,016 |
Maxim Integrated Products, Inc. | 2,310 | | 62,000 |
Micron Technology, Inc. (a) | 58,351 | | 442,884 |
Monolithic Power Systems, Inc. (a) | 7,912 | | 129,678 |
Motech Industries, Inc. | 1 | | 2 |
NVIDIA Corp. (a) | 30,309 | | 447,664 |
NXP Semiconductors NV (a) | 21,768 | | 462,135 |
O2Micro International Ltd. sponsored ADR (a) | 4,700 | | 22,278 |
Omnivision Technologies, Inc. (a) | 2,000 | | 26,620 |
ON Semiconductor Corp. (a) | 69,184 | | 601,901 |
PMC-Sierra, Inc. (a) | 46,631 | | 303,102 |
RDA Microelectronics, Inc. sponsored ADR (a) | 818 | | 10,757 |
RF Micro Devices, Inc. (a) | 10,191 | | 50,853 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Skyworks Solutions, Inc. (a) | 21,939 | | $ 473,444 |
Spansion, Inc. Class A (a) | 25,172 | | 252,475 |
Standard Microsystems Corp. (a) | 1,914 | | 49,305 |
STATS ChipPAC Ltd. (a) | 123,000 | | 51,338 |
Supertex, Inc. (a) | 540 | | 9,979 |
Texas Instruments, Inc. | 45,918 | | 1,486,825 |
Trident Microsystems, Inc. (a) | 19 | | 3 |
Trina Solar Ltd. (a)(d) | 1,800 | | 14,472 |
TriQuint Semiconductor, Inc. (a) | 8,400 | | 50,316 |
Volterra Semiconductor Corp. (a) | 800 | | 24,136 |
Xilinx, Inc. | 70 | | 2,510 |
| | 12,476,647 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 14,044,635 |
TOTAL COMMON STOCKS (Cost $18,549,621) |
15,974,011
|
Convertible Bonds - 2.3% |
| Principal Amount | | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.3% |
Semiconductors - 2.3% |
Micron Technology, Inc.: | | | | |
1.5% 8/1/31 (e) | | $ 60,000 | | 59,475 |
1.875% 8/1/31 (e) | | 140,000 | | 140,175 |
4.25% 10/15/13 | | 60,000 | | 95,850 |
ON Semiconductor Corp. 1.875% 12/15/25 | | 70,000 | | 92,575 |
| | 388,075 |
Money Market Funds - 8.2% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 501,098 | | $ 501,098 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 909,615 | | 909,615 |
TOTAL MONEY MARKET FUNDS (Cost $1,410,713) |
1,410,713
|
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $20,279,062) | | 17,772,799 |
NET OTHER ASSETS (LIABILITIES) - (3.2)% | | (547,213) |
NET ASSETS - 100% | $ 17,225,586 |
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 $199,650 or 1.2% 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 | $ 135 |
Fidelity Securities Lending Cash Central Fund | 1,190 |
Total | $ 1,325 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 at the end of this listing in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 15,974,011 | $ 15,974,010 | $ - | $ 1 |
Convertible Bonds | 388,075 | - | 388,075 | - |
Money Market Funds | 1,410,713 | 1,410,713 | - | - |
Total Investments in Securities: | $ 17,772,799 | $ 17,384,723 | $ 388,075 | $ 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, 2012 | $ - |
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 | 77.7% |
Bermuda | 13.1% |
Netherlands | 3.8% |
Singapore | 3.6% |
Cayman Islands | 1.3% |
Others (Individually Less Than 1%) | 0.5% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $876,145) - See accompanying schedule: Unaffiliated issuers (cost $18,868,349) | $ 16,362,086 | |
Fidelity Central Funds (cost $1,410,713) | 1,410,713 | |
Total Investments (cost $20,279,062) | | $ 17,772,799 |
Receivable for investments sold | | 2,276,060 |
Receivable for fund shares sold | | 19,446 |
Dividends receivable | | 7,466 |
Interest receivable | | 2,709 |
Distributions receivable from Fidelity Central Funds | | 181 |
Prepaid expenses | | 44 |
Receivable from investment adviser for expense reductions | | 3,883 |
Other receivables | | 5,618 |
Total assets | | 20,088,206 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,162,480 | |
Payable for investments purchased | 730,241 | |
Payable for fund shares redeemed | 14,493 | |
Accrued management fee | 7,535 | |
Distribution and service plan fees payable | 6,550 | |
Other affiliated payables | 4,087 | |
Other payables and accrued expenses | 27,619 | |
Collateral on securities loaned, at value | 909,615 | |
Total liabilities | | 2,862,620 |
| | |
Net Assets | | $ 17,225,586 |
Net Assets consist of: | | |
Paid in capital | | $ 28,661,638 |
Accumulated net investment loss | | (62,497) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (8,867,339) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (2,506,216) |
Net Assets | | $ 17,225,586 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($6,911,668 ÷ 739,294 shares) | | $ 9.35 |
| | |
Maximum offering price per share (100/94.25 of $9.35) | | $ 9.92 |
Class T:
Net Asset Value and redemption price per share ($4,441,023 ÷ 486,358 shares) | | $ 9.13 |
| | |
Maximum offering price per share (100/96.50 of $9.13) | | $ 9.46 |
Class B:
Net Asset Value and offering price per share ($580,714 ÷ 67,097 shares)A | | $ 8.65 |
| | |
Class C:
Net Asset Value and offering price per share ($3,916,188 ÷ 452,964 shares)A | | $ 8.65 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,375,993 ÷ 142,829 shares) | | $ 9.63 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 56,523 |
Interest | | 4,291 |
Income from Fidelity Central Funds | | 1,325 |
Total income | | 62,139 |
| | |
Expenses | | |
Management fee | $ 43,157 | |
Transfer agent fees | 23,688 | |
Distribution and service plan fees | 36,831 | |
Accounting and security lending fees | 3,122 | |
Custodian fees and expenses | 14,581 | |
Independent trustees' compensation | 53 | |
Registration fees | 47,076 | |
Audit | 23,228 | |
Legal | 69 | |
Miscellaneous | 75 | |
Total expenses before reductions | 191,880 | |
Expense reductions | (67,244) | 124,636 |
Net investment income (loss) | | (62,497) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (589,750) | |
Foreign currency transactions | (105) | |
Total net realized gain (loss) | | (589,855) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,098,354 | |
Assets and liabilities in foreign currencies | 51 | |
Total change in net unrealized appreciation (depreciation) | | 1,098,405 |
Net gain (loss) | | 508,550 |
Net increase (decrease) in net assets resulting from operations | | $ 446,053 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (62,497) | $ (122,750) |
Net realized gain (loss) | (589,855) | 4,303,621 |
Change in net unrealized appreciation (depreciation) | 1,098,405 | (1,162,047) |
Net increase (decrease) in net assets resulting from operations | 446,053 | 3,018,824 |
Share transactions - net increase (decrease) | (1,526,259) | 1,054,457 |
Redemption fees | 190 | 1,863 |
Total increase (decrease) in net assets | (1,080,016) | 4,075,144 |
| | |
Net Assets | | |
Beginning of period | 18,305,602 | 14,230,458 |
End of period (including accumulated net investment loss of $62,497 and undistributed net investment income of $0, respectively) | $ 17,225,586 | $ 18,305,602 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.93 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.04) | (.01) | .04 | - I | (.03) |
Net realized and unrealized gain (loss) | .44 | 1.83 | .59 | (.24) | (2.32) | 1.76 |
Total from investment operations | .42 | 1.79 | .58 | (.20) | (2.32) | 1.73 |
Distributions from net investment income | - | - | (.03) | - | - | - |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.35 | $ 8.93 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 |
Total Return B,C,D | 4.70% | 25.07% | 8.74% | (2.95)% | (25.47)% | 23.44% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.26% A | 1.89% | 1.97% | 2.44% | 1.72% | 1.60% |
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 | 1.39% | 1.39% | 1.40% | 1.39% | 1.38% |
Net investment income (loss) | (.58)% A | (.40)% | (.15)% | .69% | (.02)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,912 | $ 7,537 | $ 5,394 | $ 5,433 | $ 3,970 | $ 7,551 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.73 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.06) | (.03) | .02 | (.02) | (.05) |
Net realized and unrealized gain (loss) | .43 | 1.79 | .58 | (.23) | (2.29) | 1.74 |
Total from investment operations | .40 | 1.73 | .55 | (.21) | (2.31) | 1.69 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.13 | $ 8.73 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 |
Total Return B,C,D | 4.58% | 24.71% | 8.50% | (3.15)% | (25.72)% | 23.18% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.56% A | 2.25% | 2.26% | 2.77% | 2.02% | 1.89% |
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% | 1.64% | 1.65% | 1.64% | 1.64% |
Net investment income (loss) | (.83)% A | (.65)% | (.40)% | .44% | (.27)% | (.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,441 | $ 4,476 | $ 3,862 | $ 4,195 | $ 4,635 | $ 8,103 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.06) | - I | (.06) | (.09) |
Net realized and unrealized gain (loss) | .41 | 1.69 | .56 | (.24) | (2.21) | 1.69 |
Total from investment operations | .36 | 1.60 | .50 | (.24) | (2.27) | 1.60 |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.65 | $ 8.29 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 |
Total Return B,C,D | 4.34% | 23.92% | 8.08% | (3.73)% | (26.09)% | 22.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.01% A | 2.76% | 2.73% | 3.22% | 2.48% | 2.36% |
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 | 2.14% | 2.15% | 2.15% | 2.14% | 2.13% |
Net investment income (loss) | (1.33)% A | (1.15)% | (.90)% | (.06)% | (.77)% | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 581 | $ 691 | $ 1,073 | $ 1,197 | $ 2,027 | $ 4,572 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.06) | - I | (.06) | (.09) |
Net realized and unrealized gain (loss) | .41 | 1.70 | .56 | (.24) | (2.21) | 1.69 |
Total from investment operations | .36 | 1.61 | .50 | (.24) | (2.27) | 1.60 |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.65 | $ 8.29 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 |
Total Return B,C,D | 4.34% | 24.10% | 8.09% | (3.74)% | (26.12)% | 22.57% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.99% A | 2.70% | 2.72% | 3.21% | 2.47% | 2.34% |
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 | 2.14% | 2.14% | 2.15% | 2.14% | 2.13% |
Net investment income (loss) | (1.33)% A | (1.15)% | (.90)% | (.06)% | (.77)% | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,916 | $ 3,836 | $ 3,256 | $ 3,016 | $ 3,325 | $ 8,389 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.19 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | (.01) | .01 | .05 | .02 | (.01) |
Net realized and unrealized gain (loss) | .45 | 1.87 | .60 | (.24) | (2.38) | 1.80 |
Total from investment operations | .44 | 1.86 | .61 | (.19) | (2.36) | 1.79 |
Distributions from net investment income | - | - | (.03) | - | - | - |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 9.63 | $ 9.19 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 |
Total Return B,C | 4.79% | 25.38% | 9.10% | (2.74)% | (25.38)% | 23.83% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 1.91% A | 1.42% | 1.64% | 2.16% | 1.47% | 1.26% |
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 | 1.14% | 1.14% | 1.15% | 1.14% | 1.13% |
Net investment income (loss) | (.33)% A | (.15)% | .11% | .94% | .23% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,376 | $ 1,765 | $ 645 | $ 367 | $ 353 | $ 730 |
Portfolio turnover rate F | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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. 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.
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 | $ 492,679 |
Gross unrealized depreciation | (3,242,188) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (2,749,509) |
| |
Tax cost | $ 20,522,308 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2012 | $ (2,152,369) |
2013 | (279,201) |
2016 | (310,663) |
2017 | (5,202,838) |
Total capital loss carryforward | (7,945,071) |
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 $10,645,364 and $12,843,613, 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 an annualized 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
Notes to Financial Statements (Unaudited) - continued
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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 7,853 | $ 443 |
Class T | .25% | .25% | 9,944 | - |
Class B | .75% | .25% | 2,861 | 2,146 |
Class C | .75% | .25% | 16,173 | 2,070 |
| | | $ 36,831 | $ 4,659 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 589 |
Class T | 713 |
Class B* | 236 |
Class C* | 256 |
| $ 1,794 |
* 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
Average
Net Assets* |
Class A | $ 9,486 | .30 |
Class T | 7,084 | .36 |
Class B | 871 | .30 |
Class C | 4,873 | .30 |
Institutional Class | 1,374 | .20 |
| $ 23,688 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $1,106 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $22 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,190. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 26,875 |
Class T | 1.65% | 18,150 |
Class B | 2.15% | 2,467 |
Class C | 2.15% | 13,625 |
Institutional Class | 1.15% | 5,211 |
| | $ 66,328 |
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 $916 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 85,258 | 823,348 | $ 735,140 | $ 7,674,866 |
Shares redeemed | (190,330) | (734,519) | (1,559,667) | (6,789,005) |
Net increase (decrease) | (105,072) | 88,829 | $ (824,527) | $ 885,861 |
Class T | | | | |
Shares sold | 37,715 | 227,766 | $ 311,896 | $ 2,032,968 |
Shares redeemed | (64,166) | (266,704) | (517,898) | (2,292,080) |
Net increase (decrease) | (26,451) | (38,938) | $ (206,002) | $ (259,112) |
Class B | | | | |
Shares sold | 299 | 17,689 | $ 2,245 | $ 152,131 |
Shares redeemed | (16,547) | (94,901) | (128,163) | (767,577) |
Net increase (decrease) | (16,248) | (77,212) | $ (125,918) | $ (615,446) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class C | | | | |
Shares sold | 88,807 | 179,286 | $ 757,937 | $ 1,565,088 |
Shares redeemed | (98,812) | (203,889) | (739,913) | (1,673,259) |
Net increase (decrease) | (10,005) | (24,603) | $ 18,024 | $ (108,171) |
Institutional Class | | | | |
Shares sold | 38,769 | 302,052 | $ 349,416 | $ 3,051,352 |
Shares redeemed | (88,077) | (197,907) | (737,252) | (1,900,027) |
Net increase (decrease) | (49,308) | 104,145 | $ (387,836) | $ 1,151,325 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.18% | | | |
Actual | | $ 1,000.00 | $ 893.50 | $ 5.62 |
Hypothetical A | | $ 1,000.00 | $ 1,019.20 | $ 5.99 |
Class T | 1.39% | | | |
Actual | | $ 1,000.00 | $ 892.70 | $ 6.61 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.05 |
Class B | 1.93% | | | |
Actual | | $ 1,000.00 | $ 890.40 | $ 9.17 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.78 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 890.50 | $ 9.12 |
Hypothetical A | | $ 1,000.00 | $ 1,015.48 | $ 9.73 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 895.10 | $ 4.10 |
Hypothetical A | | $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Chevron Corp. | 15.0 | 11.1 |
Occidental Petroleum Corp. | 7.6 | 5.3 |
Exxon Mobil Corp. | 7.3 | 10.4 |
Schlumberger Ltd. | 5.6 | 7.1 |
Hess Corp. | 4.8 | 3.6 |
Marathon Oil Corp. | 4.5 | 3.3 |
National Oilwell Varco, Inc. | 4.4 | 3.0 |
EOG Resources, Inc. | 3.7 | 0.0 |
Halliburton Co. | 3.3 | 4.4 |
Marathon Petroleum Corp. | 2.9 | 2.3 |
| 59.1 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Oil, Gas & Consumable Fuels | 71.7% | |
| Energy Equipment & Services | 26.1% | |
 | Chemicals | 1.5% | |
| Construction & Engineering | 0.5% | |
| All Others* | 0.2% | |
As of July 31, 2011 |
| Oil, Gas & Consumable Fuels | 62.2% | |
| Energy Equipment & Services | 35.4% | |
| Chemicals | 1.2% | |
| Construction & Engineering | 0.6% | |
| Metals & Mining | 0.6% | |
| All Others* | 0.0% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% |
| Shares | | Value |
CHEMICALS - 1.5% |
Specialty Chemicals - 1.5% |
LyondellBasell Industries NV Class A | 256,010 | | $ 11,034,031 |
CONSTRUCTION & ENGINEERING - 0.5% |
Construction & Engineering - 0.5% |
Foster Wheeler AG (a) | 158,675 | | 3,563,841 |
ENERGY EQUIPMENT & SERVICES - 26.1% |
Oil & Gas Drilling - 7.7% |
Discovery Offshore S.A. (a)(e) | 748,490 | | 1,084,324 |
Ensco International Ltd. ADR | 380,651 | | 20,037,469 |
Helmerich & Payne, Inc. | 91,800 | | 5,664,978 |
Noble Corp. | 312,364 | | 10,882,762 |
Northern Offshore Ltd. | 346,187 | | 769,973 |
Ocean Rig UDW, Inc. (United States) | 177,000 | | 2,701,020 |
Parker Drilling Co. (a) | 421,740 | | 2,741,310 |
Rowan Companies, Inc. (a) | 293,100 | | 9,968,331 |
Tuscany International Drilling, Inc. (a) | 112,000 | | 78,185 |
Vantage Drilling Co. (a) | 1,039,400 | | 1,288,856 |
| | 55,217,208 |
Oil & Gas Equipment & Services - 18.4% |
Baker Hughes, Inc. | 152,054 | | 7,470,413 |
Cal Dive International, Inc. (a) | 165,830 | | 499,148 |
Cameron International Corp. (a) | 27,100 | | 1,441,720 |
Compagnie Generale de Geophysique SA (a) | 138,278 | | 3,870,029 |
Halliburton Co. | 645,219 | | 23,731,155 |
Key Energy Services, Inc. (a) | 104,700 | | 1,516,056 |
McDermott International, Inc. (a) | 235,414 | | 2,862,634 |
National Oilwell Varco, Inc. | 430,695 | | 31,862,816 |
Oil States International, Inc. (a) | 124,050 | | 9,885,545 |
RPC, Inc. (d) | 33,900 | | 516,975 |
Schlumberger Ltd. | 537,832 | | 40,428,831 |
Schoeller-Bleckmann Oilfield Equipment AG | 12,691 | | 1,066,000 |
Superior Energy Services, Inc. (a) | 47,784 | | 1,362,322 |
Weatherford International Ltd. (a) | 349,367 | | 5,848,404 |
Willbros Group, Inc. (a) | 134,016 | | 570,908 |
| | 132,932,956 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 188,150,164 |
OIL, GAS & CONSUMABLE FUELS - 71.7% |
Coal & Consumable Fuels - 2.5% |
Alpha Natural Resources, Inc. (a) | 579,372 | | 11,656,965 |
Peabody Energy Corp. | 188,016 | | 6,409,465 |
| | 18,066,430 |
|
| Shares | | Value |
Integrated Oil & Gas - 37.4% |
Chevron Corp. | 1,050,732 | | $ 108,309,455 |
Exxon Mobil Corp. | 627,628 | | 52,557,569 |
Hess Corp. | 618,245 | | 34,807,194 |
Occidental Petroleum Corp. | 547,877 | | 54,661,688 |
Suncor Energy, Inc. | 550,900 | | 18,975,902 |
| | 269,311,808 |
Oil & Gas Exploration & Production - 23.1% |
Anadarko Petroleum Corp. | 99,558 | | 8,036,322 |
Apache Corp. | 184,037 | | 18,197,579 |
Bankers Petroleum Ltd. (a) | 764,700 | | 4,087,551 |
Canadian Natural Resources Ltd. | 148,900 | | 5,898,088 |
Concho Resources, Inc. (a) | 6,900 | | 735,954 |
EOG Resources, Inc. | 252,520 | | 26,802,473 |
EV Energy Partners LP | 66,800 | | 4,456,896 |
EXCO Resources, Inc. | 61,900 | | 486,534 |
Gran Tierra Energy, Inc. (Canada) (a) | 953,400 | | 5,438,492 |
Magnum Hunter Resources Corp. | 57,743 | | 340,106 |
Marathon Oil Corp. | 1,021,126 | | 32,053,145 |
Niko Resources Ltd. | 14,500 | | 708,407 |
Noble Energy, Inc. | 111,044 | | 11,178,799 |
Northern Oil & Gas, Inc. (a) | 41,547 | | 1,038,675 |
Oasis Petroleum, Inc. (a)(d) | 136,256 | | 4,597,277 |
Pacific Rubiales Energy Corp. | 63,100 | | 1,587,647 |
Painted Pony Petroleum Ltd. (a)(e) | 5,000 | | 41,685 |
Painted Pony Petroleum Ltd. Class A (a) | 86,400 | | 720,323 |
Petrominerales Ltd. | 40,372 | | 842,669 |
Pioneer Natural Resources Co. | 165,400 | | 16,424,220 |
Plains Exploration & Production Co. (a) | 77,100 | | 2,908,212 |
QEP Resources, Inc. | 54,500 | | 1,560,880 |
Rosetta Resources, Inc. (a) | 29,400 | | 1,410,906 |
SM Energy Co. | 189,293 | | 13,738,886 |
Stone Energy Corp. (a) | 32,600 | | 914,430 |
Swift Energy Co. (a) | 55,958 | | 1,855,008 |
| | 166,061,164 |
Oil & Gas Refining & Marketing - 8.0% |
CVR Energy, Inc. (a) | 148,333 | | 3,699,425 |
HollyFrontier Corp. | 376,550 | | 11,047,977 |
Marathon Petroleum Corp. | 538,604 | | 20,585,445 |
Tesoro Corp. (a) | 354,100 | | 8,863,123 |
Valero Energy Corp. | 565,413 | | 13,564,258 |
| | 57,760,228 |
Oil & Gas Storage & Transport - 0.7% |
Atlas Energy LP | 13,625 | | 355,885 |
Atlas Pipeline Partners, LP | 95,200 | | 3,570,952 |
Cheniere Energy, Inc. (a) | 96,100 | | 1,229,119 |
| | 5,155,956 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 516,355,586 |
TOTAL COMMON STOCKS (Cost $671,719,016) |
719,103,622
|
Money Market Funds - 0.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 1,487,775 | | $ 1,487,775 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 4,109,175 | | 4,109,175 |
TOTAL MONEY MARKET FUNDS (Cost $5,596,950) |
5,596,950
|
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $677,315,966) | | 724,700,572 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | | (4,026,367) |
NET ASSETS - 100% | $ 720,674,205 |
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 $1,126,009 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 | $ 2,439 |
Fidelity Securities Lending Cash Central Fund | 57,164 |
Total | $ 59,603 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 719,103,622 | $ 715,233,593 | $ 3,870,029 | $ - |
Money Market Funds | 5,596,950 | 5,596,950 | - | - |
Total Investments in Securities: | $ 724,700,572 | $ 720,830,543 | $ 3,870,029 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.9% |
Curacao | 5.6% |
Canada | 4.6% |
Switzerland | 2.8% |
United Kingdom | 2.8% |
Netherlands | 1.5% |
Others (Individually Less Than 1%) | 1.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Energy Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,118,329) - See accompanying schedule: Unaffiliated issuers (cost $671,719,016) | $ 719,103,622 | |
Fidelity Central Funds (cost $5,596,950) | 5,596,950 | |
Total Investments (cost $677,315,966) | | $ 724,700,572 |
Receivable for investments sold | | 8,660,239 |
Receivable for fund shares sold | | 597,716 |
Dividends receivable | | 93,954 |
Distributions receivable from Fidelity Central Funds | | 745 |
Prepaid expenses | | 2,127 |
Other receivables | | 6,528 |
Total assets | | 734,061,881 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,125,974 | |
Payable for fund shares redeemed | 3,324,940 | |
Accrued management fee | 335,313 | |
Distribution and service plan fees payable | 279,630 | |
Other affiliated payables | 183,781 | |
Other payables and accrued expenses | 28,863 | |
Collateral on securities loaned, at value | 4,109,175 | |
Total liabilities | | 13,387,676 |
| | |
Net Assets | | $ 720,674,205 |
Net Assets consist of: | | |
Paid in capital | | $ 707,908,618 |
Accumulated net investment loss | | (1,895,665) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (32,723,072) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 47,384,324 |
Net Assets | | $ 720,674,205 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($278,971,810 ÷ 7,817,887 shares) | | $ 35.68 |
| | |
Maximum offering price per share (100/94.25 of $35.68) | | $ 37.86 |
Class T:
Net Asset Value and redemption price per share ($243,034,374 ÷ 6,666,339 shares) | | $ 36.46 |
| | |
Maximum offering price per share (100/96.50 of $36.46) | | $ 37.78 |
Class B:
Net Asset Value and offering price per share ($37,596,503 ÷ 1,126,459 shares)A | | $ 33.38 |
| | |
Class C:
Net Asset Value and offering price per share ($107,207,847 ÷ 3,189,249 shares)A | | $ 33.62 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($53,863,671 ÷ 1,444,600 shares) | | $ 37.29 |
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 Energy Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,537,121 |
Interest | | 5,903 |
Income from Fidelity Central Funds | | 59,603 |
Total income | | 6,602,627 |
| | |
Expenses | | |
Management fee | $ 1,971,968 | |
Transfer agent fees | 996,828 | |
Distribution and service plan fees | 1,668,767 | |
Accounting and security lending fees | 126,520 | |
Custodian fees and expenses | 11,225 | |
Independent trustees' compensation | 2,391 | |
Registration fees | 68,157 | |
Audit | 24,988 | |
Legal | 1,808 | |
Miscellaneous | 3,360 | |
Total expenses before reductions | 4,876,012 | |
Expense reductions | (3,345) | 4,872,667 |
Net investment income (loss) | | 1,729,960 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (17,938,453) | |
Foreign currency transactions | (8,489) | |
Total net realized gain (loss) | | (17,946,942) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,510,067) | |
Assets and liabilities in foreign currencies | (397) | |
Total change in net unrealized appreciation (depreciation) | | (78,510,464) |
Net gain (loss) | | (96,457,406) |
Net increase (decrease) in net assets resulting from operations | | $ (94,727,446) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,729,960 | $ 609,873 |
Net realized gain (loss) | (17,946,942) | 108,257,689 |
Change in net unrealized appreciation (depreciation) | (78,510,464) | 148,374,915 |
Net increase (decrease) in net assets resulting from operations | (94,727,446) | 257,242,477 |
Distributions to shareholders from net investment income | (3,625,438) | (1,542,989) |
Share transactions - net increase (decrease) | (39,924,987) | 7,476,541 |
Redemption fees | 26,835 | 27,523 |
Total increase (decrease) in net assets | (138,251,036) | 263,203,552 |
| | |
Net Assets | | |
Beginning of period | 858,925,241 | 595,721,689 |
End of period (including accumulated net investment loss of $1,895,665 and accumulated net investment loss of $187, respectively) | $ 720,674,205 | $ 858,925,241 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 40.17 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .11 | (.05) | (.04) | (.17) | (.02) H |
Net realized and unrealized gain (loss) | (4.40) | 12.47 | 1.93 | (17.48) | 5.59 | 8.42 |
Total from investment operations | (4.28) | 12.58 | 1.88 | (17.52) | 5.42 | 8.40 |
Distributions from net investment income | (.21) | (.11) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.46) | (6.51) |
Total distributions | (.21) | (.11) | - | (6.90) | (3.46) | (6.51) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 35.68 | $ 40.17 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 |
Total Return B,C,D | (10.65)% | 45.46% | 7.28% | (38.86)% | 11.52% | 22.08% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.18% A | 1.16% | 1.20% | 1.22% | 1.14% | 1.19% |
Expenses net of fee waivers, if any | 1.18% A | 1.16% | 1.20% | 1.22% | 1.14% | 1.19% |
Expenses net of all reductions | 1.18% A | 1.16% | 1.19% | 1.21% | 1.14% | 1.19% |
Net investment income (loss) | .70% A | .30% | (.16)% | (.14)% | (.32)% | (.05)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 278,972 | $ 331,120 | $ 214,407 | $ 216,595 | $ 355,200 | $ 268,108 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 41.04 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .03 | (.11) | (.10) | (.29) | (.11) H |
Net realized and unrealized gain (loss) | (4.49) | 12.75 | 1.97 | (17.93) | 5.72 | 8.61 |
Total from investment operations | (4.41) | 12.78 | 1.86 | (18.03) | 5.43 | 8.50 |
Distributions from net investment income | (.17) | (.07) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.29) | (6.42) |
Total distributions | (.17) | (.07) | - | (6.90) | (3.29) | (6.42) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 36.46 | $ 41.04 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 |
Total Return B,C,D | (10.73)% | 45.16% | 7.03% | (38.99)% | 11.27% | 21.84% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.39% A | 1.37% | 1.41% | 1.45% | 1.36% | 1.40% |
Expenses net of fee waivers, if any | 1.39% A | 1.37% | 1.41% | 1.45% | 1.36% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.37% | 1.41% | 1.45% | 1.35% | 1.39% |
Net investment income (loss) | .48% A | .09% | (.37)% | (.38)% | (.54)% | (.26)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 243,034 | $ 290,512 | $ 219,051 | $ 224,376 | $ 407,784 | $ 382,222 |
Portfolio turnover rate G | 81 A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.61 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.25) | (.22) | (.56) | (.34) H |
Net realized and unrealized gain (loss) | (4.12) | 11.71 | 1.83 | (16.75) | 5.41 | 8.17 |
Total from investment operations | (4.13) | 11.56 | 1.58 | (16.97) | 4.85 | 7.83 |
Distributions from net investment income | (.10) | (.01) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.14) | (6.29) |
Total distributions | (.10) | (.01) | - | (6.90) | (3.14) | (6.29) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 33.38 | $ 37.61 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 |
Total Return B,C,D | (10.96)% | 44.38% | 6.45% | (39.31)% | 10.62% | 21.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.93% A | 1.93% | 1.96% | 1.96% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.93% A | 1.93% | 1.96% | 1.96% | 1.93% | 1.96% |
Expenses net of all reductions | 1.92% A | 1.92% | 1.95% | 1.96% | 1.93% | 1.95% |
Net investment income (loss) | (.05)% A | (.46)% | (.92)% | (.89)% | (1.11)% | (.82)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 37,597 | $ 49,793 | $ 44,330 | $ 47,795 | $ 98,602 | $ 116,487 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.88 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.25) | (.21) | (.54) | (.32) H |
Net realized and unrealized gain (loss) | (4.14) | 11.80 | 1.85 | (16.87) | 5.45 | 8.20 |
Total from investment operations | (4.15) | 11.65 | 1.60 | (17.08) | 4.91 | 7.88 |
Distributions from net investment income | (.11) | (.02) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.16) | (6.33) |
Total distributions | (.11) | (.02) | - | (6.90) | (3.16) | (6.33) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 33.62 | $ 37.88 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 |
Total Return B,C,D | (10.95)% | 44.38% | 6.49% | (39.31)% | 10.71% | 21.22% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.92% A | 1.90% | 1.94% | 1.96% | 1.87% | 1.91% |
Expenses net of fee waivers, if any | 1.92% A | 1.90% | 1.94% | 1.96% | 1.87% | 1.91% |
Expenses net of all reductions | 1.92% A | 1.89% | 1.93% | 1.95% | 1.87% | 1.91% |
Net investment income (loss) | (.05)% A | (.43)% | (.90)% | (.88)% | (1.05)% | (.77)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 107,208 | $ 133,476 | $ 90,596 | $ 86,650 | $ 156,393 | $ 135,072 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 41.95 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .18 | .23 | .04 | .03 | (.02) | .11 G |
Net realized and unrealized gain (loss) | (4.59) | 12.99 | 2.00 | (18.06) | 5.74 | 8.67 |
Total from investment operations | (4.41) | 13.22 | 2.04 | (18.03) | 5.72 | 8.78 |
Distributions from net investment income | (.25) | (.14) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.64) | (6.58) |
Total distributions | (.25) | (.14) | - | (6.90) | (3.64) | (6.58) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 37.29 | $ 41.95 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 |
Total Return B,C | (10.49)% | 45.87% | 7.60% | (38.68)% | 11.83% | 22.47% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .86% A | .86% | .90% | .95% | .85% | .88% |
Expenses net of fee waivers, if any | .86% A | .86% | .90% | .95% | .85% | .88% |
Expenses net of all reductions | .86% A | .85% | .90% | .94% | .85% | .88% |
Net investment income (loss) | 1.01% A | .60% | .14% | .13% | (.03)% | .25% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 53,864 | $ 54,024 | $ 27,338 | $ 18,631 | $ 22,250 | $ 17,127 |
Portfolio turnover rate F | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred trustees compensation, passive foreign investment companies (PFIC), capital loss carryforwards, and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 89,646,076 |
Gross unrealized depreciation | (46,497,564) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 43,148,512 |
| |
Tax cost | $ 681,552,060 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (2,846,796) |
2018 | (2,715,383) |
Total capital loss carryforward | $ (5,562,179) |
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 $292,628,721 and $334,824,474, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 341,862 | $ 9,241 |
Class T | .25% | .25% | 594,584 | - |
Class B | .75% | .25% | 194,292 | 145,719 |
Class C | .75% | .25% | 538,029 | 87,860 |
| | | $ 1,668,767 | $ 242,820 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 59,209 |
Class T | 10,789 |
Class B* | 31,905 |
Class C* | 8,804 |
| $ 110,707 |
* 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
Average
Net Assets* |
Class A | $ 410,364 | .30 |
Class T | 312,622 | .26 |
Class B | 58,547 | .30 |
Class C | 159,294 | .30 |
Institutional Class | 56,001 | .24 |
| $ 996,828 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,738 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $1,018 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 $152,500. Security lending income represents the income earned on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $57,164, including $6 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 $3,345 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 1,638,737 | $ 788,179 |
Class T | 1,147,865 | 537,026 |
Class B | 121,615 | 21,298 |
Class C | 359,185 | 59,062 |
Institutional Class | 358,036 | 137,424 |
Total | $ 3,625,438 | $ 1,542,989 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,067,535 | 2,848,824 | $ 36,425,325 | $ 108,457,523 |
Reinvestment of distributions | 41,823 | 20,239 | 1,442,045 | 701,079 |
Shares redeemed | (1,534,589) | (2,366,298) | (52,336,234) | (85,322,989) |
Net increase (decrease) | (425,231) | 502,765 | $ (14,468,864) | $ 23,835,613 |
Class T | | | | |
Shares sold | 375,625 | 1,191,543 | $ 13,003,662 | $ 45,538,389 |
Reinvestment of distributions | 30,771 | 14,153 | 1,084,071 | 502,257 |
Shares redeemed | (819,250) | (1,858,422) | (28,280,583) | (68,540,609) |
Net increase (decrease) | (412,854) | (652,726) | $ (14,192,850) | $ (22,499,963) |
Class B | | | | |
Shares sold | 44,161 | 118,268 | $ 1,390,015 | $ 4,084,617 |
Reinvestment of distributions | 3,337 | 560 | 107,704 | 18,656 |
Shares redeemed | (245,036) | (495,702) | (7,806,011) | (16,527,555) |
Net increase (decrease) | (197,538) | (376,874) | $ (6,308,292) | $ (12,424,282) |
Class C | | | | |
Shares sold | 222,144 | 964,253 | $ 7,133,875 | $ 34,720,800 |
Reinvestment of distributions | 9,390 | 1,513 | 305,281 | 50,476 |
Shares redeemed | (565,757) | (893,659) | (17,960,063) | (30,160,985) |
Net increase (decrease) | (334,223) | 72,107 | $ (10,520,907) | $ 4,610,291 |
Institutional Class | | | | |
Shares sold | 481,850 | 771,369 | $ 17,024,448 | $ 30,606,839 |
Reinvestment of distributions | 7,770 | 3,300 | 279,800 | 119,042 |
Shares redeemed | (332,831) | (433,932) | (11,738,322) | (16,770,999) |
Net increase (decrease) | 156,789 | 340,737 | $ 5,565,926 | $ 13,954,882 |
Semiannual Report
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.30% | | | |
Actual | | $ 1,000.00 | $ 977.60 | $ 6.46 |
Hypothetical A | | $ 1,000.00 | $ 1,018.60 | $ 6.60 |
Class T | 1.56% | | | |
Actual | | $ 1,000.00 | $ 976.40 | $ 7.75 |
Hypothetical A | | $ 1,000.00 | $ 1,017.29 | $ 7.91 |
Class B | 2.04% | | | |
Actual | | $ 1,000.00 | $ 974.30 | $ 10.12 |
Hypothetical A | | $ 1,000.00 | $ 1,014.88 | $ 10.33 |
Class C | 2.04% | | | |
Actual | | $ 1,000.00 | $ 974.10 | $ 10.12 |
Hypothetical A | | $ 1,000.00 | $ 1,014.88 | $ 10.33 |
Institutional Class | 1.02% | | | |
Actual | | $ 1,000.00 | $ 979.00 | $ 5.07 |
Hypothetical A | | $ 1,000.00 | $ 1,020.01 | $ 5.18 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Citigroup, Inc. | 5.2 | 5.4 |
Morgan Stanley | 5.2 | 4.9 |
JPMorgan Chase & Co. | 5.1 | 4.1 |
Bank of America Corp. | 4.3 | 0.0 |
Genworth Financial, Inc. Class A | 3.7 | 0.3 |
Simon Property Group, Inc. | 3.5 | 0.0 |
eBay, Inc. | 3.2 | 0.0 |
ICICI Bank Ltd. sponsored ADR | 3.1 | 0.0 |
Sotheby's Class A (Ltd. vtg.) | 2.5 | 0.2 |
ACE Ltd. | 2.2 | 1.1 |
| 38.0 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Capital Markets | 17.0% | |
| Commercial Banks | 16.7% | |
| Diversified Financial Services | 16.6% | |
| Real Estate Investment Trusts | 16.0% | |
| Insurance | 14.6% | |
| All Others* | 19.1% | |
As of July 31, 2011 |
| Capital Markets | 28.3% | |
| Commercial Banks | 15.3% | |
| Real Estate Investment Trusts | 12.5% | |
| Diversified Financial Services | 11.6% | |
| Insurance | 10.6% | |
| All Others* | 21.7% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
CAPITAL MARKETS - 17.0% |
Asset Management & Custody Banks - 5.9% |
A.F.P. Provida SA sponsored ADR | 400 | | $ 28,576 |
Affiliated Managers Group, Inc. (a) | 1,686 | | 169,460 |
Ameriprise Financial, Inc. | 100 | | 5,355 |
Apollo Global Management LLC Class A | 122,349 | | 1,820,553 |
Bank of New York Mellon Corp. | 500 | | 10,065 |
BlackRock, Inc. Class A | 56 | | 10,192 |
Franklin Resources, Inc. | 100 | | 10,610 |
Invesco Ltd. | 39,838 | | 899,144 |
Julius Baer Group Ltd. | 300 | | 12,192 |
Legg Mason, Inc. | 853 | | 21,726 |
Northern Trust Corp. | 8,107 | | 334,089 |
State Street Corp. | 49,990 | | 1,958,608 |
The Blackstone Group LP | 116,483 | | 1,841,596 |
| | 7,122,166 |
Diversified Capital Markets - 0.3% |
Credit Suisse Group sponsored ADR | 400 | | 10,416 |
Deutsche Bank AG (NY Shares) | 109 | | 4,653 |
HFF, Inc. (a) | 7,600 | | 107,236 |
UBS AG (NY Shares) (a) | 22,033 | | 299,428 |
| | 421,733 |
Investment Banking & Brokerage - 10.8% |
Charles Schwab Corp. | 900 | | 10,485 |
E*TRADE Financial Corp. (a) | 203,334 | | 1,665,305 |
Evercore Partners, Inc. Class A | 67,900 | | 1,914,101 |
GFI Group, Inc. | 320,278 | | 1,482,887 |
Goldman Sachs Group, Inc. | 173 | | 19,284 |
Investment Technology Group, Inc. (a) | 3,825 | | 43,376 |
Lazard Ltd. Class A | 57,443 | | 1,649,763 |
Macquarie Group Ltd. | 393 | | 10,639 |
Morgan Stanley | 333,795 | | 6,225,277 |
| | 13,021,117 |
TOTAL CAPITAL MARKETS | | 20,565,016 |
COMMERCIAL BANKS - 16.7% |
Diversified Banks - 9.5% |
Banco ABC Brasil SA | 2,500 | | 17,986 |
Banco Bradesco SA (PN) sponsored ADR | 700 | | 12,516 |
Banco de Chile sponsored ADR | 100 | | 8,989 |
Banco Macro SA sponsored ADR | 600 | | 14,844 |
Banco Pine SA | 200 | | 1,505 |
Banco Santander Chile sponsored ADR | 200 | | 16,300 |
Banco Santander SA (Brasil) ADR | 2,800 | | 25,536 |
BanColombia SA sponsored ADR | 10,500 | | 651,105 |
Bank of Baroda | 7,728 | | 120,327 |
Barclays PLC sponsored ADR | 850 | | 11,501 |
BBVA Banco Frances SA sponsored ADR | 2,300 | | 14,145 |
BNP Paribas SA | 302 | | 12,786 |
China CITIC Bank Corp. Ltd. (H Shares) | 2,358,000 | | 1,505,058 |
Comerica, Inc. | 800 | | 22,136 |
|
| Shares | | Value |
CorpBanca SA sponsored ADR | 550 | | $ 12,216 |
Credicorp Ltd. (NY Shares) | 2,728 | | 310,064 |
Credit Agricole SA | 200 | | 1,232 |
Grupo Financiero Galicia SA sponsored ADR (d) | 1,800 | | 13,914 |
Guaranty Trust Bank PLC GDR (Reg. S) | 5,300 | | 24,910 |
HSBC Holdings PLC sponsored ADR | 14,300 | | 598,169 |
ICICI Bank Ltd. sponsored ADR | 104,100 | | 3,769,461 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 6,000 | | 4,201 |
Intesa Sanpaolo SpA | 7,261 | | 13,866 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 619 | | 12,355 |
National Australia Bank Ltd. | 254 | | 6,431 |
Nordea Bank AB | 1,200 | | 10,047 |
PT Bank Central Asia Tbk | 13,500 | | 12,013 |
Raiffeisen International Bank-Holding AG (d) | 1,300 | | 44,209 |
Sberbank (Savings Bank of the Russian Federation) sponsored ADR | 1,100 | | 13,200 |
Standard Chartered PLC (United Kingdom) | 2,482 | | 60,004 |
Sumitomo Mitsui Financial Group, Inc. | 2,100 | | 67,150 |
Swedbank AB (A Shares) | 900 | | 12,927 |
The Jammu & Kashmir Bank Ltd. | 7,298 | | 122,260 |
U.S. Bancorp | 8,627 | | 243,454 |
UniCredit SpA | 630 | | 3,123 |
United Overseas Bank Ltd. | 1,000 | | 13,785 |
Wells Fargo & Co. | 91,715 | | 2,678,995 |
Yes Bank Ltd. | 143,376 | | 956,853 |
| | 11,439,573 |
Regional Banks - 7.2% |
Banco Daycoval SA (PN) | 20,300 | | 113,165 |
Bancorp New Jersey, Inc. | 100 | | 940 |
BancTrust Financial Group, Inc. (a) | 28,700 | | 36,736 |
Bank of the Ozarks, Inc. | 316 | | 8,845 |
BB&T Corp. | 870 | | 23,655 |
Boston Private Financial Holdings, Inc. | 2,200 | | 18,128 |
Bridge Capital Holdings (a) | 48,490 | | 524,662 |
Canadian Western Bank, Edmonton | 2,200 | | 58,074 |
Cascade Bancorp (a) | 900 | | 4,779 |
CIT Group, Inc. (a) | 373 | | 14,226 |
Citizens & Northern Corp. | 520 | | 10,925 |
City Holding Co. | 500 | | 17,770 |
City National Corp. | 6,200 | | 284,456 |
CNB Financial Corp., Pennsylvania | 803 | | 13,258 |
CoBiz, Inc. | 166,600 | | 996,268 |
Cullen/Frost Bankers, Inc. | 100 | | 5,567 |
Fifth Third Bancorp | 900 | | 11,709 |
First Business Finance Services, Inc. | 200 | | 3,322 |
First Commonwealth Financial Corp. | 25,722 | | 142,500 |
First Horizon National Corp. | 94,800 | | 827,604 |
First Interstate Bancsystem, Inc. | 69,209 | | 952,316 |
First Midwest Bancorp, Inc., Delaware | 600 | | 6,528 |
Common Stocks - continued |
| Shares | | Value |
COMMERCIAL BANKS - CONTINUED |
Regional Banks - continued |
FNB Corp., Pennsylvania | 11,300 | | $ 132,436 |
Glacier Bancorp, Inc. | 2,024 | | 28,275 |
Huntington Bancshares, Inc. | 2,230 | | 12,733 |
KeyCorp | 1,500 | | 11,655 |
NBT Bancorp, Inc. | 200 | | 4,500 |
Northrim Bancorp, Inc. | 2,269 | | 45,584 |
Pacific Continental Corp. | 27,028 | | 239,468 |
PNC Financial Services Group, Inc. | 200 | | 11,784 |
PT Bank Tabungan Negara Tbk | 1,468,500 | | 196,018 |
Regions Financial Corp. | 187,425 | | 978,359 |
Sandy Spring Bancorp, Inc. | 200 | | 3,652 |
Savannah Bancorp, Inc. (a) | 14,998 | | 74,840 |
SCBT Financial Corp. | 800 | | 24,744 |
SunTrust Banks, Inc. | 22,636 | | 465,623 |
Susquehanna Bancshares, Inc. | 62,314 | | 569,550 |
SVB Financial Group (a) | 312 | | 18,108 |
Synovus Financial Corp. (d) | 425,582 | | 740,513 |
TCF Financial Corp. | 1,037 | | 10,411 |
Texas Capital Bancshares, Inc. (a) | 400 | | 12,688 |
Umpqua Holdings Corp. | 100 | | 1,217 |
Valley National Bancorp | 4,908 | | 58,503 |
Virginia Commerce Bancorp, Inc. (a) | 3,000 | | 26,580 |
Washington Trust Bancorp, Inc. | 544 | | 13,431 |
Webster Financial Corp. | 26,200 | | 555,440 |
Westamerica Bancorp. | 100 | | 4,645 |
Western Alliance Bancorp. (a) | 49,100 | | 392,309 |
Zions Bancorporation | 700 | | 11,788 |
| | 8,720,287 |
TOTAL COMMERCIAL BANKS | | 20,159,860 |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Diversified Support Services - 0.0% |
Intrum Justitia AB | 1,000 | | 15,767 |
CONSUMER FINANCE - 4.0% |
Consumer Finance - 4.0% |
Advance America Cash Advance Centers, Inc. | 219,253 | | 1,725,521 |
American Express Co. | 223 | | 11,181 |
Capital One Financial Corp. | 52,898 | | 2,420,084 |
Discover Financial Services | 500 | | 13,590 |
EZCORP, Inc. (non-vtg.) Class A (a) | 2,240 | | 60,077 |
First Cash Financial Services, Inc. (a) | 4,790 | | 192,798 |
Green Dot Corp. Class A (a)(d) | 1,900 | | 53,922 |
International Personal Finance PLC | 86,603 | | 259,733 |
Nelnet, Inc. Class A | 700 | | 17,255 |
Netspend Holdings, Inc. (a) | 1,331 | | 11,620 |
PT Clipan Finance Indonesia Tbk | 338,000 | | 17,295 |
SLM Corp. | 3,465 | | 51,802 |
| | 4,834,878 |
|
| Shares | | Value |
DIVERSIFIED CONSUMER SERVICES - 2.5% |
Specialized Consumer Services - 2.5% |
Sotheby's Class A (Ltd. vtg.) | 89,650 | | $ 3,005,965 |
DIVERSIFIED FINANCIAL SERVICES - 16.6% |
Other Diversified Financial Services - 14.6% |
Bank of America Corp. | 720,300 | | 5,135,739 |
Citigroup, Inc. | 204,875 | | 6,293,759 |
JPMorgan Chase & Co. | 166,490 | | 6,210,077 |
| | 17,639,575 |
Specialized Finance - 2.0% |
BM&F Bovespa SA | 51,000 | | 320,793 |
CME Group, Inc. | 86 | | 20,598 |
IntercontinentalExchange, Inc. (a) | 84 | | 9,616 |
Moody's Corp. | 300 | | 11,169 |
NYSE Euronext | 2,200 | | 58,432 |
PHH Corp. (a) | 173,218 | | 2,007,597 |
| | 2,428,205 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 20,067,780 |
ENERGY EQUIPMENT & SERVICES - 0.0% |
Oil & Gas Equipment & Services - 0.0% |
SBM Offshore NV | 1,200 | | 20,349 |
HOTELS, RESTAURANTS & LEISURE - 0.2% |
Casinos & Gaming - 0.0% |
MGM Mirage, Inc. (a) | 915 | | 11,941 |
Hotels, Resorts & Cruise Lines - 0.2% |
Starwood Hotels & Resorts Worldwide, Inc. | 4,700 | | 254,928 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 266,869 |
HOUSEHOLD DURABLES - 0.8% |
Homebuilding - 0.8% |
Meritage Homes Corp. (a) | 5,000 | | 121,000 |
PulteGroup, Inc. (a) | 33,000 | | 245,850 |
Standard Pacific Corp. (a)(d) | 149,426 | | 543,911 |
| | 910,761 |
INDUSTRIAL CONGLOMERATES - 0.0% |
Industrial Conglomerates - 0.0% |
Keppel Corp. Ltd. | 1,000 | | 8,626 |
INSURANCE - 14.6% |
Insurance Brokers - 1.7% |
Aon Corp. | 39,000 | | 1,888,770 |
Brasil Insurance Participacoes e Administracao SA | 16,500 | | 186,985 |
| | 2,075,755 |
Life & Health Insurance - 3.0% |
AFLAC, Inc. | 51,904 | | 2,503,330 |
Citizens, Inc. Class A (a) | 2,100 | | 21,651 |
CNO Financial Group, Inc. (a) | 1,900 | | 12,768 |
Common Stocks - continued |
| Shares | | Value |
INSURANCE - CONTINUED |
Life & Health Insurance - continued |
FBL Financial Group, Inc. Class A | 400 | | $ 13,896 |
Lincoln National Corp. | 500 | | 10,770 |
MetLife, Inc. | 16,835 | | 594,781 |
Phoenix Companies, Inc. (a) | 5,700 | | 11,742 |
Ping An Insurance Group Co. China Ltd. (H Shares) | 15,500 | | 122,717 |
Prudential Financial, Inc. | 4,200 | | 240,408 |
Resolution Ltd. | 2,800 | | 12,051 |
StanCorp Financial Group, Inc. | 300 | | 11,598 |
Symetra Financial Corp. | 1,100 | | 10,142 |
Torchmark Corp. | 300 | | 13,701 |
Unum Group | 600 | | 13,698 |
| | 3,593,253 |
Multi-Line Insurance - 3.9% |
American International Group, Inc. (a) | 400 | | 10,044 |
Genworth Financial, Inc. Class A (a) | 580,950 | | 4,479,125 |
Hartford Financial Services Group, Inc. | 6,100 | | 106,872 |
Loews Corp. | 3,200 | | 119,392 |
Porto Seguro SA | 2,200 | | 26,153 |
| | 4,741,586 |
Property & Casualty Insurance - 4.5% |
ACE Ltd. | 38,500 | | 2,679,600 |
Allied World Assurance Co.
Holdings Ltd. | 1,800 | | 110,754 |
Allstate Corp. | 6,100 | | 175,985 |
Assured Guaranty Ltd. | 500 | | 7,755 |
Axis Capital Holdings Ltd. | 19,200 | | 590,976 |
Berkshire Hathaway, Inc. Class B (a) | 3,525 | | 276,254 |
Erie Indemnity Co. Class A | 163 | | 12,497 |
Fidelity National Financial, Inc. Class A | 19,915 | | 362,254 |
First American Financial Corp. | 19,200 | | 284,544 |
The Travelers Companies, Inc. | 100 | | 5,830 |
W.R. Berkley Corp. | 4,200 | | 143,934 |
XL Group PLC Class A | 37,805 | | 766,307 |
| | 5,416,690 |
Reinsurance - 1.5% |
Arch Capital Group Ltd. (a) | 10,400 | | 374,920 |
Montpelier Re Holdings Ltd. | 700 | | 12,159 |
Platinum Underwriters Holdings Ltd. | 9,300 | | 318,525 |
Validus Holdings Ltd. | 35,100 | | 1,125,657 |
| | 1,831,261 |
TOTAL INSURANCE | | 17,658,545 |
INTERNET SOFTWARE & SERVICES - 3.2% |
Internet Software & Services - 3.2% |
eBay, Inc. (a) | 123,647 | | 3,907,245 |
IT SERVICES - 0.7% |
Data Processing & Outsourced Services - 0.7% |
Alliance Data Systems Corp. (a) | 100 | | 11,080 |
|
| Shares | | Value |
Cielo SA | 400 | | $ 11,916 |
Fidelity National Information Services, Inc. | 600 | | 17,136 |
Fiserv, Inc. (a) | 233 | | 14,653 |
MasterCard, Inc. Class A | 832 | | 295,834 |
MoneyGram International, Inc. (a) | 700 | | 12,992 |
Redecard SA | 700 | | 12,620 |
The Western Union Co. | 12,370 | | 236,267 |
Total System Services, Inc. | 500 | | 10,720 |
VeriFone Systems, Inc. (a) | 305 | | 13,024 |
Visa, Inc. Class A | 1,100 | | 110,704 |
| | 746,946 |
IT Consulting & Other Services - 0.0% |
Accenture PLC Class A | 200 | | 11,468 |
Cognizant Technology Solutions Corp. Class A (a) | 99 | | 7,103 |
| | 18,571 |
TOTAL IT SERVICES | | 765,517 |
PROFESSIONAL SERVICES - 0.0% |
Research & Consulting Services - 0.0% |
Equifax, Inc. | 370 | | 14,419 |
REAL ESTATE INVESTMENT TRUSTS - 16.0% |
Diversified REITs - 0.1% |
American Assets Trust, Inc. | 6,100 | | 135,054 |
Vornado Realty Trust | 200 | | 16,176 |
| | 151,230 |
Industrial REITs - 0.2% |
DCT Industrial Trust, Inc. | 45,500 | | 251,160 |
Prologis, Inc. | 400 | | 12,684 |
Stag Industrial, Inc. | 1,100 | | 13,178 |
| | 277,022 |
Mortgage REITs - 0.3% |
American Capital Agency Corp. | 418 | | 12,256 |
American Capital Mortgage Investment Corp. | 1,700 | | 33,286 |
Pennymac Mortgage Investment Trust | 700 | | 12,397 |
Two Harbors Investment Corp. | 32,200 | | 319,746 |
| | 377,685 |
Office REITs - 2.8% |
Boston Properties, Inc. | 5,900 | | 613,895 |
Corporate Office Properties Trust (SBI) | 400 | | 9,692 |
Douglas Emmett, Inc. | 40,861 | | 854,404 |
Highwoods Properties, Inc. (SBI) | 6,780 | | 224,350 |
Lexington Corporate Properties Trust (d) | 192,700 | | 1,657,220 |
MPG Office Trust, Inc. (a) | 5,300 | | 13,515 |
SL Green Realty Corp. | 200 | | 14,706 |
| | 3,387,782 |
Residential REITs - 3.1% |
American Campus Communities, Inc. | 3,200 | | 136,960 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
Residential REITs - continued |
Apartment Investment & Management Co. Class A | 541 | | $ 13,287 |
AvalonBay Communities, Inc. | 2,267 | | 308,335 |
BRE Properties, Inc. | 500 | | 25,910 |
Camden Property Trust (SBI) | 14,000 | | 903,000 |
Campus Crest Communities, Inc. | 1,100 | | 11,759 |
Colonial Properties Trust (SBI) | 37,400 | | 799,612 |
Equity Lifestyle Properties, Inc. | 5,000 | | 350,700 |
Equity Residential (SBI) | 1,100 | | 65,505 |
Essex Property Trust, Inc. | 200 | | 28,800 |
Home Properties, Inc. | 2,200 | | 131,076 |
Post Properties, Inc. | 14,285 | | 638,397 |
UDR, Inc. | 13,948 | | 362,927 |
| | 3,776,268 |
Retail REITs - 3.6% |
Federal Realty Investment Trust (SBI) | 100 | | 9,446 |
Glimcher Realty Trust | 400 | | 3,852 |
Kimco Realty Corp. | 700 | | 12,775 |
Simon Property Group, Inc. | 31,038 | | 4,216,823 |
Urstadt Biddle Properties, Inc. Class A | 1,300 | | 25,428 |
| | 4,268,324 |
Specialized REITs - 5.9% |
American Tower Corp. | 300 | | 19,053 |
Big Yellow Group PLC | 341,379 | | 1,505,361 |
CubeSmart | 1,000 | | 11,380 |
DiamondRock Hospitality Co. | 21,100 | | 222,394 |
HCP, Inc. | 23,900 | | 1,004,517 |
Health Care REIT, Inc. | 5,100 | | 291,771 |
Host Hotels & Resorts, Inc. | 19,000 | | 311,980 |
Plum Creek Timber Co., Inc. | 3,100 | | 120,218 |
Potlatch Corp. | 2,100 | | 64,092 |
Public Storage | 77 | | 10,692 |
Rayonier, Inc. | 600 | | 27,438 |
Strategic Hotel & Resorts, Inc. (a) | 375,284 | | 2,330,514 |
Sunstone Hotel Investors, Inc. (a) | 22,100 | | 205,309 |
Ventas, Inc. | 9,935 | | 579,310 |
Weyerhaeuser Co. | 21,600 | | 432,432 |
| | 7,136,461 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 19,374,772 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.7% |
Diversified Real Estate Activities - 1.6% |
Tejon Ranch Co. (a) | 8,564 | | 244,074 |
The St. Joe Co. (a)(d) | 101,150 | | 1,615,366 |
| | 1,859,440 |
Real Estate Development - 0.0% |
Bukit Sembawang Estates Ltd. | 7,000 | | 23,874 |
|
| Shares | | Value |
Real Estate Operating Companies - 0.0% |
BR Malls Participacoes SA | 700 | | $ 7,640 |
Castellum AB | 927 | | 11,789 |
Thomas Properties Group, Inc. | 2,262 | | 7,261 |
| | 26,690 |
Real Estate Services - 1.1% |
CBRE Group, Inc. (a) | 687 | | 13,259 |
Jones Lang LaSalle, Inc. | 16,510 | | 1,300,328 |
Kennedy-Wilson Holdings, Inc. | 2,000 | | 26,860 |
| | 1,340,447 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 3,250,451 |
SOFTWARE - 0.0% |
Application Software - 0.0% |
Fair Isaac Corp. | 100 | | 3,624 |
SPECIALTY RETAIL - 1.9% |
Computer & Electronics Retail - 1.7% |
Rent-A-Center, Inc. | 59,016 | | 1,995,921 |
Home Improvement Retail - 0.2% |
Home Depot, Inc. | 6,600 | | 292,974 |
TOTAL SPECIALTY RETAIL | | 2,288,895 |
THRIFTS & MORTGAGE FINANCE - 0.1% |
Thrifts & Mortgage Finance - 0.1% |
BankUnited, Inc. | 500 | | 11,455 |
Brookline Bancorp, Inc., Delaware | 800 | | 7,416 |
Cape Bancorp, Inc. (a) | 1,400 | | 11,858 |
Cheviot Financial Corp. | 7,610 | | 62,098 |
Hudson City Bancorp, Inc. | 800 | | 5,384 |
People's United Financial, Inc. | 1,100 | | 13,563 |
| | 111,774 |
TOTAL COMMON STOCKS (Cost $118,193,784) |
117,231,113
|
Money Market Funds - 6.6% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 5,260,005 | | 5,260,005 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 2,722,048 | | 2,722,048 |
TOTAL MONEY MARKET FUNDS (Cost $7,982,053) |
7,982,053
|
TOTAL INVESTMENT PORTFOLIO - 103.6% (Cost $126,175,837) | | 125,213,166 |
NET OTHER ASSETS (LIABILITIES) - (3.6)% | | (4,335,972) |
NET ASSETS - 100% | $ 120,877,194 |
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 | $ 1,875 |
Fidelity Securities Lending Cash Central Fund | 11,987 |
Total | $ 13,862 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 117,231,113 | $ 117,043,636 | $ 187,477 | $ - |
Money Market Funds | 7,982,053 | 7,982,053 | - | - |
Total Investments in Securities: | $ 125,213,166 | $ 125,025,689 | $ 187,477 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.3% |
Bermuda | 4.5% |
India | 4.1% |
Switzerland | 2.5% |
United Kingdom | 2.0% |
China | 1.4% |
Others (Individually Less Than 1%) | 2.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Financial Services Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,584,648) - See accompanying schedule: Unaffiliated issuers (cost $118,193,784) | $ 117,231,113 | |
Fidelity Central Funds (cost $7,982,053) | 7,982,053 | |
Total Investments (cost $126,175,837) | | $ 125,213,166 |
Receivable for investments sold | | 3,102,418 |
Receivable for fund shares sold | | 161,700 |
Dividends receivable | | 33,995 |
Distributions receivable from Fidelity Central Funds | | 1,844 |
Prepaid expenses | | 251 |
Other receivables | | 30,736 |
Total assets | | 128,544,110 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,664,169 | |
Payable for fund shares redeemed | 120,575 | |
Accrued management fee | 55,164 | |
Distribution and service plan fees payable | 44,149 | |
Other affiliated payables | 30,926 | |
Other payables and accrued expenses | 29,885 | |
Collateral on securities loaned, at value | 2,722,048 | |
Total liabilities | | 7,666,916 |
| | |
Net Assets | | $ 120,877,194 |
Net Assets consist of: | | |
Paid in capital | | $ 215,614,635 |
Accumulated net investment loss | | (108,763) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (93,665,935) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (962,743) |
Net Assets | | $ 120,877,194 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($62,755,575 ÷ 6,387,962 shares) | | $ 9.82 |
| | |
Maximum offering price per share (100/94.25 of $9.82) | | $ 10.42 |
Class T:
Net Asset Value and redemption price per share ($23,963,801 ÷ 2,452,695 shares) | | $ 9.77 |
| | |
Maximum offering price per share (100/96.50 of $9.77) | | $ 10.12 |
Class B:
Net Asset Value and offering price per share ($6,214,784 ÷ 655,611 shares)A | | $ 9.48 |
| | |
Class C:
Net Asset Value and offering price per share ($20,363,292 ÷ 2,167,420 shares)A | | $ 9.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($7,579,742 ÷ 754,870 shares) | | $ 10.04 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 906,043 |
Income from Fidelity Central Funds | | 13,862 |
Total income | | 919,905 |
| | |
Expenses | | |
Management fee | $ 314,138 | |
Transfer agent fees | 167,101 | |
Distribution and service plan fees | 253,421 | |
Accounting and security lending fees | 22,196 | |
Custodian fees and expenses | 14,123 | |
Independent trustees' compensation | 398 | |
Registration fees | 41,026 | |
Audit | 27,600 | |
Legal | 514 | |
Miscellaneous | 576 | |
Total expenses before reductions | 841,093 | |
Expense reductions | (36,022) | 805,071 |
Net investment income (loss) | | 114,834 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (9,856,545) | |
Foreign currency transactions | (56,325) | |
Total net realized gain (loss) | | (9,912,870) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,216,119 | |
Assets and liabilities in foreign currencies | 457 | |
Total change in net unrealized appreciation (depreciation) | | 6,216,576 |
Net gain (loss) | | (3,696,294) |
Net increase (decrease) in net assets resulting from operations | | $ (3,581,460) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 114,834 | $ (682,395) |
Net realized gain (loss) | (9,912,870) | (942,210) |
Change in net unrealized appreciation (depreciation) | 6,216,576 | (2,518,839) |
Net increase (decrease) in net assets resulting from operations | (3,581,460) | (4,143,444) |
Distributions to shareholders from net investment income | (107,549) | - |
Share transactions - net increase (decrease) | (5,248,151) | (16,036,954) |
Redemption fees | 2,675 | 4,715 |
Total increase (decrease) in net assets | (8,934,485) | (20,175,683) |
| | |
Net Assets | | |
Beginning of period | 129,811,679 | 149,987,362 |
End of period (including accumulated net investment loss of $108,763 and accumulated net investment loss of $116,048, respectively) | $ 120,877,194 | $ 129,811,679 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.06 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.02) | (.01) | .19 | .30 | .23 |
Net realized and unrealized gain (loss) | (.25) | (.27) | .93 | (3.58) | (6.41) | .92 |
Total from investment operations | (.23) | (.29) | .92 | (3.39) | (6.11) | 1.15 |
Distributions from net investment income | (.01) | - | (.10) | (.24) | (.27) | (.22) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | (.01) | - | (.10) | (.26) | (1.73) | (3.47) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.82 | $ 10.06 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 |
Total Return B,C,D | (2.24)% | (2.80)% | 9.61% | (25.87)% | (31.67)% | 4.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.30% A | 1.26% | 1.27% | 1.29% | 1.21% | 1.23% |
Expenses net of fee waivers, if any | 1.30% A | 1.26% | 1.27% | 1.29% | 1.21% | 1.23% |
Expenses net of all reductions | 1.23% A | 1.21% | 1.22% | 1.28% | 1.21% | 1.22% |
Net investment income (loss) | .41% A | (.24)% | (.09)% | 2.12% | 1.75% | 1.01% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 62,756 | $ 63,937 | $ 69,723 | $ 68,245 | $ 90,037 | $ 106,722 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.47 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $3.250 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.01 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.05) | (.04) | .16 | .26 | .18 |
Net realized and unrealized gain (loss) | (.25) | (.26) | .92 | (3.56) | (6.41) | .91 |
Total from investment operations | (.24) | (.31) | .88 | (3.40) | (6.15) | 1.09 |
Distributions from net investment income | - | - | (.08) | (.20) | (.19) | (.16) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | - | - | (.08) | (.22) | (1.65) | (3.41) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.77 | $ 10.01 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 |
Total Return B,C,D | (2.36)% | (3.00)% | 9.26% | (26.00)% | (31.85)% | 4.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.56% A | 1.52% | 1.53% | 1.55% | 1.47% | 1.46% |
Expenses net of fee waivers, if any | 1.56% A | 1.52% | 1.53% | 1.55% | 1.47% | 1.46% |
Expenses net of all reductions | 1.49% A | 1.47% | 1.47% | 1.54% | 1.47% | 1.46% |
Net investment income (loss) | .15% A | (.49)% | (.35)% | 1.86% | 1.50% | .77% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,964 | $ 27,037 | $ 33,310 | $ 34,927 | $ 53,526 | $ 95,426 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.73 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.09) | .12 | .18 | .06 |
Net realized and unrealized gain (loss) | (.24) | (.26) | .91 | (3.50) | (6.29) | .89 |
Total from investment operations | (.25) | (.36) | .82 | (3.38) | (6.11) | .95 |
Distributions from net investment income | - | - | (.06) | (.12) | (.04) | (.02) |
Distributions from net realized gain | - | - | - | (.02) | (1.44) | (3.25) |
Total distributions | - | - | (.06) | (.14) | (1.48) | (3.26) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.48 | $ 9.73 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 |
Total Return B,C,D | (2.57)% | (3.57)% | 8.78% | (26.35)% | (32.21)% | 3.71% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.98% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.98% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.97% | 2.03% | 1.96% | 1.98% |
Net investment income (loss) | (.34)% A | (.98)% | (.85)% | 1.38% | 1.01% | .25% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,215 | $ 7,480 | $ 10,992 | $ 12,477 | $ 20,420 | $ 64,837 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.26 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $3.247 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.09) | .12 | .17 | .06 |
Net realized and unrealized gain (loss) | (.24) | (.25) | .90 | (3.48) | (6.24) | .90 |
Total from investment operations | (.25) | (.35) | .81 | (3.36) | (6.07) | .96 |
Distributions from net investment income | - | - | (.06) | (.15) | (.09) | (.05) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | - | - | (.06) | (.17) | (1.55) | (3.30) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.40 | $ 9.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 |
Total Return B,C,D | (2.59)% | (3.50)% | 8.79% | (26.38)% | (32.18)% | 3.75% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.94% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.94% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.96% | 2.03% | 1.96% | 1.94% |
Net investment income (loss) | (.34)% A | (.99)% | (.84)% | 1.37% | 1.01% | .29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,363 | $ 23,196 | $ 30,804 | $ 29,849 | $ 37,777 | $ 55,219 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.30 per share is comprised of distributions from net investment income of $.049 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.28 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .01 | .02 | .21 | .36 | .31 |
Net realized and unrealized gain (loss) | (.25) | (.28) | .95 | (3.63) | (6.51) | .93 |
Total from investment operations | (.22) | (.27) | .97 | (3.42) | (6.15) | 1.24 |
Distributions from net investment income | (.02) | - | (.11) | (.25) | (.33) | (.30) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | (.02) | - | (.11) | (.27) | (1.79) | (3.55) I |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.04 | $ 10.28 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 |
Total Return B,C | (2.10)% | (2.56)% | 9.99% | (25.68)% | (31.47)% | 4.88% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 1.02% A | .96% | .99% | 1.04% | .93% | .89% |
Expenses net of fee waivers, if any | 1.02% A | .96% | .99% | 1.04% | .93% | .89% |
Expenses net of all reductions | .96% A | .91% | .94% | 1.03% | .92% | .88% |
Net investment income (loss) | .68% A | .07% | .19% | 2.37% | 2.04% | 1.34% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,580 | $ 8,162 | $ 5,158 | $ 3,797 | $ 5,819 | $ 8,474 |
Portfolio turnover rate F | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services 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, except for exchanges and reinvestments. 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. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 foreign currency transaction, certain foreign taxes, partnerships, deferred trustees compensation, passive foreign investment companies (PFIC), equity-debt classification, 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 | $ 6,287,978 |
Gross unrealized depreciation | (9,872,363) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (3,584,385) |
| |
Tax cost | $ 128,797,551 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (55,672,202) |
2018 | (23,251,884) |
2019 | (450,657) |
Total capital loss carryforward | (79,374,743) |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $2,671,096 of losses recognized during the period November 1, 2010 to July 31, 2011.
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 $247,151,080 and $253,623,660, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 72,492 | $ 14,212 |
Class T | .25% | .25% | 56,190 | - |
Class B | .75% | .25% | 30,351 | 22,763 |
Class C | .75% | .25% | 94,388 | 10,615 |
| | | $ 253,421 | $ 47,590 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC* |
Class A | $ 29,987 |
Class T | 1,336 |
Class B* | 6,465 |
Class C* | 1,242 |
| $ 39,030 |
* 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
Average
Net Assets* |
Class A | $ 85,994 | .30 |
Class T | 34,640 | .31 |
Class B | 9,043 | .30 |
Class C | 28,060 | .30 |
Institutional Class | 9,364 | .27 |
| $ 167,101 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $13,758 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $160 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $11,987. 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 $36,022 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 83,840 | $ - |
Class T | 7,542 | - |
Institutional Class | 16,167 | - |
Total | $ 107,549 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,124,637 | 2,161,457 | $ 9,810,658 | $ 22,928,387 |
Reinvestment of distributions | 8,251 | - | 73,682 | - |
Shares redeemed | (1,097,833) | (2,543,428) | (9,760,920) | (27,053,427) |
Net increase (decrease) | 35,055 | (381,971) | $ 123,420 | $ (4,125,040) |
Class T | | | | |
Shares sold | 162,160 | 432,428 | $ 1,439,761 | $ 4,608,539 |
Reinvestment of distributions | 806 | - | 7,158 | - |
Shares redeemed | (410,971) | (958,085) | (3,587,339) | (10,097,220) |
Net increase (decrease) | (248,005) | (525,657) | $ (2,140,420) | $ (5,488,681) |
Class B | | | | |
Shares sold | 3,494 | 48,520 | $ 30,052 | $ 510,105 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (116,321) | (369,736) | (987,614) | (3,763,785) |
Net increase (decrease) | (112,827) | (321,216) | $ (957,562) | $ (3,253,680) |
Class C | | | | |
Shares sold | 151,282 | 446,364 | $ 1,317,802 | $ 4,631,347 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (388,342) | (1,122,959) | (3,266,392) | (11,383,791) |
Net increase (decrease) | (237,060) | (676,595) | $ (1,948,590) | $ (6,752,444) |
Institutional Class | | | | |
Shares sold | 162,693 | 691,657 | $ 1,481,803 | $ 7,779,752 |
Reinvestment of distributions | 1,570 | - | 14,317 | - |
Shares redeemed | (203,196) | (387,007) | (1,821,119) | (4,196,861) |
Net increase (decrease) | (38,933) | 304,650 | $ (324,999) | $ 3,582,891 |
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 Health Care Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,017.90 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.10 | $ 6.09 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 1,016.40 | $ 7.40 |
Hypothetical A | | $ 1,000.00 | $ 1,017.80 | $ 7.41 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,014.30 | $ 9.87 |
Hypothetical A | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,014.40 | $ 9.72 |
Hypothetical A | | $ 1,000.00 | $ 1,015.48 | $ 9.73 |
Institutional Class | .91% | | | |
Actual | | $ 1,000.00 | $ 1,019.20 | $ 4.62 |
Hypothetical A | | $ 1,000.00 | $ 1,020.56 | $ 4.62 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Amgen, Inc. | 6.7 | 5.0 |
Covidien PLC | 4.4 | 6.3 |
UnitedHealth Group, Inc. | 4.1 | 1.4 |
Gilead Sciences, Inc. | 4.1 | 1.3 |
Merck & Co., Inc. | 3.9 | 2.2 |
WellPoint, Inc. | 3.6 | 2.0 |
Express Scripts, Inc. | 3.4 | 2.5 |
Medco Health Solutions, Inc. | 3.3 | 2.9 |
GlaxoSmithKline PLC sponsored ADR | 2.8 | 0.0 |
Biogen Idec, Inc. | 2.7 | 1.5 |
| 39.0 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Health Care Providers & Services | 31.5% | |
| Biotechnology | 26.8% | |
| Pharmaceuticals | 19.0% | |
| Health Care Equipment & Supplies | 12.8% | |
| Food & Staples Retailing | 2.1% | |
| All Others* | 7.8% | |
As of July 31, 2011 |
| Health Care Equipment & Supplies | 23.1% | |
| Biotechnology | 21.9% | |
| Health Care Providers & Services | 21.4% | |
| Pharmaceuticals | 15.3% | |
| Life Sciences Tools & Services | 9.7% | |
| All Others* | 8.6% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
BIOTECHNOLOGY - 26.8% |
Biotechnology - 26.8% |
Achillion Pharmaceuticals, Inc. (a)(d) | 210,600 | | $ 2,335,554 |
Acorda Therapeutics, Inc. (a) | 132,427 | | 3,380,861 |
Alexion Pharmaceuticals, Inc. (a) | 139,786 | | 10,729,973 |
AMAG Pharmaceuticals, Inc. (a) | 32,589 | | 535,111 |
Amgen, Inc. | 463,365 | | 31,467,119 |
Anthera Pharmaceuticals, Inc. (a) | 147,688 | | 1,163,781 |
Ardea Biosciences, Inc. (a) | 148,785 | | 2,706,399 |
ARIAD Pharmaceuticals, Inc. (a) | 330,000 | | 4,867,500 |
AVEO Pharmaceuticals, Inc. (a)(d) | 106,182 | | 1,399,479 |
Biogen Idec, Inc. (a) | 107,479 | | 12,673,924 |
BioMarin Pharmaceutical, Inc. (a) | 298,040 | | 10,631,087 |
Chelsea Therapeutics International Ltd. (a) | 31,700 | | 142,650 |
Dynavax Technologies Corp. (a)(d) | 769,400 | | 2,677,512 |
Gilead Sciences, Inc. (a) | 394,167 | | 19,251,116 |
Human Genome Sciences, Inc. (a) | 128,000 | | 1,259,520 |
Medivation, Inc. (a) | 43,564 | | 2,413,881 |
Neurocrine Biosciences, Inc. (a) | 197,518 | | 1,836,917 |
NPS Pharmaceuticals, Inc. (a) | 217,900 | | 1,673,472 |
ONYX Pharmaceuticals, Inc. (a) | 54,200 | | 2,218,948 |
Rigel Pharmaceuticals, Inc. (a) | 23,100 | | 225,687 |
Seattle Genetics, Inc. (a)(d) | 111,357 | | 2,107,988 |
Synageva BioPharma Corp. (a) | 16,200 | | 575,586 |
Targacept, Inc. (a) | 130,715 | | 794,747 |
Theravance, Inc. (a)(d) | 153,600 | | 2,724,864 |
United Therapeutics Corp. (a) | 88,104 | | 4,332,955 |
Vical, Inc. (a) | 279,000 | | 979,290 |
ZIOPHARM Oncology, Inc. (a) | 102,100 | | 542,151 |
| | 125,648,072 |
DIVERSIFIED CONSUMER SERVICES - 0.5% |
Specialized Consumer Services - 0.5% |
Carriage Services, Inc. | 221,955 | | 1,271,802 |
Stewart Enterprises, Inc. Class A | 154,043 | | 947,364 |
| | 2,219,166 |
FOOD & STAPLES RETAILING - 2.1% |
Drug Retail - 2.1% |
CVS Caremark Corp. | 132,100 | | 5,515,175 |
Drogasil SA | 506,400 | | 4,202,610 |
| | 9,717,785 |
HEALTH CARE EQUIPMENT & SUPPLIES - 12.8% |
Health Care Equipment - 11.4% |
Baxter International, Inc. | 22,000 | | 1,220,560 |
Boston Scientific Corp. (a) | 1,291,611 | | 7,698,002 |
C. R. Bard, Inc. | 21,900 | | 2,026,188 |
Conceptus, Inc. (a) | 160,600 | | 1,988,228 |
CONMED Corp. (a) | 56,000 | | 1,646,400 |
Covidien PLC | 403,454 | | 20,777,881 |
|
| Shares | | Value |
Cyberonics, Inc. (a) | 65,720 | | $ 2,135,900 |
HeartWare International, Inc. (a) | 30,700 | | 2,125,361 |
Opto Circuits India Ltd. | 214,591 | | 1,028,858 |
Orthofix International NV (a) | 43,205 | | 1,734,681 |
William Demant Holding A/S (a) | 25,263 | | 2,092,304 |
Wright Medical Group, Inc. (a) | 220,900 | | 3,744,255 |
Zeltiq Aesthetics, Inc. (d) | 82,300 | | 987,600 |
Zimmer Holdings, Inc. | 73,300 | | 4,452,975 |
| | 53,659,193 |
Health Care Supplies - 1.4% |
The Cooper Companies, Inc. | 88,250 | | 6,366,355 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 60,025,548 |
HEALTH CARE PROVIDERS & SERVICES - 31.5% |
Health Care Distributors & Services - 1.6% |
Amplifon SpA | 304,971 | | 1,372,171 |
McKesson Corp. | 54,720 | | 4,471,718 |
PharMerica Corp. (a) | 131,800 | | 1,654,090 |
| | 7,497,979 |
Health Care Facilities - 1.3% |
Emeritus Corp. (a) | 97,675 | | 1,705,406 |
Hanger Orthopedic Group, Inc. (a) | 65,665 | | 1,286,377 |
LCA-Vision, Inc. (a) | 191,300 | | 971,804 |
Sunrise Senior Living, Inc. (a)(d) | 291,509 | | 2,072,629 |
| | 6,036,216 |
Health Care Services - 16.4% |
Accretive Health, Inc. (a) | 142,845 | | 3,832,531 |
Catalyst Health Solutions, Inc. (a) | 96,500 | | 5,284,340 |
Express Scripts, Inc. (a) | 313,786 | | 16,053,292 |
Fresenius Medical Care AG & Co. KGaA | 62,713 | | 4,483,235 |
HMS Holdings Corp. (a) | 90,300 | | 2,980,803 |
Laboratory Corp. of America Holdings (a) | 87,570 | | 8,003,022 |
Medco Health Solutions, Inc. (a) | 253,075 | | 15,695,712 |
MEDNAX, Inc. (a) | 89,700 | | 6,388,434 |
Omnicare, Inc. | 244,326 | | 8,021,223 |
Quest Diagnostics, Inc. | 109,548 | | 6,362,548 |
Team Health Holdings, Inc. (a) | 12,500 | | 257,500 |
| | 77,362,640 |
Managed Health Care - 12.2% |
Aetna, Inc. | 155,300 | | 6,786,610 |
Health Net, Inc. (a) | 132,700 | | 5,008,098 |
Humana, Inc. | 95,800 | | 8,528,116 |
UnitedHealth Group, Inc. | 374,167 | | 19,378,109 |
Universal American Spin Corp. (a) | 53,300 | | 585,767 |
WellPoint, Inc. | 263,896 | | 16,973,791 |
| | 57,260,491 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 148,157,326 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE TECHNOLOGY - 1.5% |
Health Care Technology - 1.5% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 109,643 | | $ 2,096,374 |
athenahealth, Inc. (a) | 66,800 | | 3,886,424 |
Epocrates, Inc. (a) | 107,000 | | 1,036,830 |
| | 7,019,628 |
LIFE SCIENCES TOOLS & SERVICES - 1.0% |
Life Sciences Tools & Services - 1.0% |
Illumina, Inc. (a) | 91,700 | | 4,746,392 |
PERSONAL PRODUCTS - 0.4% |
Personal Products - 0.4% |
Prestige Brands Holdings, Inc. (a) | 161,172 | | 2,069,448 |
PHARMACEUTICALS - 18.9% |
Pharmaceuticals - 18.9% |
Cardiome Pharma Corp. (a) | 358,700 | | 850,120 |
Elan Corp. PLC sponsored ADR (a) | 336,200 | | 4,575,682 |
Eli Lilly & Co. | 150,300 | | 5,972,922 |
Endo Pharmaceuticals Holdings, Inc. (a) | 65,900 | | 2,449,503 |
Forest Laboratories, Inc. (a) | 55,200 | | 1,754,256 |
GlaxoSmithKline PLC sponsored ADR | 297,700 | | 13,259,558 |
Meda AB (A Shares) | 178,100 | | 1,879,974 |
Medicis Pharmaceutical Corp. Class A | 36,403 | | 1,204,575 |
Merck & Co., Inc. | 481,995 | | 18,441,129 |
Optimer Pharmaceuticals, Inc. (a)(d) | 171,954 | | 2,230,243 |
Pacira Pharmaceuticals, Inc. | 62,200 | | 672,382 |
Pfizer, Inc. | 110,388 | | 2,362,303 |
Sanofi-aventis sponsored ADR | 265,400 | | 9,854,302 |
Shire PLC sponsored ADR | 88,900 | | 8,847,328 |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 197,704 | | 9,574,177 |
Watson Pharmaceuticals, Inc. (a) | 77,900 | | 4,567,277 |
XenoPort, Inc. (a) | 118,900 | | 498,191 |
| | 88,993,922 |
PROFESSIONAL SERVICES - 1.2% |
Research & Consulting Services - 1.2% |
Advisory Board Co. (a) | 33,300 | | 2,540,124 |
Qualicorp SA | 334,000 | | 3,305,208 |
| | 5,845,332 |
SOFTWARE - 0.5% |
Application Software - 0.5% |
Nuance Communications, Inc. (a) | 77,318 | | 2,205,109 |
TOTAL COMMON STOCKS (Cost $382,509,970) |
456,647,728
|
Convertible Preferred Stocks - 0.1% |
| Shares | | Value |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
Merrimack Pharmaceuticals, Inc.
Series G (e)
(Cost $562,611) | 80,373 | | $ 578,686 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 11,763,827 | | 11,763,827 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 8,458,300 | | 8,458,300 |
TOTAL MONEY MARKET FUNDS (Cost $20,222,127) |
20,222,127
|
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $403,294,708) | | 477,448,541 |
NET OTHER ASSETS (LIABILITIES) - (1.6)% | | (7,665,926) |
NET ASSETS - 100% | $ 469,782,615 |
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 $578,686 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 562,611 |
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 | $ 12,246 |
Fidelity Securities Lending Cash Central Fund | 39,783 |
Total | $ 52,029 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 456,647,728 | $ 452,164,493 | $ 4,483,235 | $ - |
Convertible Preferred Stocks | 578,686 | - | - | 578,686 |
Money Market Funds | 20,222,127 | 20,222,127 | - | - |
Total Investments in Securities: | $ 477,448,541 | $ 472,386,620 | $ 4,483,235 | $ 578,686 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 562,611 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 16,075 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 578,686 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 16,075 |
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 | 81.4% |
Ireland | 5.4% |
United Kingdom | 2.8% |
Canada | 2.2% |
France | 2.1% |
Bailiwick of Jersey | 1.9% |
Brazil | 1.6% |
Others (Individually Less Than 1%) | 2.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $8,033,211) - See accompanying schedule: Unaffiliated issuers (cost $383,072,581) | $ 457,226,414 | |
Fidelity Central Funds (cost $20,222,127) | 20,222,127 | |
Total Investments (cost $403,294,708) | | $ 477,448,541 |
Receivable for investments sold | | 5,852,924 |
Receivable for fund shares sold | | 393,705 |
Dividends receivable | | 165,386 |
Distributions receivable from Fidelity Central Funds | | 8,778 |
Prepaid expenses | | 1,163 |
Other receivables | | 10,249 |
Total assets | | 483,880,746 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,451,180 | |
Payable for fund shares redeemed | 656,815 | |
Accrued management fee | 214,524 | |
Distribution and service plan fees payable | 168,446 | |
Other affiliated payables | 119,099 | |
Other payables and accrued expenses | 29,767 | |
Collateral on securities loaned, at value | 8,458,300 | |
Total liabilities | | 14,098,131 |
| | |
Net Assets | | $ 469,782,615 |
Net Assets consist of: | | |
Paid in capital | | $ 388,249,432 |
Accumulated net investment loss | | (1,141,603) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 8,518,953 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 74,155,833 |
Net Assets | | $ 469,782,615 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($221,706,339 ÷ 9,622,804 shares) | | $ 23.04 |
| | |
Maximum offering price per share (100/94.25 of $23.04) | | $ 24.45 |
Class T:
Net Asset Value and redemption price per share ($116,479,102 ÷ 5,249,903 shares) | | $ 22.19 |
| | |
Maximum offering price per share (100/96.50 of $22.19) | | $ 22.99 |
Class B:
Net Asset Value and offering price per share ($17,420,177 ÷ 851,160 shares)A | | $ 20.47 |
| | |
Class C:
Net Asset Value and offering price per share ($74,410,936 ÷ 3,642,714 shares)A | | $ 20.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($39,766,061 ÷ 1,644,276 shares) | | $ 24.18 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,801,224 |
Income from Fidelity Central Funds | | 52,029 |
Total income | | 1,853,253 |
| | |
Expenses | | |
Management fee | $ 1,198,848 | |
Transfer agent fees | 626,581 | |
Distribution and service plan fees | 954,919 | |
Accounting and security lending fees | 85,414 | |
Custodian fees and expenses | 16,990 | |
Independent trustees' compensation | 1,474 | |
Registration fees | 56,367 | |
Audit | 29,479 | |
Legal | 1,481 | |
Miscellaneous | 1,999 | |
Total expenses before reductions | 2,973,552 | |
Expense reductions | (22,424) | 2,951,128 |
Net investment income (loss) | | (1,097,875) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | �� |
Unaffiliated issuers | 11,268,341 | |
Foreign currency transactions | (83,944) | |
Total net realized gain (loss) | | 11,184,397 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,674,821) | |
Assets and liabilities in foreign currencies | (2,520) | |
Total change in net unrealized appreciation (depreciation) | | (6,677,341) |
Net gain (loss) | | 4,507,056 |
Net increase (decrease) in net assets resulting from operations | | $ 3,409,181 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (1,097,875) | $ (2,816,326) |
Net realized gain (loss) | 11,184,397 | 84,545,757 |
Change in net unrealized appreciation (depreciation) | (6,677,341) | 41,597,148 |
Net increase (decrease) in net assets resulting from operations | 3,409,181 | 123,326,579 |
Distributions to shareholders from net realized gain | (49,973,324) | - |
Share transactions - net increase (decrease) | 24,613,700 | (10,714,611) |
Redemption fees | 66,623 | 9,972 |
Total increase (decrease) in net assets | (21,883,820) | 112,621,940 |
| | |
Net Assets | | |
Beginning of period | 491,666,435 | 379,044,495 |
End of period (including accumulated net investment loss of $1,141,603 and accumulated net investment loss of $43,728, respectively) | $ 469,782,615 | $ 491,666,435 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.60 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.10) | (.07) | .02 | (.03) | (.03) |
Net realized and unrealized gain (loss) | .11 | 6.69 | 1.93 | (2.22) | (1.08) | 1.91 |
Total from investment operations | .08 | 6.59 | 1.86 | (2.20) | (1.11) | 1.88 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (2.07) | (2.75) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 23.04 | $ 25.60 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 |
Total Return B,C,D | 1.79% | 34.67% | 10.85% | (11.37)% | (5.64)% | 8.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.20% A | 1.19% | 1.22% | 1.23% | 1.20% | 1.22% |
Expenses net of fee waivers, if any | 1.20% A | 1.19% | 1.22% | 1.23% | 1.20% | 1.22% |
Expenses net of all reductions | 1.19% A | 1.18% | 1.21% | 1.23% | 1.19% | 1.21% |
Net investment income (loss) | (.32)% A | (.43)% | (.36)% | .11% | (.13)% | (.14)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 221,706 | $ 224,704 | $ 179,586 | $ 177,890 | $ 220,888 | $ 234,656 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.80 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.16) | (.12) | (.02) | (.08) | (.09) |
Net realized and unrealized gain (loss) | .09 | 6.50 | 1.89 | (2.18) | (1.06) | 1.87 |
Total from investment operations | .03 | 6.34 | 1.77 | (2.20) | (1.14) | 1.78 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.99) | (2.65) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 22.19 | $ 24.80 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 |
Total Return B,C,D | 1.64% | 34.34% | 10.61% | (11.65)% | (5.86)% | 8.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.46% A | 1.44% | 1.47% | 1.49% | 1.46% | 1.48% |
Expenses net of fee waivers, if any | 1.46% A | 1.44% | 1.47% | 1.49% | 1.46% | 1.48% |
Expenses net of all reductions | 1.44% A | 1.43% | 1.46% | 1.49% | 1.45% | 1.47% |
Net investment income (loss) | (.58)% A | (.69)% | (.62)% | (.15)% | (.40)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 116,479 | $ 123,606 | $ 100,883 | $ 103,772 | $ 143,237 | $ 186,628 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.15 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.25) | (.20) | (.09) | (.18) | (.20) |
Net realized and unrealized gain (loss) | .06 | 6.08 | 1.78 | (2.07) | (.99) | 1.79 |
Total from investment operations | (.04) | 5.83 | 1.58 | (2.16) | (1.17) | 1.59 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.85) | (2.47) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.47 | $ 23.15 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 |
Total Return B,C,D | 1.43% | 33.66% | 10.04% | (12.07)% | (6.30)% | 7.66% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.95% A | 1.94% | 1.97% | 1.98% | 1.95% | 1.99% |
Expenses net of fee waivers, if any | 1.95% A | 1.94% | 1.97% | 1.98% | 1.95% | 1.99% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.96% | 1.98% | 1.94% | 1.98% |
Net investment income (loss) | (1.07)% A | (1.19)% | (1.11)% | (.64)% | (.89)% | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,420 | $ 20,365 | $ 23,543 | $ 29,381 | $ 55,589 | $ 113,384 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.11 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.24) | (.19) | (.09) | (.17) | (.19) |
Net realized and unrealized gain (loss) | .06 | 6.06 | 1.78 | (2.07) | (1.00) | 1.79 |
Total from investment operations | (.04) | 5.82 | 1.59 | (2.16) | (1.17) | 1.60 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.89) | (2.55) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.43 | $ 23.11 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 |
Total Return B,C,D | 1.44% | 33.66% | 10.13% | (12.09)% | (6.31)% | 7.75% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.92% A | 1.90% | 1.94% | 1.98% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 1.92% A | 1.90% | 1.94% | 1.98% | 1.94% | 1.94% |
Expenses net of all reductions | 1.91% A | 1.89% | 1.93% | 1.98% | 1.94% | 1.93% |
Net investment income (loss) | (1.04)% A | (1.15)% | (1.08)% | (.64)% | (.88)% | (.86)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 74,411 | $ 77,749 | $ 60,861 | $ 64,002 | $ 83,133 | $ 105,519 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.69 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - H | (.03) | (.02) | .06 | .03 | .05 |
Net realized and unrealized gain (loss) | .13 | 6.95 | 2.01 | (2.30) | (1.12) | 1.96 |
Total from investment operations | .13 | 6.92 | 1.99 | (2.24) | (1.09) | 2.01 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (2.14) | (2.82) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 24.18 | $ 26.69 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 |
Total Return B,C | 1.92% | 35.00% | 11.19% | (11.19)% | (5.36)% | 8.90% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .91% A | .89% | .96% | .98% | .93% | .88% |
Expenses net of fee waivers, if any | .91% A | .89% | .96% | .98% | .93% | .88% |
Expenses net of all reductions | .90% A | .88% | .95% | .98% | .92% | .87% |
Net investment income (loss) | (.04)% A | (.13)% | (.10)% | .36% | .14% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 39,766 | $ 45,243 | $ 14,172 | $ 13,452 | $ 18,825 | $ 22,174 |
Portfolio turnover rate F | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 transaction, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 84,810,597 |
Gross unrealized depreciation | (12,923,235) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 71,887,362 |
| |
Tax cost | $ 405,561,179 |
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 $276,921,972 and $305,788,677, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 250,813 | $ 896 |
Class T | .25% | .25% | 273,114 | - |
Class B | .75% | .25% | 85,028 | 63,849 |
Class C | .75% | .25% | 345,964 | 19,904 |
| | | $ 954,919 | $ 84,649 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 24,539 |
Class T | 6,577 |
Class B* | 9,098 |
Class C* | 1,261 |
| $ 41,475 |
* 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
Average
Net Assets* |
Class A | $ 299,325 | .30 |
Class T | 167,023 | .31 |
Class B | 25,386 | .30 |
Class C | 92,240 | .27 |
Institutional Class | 42,607 | .26 |
| $ 626,581 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $4,970 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $607 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $39,783, including $387 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $22,421 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net realized gain | | |
Class A | $ 22,637,769 | $ - |
Class T | 12,838,932 | - |
Class B | 2,229,080 | - |
Class C | 8,852,071 | - |
Institutional Class | 3,415,472 | - |
Total | $ 49,973,324 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,032,206 | 2,257,884 | $ 22,279,810 | $ 55,506,569 |
Reinvestment of distributions | 974,554 | - | 19,678,527 | - |
Shares redeemed | (1,159,974) | (2,927,010) | (25,116,579) | (69,236,135) |
Net increase (decrease) | 846,786 | (669,126) | $ 16,841,758 | $ (13,729,566) |
Class T | | | | |
Shares sold | 284,334 | 610,720 | $ 5,929,169 | $ 14,273,371 |
Reinvestment of distributions | 626,615 | - | 12,200,301 | - |
Shares redeemed | (646,144) | (1,090,770) | (13,547,106) | (24,737,327) |
Net increase (decrease) | 264,805 | (480,050) | $ 4,582,364 | $ (10,463,956) |
Class B | | | | |
Shares sold | 49,607 | 46,091 | $ 959,426 | $ 1,030,863 |
Reinvestment of distributions | 107,208 | - | 1,929,279 | - |
Shares redeemed | (185,194) | (525,569) | (3,554,322) | (10,871,447) |
Net increase (decrease) | (28,379) | (479,478) | $ (665,617) | $ (9,840,584) |
Class C | | | | |
Shares sold | 315,121 | 524,474 | $ 6,091,318 | $ 11,843,311 |
Reinvestment of distributions | 406,182 | - | 7,293,865 | - |
Shares redeemed | (442,646) | (681,222) | (8,433,876) | (14,258,065) |
Net increase (decrease) | 278,657 | (156,748) | $ 4,951,307 | $ (2,414,754) |
Institutional Class | | | | |
Shares sold | 572,486 | 1,277,086 | $ 13,101,073 | $ 33,336,034 |
Reinvestment of distributions | 134,306 | - | 2,842,866 | - |
Shares redeemed | (757,356) | (299,253) | (17,040,051) | (7,601,785) |
Net increase (decrease) | (50,564) | 977,833 | $ (1,096,112) | $ 25,734,249 |
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 Industrials Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,033.80 | $ 5.93 |
Hypothetical A | | $ 1,000.00 | $ 1,019.30 | $ 5.89 |
Class T | 1.41% | | | |
Actual | | $ 1,000.00 | $ 1,032.30 | $ 7.20 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.15 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,029.70 | $ 9.95 |
Hypothetical A | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.91% | | | |
Actual | | $ 1,000.00 | $ 1,030.10 | $ 9.75 |
Hypothetical A | | $ 1,000.00 | $ 1,015.53 | $ 9.68 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,035.30 | $ 4.40 |
Hypothetical A | | $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
General Electric Co. | 11.7 | 13.5 |
United Technologies Corp. | 6.1 | 6.0 |
Danaher Corp. | 3.9 | 3.7 |
3M Co. | 3.8 | 1.0 |
Union Pacific Corp. | 3.8 | 5.0 |
Emerson Electric Co. | 3.3 | 3.7 |
United Parcel Service, Inc. Class B | 3.3 | 0.0 |
Honeywell International, Inc. | 3.1 | 3.2 |
Cummins, Inc. | 3.0 | 3.3 |
CSX Corp. | 2.7 | 0.0 |
| 44.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Industrial Conglomerates | 22.4% | |
| Machinery | 19.9% | |
| Aerospace & Defense | 12.9% | |
| Electrical Equipment | 11.4% | |
| Road & Rail | 7.0% | |
| All Others* | 26.4% | |
As of July 31, 2011 |
| Aerospace & Defense | 21.9% | |
| Industrial Conglomerates | 21.8% | |
| Machinery | 16.7% | |
| Electrical Equipment | 11.8% | |
| Construction & Engineering | 6.9% | |
| All Others* | 20.9% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
AEROSPACE & DEFENSE - 12.9% |
Aerospace & Defense - 12.9% |
Esterline Technologies Corp. (a) | 37,017 | | $ 2,263,590 |
Honeywell International, Inc. | 221,929 | | 12,880,759 |
Rockwell Collins, Inc. | 72,997 | | 4,225,796 |
Textron, Inc. | 346,458 | | 8,827,750 |
United Technologies Corp. | 320,023 | | 25,073,802 |
| | 53,271,697 |
AIR FREIGHT & LOGISTICS - 4.5% |
Air Freight & Logistics - 4.5% |
C.H. Robinson Worldwide, Inc. | 40,246 | | 2,770,535 |
United Parcel Service, Inc. Class B | 179,050 | | 13,545,133 |
UTI Worldwide, Inc. | 167,823 | | 2,498,884 |
| | 18,814,552 |
AUTO COMPONENTS - 1.0% |
Auto Parts & Equipment - 1.0% |
Autoliv, Inc. (d) | 65,700 | | 4,145,013 |
BUILDING PRODUCTS - 2.5% |
Building Products - 2.5% |
Armstrong World Industries, Inc. (a) | 78,878 | | 3,683,603 |
Fortune Brands Home & Security, Inc. (a) | 66,700 | | 1,238,619 |
Owens Corning (a) | 164,088 | | 5,537,970 |
| | 10,460,192 |
COMMERCIAL SERVICES & SUPPLIES - 2.1% |
Environmental & Facility Services - 1.5% |
Republic Services, Inc. | 218,932 | | 6,410,329 |
Office Services & Supplies - 0.6% |
Mine Safety Appliances Co. | 61,011 | | 2,082,916 |
Pitney Bowes, Inc. (d) | 10,600 | | 201,082 |
| | 2,283,998 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 8,694,327 |
CONSTRUCTION & ENGINEERING - 4.7% |
Construction & Engineering - 4.7% |
AECOM Technology Corp. (a) | 147,036 | | 3,365,654 |
EMCOR Group, Inc. | 121,498 | | 3,502,787 |
Fluor Corp. | 79,111 | | 4,449,203 |
Foster Wheeler AG (a) | 116,631 | | 2,619,532 |
Jacobs Engineering Group, Inc. (a) | 75,887 | | 3,396,702 |
Quanta Services, Inc. (a) | 99,078 | | 2,140,085 |
| | 19,473,963 |
ELECTRICAL EQUIPMENT - 11.4% |
Electrical Components & Equipment - 11.4% |
AMETEK, Inc. | 118,200 | | 5,555,400 |
Cooper Industries PLC Class A | 86,220 | | 5,097,326 |
Emerson Electric Co. | 268,872 | | 13,814,643 |
GrafTech International Ltd. (a) | 257,700 | | 4,231,434 |
Hubbell, Inc. Class B | 64,500 | | 4,641,420 |
|
| Shares | | Value |
Polypore International, Inc. (a) | 50,300 | | $ 1,915,424 |
Prysmian SpA | 267,976 | | 4,023,731 |
Regal-Beloit Corp. | 101,165 | | 5,743,137 |
Roper Industries, Inc. | 23,300 | | 2,175,987 |
| | 47,198,502 |
ENERGY EQUIPMENT & SERVICES - 0.2% |
Oil & Gas Equipment & Services - 0.2% |
McDermott International, Inc. (a) | 78,847 | | 958,780 |
INDUSTRIAL CONGLOMERATES - 22.4% |
Industrial Conglomerates - 22.4% |
3M Co. | 182,151 | | 15,794,313 |
Carlisle Companies, Inc. | 57,294 | | 2,734,643 |
Danaher Corp. | 306,682 | | 16,103,872 |
General Electric Co. | 2,601,050 | | 48,665,646 |
Tyco International Ltd. | 185,314 | | 9,441,748 |
| | 92,740,222 |
LIFE SCIENCES TOOLS & SERVICES - 0.4% |
Life Sciences Tools & Services - 0.4% |
Agilent Technologies, Inc. | 34,241 | | 1,454,215 |
MACHINERY - 19.9% |
Construction & Farm Machinery & Heavy Trucks - 7.4% |
Caterpillar, Inc. | 60,600 | | 6,612,672 |
Cummins, Inc. | 118,724 | | 12,347,296 |
Fiat Industrial SpA (a) | 331,900 | | 3,251,473 |
Jain Irrigation Systems Ltd. | 489,270 | | 942,177 |
Manitowoc Co., Inc. | 277,640 | | 3,731,482 |
WABCO Holdings, Inc. (a) | 74,100 | | 3,842,085 |
| | 30,727,185 |
Industrial Machinery - 12.5% |
Actuant Corp. Class A | 97,260 | | 2,465,541 |
Dover Corp. | 80,100 | | 5,079,141 |
Flowserve Corp. | 42,300 | | 4,660,191 |
Graco, Inc. | 109,926 | | 5,054,397 |
Harsco Corp. | 45,127 | | 1,003,173 |
Illinois Tool Works, Inc. | 147,816 | | 7,838,682 |
Ingersoll-Rand PLC | 201,747 | | 7,049,040 |
Pall Corp. | 95,961 | | 5,726,952 |
Parker Hannifin Corp. | 88,742 | | 7,159,705 |
SPX Corp. | 27,700 | | 1,928,751 |
TriMas Corp. (a) | 172,130 | | 3,730,057 |
| | 51,695,630 |
TOTAL MACHINERY | | 82,422,815 |
PROFESSIONAL SERVICES - 4.1% |
Human Resource & Employment Services - 2.0% |
Kforce, Inc. (a) | 127,329 | | 1,583,973 |
Manpower, Inc. | 53,900 | | 2,161,929 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Human Resource & Employment Services - continued |
Robert Half International, Inc. | 103,200 | | $ 2,857,608 |
Towers Watson & Co. | 30,500 | | 1,823,900 |
| | 8,427,410 |
Research & Consulting Services - 2.1% |
Bureau Veritas SA | 16,400 | | 1,202,723 |
Dun & Bradstreet Corp. | 29,576 | | 2,449,189 |
IHS, Inc. Class A (a) | 55,174 | | 4,936,970 |
| | 8,588,882 |
TOTAL PROFESSIONAL SERVICES | | 17,016,292 |
ROAD & RAIL - 7.0% |
Railroads - 6.5% |
CSX Corp. | 495,244 | | 11,167,752 |
Union Pacific Corp. | 136,995 | | 15,659,898 |
| | 26,827,650 |
Trucking - 0.5% |
Con-way, Inc. | 64,864 | | 2,058,783 |
TOTAL ROAD & RAIL | | 28,886,433 |
SOFTWARE - 0.4% |
Application Software - 0.4% |
Solera Holdings, Inc. | 30,133 | | 1,439,453 |
TRADING COMPANIES & DISTRIBUTORS - 3.2% |
Trading Companies & Distributors - 3.2% |
Mills Estruturas e Servicos de Engenharia SA | 167,900 | | 2,083,375 |
W.W. Grainger, Inc. | 17,400 | | 3,318,876 |
Watsco, Inc. | 43,000 | | 2,965,710 |
WESCO International, Inc. (a) | 75,201 | | 4,728,639 |
| | 13,096,600 |
TOTAL COMMON STOCKS (Cost $355,138,226) |
400,073,056
|
Convertible Bonds - 0.5% |
| Principal Amount | | |
BUILDING PRODUCTS - 0.5% |
Building Products - 0.5% |
Aspen Aerogels, Inc.: | | | | |
8% 6/1/14 (f) | | $ 1,041,431 | | 1,041,431 |
8% 12/6/14 (f) | | 850,700 | | 850,700 |
| | 1,892,131 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | Value |
U.S. Treasury Bills, yield at date of purchase 0.01% 3/1/12 (e)
(Cost $649,996) | $ 650,000 | | $ 649,977 |
Money Market Funds - 3.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.12% (b) | 11,163,912 | | 11,163,912 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,002,887 | | 3,002,887 |
TOTAL MONEY MARKET FUNDS (Cost $14,166,799) |
14,166,799
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $371,847,152) | | 416,781,963 |
NET OTHER ASSETS (LIABILITIES) - (0.7)% | | (2,945,433) |
NET ASSETS - 100% | $ 413,836,530 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value | | Unrealized Appreciation/(Depreciation) |
Purchased |
Equity Index Contracts |
120 CME E-mini S&P Select Sector Industrial Index Contracts | March 2012 | | $ 4,326,000 | | $ 287,982 |
The face value of futures purchased as a percentage of net assets is 1% |
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 or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $649,977. |
(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 $1,892,131 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/14/11 | $ 1,041,431 |
Aspen Aerogels, Inc. 8% 12/6/14 | 12/6/11 | $ 850,700 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,405 |
Fidelity Securities Lending Cash Central Fund | 9,303 |
Total | $ 15,708 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 400,073,056 | $ 400,073,056 | $ - | $ - |
Convertible Bonds | 1,892,131 | - | - | 1,892,131 |
U.S. Treasury Obligations | 649,977 | - | 649,977 | - |
Money Market Funds | 14,166,799 | 14,166,799 | - | - |
Total Investments in Securities: | $ 416,781,963 | $ 414,239,855 | $ 649,977 | $ 1,892,131 |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 287,982 | $ 287,982 | $ - | $ - |
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) | - |
Cost of Purchases | 850,700 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 1,041,431 |
Transfers out of Level 3 | - |
Ending Balance | $ 1,892,131 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
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. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 287,982 | $ - |
Total Value of Derivatives | $ 287,982 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,913,664) - See accompanying schedule: Unaffiliated issuers (cost $357,680,353) | $ 402,615,164 | |
Fidelity Central Funds (cost $14,166,799) | 14,166,799 | |
Total Investments (cost $371,847,152) | | $ 416,781,963 |
Foreign currency held at value (cost $191,718) | | 191,718 |
Receivable for investments sold | | 1,908,468 |
Receivable for fund shares sold | | 2,135,142 |
Dividends receivable | | 115,488 |
Interest receivable | | 62,511 |
Distributions receivable from Fidelity Central Funds | | 990 |
Prepaid expenses | | 1,237 |
Other receivables | | 5,031 |
Total assets | | 421,202,548 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,244,090 | |
Payable for fund shares redeemed | 652,252 | |
Accrued management fee | 186,953 | |
Distribution and service plan fees payable | 145,281 | |
Payable for daily variation margin on futures contracts | 14,400 | |
Other affiliated payables | 92,587 | |
Other payables and accrued expenses | 27,568 | |
Collateral on securities loaned, at value | 3,002,887 | |
Total liabilities | | 7,366,018 |
| | |
Net Assets | | $ 413,836,530 |
Net Assets consist of: | | |
Paid in capital | | $ 388,981,164 |
Distributions in excess of net investment income | | (316,523) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (20,051,715) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 45,223,604 |
Net Assets | | $ 413,836,530 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($211,441,851 ÷ 8,080,297 shares) | | $ 26.17 |
| | |
Maximum offering price per share (100/94.25 of $26.17) | | $ 27.77 |
Class T:
Net Asset Value and redemption price per share ($65,755,622 ÷ 2,551,198 shares) | | $ 25.77 |
| | |
Maximum offering price per share (100/96.50 of $25.77) | | $ 26.70 |
Class B:
Net Asset Value and offering price per share ($24,015,224 ÷ 985,111 shares)A | | $ 24.38 |
| | |
Class C:
Net Asset Value and offering price per share ($69,385,969 ÷ 2,837,108 shares)A | | $ 24.46 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($43,237,864 ÷ 1,593,920 shares) | | $ 27.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,336,996 |
Interest | | 51,909 |
Income from Fidelity Central Funds | | 15,708 |
Total income | | 3,404,613 |
| | |
Expenses | | |
Management fee | $ 1,066,131 | |
Transfer agent fees | 485,517 | |
Distribution and service plan fees | 824,019 | |
Accounting and security lending fees | 74,380 | |
Custodian fees and expenses | 12,177 | |
Independent trustees' compensation | 1,311 | |
Registration fees | 62,135 | |
Audit | 24,141 | |
Legal | 927 | |
Interest | 576 | |
Miscellaneous | 1,871 | |
Total expenses before reductions | 2,553,185 | |
Expense reductions | (10,610) | 2,542,575 |
Net investment income (loss) | | 862,038 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (18,753,754) | |
Foreign currency transactions | (21,128) | |
Futures contracts | 930,439 | |
Total net realized gain (loss) | | (17,844,443) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 21,482,579 | |
Assets and liabilities in foreign currencies | (1,151) | |
Futures contracts | 287,982 | |
Total change in net unrealized appreciation (depreciation) | | 21,769,410 |
Net gain (loss) | | 3,924,967 |
Net increase (decrease) in net assets resulting from operations | | $ 4,787,005 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 862,038 | $ 791,669 |
Net realized gain (loss) | (17,844,443) | 55,819,724 |
Change in net unrealized appreciation (depreciation) | 21,769,410 | 3,563,495 |
Net increase (decrease) in net assets resulting from operations | 4,787,005 | 60,174,888 |
Distributions to shareholders from net investment income | (1,437,740) | (328,907) |
Distributions to shareholders from net realized gain | (4,219,307) | - |
Total distributions | (5,657,047) | (328,907) |
Share transactions - net increase (decrease) | (54,549,003) | 75,767,831 |
Redemption fees | 12,710 | 11,341 |
Total increase (decrease) in net assets | (55,406,335) | 135,625,153 |
| | |
Net Assets | | |
Beginning of period | 469,242,865 | 333,617,712 |
End of period (including distributions in excess of net investment income of $316,523 and undistributed net investment income of $259,179, respectively) | $ 413,836,530 | $ 469,242,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.73 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .09 | .06 | .13 | .11 | .09 |
Net realized and unrealized gain (loss) | .73 | 4.13 | 4.68 | (5.08) | (1.17) | 5.11 |
Total from investment operations | .80 | 4.22 | 4.74 | (4.95) | (1.06) | 5.20 |
Distributions from net investment income | (.11) | (.03) | (.07) | (.13) | - | (.06) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.46) | (1.81) |
Total distributions | (.36) | (.03) | (.07) | (.15) | (2.46) | (1.87) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.17 | $ 25.73 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 |
Total Return B,C,D | 3.38% | 19.59% | 28.13% | (22.49)% | (4.71)% | 25.13% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.16% A | 1.13% | 1.18% | 1.23% | 1.17% | 1.21% |
Expenses net of fee waivers, if any | 1.16% A | 1.13% | 1.18% | 1.23% | 1.17% | 1.21% |
Expenses net of all reductions | 1.15% A | 1.13% | 1.17% | 1.23% | 1.16% | 1.21% |
Net investment income (loss) | .63% A | .36% | .31% | .89% | .46% | .38% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 211,442 | $ 228,106 | $ 165,029 | $ 130,860 | $ 188,859 | $ 157,451 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.33 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .03 | .01 | .10 | .05 | .03 |
Net realized and unrealized gain (loss) | .72 | 4.07 | 4.61 | (5.03) | (1.15) | 5.05 |
Total from investment operations | .76 | 4.10 | 4.62 | (4.93) | (1.10) | 5.08 |
Distributions from net investment income | (.07) | (.01) | (.02) | (.08) | - | (.03) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.40) | (1.74) |
Total distributions | (.32) | (.01) | (.02) | (.10) | (2.40) | (1.77) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.77 | $ 25.33 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 |
Total Return B,C,D | 3.23% | 19.28% | 27.80% | (22.68)% | (4.96)% | 24.82% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.41% A | 1.39% | 1.44% | 1.48% | 1.41% | 1.46% |
Expenses net of fee waivers, if any | 1.41% A | 1.39% | 1.44% | 1.48% | 1.41% | 1.46% |
Expenses net of all reductions | 1.41% A | 1.38% | 1.43% | 1.48% | 1.41% | 1.46% |
Net investment income (loss) | .38% A | .10% | .06% | .63% | .21% | .13% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 65,756 | $ 71,542 | $ 58,202 | $ 48,054 | $ 85,025 | $ 75,530 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.99 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.11) | (.09) | .02 | (.07) | (.09) |
Net realized and unrealized gain (loss) | .68 | 3.88 | 4.41 | (4.82) | (1.10) | 4.87 |
Total from investment operations | .66 | 3.77 | 4.32 | (4.80) | (1.17) | 4.78 |
Distributions from net investment income | (.02) | - | - | (.04) | - | - |
Distributions from net realized gain | (.25) | - | - | - | (2.28) | (1.61) |
Total distributions | (.27) | - | - | (.04) | (2.28) | (1.61) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 24.38 | $ 23.99 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 |
Total Return B,C,D | 2.97% | 18.64% | 27.17% | (23.10)% | (5.46)% | 24.18% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.95% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Expenses net of fee waivers, if any | 1.95% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Net investment income (loss) | (.16)% A | (.44)% | (.48)% | .13% | (.33)% | (.41)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,015 | $ 28,600 | $ 29,048 | $ 25,212 | $ 39,989 | $ 44,330 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.07 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.09) | (.08) | .02 | (.06) | (.08) |
Net realized and unrealized gain (loss) | .68 | 3.88 | 4.42 | (4.83) | (1.11) | 4.88 |
Total from investment operations | .67 | 3.79 | 4.34 | (4.81) | (1.17) | 4.80 |
Distributions from net investment income | (.03) | - | - | (.04) | - | - |
Distributions from net realized gain | (.25) | - | - | - | (2.30) | (1.70) |
Total distributions | (.28) | - | - | (.04) | (2.30) | (1.70) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 24.46 | $ 24.07 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 |
Total Return B,C,D | 3.01% | 18.69% | 27.23% | (23.09)% | (5.44)% | 24.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.91% A | 1.89% | 1.93% | 1.98% | 1.91% | 1.94% |
Expenses net of fee waivers, if any | 1.91% A | 1.89% | 1.93% | 1.98% | 1.91% | 1.94% |
Expenses net of all reductions | 1.90% A | 1.88% | 1.92% | 1.98% | 1.90% | 1.94% |
Net investment income (loss) | (.12)% A | (.40)% | (.43)% | .14% | (.28)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 69,386 | $ 72,673 | $ 51,760 | $ 37,862 | $ 57,742 | $ 57,862 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.69 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .17 | .13 | .19 | .18 | .16 |
Net realized and unrealized gain (loss) | .75 | 4.28 | 4.83 | (5.27) | (1.19) | 5.27 |
Total from investment operations | .86 | 4.45 | 4.96 | (5.08) | (1.01) | 5.43 |
Distributions from net investment income | (.17) | (.06) | (.11) | (.17) | - | (.13) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.53) | (1.81) |
Total distributions | (.42) | (.06) | (.11) | (.19) | (2.53) | (1.94) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.13 | $ 26.69 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 |
Total Return B,C | 3.53% | 19.95% | 28.52% | (22.31)% | (4.40)% | 25.53% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .86% A | .85% | .89% | .96% | .88% | .92% |
Expenses net of fee waivers, if any | .86% A | .85% | .89% | .96% | .88% | .92% |
Expenses net of all reductions | .86% A | .84% | .88% | .95% | .87% | .91% |
Net investment income (loss) | .93% A | .65% | .61% | 1.16% | .75% | .67% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 43,238 | $ 68,323 | $ 29,578 | $ 12,762 | $ 33,642 | $ 19,498 |
Portfolio turnover rate F | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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 on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. 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, 2012, 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
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 and U.S. government and government agency obligations, 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.
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.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 48,662,753 |
Gross unrealized depreciation | (7,419,520) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 41,243,233 |
| |
Tax cost | $ 375,538,730 |
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. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
(depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $930,439 and a change in net unrealized appreciation (depreciation) of $287,982 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $191,022,522 and $259,724,230, respectively.
7. 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 240,223 | $ 4,564 |
Class T | .25% | .25% | 150,390 | - |
Class B | .75% | .25% | 118,852 | 89,140 |
Class C | .75% | .25% | 314,554 | 68,895 |
| | | $ 824,019 | $ 162,599 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 25,057 |
Class T | 3,049 |
Class B* | 23,850 |
Class C* | 7,149 |
| $ 59,105 |
* 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
7. 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
Average
Net Assets* |
Class A | $ 246,710 | .26 |
Class T | 78,335 | .26 |
Class B | 35,550 | .30 |
Class C | 80,060 | .25 |
Institutional Class | 44,862 | .21 |
| $ 485,517 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $3,610 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,097,500 | .37% | $ 576 |
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $554 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,303. During the period, there were no securities loaned to FCM.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $10,610 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 896,458 | $ 235,263 |
Class T | 170,680 | 13,200 |
Class B | 16,830 | - |
Class C | 70,972 | - |
Institutional Class | 282,800 | 80,444 |
Total | $ 1,437,740 | $ 328,907 |
From net realized gain | | |
Class A | $ 2,092,354 | $ - |
Class T | 659,892 | - |
Class B | 286,480 | - |
Class C | 731,497 | - |
Institutional Class | 449,084 | - |
Total | $ 4,219,307 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,053,783 | 3,645,278 | $ 25,180,767 | $ 95,442,701 |
Reinvestment of distributions | 118,075 | 8,108 | 2,609,664 | 205,122 |
Shares redeemed | (1,956,128) | (2,451,683) | (45,475,396) | (63,502,279) |
Net increase (decrease) | (784,270) | 1,201,703 | $ (17,684,965) | $ 32,145,544 |
Class T | | | | |
Shares sold | 215,326 | 757,485 | $ 5,002,023 | $ 19,402,949 |
Reinvestment of distributions | 36,910 | 500 | 800,817 | 12,596 |
Shares redeemed | (524,898) | (674,809) | (11,827,249) | (16,619,027) |
Net increase (decrease) | (272,662) | 83,176 | $ (6,024,409) | $ 2,796,518 |
Class B | | | | |
Shares sold | 48,558 | 89,875 | $ 1,038,294 | $ 2,150,821 |
Reinvestment of distributions | 12,641 | - | 255,322 | - |
Shares redeemed | (268,071) | (334,639) | (5,844,495) | (7,838,637) |
Net increase (decrease) | (206,872) | (244,764) | $ (4,550,879) | $ (5,687,816) |
Class C | | | | |
Shares sold | 206,599 | 1,054,416 | $ 4,594,169 | $ 25,772,946 |
Reinvestment of distributions | 31,555 | - | 641,832 | - |
Shares redeemed | (419,789) | (588,462) | (9,022,618) | (13,948,935) |
Net increase (decrease) | (181,635) | 465,954 | $ (3,786,617) | $ 11,824,011 |
Institutional Class | | | | |
Shares sold | 376,575 | 2,320,182 | $ 9,162,970 | $ 63,208,570 |
Reinvestment of distributions | 22,926 | 2,269 | 525,598 | 59,382 |
Shares redeemed | (1,365,468) | (1,089,149) | (32,190,701) | (28,578,378) |
Net increase (decrease) | (965,967) | 1,233,302 | $ (22,502,133) | $ 34,689,574 |
13. 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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.19% | | | |
Actual | | $ 1,000.00 | $ 971.40 | $ 5.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.15 | $ 6.04 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 970.00 | $ 7.13 |
HypotheticalA | | $ 1,000.00 | $ 1,017.90 | $ 7.30 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 967.80 | $ 9.60 |
HypotheticalA | | $ 1,000.00 | $ 1,015.38 | $ 9.83 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 967.50 | $ 9.59 |
HypotheticalA | | $ 1,000.00 | $ 1,015.38 | $ 9.83 |
Institutional Class | .88% | | | |
Actual | | $ 1,000.00 | $ 972.60 | $ 4.36 |
HypotheticalA | | $ 1,000.00 | $ 1,020.71 | $ 4.47 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 15.3 | 11.0 |
Microsoft Corp. | 4.4 | 3.3 |
Oracle Corp. | 3.2 | 5.9 |
Google, Inc. Class A | 3.0 | 6.0 |
salesforce.com, Inc. | 2.3 | 3.6 |
QUALCOMM, Inc. | 2.0 | 0.2 |
Altera Corp. | 2.0 | 0.1 |
Citrix Systems, Inc. | 1.6 | 1.5 |
International Business Machines Corp. | 1.5 | 0.3 |
NXP Semiconductors NV | 1.5 | 0.8 |
| 36.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Semiconductors & Semiconductor Equipment | 23.6% | |
| Software | 22.8% | |
| Computers & Peripherals | 18.6% | |
| Internet Software & Services | 9.6% | |
| Communications Equipment | 7.5% | |
| All Others* | 17.9% | |
As of July 31, 2011 |
| Software | 29.1% | |
| Computers & Peripherals | 17.9% | |
| Semiconductors & Semiconductor Equipment | 13.7% | |
| Internet Software & Services | 12.3% | |
| IT Services | 8.5% | |
| All Others* | 18.5% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.8% |
| Shares | | Value |
AUTOMOBILES - 0.0% |
Automobile Manufacturers - 0.0% |
Tesla Motors, Inc. (a) | 12,300 | | $ 357,561 |
CHEMICALS - 0.6% |
Specialty Chemicals - 0.6% |
JSR Corp. | 196,100 | | 4,007,921 |
Shin-Etsu Chemical Co., Ltd. | 6,900 | | 358,442 |
| | 4,366,363 |
COMMUNICATIONS EQUIPMENT - 7.3% |
Communications Equipment - 7.3% |
Acme Packet, Inc. (a) | 92,075 | | 2,691,352 |
ADTRAN, Inc. | 10,771 | | 373,000 |
Aruba Networks, Inc. (a) | 7,200 | | 159,696 |
Brocade Communications Systems, Inc. (a) | 92,800 | | 520,608 |
Ciena Corp. (a)(d) | 111,656 | | 1,624,595 |
Cisco Systems, Inc. | 229,370 | | 4,502,533 |
Comba Telecom Systems Holdings Ltd. | 187,500 | | 131,282 |
F5 Networks, Inc. (a) | 79,512 | | 9,520,767 |
Finisar Corp. (a) | 137,740 | | 2,790,612 |
Infinera Corp. (a) | 70,900 | | 506,226 |
JDS Uniphase Corp. (a) | 168,700 | | 2,140,803 |
Juniper Networks, Inc. (a) | 3,198 | | 66,934 |
Motorola Solutions, Inc. | 14,700 | | 682,227 |
Oclaro, Inc. (a) | 23,926 | | 99,054 |
Polycom, Inc. (a) | 293,093 | | 5,847,205 |
QUALCOMM, Inc. | 240,032 | | 14,118,682 |
Riverbed Technology, Inc. (a) | 47,370 | | 1,134,038 |
Sandvine Corp. (a) | 751,600 | | 959,462 |
Sandvine Corp. (U.K.) (a) | 554,200 | | 768,225 |
Spirent Communications PLC | 185,100 | | 346,561 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 6,741 | | 62,489 |
ZTE Corp. (H Shares) | 1,092,120 | | 2,971,372 |
| | 52,017,723 |
COMPUTERS & PERIPHERALS - 18.6% |
Computer Hardware - 15.9% |
Advantech Co. Ltd. | 123,000 | | 372,387 |
Apple, Inc. (a) | 238,779 | | 108,997,837 |
Hewlett-Packard Co. | 12,382 | | 346,448 |
Pegatron Corp. | 776,000 | | 938,699 |
Stratasys, Inc. (a) | 49,675 | | 1,825,556 |
Wistron Corp. | 247,000 | | 370,563 |
| | 112,851,490 |
Computer Storage & Peripherals - 2.7% |
ADLINK Technology, Inc. | 61,000 | | 72,141 |
EMC Corp. (a) | 358,367 | | 9,231,534 |
Fusion-io, Inc. | 15,200 | | 351,272 |
Imagination Technologies Group PLC (a) | 155,759 | | 1,418,852 |
|
| Shares | | Value |
NetApp, Inc. (a) | 1,837 | | $ 69,328 |
SanDisk Corp. (a) | 107,191 | | 4,917,923 |
Smart Technologies, Inc. Class A (a) | 26,500 | | 109,445 |
Synaptics, Inc. (a) | 76,184 | | 2,918,609 |
| | 19,089,104 |
TOTAL COMPUTERS & PERIPHERALS | | 131,940,594 |
DIVERSIFIED CONSUMER SERVICES - 0.2% |
Education Services - 0.2% |
Educomp Solutions Ltd. | 16,123 | | 70,285 |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 57,932 | | 1,379,940 |
| | 1,450,225 |
ELECTRONIC EQUIPMENT & COMPONENTS - 4.4% |
Electronic Components - 1.8% |
Aeroflex Holding Corp. (a) | 46,070 | | 583,707 |
Amphenol Corp. Class A | 6,566 | | 357,387 |
Cheng Uei Precision Industries Co. Ltd. | 193,408 | | 456,154 |
Chimei Innolux Corp. (a) | 16,000 | | 7,407 |
J Touch Corp. | 36,024 | | 47,046 |
Omron Corp. | 3,400 | | 68,553 |
Universal Display Corp. (a)(d) | 220,767 | | 9,296,498 |
Vishay Intertechnology, Inc. (a) | 172,408 | | 2,117,170 |
| | 12,933,922 |
Electronic Equipment & Instruments - 0.3% |
Chroma ATE, Inc. | 331,683 | | 758,741 |
Itron, Inc. (a) | 1,768 | | 68,581 |
Keyence Corp. | 1,300 | | 323,849 |
National Instruments Corp. | 13,300 | | 357,903 |
RealD, Inc. (a)(d) | 26,949 | | 236,343 |
SFA Engineering Corp. | 5,488 | | 269,694 |
SNU Precision Co. Ltd. | 26,457 | | 249,669 |
Test Research, Inc. | 18,655 | | 22,566 |
| | 2,287,346 |
Electronic Manufacturing Services - 1.7% |
Benchmark Electronics, Inc. (a) | 1,200 | | 20,640 |
IPG Photonics Corp. (a) | 2,200 | | 116,138 |
Jabil Circuit, Inc. | 169,973 | | 3,851,588 |
KEMET Corp. (a) | 94,696 | | 870,256 |
TE Connectivity Ltd. | 61,474 | | 2,096,263 |
Trimble Navigation Ltd. (a) | 106,049 | | 4,966,275 |
| | 11,921,160 |
Technology Distributors - 0.6% |
Arrow Electronics, Inc. (a) | 1,753 | | 72,381 |
Avnet, Inc. (a) | 2,700 | | 94,149 |
Digital China Holdings Ltd. (H Shares) | 1,068,000 | | 1,762,728 |
VST Holdings Ltd. (a) | 2,000,000 | | 304,310 |
Common Stocks - continued |
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED |
Technology Distributors - continued |
WPG Holding Co. Ltd. | 1,112,975 | | $ 1,555,044 |
WT Microelectronics Co. Ltd. | 249,000 | | 366,832 |
| | 4,155,444 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 31,297,872 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3% |
Health Care Equipment - 0.3% |
Biosensors International Group Ltd. (a) | 1,618,000 | | 2,083,841 |
China Kanghui Holdings sponsored ADR (a) | 9,000 | | 156,600 |
| | 2,240,441 |
HEALTH CARE TECHNOLOGY - 0.2% |
Health Care Technology - 0.2% |
athenahealth, Inc. (a) | 600 | | 34,908 |
So-net M3, Inc. | 240 | | 1,037,387 |
| | 1,072,295 |
HOUSEHOLD DURABLES - 0.1% |
Household Appliances - 0.1% |
Haier Electronics Group Co. Ltd. (a) | 17,000 | | 17,493 |
Techtronic Industries Co. Ltd. | 348,000 | | 386,804 |
| | 404,297 |
HOUSEHOLD PRODUCTS - 0.1% |
Household Products - 0.1% |
NVC Lighting Holdings Ltd. | 1,254,000 | | 515,813 |
INTERNET & CATALOG RETAIL - 0.9% |
Internet Retail - 0.9% |
Amazon.com, Inc. (a) | 16,164 | | 3,142,928 |
E-Commerce China Dangdang, Inc. ADR (a) | 260 | | 1,911 |
Groupon, Inc. Class A (a) | 14,700 | | 299,733 |
Priceline.com, Inc. (a) | 103 | | 54,536 |
Rakuten, Inc. | 2,073 | | 2,091,220 |
Start Today Co. Ltd. | 48,200 | | 940,858 |
| | 6,531,186 |
INTERNET SOFTWARE & SERVICES - 9.6% |
Internet Software & Services - 9.6% |
Active Network, Inc. | 25,200 | | 374,976 |
Akamai Technologies, Inc. (a) | 58,713 | | 1,893,494 |
Bankrate, Inc. | 19,400 | | 453,766 |
Cornerstone OnDemand, Inc. | 46,600 | | 849,984 |
DealerTrack Holdings, Inc. (a) | 12,300 | | 336,159 |
eBay, Inc. (a) | 312,976 | | 9,890,042 |
Facebook, Inc. Class B (f) | 37,876 | | 946,900 |
Google, Inc. Class A (a) | 36,862 | | 21,384,015 |
INFO Edge India Ltd. | 17,918 | | 226,133 |
Kakaku.com, Inc. | 56,200 | | 1,820,989 |
LogMeIn, Inc. (a) | 59,994 | | 2,389,561 |
|
| Shares | | Value |
Mail.ru Group Ltd. GDR (a)(e) | 1,800 | | $ 59,400 |
MercadoLibre, Inc. | 45,934 | | 4,014,632 |
NHN Corp. (a) | 8,879 | | 1,675,783 |
Open Text Corp. (a) | 49,100 | | 2,488,419 |
OpenTable, Inc. (a)(d) | 1,147 | | 55,251 |
Opera Software ASA (d) | 111,900 | | 556,887 |
PChome Online, Inc. | 111,000 | | 631,982 |
Qihoo 360 Technology Co. Ltd. ADR (d) | 48,800 | | 883,280 |
Rackspace Hosting, Inc. (a) | 147,109 | | 6,386,002 |
Renren, Inc. ADR (d) | 5,900 | | 32,745 |
Responsys, Inc. | 50,448 | | 591,755 |
SciQuest, Inc. (a) | 31,677 | | 463,435 |
SINA Corp. (a)(d) | 66,573 | | 4,678,085 |
Tudou Holdings Ltd. ADR (d) | 300 | | 4,200 |
Velti PLC (a) | 50,436 | | 441,315 |
VeriSign, Inc. | 2,200 | | 81,532 |
Vocus, Inc. (a) | 14,700 | | 337,659 |
XO Group, Inc. (a) | 5,200 | | 42,848 |
Yahoo!, Inc. (a) | 216,919 | | 3,355,737 |
Yandex NV | 33,576 | | 683,943 |
YouKu.com, Inc. ADR (a) | 13,000 | | 278,070 |
| | 68,308,979 |
IT SERVICES - 4.7% |
Data Processing & Outsourced Services - 1.6% |
MasterCard, Inc. Class A | 10,100 | | 3,591,257 |
Syntel, Inc. | 7,600 | | 356,592 |
Visa, Inc. Class A | 72,060 | | 7,252,118 |
| | 11,199,967 |
IT Consulting & Other Services - 3.1% |
Accenture PLC Class A | 19,240 | | 1,103,222 |
Camelot Information Systems, Inc. ADR (a) | 145 | | 368 |
ChinaSoft International Ltd. (a) | 20,000 | | 5,854 |
Cognizant Technology Solutions Corp. Class A (a) | 99,222 | | 7,119,179 |
HiSoft Technology International Ltd. ADR (a) | 11,117 | | 126,400 |
International Business Machines Corp. | 55,224 | | 10,636,142 |
ServiceSource International, Inc. | 139,146 | | 2,354,350 |
Teradata Corp. (a) | 12,993 | | 695,905 |
| | 22,041,420 |
TOTAL IT SERVICES | | 33,241,387 |
LIFE SCIENCES TOOLS & SERVICES - 0.2% |
Life Sciences Tools & Services - 0.2% |
Illumina, Inc. (a)(d) | 13,800 | | 714,288 |
Life Technologies Corp. (a) | 7,503 | | 363,370 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 27,300 | | 370,734 |
| | 1,448,392 |
Common Stocks - continued |
| Shares | | Value |
MACHINERY - 0.4% |
Industrial Machinery - 0.4% |
Airtac International Group | 64,000 | | $ 322,217 |
Fanuc Corp. | 900 | | 151,240 |
HIWIN Technologies Corp. | 16,390 | | 151,467 |
Mirle Automation Corp. | 92,950 | | 71,766 |
Nippon Thompson Co. Ltd. | 149,000 | | 883,484 |
THK Co. Ltd. | 57,600 | | 1,237,686 |
| | 2,817,860 |
MEDIA - 0.3% |
Advertising - 0.2% |
Dentsu, Inc. | 1,100 | | 36,753 |
Focus Media Holding Ltd. ADR (a)(d) | 39,800 | | 796,000 |
ReachLocal, Inc. (a)(d) | 57,644 | | 454,235 |
| | 1,286,988 |
Cable & Satellite - 0.1% |
DISH Network Corp. Class A | 25,760 | | 719,219 |
Movies & Entertainment - 0.0% |
IMAX Corp. (a) | 18,930 | | 392,040 |
TOTAL MEDIA | | 2,398,247 |
OFFICE ELECTRONICS - 0.0% |
Office Electronics - 0.0% |
Xerox Corp. | 8,333 | | 64,581 |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
China Medical System Holding Ltd. | 839,500 | | 548,824 |
PROFESSIONAL SERVICES - 0.3% |
Human Resource & Employment Services - 0.3% |
51job, Inc. sponsored ADR (a) | 41,041 | | 1,841,920 |
Research & Consulting Services - 0.0% |
Acacia Research Corp. - Acacia Technologies (a) | 8,600 | | 353,976 |
TOTAL PROFESSIONAL SERVICES | | 2,195,896 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0% |
Real Estate Services - 0.0% |
China Real Estate Information Corp. ADR (a) | 64,549 | | 313,708 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 23.3% |
Semiconductor Equipment - 3.9% |
Advanced Energy Industries, Inc. (a) | 5,757 | | 61,254 |
Amkor Technology, Inc. (a)(d) | 188,093 | | 1,077,773 |
Asia Pacific Systems, Inc. (a) | 33,164 | | 374,963 |
ASM International NV unit | 70,300 | | 2,341,693 |
ASM Pacific Technology Ltd. | 28,700 | | 369,332 |
ASML Holding NV | 132,135 | | 5,680,484 |
Axcelis Technologies, Inc. (a) | 53,309 | | 95,956 |
centrotherm photovoltaics AG | 1,493 | | 22,564 |
|
| Shares | | Value |
Cymer, Inc. (a) | 72,779 | | $ 3,623,666 |
Dainippon Screen Manufacturing Co. Ltd. | 9,000 | | 75,679 |
Entegris, Inc. (a) | 183,408 | | 1,757,049 |
GCL-Poly Energy Holdings Ltd. | 1,078,000 | | 371,137 |
Genesis Photonics, Inc. | 69,000 | | 93,842 |
ICD Co. Ltd. (a) | 13,952 | | 653,341 |
KLA-Tencor Corp. | 1,400 | | 71,582 |
Novellus Systems, Inc. (a) | 90,659 | | 4,274,572 |
Rubicon Technology, Inc. (a)(d) | 52,000 | | 563,160 |
Sumco Corp. (a) | 57,800 | | 495,125 |
Teradyne, Inc. (a) | 64,420 | | 1,053,267 |
Ultratech, Inc. (a) | 142,260 | | 4,161,105 |
Visual Photonics Epitaxy Co. Ltd. | 142,000 | | 204,399 |
| | 27,421,943 |
Semiconductors - 19.4% |
Advanced Micro Devices, Inc. (a) | 52,578 | | 352,798 |
Advanced Semiconductor Engineering, Inc. | 1,470,000 | | 1,545,404 |
Advanced Semiconductor Engineering, Inc. sponsored ADR (d) | 253,551 | | 1,336,214 |
Alpha & Omega Semiconductor Ltd. (a) | 33,538 | | 311,233 |
Altera Corp. | 354,011 | | 14,086,098 |
Analog Devices, Inc. | 9,053 | | 354,244 |
Applied Micro Circuits Corp. (a) | 157,393 | | 1,232,387 |
ARM Holdings PLC sponsored ADR | 25,019 | | 722,549 |
Atmel Corp. (a) | 234,876 | | 2,280,646 |
Avago Technologies Ltd. | 136,234 | | 4,623,782 |
Broadcom Corp. Class A | 233,580 | | 8,021,137 |
Canadian Solar, Inc. (a) | 32 | | 122 |
Cavium, Inc. (a)(d) | 143,265 | | 4,604,537 |
Cirrus Logic, Inc. (a) | 88,897 | | 1,816,166 |
Cree, Inc. (a)(d) | 268,656 | | 6,831,922 |
Cypress Semiconductor Corp. | 135,922 | | 2,337,179 |
Diodes, Inc. (a) | 52,400 | | 1,350,872 |
Duksan Hi-Metal Co. Ltd. (a) | 131,173 | | 2,738,452 |
Epistar Corp. | 685,000 | | 1,678,071 |
Fairchild Semiconductor International, Inc. (a) | 271,977 | | 3,802,238 |
First Solar, Inc. (a) | 15 | | 634 |
Freescale Semiconductor Holdings I Ltd. | 273,836 | | 4,373,161 |
Global Unichip Corp. | 266,000 | | 1,056,091 |
Hittite Microwave Corp. (a) | 3,779 | | 207,921 |
Hynix Semiconductor, Inc. | 14,730 | | 352,099 |
Infineon Technologies AG | 377,900 | | 3,448,058 |
Inphi Corp. (a) | 70,389 | | 1,032,607 |
International Rectifier Corp. (a) | 45,200 | | 1,030,560 |
Intersil Corp. Class A | 110,228 | | 1,241,167 |
JA Solar Holdings Co. Ltd. ADR (a) | 98,416 | | 173,212 |
LSI Corp. (a) | 225,065 | | 1,703,742 |
MagnaChip Semiconductor Corp. | 109,889 | | 1,068,121 |
Marvell Technology Group Ltd. (a) | 45,000 | | 698,850 |
Maxim Integrated Products, Inc. | 2,582 | | 69,301 |
Melfas, Inc. | 16 | | 325 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Mellanox Technologies Ltd. (a) | 8,600 | | $ 315,362 |
Micrel, Inc. | 29,083 | | 336,199 |
Micron Technology, Inc. (a) | 1,172,267 | | 8,897,507 |
Microsemi Corp. (a) | 4,100 | | 81,098 |
Monolithic Power Systems, Inc. (a) | 105,197 | | 1,724,179 |
MStar Semiconductor, Inc. | 123,000 | | 781,348 |
NVIDIA Corp. (a) | 4,805 | | 70,970 |
NXP Semiconductors NV (a) | 491,139 | | 10,426,881 |
O2Micro International Ltd. sponsored ADR (a) | 38,400 | | 182,016 |
Omnivision Technologies, Inc. (a) | 10,300 | | 137,093 |
ON Semiconductor Corp. (a) | 859,821 | | 7,480,443 |
Phison Electronics Corp. | 103,000 | | 755,229 |
PMC-Sierra, Inc. (a) | 323,597 | | 2,103,381 |
Power Integrations, Inc. | 9,073 | | 326,537 |
Radiant Opto-Electronics Corp. | 268,365 | | 1,020,141 |
Rambus, Inc. (a) | 226,707 | | 1,652,694 |
RDA Microelectronics, Inc. sponsored ADR (a) | 7,600 | | 99,940 |
RF Micro Devices, Inc. (a) | 542,308 | | 2,706,117 |
Samsung Electronics Co. Ltd. | 359 | | 353,802 |
Seoul Semiconductor Co. Ltd. | 46,510 | | 1,041,363 |
Silicon Laboratories, Inc. (a) | 1,700 | | 74,528 |
Silicon Motion Technology Corp. sponsored ADR (a) | 84,600 | | 1,825,668 |
Siliconware Precision Industries Co. Ltd. | 1,021,000 | | 1,174,854 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 386,700 | | 2,184,855 |
Skyworks Solutions, Inc. (a) | 136,559 | | 2,946,943 |
Spansion, Inc. Class A (a) | 132,193 | | 1,325,896 |
Spreadtrum Communications, Inc. ADR (d) | 160,365 | | 2,480,847 |
Standard Microsystems Corp. (a) | 99,971 | | 2,575,253 |
Texas Instruments, Inc. | 54,574 | | 1,767,106 |
Trina Solar Ltd. (a)(d) | 19,794 | | 159,144 |
United Microelectronics Corp. | 742,000 | | 391,270 |
United Microelectronics Corp. sponsored ADR | 322,700 | | 874,517 |
Vanguard International Semiconductor Corp. | 2,450,000 | | 993,411 |
Win Semiconductors Corp. | 115,867 | | 158,561 |
Xilinx, Inc. | 49,393 | | 1,770,739 |
YoungTek Electronics Corp. | 1,146 | | 2,625 |
| | 137,680,417 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 165,102,360 |
SOFTWARE - 22.8% |
Application Software - 11.4% |
ANSYS, Inc. (a) | 37,553 | | 2,271,581 |
AsiaInfo-Linkage, Inc. (a) | 8,641 | | 101,359 |
|
| Shares | | Value |
Aspen Technology, Inc. (a) | 210,537 | | $ 3,791,771 |
Autodesk, Inc. (a) | 183,190 | | 6,594,840 |
AutoNavi Holdings Ltd. ADR (a) | 54,221 | | 598,600 |
BroadSoft, Inc. (a)(d) | 78,565 | | 2,190,392 |
Cadence Design Systems, Inc. (a) | 7,487 | | 79,063 |
Citrix Systems, Inc. (a) | 174,870 | | 11,403,273 |
Concur Technologies, Inc. (a) | 102,775 | | 5,380,271 |
Convio, Inc. (a) | 36,934 | | 588,359 |
Descartes Systems Group, Inc. (a) | 179,500 | | 1,439,222 |
Informatica Corp. (a) | 40,976 | | 1,733,285 |
Intuit, Inc. | 12,322 | | 695,454 |
JDA Software Group, Inc. (a) | 19,341 | | 569,979 |
Jive Software, Inc. | 1,700 | | 25,245 |
Kingdee International Software Group Co. Ltd. | 9,620,800 | | 2,865,678 |
Magma Design Automation, Inc. (a) | 47,800 | | 342,248 |
Manhattan Associates, Inc. (a) | 4,557 | | 200,007 |
MicroStrategy, Inc. Class A (a) | 22,300 | | 2,567,176 |
Nuance Communications, Inc. (a) | 54,516 | | 1,554,796 |
Parametric Technology Corp. (a) | 170,322 | | 4,287,005 |
Pegasystems, Inc. (d) | 64,865 | | 1,839,571 |
PROS Holdings, Inc. (a) | 8,633 | | 140,027 |
QLIK Technologies, Inc. (a) | 75,287 | | 2,123,093 |
RealPage, Inc. (a) | 34,200 | | 879,624 |
salesforce.com, Inc. (a) | 137,953 | | 16,112,910 |
SolarWinds, Inc. (a) | 105,164 | | 3,324,234 |
SuccessFactors, Inc. (a) | 26,100 | | 1,038,780 |
Synchronoss Technologies, Inc. (a) | 30,216 | | 1,009,819 |
Synopsys, Inc. (a) | 2,500 | | 72,950 |
Taleo Corp. Class A (a) | 107,903 | | 3,885,587 |
TIBCO Software, Inc. (a) | 2,642 | | 68,877 |
TiVo, Inc. (a) | 8,000 | | 83,040 |
VanceInfo Technologies, Inc. ADR (a)(d) | 98,753 | | 1,241,325 |
| | 81,099,441 |
Home Entertainment Software - 0.1% |
Activision Blizzard, Inc. | 5,800 | | 71,572 |
NCsoft Corp. | 2,610 | | 684,295 |
| | 755,867 |
Systems Software - 11.3% |
Ariba, Inc. (a) | 148,719 | | 4,060,029 |
Check Point Software Technologies Ltd. (a) | 13,297 | | 748,488 |
CommVault Systems, Inc. (a) | 117,444 | | 5,519,868 |
DemandTec, Inc. (a) | 36,900 | | 486,342 |
Fortinet, Inc. (a) | 132,348 | | 3,018,858 |
Microsoft Corp. | 1,052,303 | | 31,074,508 |
NetSuite, Inc. (a) | 32,168 | | 1,347,196 |
Oracle Corp. | 805,711 | | 22,721,050 |
Red Hat, Inc. (a) | 129,194 | | 5,990,726 |
Sourcefire, Inc. (a) | 44,266 | | 1,373,131 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Systems Software - continued |
Symantec Corp. (a) | 4,000 | | $ 68,760 |
VMware, Inc. Class A (a) | 36,489 | | 3,330,351 |
| | 79,739,307 |
TOTAL SOFTWARE | | 161,594,615 |
WIRELESS TELECOMMUNICATION SERVICES - 0.4% |
Wireless Telecommunication Services - 0.4% |
SBA Communications Corp. Class A (a) | 67,349 | | 3,079,196 |
TOTAL COMMON STOCKS (Cost $643,249,721) |
673,308,415
|
Convertible Bonds - 0.5% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.2% |
Communications Equipment - 0.2% |
Ciena Corp. 0.25% 5/1/13 | | $ 1,270,000 | | 1,250,061 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.3% |
Semiconductors - 0.3% |
JA Solar Holdings Co. Ltd. 4.5% 5/15/13 | | 2,179,000 | | 1,830,360 |
TOTAL CONVERTIBLE BONDS (Cost $2,975,658) |
3,080,421
|
Master Notes - 0.0% |
|
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $183,894) | | 180,662 | |
180,662
|
Money Market Funds - 6.7% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 27,524,099 | | $ 27,524,099 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 19,943,057 | | 19,943,057 |
TOTAL MONEY MARKET FUNDS (Cost $47,467,156) |
47,467,156
|
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $693,876,429) | | 724,036,654 |
NET OTHER ASSETS (LIABILITIES) - (2.0)% | | (14,021,482) |
NET ASSETS - 100% | $ 710,015,172 |
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 $59,400 or 0.0% 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 $1,127,562 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 947,157 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 185,227 |
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 | $ 19,365 |
Fidelity Securities Lending Cash Central Fund | 420,607 |
Total | $ 439,972 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 673,308,415 | $ 669,249,987 | $ 3,111,528 | $ 946,900 |
Convertible Bonds | 3,080,421 | - | 3,080,421 | - |
Master Notes | 180,662 | - | - | 180,662 |
Money Market Funds | 47,467,156 | 47,467,156 | - | - |
Total Investments in Securities: | $ 724,036,654 | $ 716,717,143 | $ 6,191,949 | $ 1,127,562 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 1,357,916 |
Total Realized Gain (Loss) | (3,162,588) |
Total Unrealized Gain (Loss) | 3,022,590 |
Cost of Purchases | - |
Proceeds of Sales | (89,712) |
Amortization/Accretion | (644) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,127,562 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,809 |
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 | 82.7% |
Cayman Islands | 3.8% |
Taiwan | 2.7% |
Netherlands | 2.7% |
Japan | 2.0% |
Bermuda | 1.3% |
Korea (South) | 1.2% |
Others (Individually Less Than 1%) | 3.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Technology Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $19,369,162) - See accompanying schedule: Unaffiliated issuers (cost $646,409,273) | $ 676,569,498 | |
Fidelity Central Funds (cost $47,467,156) | 47,467,156 | |
Total Investments (cost $693,876,429) | | $ 724,036,654 |
Foreign currency held at value (cost $1,416,597) | | 1,416,597 |
Receivable for investments sold | | 44,562,865 |
Receivable for fund shares sold | | 857,499 |
Dividends receivable | | 120,940 |
Interest receivable | | 32,399 |
Distributions receivable from Fidelity Central Funds | | 22,515 |
Prepaid expenses | | 1,828 |
Other receivables | | 37,371 |
Total assets | | 771,088,668 |
| | |
Liabilities | | |
Payable for investments purchased | $ 39,208,890 | |
Payable for fund shares redeemed | 1,151,710 | |
Accrued management fee | 320,749 | |
Distribution and service plan fees payable | 223,390 | |
Other affiliated payables | 183,335 | |
Other payables and accrued expenses | 42,365 | |
Collateral on securities loaned, at value | 19,943,057 | |
Total liabilities | | 61,073,496 |
| | |
Net Assets | | $ 710,015,172 |
Net Assets consist of: | | |
Paid in capital | | $ 830,061,578 |
Accumulated net investment loss | | (2,691,729) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (147,503,660) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 30,148,983 |
Net Assets | | $ 710,015,172 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($336,801,920 ÷ 13,794,486 shares) | | $ 24.42 |
| | |
Maximum offering price per share (100/94.25 of $24.42) | | $ 25.91 |
Class T:
Net Asset Value and redemption price per share ($179,444,739 ÷ 7,603,604 shares) | | $ 23.60 |
| | |
Maximum offering price per share (100/96.50 of $23.60) | | $ 24.46 |
Class B:
Net Asset Value and offering price per share ($20,462,716 ÷ 932,859 shares)A | | $ 21.94 |
| | |
Class C:
Net Asset Value and offering price per share ($81,572,117 ÷ 3,702,266 shares)A | | $ 22.03 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($91,733,680 ÷ 3,586,331 shares) | | $ 25.58 |
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 Technology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,196,874 |
Interest | | 144,985 |
Income from Fidelity Central Funds (including $420,607 from security lending) | | 439,972 |
Total income | | 1,781,831 |
| | |
Expenses | | |
Management fee | $ 1,911,295 | |
Transfer agent fees | 1,007,805 | |
Distribution and service plan fees | 1,351,568 | |
Accounting and security lending fees | 126,517 | |
Custodian fees and expenses | 52,357 | |
Independent trustees' compensation | 2,368 | |
Registration fees | 58,497 | |
Audit | 25,354 | |
Legal | 2,134 | |
Miscellaneous | 3,191 | |
Total expenses before reductions | 4,541,086 | |
Expense reductions | (67,550) | 4,473,536 |
Net investment income (loss) | | (2,691,705) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (8,775,352) | |
Foreign currency transactions | 33,005 | |
Total net realized gain (loss) | | (8,742,347) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (14,191,446) | |
Assets and liabilities in foreign currencies | (14,252) | |
Total change in net unrealized appreciation (depreciation) | | (14,205,698) |
Net gain (loss) | | (22,948,045) |
Net increase (decrease) in net assets resulting from operations | | $ (25,639,750) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (2,691,705) | $ (6,857,636) |
Net realized gain (loss) | (8,742,347) | 189,083,406 |
Change in net unrealized appreciation (depreciation) | (14,205,698) | (20,605,446) |
Net increase (decrease) in net assets resulting from operations | (25,639,750) | 161,620,324 |
Share transactions - net increase (decrease) | (33,562,458) | (15,631,022) |
Redemption fees | 17,740 | 32,306 |
Total increase (decrease) in net assets | (59,184,468) | 146,021,608 |
| | |
Net Assets | | |
Beginning of period | 769,199,640 | 623,178,032 |
End of period (including accumulated net investment loss of $2,691,729 and accumulated net investment loss of $24, respectively) | $ 710,015,172 | $ 769,199,640 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.14 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.18) | (.16) | .02 H | (.10) | (.17) |
Net realized and unrealized gain (loss) | (.65) | 5.49 | 3.96 | (1.03) | (3.41) | 5.13 |
Total from investment operations | (.72) | 5.31 | 3.80 | (1.01) | (3.51) | 4.96 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 24.42 | $ 25.14 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 |
Total Return B, C, D | (2.86)% | 26.78% | 23.71% | (5.93)% | (17.08)% | 31.82% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.19% A | 1.18% | 1.21% | 1.23% | 1.21% | 1.25% |
Expenses net of fee waivers, if any | 1.19% A | 1.18% | 1.21% | 1.23% | 1.21% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.16% | 1.18% | 1.22% | 1.19% | 1.24% |
Net investment income (loss) | (.65)% A | (.73)% | (.83)% | .17% H | (.49)% | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 336,802 | $ 375,609 | $ 312,659 | $ 258,433 | $ 275,117 | $ 309,105 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.33 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.23) | (.20) | (.01) H | (.14) | (.21) |
Net realized and unrealized gain (loss) | (.63) | 5.32 | 3.85 | (1.02) | (3.33) | 5.02 |
Total from investment operations | (.73) | 5.09 | 3.65 | (1.03) | (3.47) | 4.81 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.60 | $ 24.33 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 |
Total Return B, C, D | (3.00)% | 26.46% | 23.41% | (6.20)% | (17.27)% | 31.48% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.44% A | 1.43% | 1.46% | 1.49% | 1.46% | 1.51% |
Expenses net of fee waivers, if any | 1.44% A | 1.43% | 1.46% | 1.49% | 1.46% | 1.51% |
Expenses net of all reductions | 1.42% A | 1.40% | 1.44% | 1.48% | 1.45% | 1.49% |
Net investment income (loss) | (.90)% A | (.98)% | (1.09)% | (.09)% H | (.74)% | (1.16)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 179,445 | $ 196,913 | $ 169,049 | $ 151,170 | $ 173,917 | $ 260,339 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.67 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.15) | (.33) | (.27) | (.07) H | (.23) | (.28) |
Net realized and unrealized gain (loss) | (.58) | 4.99 | 3.61 | (.98) | (3.15) | 4.79 |
Total from investment operations | (.73) | 4.66 | 3.34 | (1.05) | (3.38) | 4.51 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 21.94 | $ 22.67 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 |
Total Return B, C, D | (3.22)% | 25.87% | 22.77% | (6.68)% | (17.70)% | 30.91% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.94% A | 1.93% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.94% A | 1.93% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of all reductions | 1.92% A | 1.91% | 1.94% | 1.97% | 1.94% | 2.00% |
Net investment income (loss) | (1.40)% A | (1.49)% | (1.59)% | (.58)% H | (1.24)% | (1.67)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,463 | $ 25,508 | $ 29,176 | $ 30,580 | $ 47,294 | $ 102,655 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.77 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.15) | (.33) | (.28) | (.07) H | (.23) | (.29) |
Net realized and unrealized gain (loss) | (.59) | 5.01 | 3.63 | (.98) | (3.16) | 4.81 |
Total from investment operations | (.74) | 4.68 | 3.35 | (1.05) | (3.39) | 4.52 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 22.03 | $ 22.77 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 |
Total Return B, C, D | (3.25)% | 25.87% | 22.73% | (6.65)% | (17.67)% | 30.83% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.94% A | 1.92% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.94% A | 1.92% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of all reductions | 1.92% A | 1.90% | 1.93% | 1.97% | 1.94% | 1.99% |
Net investment income (loss) | (1.40)% A | (1.48)% | (1.58)% | (.58)% H | (1.24)% | (1.66)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 81,572 | $ 89,819 | $ 70,017 | $ 55,645 | $ 63,590 | $ 86,974 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.30 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.04) | (.11) | (.11) | .06 G | (.04) | (.11) |
Net realized and unrealized gain (loss) | (.68) | 5.73 | 4.12 | (1.07) | (3.54) | 5.30 |
Total from investment operations | (.72) | 5.62 | 4.01 | (1.01) | (3.58) | 5.19 |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.58 | $ 26.30 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 |
Total Return B, C | (2.74)% | 27.18% | 24.06% | (5.71)% | (16.84)% | 32.30% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .88% A | .87% | .92% | .98% | .94% | .93% |
Expenses net of fee waivers, if any | .88% A | .87% | .92% | .98% | .94% | .93% |
Expenses net of all reductions | .86% A | .85% | .90% | .97% | .92% | .92% |
Net investment income (loss) | (.34)% A | (.43)% | (.55)% | .42% G | (.22)% | (.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 91,734 | $ 81,350 | $ 42,277 | $ 26,285 | $ 22,021 | $ 21,111 |
Portfolio turnover rate F | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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 and master notes, 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. 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.
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 72,583,990 |
Gross unrealized depreciation | (49,463,997) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 23,119,993 |
| |
Tax cost | $ 700,916,661 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (132,837,596) |
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 $749,936,696 and $810,214,618, 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 an annualized 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 413,657 | $ 3,156 |
Class T | .25% | .25% | 437,146 | - |
Class B | .75% | .25% | 106,253 | 79,802 |
Class C | .75% | .25% | 394,512 | 54,896 |
| | | $ 1,351,568 | $ 137,854 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 25,203 |
Class T | 5,485 |
Class B* | 12,656 |
Class C* | 6,403 |
| $ 49,747 |
* 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 receives no fees for providing transfer agency services to Class F. 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
Average
Net Assets* |
Class A | $ 497,567 | .30 |
Class T | 266,434 | .30 |
Class B | 32,010 | .30 |
Class C | 118,484 | .30 |
Institutional Class | 93,310 | .24 |
| $ 1,007,805 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $28,310 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $978 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
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $3,636 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 $67,513 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $37.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 | Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,191,367 | 3,825,268 | $ 27,376,639 | $ 95,895,792 |
Shares redeemed | (2,335,510) | (4,656,846) | (53,558,317) | (115,935,925) |
Net increase (decrease) | (1,144,143) | (831,578) | $ (26,181,678) | $ (20,040,133) |
Class T | | | | |
Shares sold | 460,399 | 1,318,401 | $ 10,346,418 | $ 31,818,569 |
Shares redeemed | (948,796) | (2,014,796) | (20,932,846) | (47,878,372) |
Net increase (decrease) | (488,397) | (696,395) | $ (10,586,428) | $ (16,059,803) |
Class B | | | | |
Shares sold | 34,392 | 98,795 | $ 716,198 | $ 2,198,114 |
Shares redeemed | (226,522) | (593,453) | (4,699,641) | (13,054,972) |
Net increase (decrease) | (192,130) | (494,658) | $ (3,983,443) | $ (10,856,858) |
Class C | | | | |
Shares sold | 249,537 | 982,784 | $ 5,238,024 | $ 22,502,223 |
Shares redeemed | (491,044) | (908,933) | (10,119,473) | (20,073,701) |
Net increase (decrease) | (241,507) | 73,851 | $ (4,881,449) | $ 2,428,522 |
Institutional Class | | | | |
Shares sold | 1,131,581 | 2,740,439 | $ 27,421,818 | $ 73,729,514 |
Shares redeemed | (638,336) | (1,692,072) | (15,351,278) | (44,832,264) |
Net increase (decrease) | 493,245 | 1,048,367 | $ 12,070,540 | $ 28,897,250 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,001.40 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.85 | $ 6.34 |
Class T | 1.51% | | | |
Actual | | $ 1,000.00 | $ 1,000.60 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,017.55 | $ 7.66 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 997.60 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.08 | $ 10.13 |
Class C | 1.98% | | | |
Actual | | $ 1,000.00 | $ 997.80 | $ 9.94 |
HypotheticalA | | $ 1,000.00 | $ 1,015.18 | $ 10.03 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 1,002.80 | $ 4.88 |
HypotheticalA | | $ 1,000.00 | $ 1,020.26 | $ 4.93 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Duke Energy Corp. | 10.6 | 0.0 |
FirstEnergy Corp. | 8.4 | 7.1 |
NextEra Energy, Inc. | 7.9 | 10.0 |
Edison International | 7.5 | 7.1 |
Sempra Energy | 7.5 | 4.2 |
PG&E Corp. | 6.1 | 4.8 |
Dominion Resources, Inc. | 5.2 | 0.0 |
Progress Energy, Inc. | 4.9 | 0.0 |
The AES Corp. | 4.9 | 5.7 |
American Electric Power Co., Inc. | 4.8 | 4.9 |
| 67.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Electric Utilities | 44.5% | |
| Multi-Utilities | 30.3% | |
| Independent Power Producers & Energy Traders | 11.5% | |
| Gas Utilities | 5.2% | |
| Oil, Gas & Consumable Fuels | 3.7% | |
| All Others* | 4.8% | |
As of July 31, 2011 |
| Electric Utilities | 47.6% | |
| Multi-Utilities | 22.1% | |
| Independent Power Producers & Energy Traders | 21.2% | |
| Gas Utilities | 5.8% | |
| Oil, Gas & Consumable Fuels | 2.1% | |
| All Others* | 1.2% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% |
| Shares | | Value |
ELECTRIC UTILITIES - 44.5% |
Electric Utilities - 44.5% |
American Electric Power Co., Inc. | 212,600 | | $ 8,410,456 |
Duke Energy Corp. | 867,848 | | 18,493,842 |
Edison International | 318,835 | | 13,084,988 |
FirstEnergy Corp. | 345,791 | | 14,599,296 |
ITC Holdings Corp. | 8,110 | | 597,788 |
NextEra Energy, Inc. | 228,533 | | 13,677,700 |
Progress Energy, Inc. | 158,129 | | 8,591,149 |
| | 77,455,219 |
GAS UTILITIES - 5.2% |
Gas Utilities - 5.2% |
National Fuel Gas Co. | 44,369 | | 2,230,873 |
ONEOK, Inc. | 81,200 | | 6,752,592 |
| | 8,983,465 |
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 11.5% |
Independent Power Producers & Energy Traders - 11.5% |
Calpine Corp. (a) | 340,392 | | 4,969,723 |
Constellation Energy Group, Inc. | 161,782 | | 5,893,718 |
GenOn Energy, Inc. (a) | 259,700 | | 553,161 |
The AES Corp. (a) | 669,698 | | 8,545,346 |
| | 19,961,948 |
MULTI-UTILITIES - 30.3% |
Multi-Utilities - 30.3% |
CenterPoint Energy, Inc. | 410,068 | | 7,573,956 |
Dominion Resources, Inc. | 181,591 | | 9,086,814 |
NiSource, Inc. | 348,549 | | 7,922,519 |
OGE Energy Corp. | 83,049 | | 4,389,970 |
PG&E Corp. | 262,200 | | 10,661,052 |
Sempra Energy | 229,431 | | 13,054,624 |
| | 52,688,935 |
|
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - 3.7% |
Oil & Gas Refining & Marketing - 1.0% |
Sunoco, Inc. | 45,000 | | $ 1,726,200 |
Oil & Gas Storage & Transport - 2.7% |
El Paso Corp. | 103,600 | | 2,783,732 |
Williams Companies, Inc. | 64,500 | | 1,858,890 |
| | 4,642,622 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 6,368,822 |
WATER UTILITIES - 3.1% |
Water Utilities - 3.1% |
American Water Works Co., Inc. | 162,425 | | 5,478,595 |
TOTAL COMMON STOCKS (Cost $167,131,614) |
170,936,984
|
Money Market Funds - 0.8% |
| | | |
Fidelity Cash Central Fund, 0.12% (b)
(Cost $1,411,526) | 1,411,526 | |
1,411,526
|
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $168,543,140) | | 172,348,510 |
NET OTHER ASSETS (LIABILITIES) - 0.9% | | 1,499,572 |
NET ASSETS - 100% | $ 173,848,082 |
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. |
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 | $ 1,647 |
Fidelity Securities Lending Cash Central Fund | 11,856 |
Total | $ 13,503 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Utilities Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $167,131,614) | $ 170,936,984 | |
Fidelity Central Funds (cost $1,411,526) | 1,411,526 | |
Total Investments (cost $168,543,140) | | $ 172,348,510 |
Receivable for investments sold | | 11,366,539 |
Receivable for fund shares sold | | 217,731 |
Dividends receivable | | 49,532 |
Distributions receivable from Fidelity Central Funds | | 112 |
Prepaid expenses | | 357 |
Other receivables | | 3,609 |
Total assets | | 183,986,390 |
| | |
Liabilities | | |
Payable for investments purchased | $ 9,582,773 | |
Payable for fund shares redeemed | 333,340 | |
Accrued management fee | 82,805 | |
Distribution and service plan fees payable | 65,780 | |
Other affiliated payables | 48,480 | |
Other payables and accrued expenses | 25,130 | |
Total liabilities | | 10,138,308 |
| | |
Net Assets | | $ 173,848,082 |
Net Assets consist of: | | |
Paid in capital | | $ 209,655,658 |
Distributions in excess of net investment income | | (82,912) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (39,530,034) |
Net unrealized appreciation (depreciation) on investments | | 3,805,370 |
Net Assets | | $ 173,848,082 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,053,008 ÷ 4,596,184 shares) | | $ 18.72 |
| | |
Maximum offering price per share (100/94.25 of $18.72) | | $ 19.86 |
Class T:
Net Asset Value and redemption price per share ($36,662,450 ÷ 1,954,738 shares) | | $ 18.76 |
| | |
Maximum offering price per share (100/96.50 of $18.76) | | $ 19.44 |
Class B:
Net Asset Value and offering price per share ($7,050,406 ÷ 379,497 shares)A | | $ 18.58 |
| | |
Class C:
Net Asset Value and offering price per share ($30,474,096 ÷ 1,652,735 shares)A | | $ 18.44 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($13,608,122 ÷ 716,034 shares) | | $ 19.00 |
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 Utilities Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,900,595 |
Income from Fidelity Central Funds | | 13,503 |
Total income | | 2,914,098 |
| | |
Expenses | | |
Management fee | $ 463,366 | |
Transfer agent fees | 246,507 | |
Distribution and service plan fees | 371,212 | |
Accounting and security lending fees | 32,270 | |
Custodian fees and expenses | 4,826 | |
Independent trustees' compensation | 547 | |
Registration fees | 45,733 | |
Audit | 27,387 | |
Legal | 1,210 | |
Miscellaneous | 2,179 | |
Total expenses | | 1,195,237 |
Net investment income (loss) | | 1,718,861 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,347,243 | |
Foreign currency transactions | (4,830) | |
Total net realized gain (loss) | | 4,342,413 |
Change in net unrealized appreciation (depreciation) on investment securities | | (5,871,073) |
Net gain (loss) | | (1,528,660) |
Net increase (decrease) in net assets resulting from operations | | $ 190,201 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | �� |
Net investment income (loss) | $ 1,718,861 | $ 2,899,329 |
Net realized gain (loss) | 4,342,413 | 15,534,119 |
Change in net unrealized appreciation (depreciation) | (5,871,073) | 4,885,719 |
Net increase (decrease) in net assets resulting from operations | 190,201 | 23,319,167 |
Distributions to shareholders from net investment income | (3,107,112) | (2,864,390) |
Share transactions - net increase (decrease) | 17,143,363 | 3,898,632 |
Redemption fees | 5,927 | 2,026 |
Total increase (decrease) in net assets | 14,232,379 | 24,355,435 |
| | |
Net Assets | | |
Beginning of period | 159,615,703 | 135,260,268 |
End of period (including distributions in excess of net investment income of $82,912 and undistributed net investment income of $1,305,339, respectively) | $ 173,848,082 | $ 159,615,703 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .21 | .39 | .40 | .35 | .24 | .21 |
Net realized and unrealized gain (loss) | (.19) | 2.50 | 1.32 | (5.10) | (.38) | 3.56 |
Total from investment operations | .02 | 2.89 | 1.72 | (4.75) | (.14) | 3.77 |
Distributions from net investment income | (.39) | (.39) | (.40) | (.26) | (.32) | (.23) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.72 | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 |
Total Return B, C, D | .14% | 17.71% | 11.42% | (23.44)% | (.82)% | 22.14% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.25% A | 1.24% | 1.26% | 1.26% | 1.21% | 1.27% |
Expenses net of fee waivers, if any | 1.25% A | 1.24% | 1.26% | 1.26% | 1.21% | 1.27% |
Expenses net of all reductions | 1.25% A | 1.20% | 1.22% | 1.26% | 1.21% | 1.26% |
Net investment income (loss) | 2.27% A | 2.18% | 2.49% | 2.37% | 1.11% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,053 | $ 78,312 | $ 64,890 | $ 66,064 | $ 105,219 | $ 94,842 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .19 | .35 | .35 | .31 | .18 | .15 |
Net realized and unrealized gain (loss) | (.19) | 2.50 | 1.33 | (5.10) | (.39) | 3.56 |
Total from investment operations | - I | 2.85 | 1.68 | (4.79) | (.21) | 3.71 |
Distributions from net investment income | (.33) | (.35) | (.36) | (.20) | (.24) | (.18) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.76 | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 |
Total Return B, C, D | .06% | 17.39% | 11.13% | (23.61)% | (1.11)% | 21.74% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.51% A | 1.50% | 1.52% | 1.52% | 1.47% | 1.54% |
Expenses net of fee waivers, if any | 1.51% A | 1.50% | 1.52% | 1.52% | 1.47% | 1.54% |
Expenses net of all reductions | 1.51% A | 1.46% | 1.49% | 1.52% | 1.47% | 1.54% |
Net investment income (loss) | 2.01% A | 1.92% | 2.23% | 2.11% | .84% | .76% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 36,662 | $ 35,701 | $ 33,651 | $ 33,989 | $ 54,346 | $ 62,592 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.86 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .25 | .27 | .24 | .08 | .05 |
Net realized and unrealized gain (loss) | (.19) | 2.49 | 1.31 | (5.04) | (.39) | 3.52 |
Total from investment operations | (.05) | 2.74 | 1.58 | (4.80) | (.31) | 3.57 |
Distributions from net investment income | (.23) | (.26) | (.28) | (.13) | (.08) | (.07) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.58 | $ 18.86 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 |
Total Return B, C, D | (.24)% | 16.87% | 10.56% | (23.97)% | (1.59)% | 21.18% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.00% A | 1.99% | 2.01% | 2.01% | 1.96% | 2.04% |
Expenses net of fee waivers, if any | 2.00% A | 1.99% | 2.01% | 2.01% | 1.96% | 2.04% |
Expenses net of all reductions | 2.00% A | 1.95% | 1.98% | 2.01% | 1.95% | 2.03% |
Net investment income (loss) | 1.52% A | 1.43% | 1.74% | 1.62% | .36% | .27% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,050 | $ 7,773 | $ 8,794 | $ 10,634 | $ 20,747 | $ 43,845 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.75 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .26 | .27 | .24 | .08 | .06 |
Net realized and unrealized gain (loss) | (.18) | 2.46 | 1.30 | (5.02) | (.39) | 3.51 |
Total from investment operations | (.04) | 2.72 | 1.57 | (4.78) | (.31) | 3.57 |
Distributions from net investment income | (.27) | (.27) | (.29) | (.13) | (.14) | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.44 | $ 18.75 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 |
Total Return B, C, D | (.22)% | 16.85% | 10.54% | (23.96)% | (1.58)% | 21.23% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.98% A | 1.98% | 2.01% | 2.01% | 1.95% | 1.99% |
Expenses net of fee waivers, if any | 1.98% A | 1.98% | 2.01% | 2.01% | 1.95% | 1.99% |
Expenses net of all reductions | 1.98% A | 1.94% | 1.97% | 2.01% | 1.95% | 1.99% |
Net investment income (loss) | 1.55% A | 1.43% | 1.74% | 1.62% | .36% | .32% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 30,474 | $ 26,915 | $ 21,415 | $ 22,352 | $ 37,387 | $ 43,292 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.40 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .24 | .45 | .44 | .39 | .31 | .29 |
Net realized and unrealized gain (loss) | (.20) | 2.54 | 1.35 | (5.17) | (.38) | 3.58 |
Total from investment operations | .04 | 2.99 | 1.79 | (4.78) | (.07) | 3.87 |
Distributions from net investment income | (.44) | (.44) | (.45) | (.23) | (.36) | (.30) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 19.00 | $ 19.40 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 |
Total Return B, C | .28% | 18.05% | 11.66% | (23.24)% | (.49)% | 22.54% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .97% A | .98% | 1.00% | 1.00% | .91% | .92% |
Expenses net of fee waivers, if any | .97% A | .98% | 1.00% | 1.00% | .91% | .92% |
Expenses net of all reductions | .97% A | .94% | .97% | 1.00% | .90% | .92% |
Net investment income (loss) | 2.56% A | 2.44% | 2.75% | 2.63% | 1.41% | 1.39% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,608 | $ 10,914 | $ 6,511 | $ 4,373 | $ 5,704 | $ 12,822 |
Portfolio turnover rate F | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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. 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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 deferred trustees compensation, foreign currency transactions, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 6,675,822 |
Gross unrealized depreciation | (3,116,404) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,559,418 |
| |
Tax cost | $ 168,789,092 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (13,867,918) |
2018 | (28,082,034) |
Total capital loss carryforward | $ (41,949,952) |
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 $195,082,698 and $180,202,699, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 100,394 | $ 1,824 |
Class T | .25% | .25% | 89,528 | - |
Class B | .75% | .25% | 36,682 | 27,512 |
Class C | .75% | .25% | 144,608 | 21,292 |
| | | $ 371,212 | $ 50,628 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 42,604 |
Class T | 6,866 |
Class B* | 9,098 |
Class C* | 909 |
| $ 59,477 |
* 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
Average
Net Assets* |
Class A | $ 121,217 | .30 |
Class T | 56,285 | .31 |
Class B | 11,125 | .30 |
Class C | 40,153 | .28 |
Institutional Class | 17,727 | .27 |
| $ 246,507 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $6,561 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $227 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $11,856. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 1,654,303 | $ 1,536,373 |
Class T | 639,462 | 680,070 |
Class B | 91,242 | 128,700 |
Class C | 419,210 | 350,529 |
Institutional Class | 302,895 | 168,718 |
Total | $ 3,107,112 | $ 2,864,390 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 | Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 864,208 | 951,835 | $ 16,220,936 | $ 17,339,635 |
Reinvestment of distributions | 77,893 | 78,008 | 1,433,959 | 1,339,641 |
Shares redeemed | (447,953) | (840,008) | (8,343,876) | (15,213,828) |
Net increase (decrease) | 494,148 | 189,835 | $ 9,311,019 | $ 3,465,448 |
Class T | | | | |
Shares sold | 290,317 | 251,762 | $ 5,434,277 | $ 4,579,718 |
Reinvestment of distributions | 32,850 | 37,445 | 606,115 | 644,378 |
Shares redeemed | (238,147) | (448,193) | (4,429,798) | (8,103,122) |
Net increase (decrease) | 85,020 | (158,986) | $ 1,610,594 | $ (2,879,026) |
Class B | | | | |
Shares sold | 50,306 | 39,073 | $ 929,402 | $ 679,580 |
Reinvestment of distributions | 4,324 | 6,858 | 79,307 | 116,904 |
Shares redeemed | (87,367) | (170,627) | (1,612,471) | (3,021,254) |
Net increase (decrease) | (32,737) | (124,696) | $ (603,762) | $ (2,224,770) |
Class C | | | | |
Shares sold | 392,436 | 405,545 | $ 7,196,817 | $ 7,271,889 |
Reinvestment of distributions | 18,237 | 15,668 | 332,155 | 265,763 |
Shares redeemed | (193,485) | (299,716) | (3,517,586) | (5,335,908) |
Net increase (decrease) | 217,188 | 121,497 | $ 4,011,386 | $ 2,201,744 |
Institutional Class | | | | |
Shares sold | 387,876 | 343,779 | $ 7,267,425 | $ 6,436,483 |
Reinvestment of distributions | 14,596 | 7,398 | 273,126 | 128,959 |
Shares redeemed | (248,911) | (175,049) | (4,726,425) | (3,230,206) |
Net increase (decrease) | 153,561 | 176,128 | $ 2,814,126 | $ 3,335,236 |
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
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-0312
1.789279.109
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, 2012
(Fidelity Cover Art)
Contents
Semiannual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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
(Acting chairman's photo appears here)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(Acting chairman's signature appears here)
James C. Curvey
Acting Chairman
Semiannual Report
Fidelity Advisor Biotechnology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.37% | | | |
Actual | | $ 1,000.00 | $ 1,143.00 | $ 7.38 |
Hypothetical A | | $ 1,000.00 | $ 1,018.25 | $ 6.95 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,141.40 | $ 8.88 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.12% | | | |
Actual | | $ 1,000.00 | $ 1,139.70 | $ 11.40 |
Hypothetical A | | $ 1,000.00 | $ 1,014.48 | $ 10.74 |
Class C | 2.12% | | | |
Actual | | $ 1,000.00 | $ 1,138.30 | $ 11.39 |
Hypothetical A | | $ 1,000.00 | $ 1,014.48 | $ 10.74 |
Institutional Class | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,145.10 | $ 5.72 |
Hypothetical A | | $ 1,000.00 | $ 1,019.81 | $ 5.38 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Gilead Sciences, Inc. | 10.6 | 9.8 |
Amgen, Inc. | 10.1 | 15.7 |
Biogen Idec, Inc. | 6.1 | 5.6 |
Celgene Corp. | 4.2 | 3.5 |
Alexion Pharmaceuticals, Inc. | 4.0 | 5.2 |
Vertex Pharmaceuticals, Inc. | 3.4 | 4.4 |
Regeneron Pharmaceuticals, Inc. | 3.2 | 1.4 |
BioMarin Pharmaceutical, Inc. | 2.6 | 3.8 |
Medivation, Inc. | 2.3 | 0.7 |
Idenix Pharmaceuticals, Inc. | 2.2 | 1.2 |
| 48.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
 | Biotechnology | 94.1% | |
 | Pharmaceuticals | 5.7% | |
 | Life Sciences Tools & Services | 0.4% | |
 | Health Care Equipment & Supplies | 0.0% | |
 | All Others*,† | (0.2)% | |
As of July 31, 2011 |
| Biotechnology | 89.6% | |
| Pharmaceuticals | 7.0% | |
| Health Care Equipment & Supplies | 0.1% | |
| All Others* | 3.3% | |
* Includes short-term investments and net other assets. |
† Short-term Investments and Net Other Assets are not included in the pie chart. |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% |
| Shares | | Value |
BIOTECHNOLOGY - 94.1% |
Biotechnology - 94.1% |
Acadia Pharmaceuticals, Inc. (a) | 88,492 | | $ 134,508 |
Achillion Pharmaceuticals, Inc. (a) | 39,301 | | 435,848 |
Acorda Therapeutics, Inc. (a) | 50,157 | | 1,280,508 |
ADVENTRX Pharmaceuticals, Inc. (a)(d) | 37,232 | | 25,634 |
Aegerion Pharmaceuticals, Inc. (a) | 38,913 | | 668,914 |
Affymax, Inc. (a) | 30,959 | | 247,362 |
Agenus, Inc. (a)(d) | 21,665 | | 60,229 |
Agenus, Inc. warrants 1/9/18 (a)(e) | 452,000 | | 44,924 |
Alexion Pharmaceuticals, Inc. (a) | 48,748 | | 3,741,896 |
Alkermes PLC (a) | 52,061 | | 979,267 |
Allos Therapeutics, Inc. (a) | 169,028 | | 261,993 |
Alnylam Pharmaceuticals, Inc. (a) | 58,398 | | 675,081 |
AMAG Pharmaceuticals, Inc. (a) | 46,071 | | 756,486 |
Amarin Corp. PLC ADR (a)(d) | 6,700 | | 54,672 |
Amgen, Inc. | 141,496 | | 9,608,993 |
Amicus Therapeutics, Inc. (a) | 36,298 | | 235,937 |
Amylin Pharmaceuticals, Inc. (a) | 71,203 | | 1,013,219 |
Anacor Pharmaceuticals, Inc. (a) | 22,150 | | 154,829 |
Ardea Biosciences, Inc. (a) | 21,000 | | 381,990 |
Arena Pharmaceuticals, Inc. (a)(d) | 201,900 | | 357,363 |
ARIAD Pharmaceuticals, Inc. (a)(d) | 89,006 | | 1,312,839 |
ArQule, Inc. (a) | 54,506 | | 430,597 |
AVEO Pharmaceuticals, Inc. (a)(d) | 19,452 | | 256,377 |
AVI BioPharma, Inc. (a) | 1,905 | | 1,714 |
Biogen Idec, Inc. (a) | 49,128 | | 5,793,174 |
BioInvent International AB (a) | 31,900 | | 87,699 |
BioMarin Pharmaceutical, Inc. (a) | 69,004 | | 2,461,373 |
Bionovo, Inc. (a) | 73,900 | | 11,964 |
Bionovo, Inc. warrants 2/2/16 (a) | 56,850 | | 4,966 |
Biospecifics Technologies Corp. (a) | 1,244 | | 23,661 |
BioTime, Inc. (a)(d) | 32,817 | | 189,682 |
Catalyst Pharmaceutical Partners, Inc. (a)(d) | 99,709 | | 106,689 |
Catalyst Pharmaceutical Partners, Inc. warrants 4/30/17 (a) | 8,557 | | 4,757 |
Celgene Corp. (a) | 54,169 | | 3,938,086 |
Cell Therapeutics, Inc. (a) | 650,869 | | 715,956 |
Cell Therapeutics, Inc. warrants 7/6/16 (a) | 46,404 | | 27,074 |
Celldex Therapeutics, Inc. (a) | 65,600 | | 311,600 |
Cepheid, Inc. (a) | 30,600 | | 1,348,236 |
Chelsea Therapeutics International Ltd. (a) | 11,860 | | 53,370 |
Clovis Oncology, Inc. | 800 | | 15,192 |
Codexis, Inc. (a) | 47,542 | | 264,809 |
Cubist Pharmaceuticals, Inc. (a) | 29,392 | | 1,199,781 |
Dendreon Corp. (a)(d) | 116,928 | | 1,587,882 |
Dynavax Technologies Corp. (a) | 69,900 | | 243,252 |
Emergent BioSolutions, Inc. (a) | 17,500 | | 296,975 |
Enzon Pharmaceuticals, Inc. (a)(d) | 29,534 | | 210,577 |
Exact Sciences Corp. (a) | 45,300 | | 423,102 |
Exelixis, Inc. (a) | 63,245 | | 336,463 |
|
| Shares | | Value |
Genomic Health, Inc. (a) | 16,728 | | $ 464,202 |
Geron Corp. (a)(d) | 8,061 | | 15,961 |
Gilead Sciences, Inc. (a) | 205,643 | | 10,043,606 |
Halozyme Therapeutics, Inc. (a)(d) | 60,500 | | 638,880 |
Horizon Pharma, Inc. (d) | 29,700 | | 117,909 |
Human Genome Sciences, Inc. (a)(d) | 97,908 | | 963,415 |
Idenix Pharmaceuticals, Inc. (a)(d) | 158,340 | | 2,120,173 |
ImmunoGen, Inc. (a)(d) | 44,555 | | 629,117 |
Incyte Corp. (a)(d) | 53,938 | | 954,703 |
InterMune, Inc. (a) | 72,029 | | 1,080,435 |
Ironwood Pharmaceuticals, Inc.
Class A (a) | 87,228 | | 1,308,420 |
Isis Pharmaceuticals, Inc. (a) | 50,610 | | 412,978 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 48,400 | | 164,076 |
Lexicon Pharmaceuticals, Inc. (a) | 458,061 | | 664,188 |
Ligand Pharmaceuticals, Inc. Class B (a) | 34,174 | | 425,466 |
MannKind Corp. (a)(d) | 52,246 | | 141,064 |
Medivation, Inc. (a) | 38,913 | | 2,156,169 |
Metabolix, Inc. (a)(d) | 28,030 | | 74,280 |
Momenta Pharmaceuticals, Inc. (a) | 31,866 | | 499,978 |
Myrexis, Inc. (a) | 302 | | 858 |
Myriad Genetics, Inc. (a) | 14,589 | | 345,176 |
Neurocrine Biosciences, Inc. (a) | 39,906 | | 371,126 |
NewLink Genetics Corp. | 20,100 | | 139,695 |
Novavax, Inc. (a) | 129,455 | | 195,477 |
Novelos Therapeutics, Inc. (a) | 137,600 | | 66,048 |
Novelos Therapeutics, Inc. warrants 11/30/16 (a) | 137,600 | | 1,908 |
NPS Pharmaceuticals, Inc. (a) | 97,378 | | 747,863 |
OncoGenex Pharmaceuticals, Inc. (a) | 10,805 | | 150,190 |
Oncothyreon, Inc. (a)(d) | 4,574 | | 31,149 |
ONYX Pharmaceuticals, Inc. (a) | 38,039 | | 1,557,317 |
Opko Health, Inc. (a)(d) | 129,700 | | 682,222 |
OREXIGEN Therapeutics, Inc. (a)(d) | 165,108 | | 452,396 |
PDL BioPharma, Inc. (d) | 81,188 | | 518,791 |
Pharmacyclics, Inc. (a)(d) | 36,300 | | 667,194 |
PolyMedix, Inc. (a) | 357,066 | | 337,427 |
PolyMedix, Inc. warrants 4/10/16 (a) | 163,833 | | 80,855 |
Progenics Pharmaceuticals, Inc. (a) | 92,600 | | 892,664 |
PROLOR Biotech, Inc. (a)(d) | 50,116 | | 312,724 |
Protalix BioTherapeutics, Inc. (a) | 56,855 | | 322,936 |
Protox Therapeutics, Inc. (a) | 138,000 | | 49,544 |
Puma Biotechnology, Inc. unit (e) | 32,887 | | 123,326 |
Raptor Pharmaceutical Corp. (a)(d) | 94,051 | | 673,405 |
Regeneron Pharmaceuticals, Inc. (a) | 33,404 | | 3,035,087 |
Rigel Pharmaceuticals, Inc. (a) | 61,670 | | 602,516 |
Sangamo Biosciences, Inc. (a)(d) | 26,728 | | 92,212 |
Savient Pharmaceuticals, Inc. (a)(d) | 81,455 | | 206,081 |
Seattle Genetics, Inc. (a)(d) | 51,634 | | 977,432 |
SIGA Technologies, Inc. (a)(d) | 101,286 | | 335,257 |
Spectrum Pharmaceuticals, Inc. (a)(d) | 97,576 | | 1,372,894 |
Sunesis Pharmaceuticals, Inc. (a) | 21,236 | | 29,306 |
Synageva BioPharma Corp. (a) | 12,000 | | 426,360 |
Synergy Pharmaceuticals, Inc. unit (a) | 20,600 | | 167,478 |
Common Stocks - continued |
| Shares | | Value |
BIOTECHNOLOGY - CONTINUED |
Biotechnology - continued |
Synta Pharmaceuticals Corp. (a)(d) | 51,965 | | $ 240,598 |
Theravance, Inc. (a)(d) | 31,278 | | 554,872 |
Threshold Pharmaceuticals, Inc. (a)(d) | 95,166 | | 124,667 |
Threshold Pharmaceuticals, Inc. warrants 3/16/16 (a) | 35,146 | | 16,017 |
Trius Therapeutics, Inc. (a)(d) | 57,653 | | 320,551 |
United Therapeutics Corp. (a) | 26,752 | | 1,315,663 |
Verastem, Inc. | 8,200 | | 90,200 |
Vertex Pharmaceuticals, Inc. (a) | 88,315 | | 3,263,239 |
Vical, Inc. (a) | 241,277 | | 846,882 |
ZIOPHARM Oncology, Inc. (a)(d) | 135,779 | | 720,986 |
| | 89,111,109 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.0% |
Health Care Equipment - 0.0% |
Alsius Corp. (a) | 14,200 | | 0 |
Aradigm Corp. (a) | 351,440 | | 45,687 |
| | 45,687 |
LIFE SCIENCES TOOLS & SERVICES - 0.4% |
Life Sciences Tools & Services - 0.4% |
BG Medicine, Inc. | 43,000 | | 260,150 |
ChromaDex, Inc. | 143,866 | | 132,357 |
| | 392,507 |
PHARMACEUTICALS - 5.6% |
Pharmaceuticals - 5.6% |
AcelRx Pharmaceuticals, Inc. | 62,800 | | 200,332 |
Akorn, Inc. (a) | 17,079 | | 195,725 |
Auxilium Pharmaceuticals, Inc. (a) | 31,758 | | 631,031 |
AVANIR Pharmaceuticals Class A (a)(d) | 242,280 | | 712,303 |
Corcept Therapeutics, Inc. (a) | 69,600 | | 238,728 |
Elan Corp. PLC sponsored ADR (a) | 47,120 | | 641,303 |
Jazz Pharmaceuticals PLC (a) | 8,843 | | 411,200 |
NuPathe, Inc. (a) | 900 | | 1,971 |
Optimer Pharmaceuticals, Inc. (a)(d) | 21,317 | | 276,481 |
Pacira Pharmaceuticals, Inc. (d) | 7,169 | | 77,497 |
Santarus, Inc. (a) | 51,325 | | 251,493 |
Ventrus Biosciences, Inc. (a) | 41,095 | | 365,746 |
ViroPharma, Inc. (a) | 24,474 | | 729,080 |
XenoPort, Inc. (a) | 46,025 | | 192,845 |
Zogenix, Inc. (a) | 125,489 | | 331,291 |
| | 5,257,026 |
TOTAL COMMON STOCKS (Cost $75,586,325) |
94,806,329
|
Convertible Preferred Stocks - 0.1% |
| Shares | | Value |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
Agios Pharmaceuticals, Inc. Series C (e)
(Cost $68,706) | 13,990 | | $ 68,706 |
Money Market Funds - 11.4% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 1,342,160 | | 1,342,160 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 9,507,935 | | 9,507,935 |
TOTAL MONEY MARKET FUNDS (Cost $10,850,095) |
10,850,095
|
TOTAL INVESTMENT PORTFOLIO - 111.6% (Cost $86,505,126) | | 105,725,130 |
NET OTHER ASSETS (LIABILITIES) - (11.6)% | | (11,001,918) |
NET ASSETS - 100% | $ 94,723,212 |
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 $236,956 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Agenus, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
Agios Pharmaceuticals, Inc. Series C | 11/16/11 | $ 68,706 |
Puma Biotechnology, Inc. unit | 10/4/11 | $ 123,326 |
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 | $ 691 |
Fidelity Securities Lending Cash Central Fund | 108,842 |
Total | $ 109,533 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 94,806,329 | $ 94,502,502 | $ 180,501 | $ 123,326 |
Convertible Preferred Stocks | 68,706 | - | - | 68,706 |
Money Market Funds | 10,850,095 | 10,850,095 | - | - |
Total Investments in Securities: | $ 105,725,130 | $ 105,352,597 | $ 180,501 | $ 192,032 |
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) | - |
Cost of Purchases | 192,032 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 192,032 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $8,988,839) - See accompanying schedule: Unaffiliated issuers (cost $75,655,031) | $ 94,875,035 | |
Fidelity Central Funds (cost $10,850,095) | 10,850,095 | |
Total Investments (cost $86,505,126) | | $ 105,725,130 |
Receivable for investments sold | | 335,190 |
Receivable for fund shares sold | | 608,105 |
Distributions receivable from Fidelity Central Funds | | 18,712 |
Prepaid expenses | | 180 |
Other receivables | | 1,286 |
Total assets | | 106,688,603 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,151,462 | |
Payable for fund shares redeemed | 180,271 | |
Accrued management fee | 44,987 | |
Distribution and service plan fees payable | 35,273 | |
Other affiliated payables | 20,784 | |
Other payables and accrued expenses | 24,679 | |
Collateral on securities loaned, at value | 9,507,935 | |
Total liabilities | | 11,965,391 |
| | |
Net Assets | | $ 94,723,212 |
Net Assets consist of: | | |
Paid in capital | | $ 71,580,535 |
Accumulated net investment loss | | (349,332) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 4,272,005 |
Net unrealized appreciation (depreciation) on investments | | 19,220,004 |
Net Assets | | $ 94,723,212 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($38,771,992 ÷ 3,851,434 shares) | | $ 10.07 |
| | |
Maximum offering price per share (100/94.25 of $10.07) | | $ 10.68 |
Class T:
Net Asset Value and redemption price per share ($20,689,348 ÷ 2,118,507 shares) | | $ 9.77 |
| | |
Maximum offering price per share (100/96.50 of $9.77) | | $ 10.12 |
Class B:
Net Asset Value and offering price per share ($5,858,002 ÷ 635,681 shares)A | | $ 9.22 |
| | |
Class C:
Net Asset Value and offering price per share ($19,997,785 ÷ 2,169,348 shares)A | | $ 9.22 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($9,406,085 ÷ 902,939 shares) | | $ 10.42 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 126,089 |
Income from Fidelity Central Funds (including $108,842 from security lending) | | 109,533 |
Total income | | 235,622 |
| | |
Expenses | | |
Management fee | $ 202,766 | |
Transfer agent fees | 109,196 | |
Distribution and service plan fees | 179,825 | |
Accounting and security lending fees | 14,750 | |
Custodian fees and expenses | 6,277 | |
Independent trustees' compensation | 232 | |
Registration fees | 50,048 | |
Audit | 22,756 | |
Legal | 168 | |
Miscellaneous | 299 | |
Total expenses before reductions | 586,317 | |
Expense reductions | (2,118) | 584,199 |
Net investment income (loss) | | (348,577) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 6,695,331 | |
Foreign currency transactions | (37) | |
Total net realized gain (loss) | | 6,695,294 |
Change in net unrealized appreciation (depreciation) on investment securities | | 4,341,908 |
Net gain (loss) | | 11,037,202 |
Net increase (decrease) in net assets resulting from operations | | $ 10,688,625 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (348,577) | $ (708,078) |
Net realized gain (loss) | 6,695,294 | 5,234,202 |
Change in net unrealized appreciation (depreciation) | 4,341,908 | 11,018,770 |
Net increase (decrease) in net assets resulting from operations | 10,688,625 | 15,544,894 |
Share transactions - net increase (decrease) | 9,394,377 | 6,522,296 |
Redemption fees | 7,070 | 3,193 |
Total increase (decrease) in net assets | 20,090,072 | 22,070,383 |
| | |
Net Assets | | |
Beginning of period | 74,633,140 | 52,562,757 |
End of period (including accumulated net investment loss of $349,332 and accumulated net investment loss of $755, respectively) | $ 94,723,212 | $ 74,633,140 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.81 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.07) H | (.08) I | (.08) | (.09) J | (.09) |
Net realized and unrealized gain (loss) | 1.29 | 2.21 | (.19) | (.79) | 1.20 | .51 |
Total from investment operations | 1.26 | 2.14 | (.27) | (.87) | 1.11 | .42 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 10.07 | $ 8.81 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 |
Total Return B,C,D | 14.30% | 32.08% | (3.89)% | (11.14)% | 15.95% | 6.17% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 1.37% A | 1.35% | 1.39% | 1.40% | 1.37% | 1.42% |
Expenses net of fee waivers, if any | 1.37% A | 1.35% | 1.39% | 1.40% | 1.37% | 1.40% |
Expenses net of all reductions | 1.37% A | 1.34% | 1.38% | 1.40% | 1.37% | 1.40% |
Net investment income (loss) | (.72)% A | (.91)% H | (1.15)% I | (1.27)% | (1.24)% J | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,772 | $ 30,639 | $ 20,154 | $ 19,858 | $ 18,249 | $ 13,081 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.29)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.56 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.09) H | (.09) I | (.09) | (.11) J | (.11) |
Net realized and unrealized gain (loss) | 1.25 | 2.15 | (.19) | (.78) | 1.18 | .51 |
Total from investment operations | 1.21 | 2.06 | (.28) | (.87) | 1.07 | .40 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.77 | $ 8.56 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 |
Total Return B,C,D | 14.14% | 31.69% | (4.13)% | (11.37)% | 15.64% | 5.96% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 1.66% A | 1.64% | 1.69% | 1.71% | 1.69% | 1.75% |
Expenses net of fee waivers, if any | 1.65% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.99)% A | (1.21)% H | (1.41)% I | (1.52)% | (1.53)% J | (1.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,689 | $ 16,454 | $ 11,684 | $ 13,356 | $ 15,123 | $ 13,008 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.55)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.09 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) H | (.12) I | (.12) | (.14) J | (.14) |
Net realized and unrealized gain (loss) | 1.19 | 2.04 | (.18) | (.75) | 1.13 | .50 |
Total from investment operations | 1.13 | 1.92 | (.30) | (.87) | .99 | .36 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.22 | $ 8.09 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 |
Total Return B,C,D | 13.97% | 31.12% | (4.64)% | (11.85)% | 14.96% | 5.52% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.17% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.09% | 2.13% | 2.15% | 2.12% | 2.15% |
Net investment income (loss) | (1.47)% A | (1.66)% H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,858 | $ 5,849 | $ 6,297 | $ 7,377 | $ 11,044 | $ 12,656 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.79)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (2.04)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.10 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) H | (.12) I | (.12) | (.13) J | (.14) |
Net realized and unrealized gain (loss) | 1.18 | 2.04 | (.17) | (.75) | 1.12 | .50 |
Total from investment operations | 1.12 | 1.92 | (.29) | (.87) | .99 | .36 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 9.22 | $ 8.10 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 |
Total Return B,C,D | 13.83% | 31.07% | (4.48)% | (11.85)% | 14.96% | 5.52% |
Ratios to Average Net Assets F,K | | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.16% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.14% | 2.15% | 2.12% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.09% | 2.13% | 2.15% | 2.12% | 2.15% |
Net investment income (loss) | (1.47)% A | (1.66)% H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,998 | $ 15,787 | $ 11,421 | $ 12,426 | $ 13,323 | $ 11,813 |
Portfolio turnover rate G | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.79)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (2.04)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.10 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.05) G | (.06) H | (.06) | (.07) I | (.07) |
Net realized and unrealized gain (loss) | 1.34 | 2.28 | (.19) | (.82) | 1.23 | .53 |
Total from investment operations | 1.32 | 2.23 | (.25) | (.88) | 1.16 | .46 |
Distributions from net realized gain | - | - | - | - | (.53) | - |
Redemption fees added to paid in capital D,K | - | - | - | - | - | - |
Net asset value, end of period | $ 10.42 | $ 9.10 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 |
Total Return B,C | 14.51% | 32.46% | (3.51)% | (11.00)% | 16.35% | 6.66% |
Ratios to Average Net Assets E,J | | | | | | |
Expenses before reductions | 1.06% A | 1.04% | 1.07% | 1.11% | 1.06% | 1.06% |
Expenses net of fee waivers, if any | 1.06% A | 1.04% | 1.07% | 1.11% | 1.06% | 1.06% |
Expenses net of all reductions | 1.06% A | 1.03% | 1.06% | 1.11% | 1.06% | 1.06% |
Net investment income (loss) | (.40)% A | (.60)% G | (.83)% H | (.98)% | (.94)% I | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,406 | $ 5,903 | $ 3,008 | $ 1,901 | $ 1,117 | $ 991 |
Portfolio turnover rate F | 106% A | 99% | 130% | 73% | 132% | 120% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.73)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.97)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 23,928,884 |
Gross unrealized depreciation | (5,951,258) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 17,977,626 |
| |
Tax cost | $ 87,747,504 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (1,530,367) |
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 $51,259,248 and $39,568,886, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 37,599 | $ 512 |
Class T | .25% | .25% | 40,633 | - |
Class B | .75% | .25% | 26,119 | 19,590 |
Class C | .75% | .25% | 75,474 | 11,579 |
| | | $ 179,825 | $ 31,681 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 13,380 |
Class T | 5,746 |
Class B* | 3,244 |
Class C* | 1,338 |
| $ 23,708 |
* 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
Average
Net Assets* |
Class A | $ 44,555 | .30 |
Class T | 27,380 | .34 |
Class B | 7,843 | .30 |
Class C | 22,545 | .30 |
Institutional Class | 6,873 | .24 |
| $ 109,196 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $578 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $98 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $437 from securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class T | 1.65% | $ 1,259 |
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 $859 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,596,631 | 1,294,694 | $ 13,765,262 | $ 10,912,748 |
Shares redeemed | (1,223,809) | (838,372) | (9,862,892) | (6,529,914) |
Net increase (decrease) | 372,822 | 456,322 | $ 3,902,370 | $ 4,382,834 |
Class T | | | | |
Shares sold | 431,162 | 489,230 | $ 3,582,516 | $ 3,897,385 |
Shares redeemed | (235,743) | (364,605) | (1,897,995) | (2,767,714) |
Net increase (decrease) | 195,419 | 124,625 | $ 1,684,521 | $ 1,129,671 |
Class B | | | | |
Shares sold | 87,604 | 84,075 | $ 712,777 | $ 609,091 |
Shares redeemed | (174,673) | (381,301) | (1,380,543) | (2,636,098) |
Net increase (decrease) | (87,069) | (297,226) | $ (667,766) | $ (2,027,007) |
Class C | | | | |
Shares sold | 499,221 | 539,125 | $ 4,090,008 | $ 4,217,149 |
Shares redeemed | (279,963) | (438,419) | (2,110,008) | (3,130,462) |
Net increase (decrease) | 219,258 | 100,706 | $ 1,980,000 | $ 1,086,687 |
Institutional Class | | | | |
Shares sold | 510,746 | 436,761 | $ 4,658,548 | $ 3,719,527 |
Shares redeemed | (256,480) | (225,982) | (2,163,296) | (1,769,416) |
Net increase (decrease) | 254,266 | 210,779 | $ 2,495,252 | $ 1,950,111 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 935.40 | $ 6.81 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 933.60 | $ 8.02 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 931.10 | $ 10.44 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 931.00 | $ 10.44 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 936.10 | $ 5.60 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 20.5 | 12.9 |
QUALCOMM, Inc. | 17.2 | 9.9 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.9 | 10.9 |
Juniper Networks, Inc. | 4.4 | 1.5 |
Polycom, Inc. | 4.1 | 3.5 |
Motorola Solutions, Inc. | 3.4 | 0.0 |
Brocade Communications Systems, Inc. | 3.1 | 2.1 |
Harris Corp. | 2.5 | 1.1 |
Nokia Corp. sponsored ADR | 2.4 | 0.0 |
F5 Networks, Inc. | 2.4 | 0.3 |
| 64.9 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Communications Equipment | 83.7% | |
 | Semiconductors & Semiconductor Equipment | 6.4% | |
 | Electronic Equipment & Components | 2.5% | |
| Software | 2.4% | |
 | Internet Software & Services | 2.2% | |
| All Others* | 2.8% | |
As of July 31, 2011 |
| Communications Equipment | 75.0% | |
| Software | 8.5% | |
| Wireless Telecommunication Services | 7.9% | |
| Semiconductors & Semiconductor Equipment | 2.4% | |
| Computers & Peripherals | 1.1% | |
| All Others* | 5.1% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 83.7% |
Communications Equipment - 83.7% |
Acme Packet, Inc. (a) | 6,771 | | $ 197,916 |
ADTRAN, Inc. | 779 | | 26,977 |
Alcatel-Lucent SA sponsored ADR (a) | 59,757 | | 103,977 |
Anaren, Inc. (a) | 4,400 | | 76,648 |
Aruba Networks, Inc. (a)(d) | 11,540 | | 255,957 |
Brocade Communications Systems, Inc. (a) | 72,859 | | 408,739 |
Calix Networks, Inc. (a) | 4,900 | | 37,093 |
Ciena Corp. (a)(d) | 3,209 | | 46,691 |
Cisco Systems, Inc. | 138,224 | | 2,713,339 |
Comtech Telecommunications Corp. | 6,500 | | 200,590 |
F5 Networks, Inc. (a) | 2,665 | | 319,107 |
Finisar Corp. (a) | 9,859 | | 199,743 |
Harris Corp. | 8,100 | | 332,100 |
InterDigital, Inc. | 3,400 | | 126,888 |
JDS Uniphase Corp. (a) | 3,800 | | 48,222 |
Juniper Networks, Inc. (a) | 27,588 | | 577,417 |
Motorola Solutions, Inc. | 9,847 | | 456,999 |
NETGEAR, Inc. (a) | 6,300 | | 250,866 |
Nokia Corp. sponsored ADR (d) | 63,405 | | 319,561 |
Oclaro, Inc. (a) | 7,675 | | 31,775 |
PC-Tel, Inc. | 3,000 | | 22,320 |
Plantronics, Inc. | 1,600 | | 59,584 |
Polycom, Inc. (a) | 27,499 | | 548,605 |
QUALCOMM, Inc. | 38,681 | | 2,275,216 |
Research In Motion Ltd. (a) | 5,600 | | 93,128 |
Riverbed Technology, Inc. (a) | 11,758 | | 281,487 |
Sycamore Networks, Inc. (a) | 3,800 | | 73,796 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 69,920 | | 648,158 |
ViaSat, Inc. (a) | 6,000 | | 285,240 |
Wi-Lan, Inc. | 12,400 | | 70,733 |
| | 11,088,872 |
COMPUTERS & PERIPHERALS - 0.5% |
Computer Hardware - 0.5% |
Apple, Inc. (a) | 154 | | 70,298 |
ELECTRICAL EQUIPMENT - 0.6% |
Electrical Components & Equipment - 0.6% |
Prysmian SpA | 5,000 | | 75,076 |
ELECTRONIC EQUIPMENT & COMPONENTS - 2.5% |
Electronic Components - 0.8% |
Vishay Intertechnology, Inc. (a) | 8,700 | | 106,836 |
Electronic Manufacturing Services - 1.7% |
Fabrinet (a) | 600 | | 9,882 |
Flextronics International Ltd. (a) | 21,700 | | 149,079 |
TE Connectivity Ltd. | 2,000 | | 68,200 |
| | 227,161 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 333,997 |
|
| Shares | | Value |
INTERNET SOFTWARE & SERVICES - 2.2% |
Internet Software & Services - 2.2% |
Akamai Technologies, Inc. (a) | 8,100 | | $ 261,225 |
Rackspace Hosting, Inc. (a) | 800 | | 34,728 |
| | 295,953 |
MEDIA - 0.4% |
Advertising - 0.4% |
Digital Generation, Inc. (a) | 3,300 | | 45,870 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.4% |
Semiconductor Equipment - 1.0% |
ASML Holding NV | 3,100 | | 133,269 |
Semiconductors - 5.4% |
Altera Corp. | 5,100 | | 202,929 |
Analog Devices, Inc. | 5,200 | | 203,476 |
Marvell Technology Group Ltd. (a) | 2,300 | | 35,719 |
ON Semiconductor Corp. (a) | 4,500 | | 39,150 |
Skyworks Solutions, Inc. (a) | 1,900 | | 41,002 |
Texas Instruments, Inc. | 4,200 | | 135,996 |
Xilinx, Inc. | 1,600 | | 57,360 |
| | 715,632 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 848,901 |
SOFTWARE - 2.4% |
Application Software - 0.5% |
BroadSoft, Inc. (a)(d) | 1,100 | | 30,668 |
Citrix Systems, Inc. (a) | 500 | | 32,605 |
| | 63,273 |
Systems Software - 1.9% |
Allot Communications Ltd. (a) | 1,600 | | 25,216 |
Microsoft Corp. | 4,900 | | 144,697 |
Oracle Corp. | 2,900 | | 81,780 |
| | 251,693 |
TOTAL SOFTWARE | | 314,966 |
TOTAL COMMON STOCKS (Cost $12,576,463) |
13,073,933
|
Money Market Funds - 3.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 152,858 | | $ 152,858 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 323,450 | | 323,450 |
TOTAL MONEY MARKET FUNDS (Cost $476,308) |
476,308
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $13,052,771) | | 13,550,241 |
NET OTHER ASSETS (LIABILITIES) - (2.3)% | | (303,670) |
NET ASSETS - 100% | $ 13,246,571 |
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 | $ 132 |
Fidelity Securities Lending Cash Central Fund | 27,141 |
Total | $ 27,273 |
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 | 86.9% |
Sweden | 4.9% |
Finland | 2.4% |
Canada | 1.2% |
Singapore | 1.1% |
Netherlands | 1.0% |
Others (Individually Less Than 1%) | 2.5% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $310,065) - See accompanying schedule: Unaffiliated issuers (cost $12,576,463) | $ 13,073,933 | |
Fidelity Central Funds (cost $476,308) | 476,308 | |
Total Investments (cost $13,052,771) | | $ 13,550,241 |
Receivable for investments sold | | 142,043 |
Receivable for fund shares sold | | 12,518 |
Dividends receivable | | 2,722 |
Distributions receivable from Fidelity Central Funds | | 640 |
Prepaid expenses | | 69 |
Receivable from investment adviser for expense reductions | | 2,047 |
Other receivables | | 358 |
Total assets | | 13,710,638 |
| | |
Liabilities | | |
Payable for investments purchased | $ 45,838 | |
Payable for fund shares redeemed | 55,501 | |
Accrued management fee | 6,208 | |
Distribution and service plan fees payable | 5,737 | |
Other affiliated payables | 3,789 | |
Other payables and accrued expenses | 23,544 | |
Collateral on securities loaned, at value | 323,450 | |
Total liabilities | | 464,067 |
| | |
Net Assets | | $ 13,246,571 |
Net Assets consist of: | | |
Paid in capital | | $ 14,803,389 |
Accumulated net investment loss | | (60,811) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,993,496) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 497,489 |
Net Assets | | $ 13,246,571 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,857,407 ÷ 546,528 shares) | | $ 8.89 |
| | |
Maximum offering price per share (100/94.25 of $8.89) | | $ 9.43 |
Class T:
Net Asset Value and redemption price per share ($3,813,059 ÷ 441,279 shares) | | $ 8.64 |
| | |
Maximum offering price per share (100/96.50 of $8.64) | | $ 8.95 |
Class B:
Net Asset Value and offering price per share ($810,179 ÷ 99,304 shares)A | | $ 8.16 |
| | |
Class C:
Net Asset Value and offering price per share ($2,917,554 ÷ 357,780 shares)A | | $ 8.15 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($848,372 ÷ 92,736 shares) | | $ 9.15 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 39,399 |
Interest | | 22 |
Income from Fidelity Central Funds (including $27,141 from security lending) | | 27,273 |
Total income | | 66,694 |
| | |
Expenses | | |
Management fee | $ 42,084 | |
Transfer agent fees | 23,607 | |
Distribution and service plan fees | 38,476 | |
Accounting and security lending fees | 3,070 | |
Custodian fees and expenses | 2,007 | |
Independent trustees' compensation | 57 | |
Registration fees | 47,860 | |
Audit | 25,003 | |
Legal | 52 | |
Miscellaneous | 91 | |
Total expenses before reductions | 182,307 | |
Expense reductions | (57,595) | 124,712 |
Net investment income (loss) | | (58,018) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,812,437) | |
Foreign currency transactions | (597) | |
Total net realized gain (loss) | | (1,813,034) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (108,304) | |
Assets and liabilities in foreign currencies | 19 | |
Total change in net unrealized appreciation (depreciation) | | (108,285) |
Net gain (loss) | | (1,921,319) |
Net increase (decrease) in net assets resulting from operations | | $ (1,979,337) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (58,018) | $ (190,541) |
Net realized gain (loss) | (1,813,034) | 1,590,280 |
Change in net unrealized appreciation (depreciation) | (108,285) | (1,230,510) |
Net increase (decrease) in net assets resulting from operations | (1,979,337) | 169,229 |
Distributions to shareholders from net realized gain | (401,208) | - |
Share transactions - net increase (decrease) | (7,804,051) | 8,972,466 |
Redemption fees | 603 | 1,851 |
Total increase (decrease) in net assets | (10,183,993) | 9,143,546 |
| | |
Net Assets | | |
Beginning of period | 23,430,564 | 14,287,018 |
End of period (including accumulated net investment loss of $60,811 and accumulated net investment loss of $2,793, respectively) | $ 13,246,571 | $ 23,430,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.73 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.06) | (.11) | .02 H | (.08) | (.09) |
Net realized and unrealized gain (loss) | (.62) | 1.12 | 1.50 | (.56) | (1.45) | 2.29 |
Total from investment operations | (.64) | 1.06 | 1.39 | (.54) | (1.53) | 2.20 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.89 | $ 9.73 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 |
Total Return B,C,D | (6.46)% | 12.23% | 19.09% | (6.91)% | (16.43)% | 30.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.14% A | 1.64% | 1.90% | 3.15% | 2.25% | 2.24% |
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 | 1.39% | 1.38% | 1.40% | 1.39% | 1.40% |
Net investment income (loss) | (.51)% A | (.60)% | (1.32)% | .26% H | (.91)% | (1.00)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,857 | $ 8,787 | $ 4,860 | $ 3,476 | $ 2,459 | $ 2,825 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.48 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.09) | (.13) | - H,J | (.10) | (.11) |
Net realized and unrealized gain (loss) | (.61) | 1.11 | 1.46 | (.55) | (1.42) | 2.26 |
Total from investment operations | (.64) | 1.02 | 1.33 | (.55) | (1.52) | 2.15 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.64 | $ 9.48 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 |
Total Return B,C,D | (6.64)% | 12.06% | 18.65% | (7.16)% | (16.59)% | 29.90% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.46% A | 1.97% | 2.20% | 3.52% | 2.62% | 2.57% |
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% | 1.63% | 1.65% | 1.65% | 1.64% |
Net investment income (loss) | (.75)% A | (.85)% | (1.57)% | .01% H | (1.16)% | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,813 | $ 4,607 | $ 3,273 | $ 2,396 | $ 2,138 | $ 3,271 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.99 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.13) | (.16) | (.03) H | (.14) | (.14) |
Net realized and unrealized gain (loss) | (.58) | 1.06 | 1.39 | (.53) | (1.36) | 2.18 |
Total from investment operations | (.63) | .93 | 1.23 | (.56) | (1.50) | 2.04 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.16 | $ 8.99 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 |
Total Return B,C,D | (6.89)% | 11.54% | 18.01% | (7.58)% | (16.94)% | 29.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.90% A | 2.47% | 2.68% | 3.98% | 3.03% | 3.00% |
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% | 2.13% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (1.25)% A | (1.35)% | (2.07)% | (.49)% H | (1.67)% | (1.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 810 | $ 1,316 | $ 1,408 | $ 1,281 | $ 1,219 | $ 2,225 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.98 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.13) | (.16) | (.03) H | (.14) | (.14) |
Net realized and unrealized gain (loss) | (.58) | 1.05 | 1.40 | (.53) | (1.37) | 2.18 |
Total from investment operations | (.63) | .92 | 1.24 | (.56) | (1.51) | 2.04 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 8.15 | $ 8.98 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 |
Total Return B,C,D | (6.90)% | 11.41% | 18.18% | (7.59)% | (17.06)% | 29.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.90% A | 2.40% | 2.67% | 3.63% | 3.02% | 2.98% |
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 | 2.14% | 2.13% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (1.26)% A | (1.35)% | (2.07)% | (.49)% H | (1.67)% | (1.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,918 | $ 5,866 | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 |
Portfolio turnover rate G | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | (.04) | (.09) | .03 G | (.06) | (.07) |
Net realized and unrealized gain (loss) | (.64) | 1.16 | 1.52 | (.56) | (1.47) | 2.33 |
Total from investment operations | (.65) | 1.12 | 1.43 | (.53) | (1.53) | 2.26 |
Distributions from net realized gain | (.20) | - | - | - | (.14) | - |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.15 | $ 10.00 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 |
Total Return B,C | (6.39)% | 12.61% | 19.19% | (6.64)% | (16.16)% | 30.58% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | 1.75% A | 1.22% | 1.54% | 2.44% | 1.94% | 1.87% |
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 | 1.13% A | 1.14% | 1.13% | 1.15% | 1.14% | 1.15% |
Net investment income (loss) | (.25)% A | (.35)% | (1.07)% | .51% G | (.66)% | (.75)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 848 | $ 2,855 | $ 1,717 | $ 957 | $ 229 | $ 324 |
Portfolio turnover rate F | 109% A | 101% | 106% | 97% | 63% | 58% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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. 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
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 | $ 1,223,376 |
Gross unrealized depreciation | (960,404) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 262,972 |
| |
Tax cost | $ 13,287,269 |
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 $8,467,444 and $16,233,273, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 6,967 | $ 41 |
Class T | .25% | .25% | 9,508 | - |
Class B | .75% | .25% | 4,509 | 3,382 |
Class C | .75% | .25% | 17,492 | 5,337 |
| | | $ 38,476 | $ 8,760 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 1,058 |
Class T | 806 |
Class B* | 2,593 |
Class C* | 1,482 |
| $ 5,939 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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
Average
Net Assets* |
Class A | $ 8,505 | .30 |
Class T | 6,771 | .36 |
Class B | 1,386 | .31 |
Class C | 5,489 | .31 |
Institutional Class | 1,456 | .23 |
| $ 23,607 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $1,511 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $24 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 20,762 |
Class T | 1.65% | 15,351 |
Class B | 2.15% | 3,398 |
Class C | 2.15% | 13,042 |
Institutional Class | 1.15% | 3,877 |
| | $ 56,430 |
Semiannual Report
8. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,165 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net realized gain | | |
Class A | $ 136,672 | $ - |
Class T | 94,407 | - |
Class B | 23,930 | - |
Class C | 101,740 | - |
Institutional Class | 44,459 | - |
Total | $ 401,208 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 52,836 | 848,465 | $ 460,277 | $ 9,277,193 |
Reinvestment of distributions | 15,026 | - | 125,915 | - |
Shares redeemed | (424,065) | (506,493) | (3,607,261) | (5,495,871) |
Net increase (decrease) | (356,203) | 341,972 | $ (3,021,069) | $ 3,781,322 |
Class T | | | | |
Shares sold | 65,496 | 222,009 | $ 560,926 | $ 2,346,633 |
Reinvestment of distributions | 11,468 | - | 93,466 | - |
Shares redeemed | (121,625) | (122,895) | (1,028,340) | (1,276,707) |
Net increase (decrease) | (44,661) | 99,114 | $ (373,948) | $ 1,069,926 |
Class B | | | | |
Shares sold | 9 | 48,553 | $ 69 | $ 469,014 |
Reinvestment of distributions | 3,015 | - | 23,244 | - |
Shares redeemed | (50,183) | (76,689) | (397,202) | (748,333) |
Net increase (decrease) | (47,159) | (28,136) | $ (373,889) | $ (279,319) |
Class C | | | | |
Shares sold | 23,854 | 468,878 | $ 187,885 | $ 4,767,947 |
Reinvestment of distributions | 10,744 | - | 82,834 | - |
Shares redeemed | (329,846) | (191,799) | (2,594,781) | (1,863,160) |
Net increase (decrease) | (295,248) | 277,079 | $ (2,324,062) | $ 2,904,787 |
Institutional Class | | | | |
Shares sold | 11,828 | 497,180 | $ 102,072 | $ 5,828,732 |
Reinvestment of distributions | 2,747 | - | 23,680 | - |
Shares redeemed | (207,315) | (405,041) | (1,836,835) | (4,332,982) |
Net increase (decrease) | (192,740) | 92,139 | $ (1,711,083) | $ 1,495,750 |
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 Consumer Discretionary Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,019.00 | $ 7.11 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,016.80 | $ 8.36 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,014.60 | $ 10.89 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,014.60 | $ 10.89 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,019.80 | $ 5.38 |
Hypothetical A | | $ 1,000.00 | $ 1,019.81 | $ 5.38 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
McDonald's Corp. | 6.6 | 4.9 |
The Walt Disney Co. | 5.7 | 3.1 |
Comcast Corp. Class A | 5.0 | 0.0 |
Amazon.com, Inc. | 4.9 | 5.8 |
Home Depot, Inc. | 3.8 | 0.0 |
Lowe's Companies, Inc. | 3.8 | 5.3 |
Time Warner, Inc. | 3.7 | 3.8 |
Starbucks Corp. | 3.7 | 2.8 |
Ford Motor Co. | 3.6 | 0.0 |
Bed Bath & Beyond, Inc. | 3.4 | 2.9 |
| 44.2 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Specialty Retail | 25.5% | |
| Media | 23.1% | |
| Hotels, Restaurants & Leisure | 18.8% | |
| Textiles, Apparel & Luxury Goods | 8.3% | |
| Internet & Catalog Retail | 5.6% | |
| All Others* | 18.7% | |
As of July 31, 2011 |
| Hotels, Restaurants & Leisure | 22.8% | |
| Specialty Retail | 20.8% | |
| Media | 20.0% | |
| Internet & Catalog Retail | 9.6% | |
| Textiles, Apparel & Luxury Goods | 5.3% | |
| All Others* | 21.5% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
| Shares | | Value |
AUTO COMPONENTS - 1.6% |
Auto Parts & Equipment - 1.6% |
Delphi Automotive PLC | 8,000 | | $ 214,640 |
Gentex Corp. | 29,090 | | 781,648 |
| | 996,288 |
AUTOMOBILES - 4.6% |
Automobile Manufacturers - 4.6% |
Bayerische Motoren Werke AG (BMW) | 7,042 | | 602,280 |
Ford Motor Co. | 174,153 | | 2,162,980 |
| | 2,765,260 |
DIVERSIFIED CONSUMER SERVICES - 2.7% |
Education Services - 0.9% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 9,800 | | 513,618 |
Specialized Consumer Services - 1.8% |
Sotheby's Class A (Ltd. vtg.) | 11,506 | | 385,796 |
Steiner Leisure Ltd. (a) | 2,964 | | 146,362 |
Weight Watchers International, Inc. (d) | 7,435 | | 566,027 |
| | 1,098,185 |
TOTAL DIVERSIFIED CONSUMER SERVICES | | 1,611,803 |
HOTELS, RESTAURANTS & LEISURE - 18.8% |
Casinos & Gaming - 3.2% |
Las Vegas Sands Corp. | 30,471 | | 1,496,431 |
Las Vegas Sands Corp. warrants 11/16/13 (a) | 410 | | 294,963 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 10,700 | | 119,305 |
| | 1,910,699 |
Hotels, Resorts & Cruise Lines - 0.3% |
Wyndham Worldwide Corp. | 5,300 | | 210,728 |
Restaurants - 15.3% |
Arcos Dorados Holdings, Inc. | 6,000 | | 129,000 |
BJ's Restaurants, Inc. (a) | 9,610 | | 480,788 |
Bravo Brio Restaurant Group, Inc. (a) | 7,400 | | 142,450 |
Darden Restaurants, Inc. | 8,263 | | 379,024 |
Denny's Corp. (a) | 24,860 | | 106,649 |
Dunkin' Brands Group, Inc. (a)(d) | 10,400 | | 287,560 |
McDonald's Corp. | 40,572 | | 4,018,657 |
Ruth's Hospitality Group, Inc. (a) | 76,599 | | 474,148 |
Starbucks Corp. | 46,218 | | 2,215,229 |
Texas Roadhouse, Inc. Class A | 66,325 | | 1,005,487 |
| | 9,238,992 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 11,360,419 |
HOUSEHOLD DURABLES - 1.9% |
Home Furnishings - 1.1% |
Tempur-Pedic International, Inc. (a) | 10,299 | | 687,046 |
|
| Shares | | Value |
Homebuilding - 0.8% |
Lennar Corp. Class A (d) | 22,911 | | $ 492,357 |
TOTAL HOUSEHOLD DURABLES | | 1,179,403 |
INTERNET & CATALOG RETAIL - 5.6% |
Internet Retail - 5.6% |
Amazon.com, Inc. (a) | 15,263 | | 2,967,738 |
Groupon, Inc. Class A (a)(d) | 19,450 | | 396,586 |
| | 3,364,324 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Bankrate, Inc. | 6,904 | | 161,485 |
Google, Inc. Class A (a) | 498 | | 288,895 |
| | 450,380 |
LEISURE EQUIPMENT & PRODUCTS - 0.9% |
Leisure Products - 0.9% |
Hasbro, Inc. | 14,822 | | 517,436 |
MEDIA - 23.1% |
Broadcasting - 3.7% |
CBS Corp. Class B | 43,523 | | 1,239,535 |
Discovery Communications, Inc. (a) | 8,800 | | 377,344 |
Liberty Media Corp. Capital Series A (a) | 7,562 | | 623,184 |
| | 2,240,063 |
Cable & Satellite - 8.7% |
Comcast Corp. Class A | 114,382 | | 3,041,417 |
DIRECTV (a) | 4,995 | | 224,825 |
DISH Network Corp. Class A | 16,750 | | 467,660 |
Sirius XM Radio, Inc. (a)(d) | 427,034 | | 892,501 |
Time Warner Cable, Inc. | 4,739 | | 349,359 |
Virgin Media, Inc. | 11,300 | | 269,392 |
| | 5,245,154 |
Movies & Entertainment - 10.7% |
News Corp. Class A | 40,237 | | 757,663 |
The Walt Disney Co. | 88,758 | | 3,452,686 |
Time Warner, Inc. | 59,976 | | 2,222,711 |
| | 6,433,060 |
TOTAL MEDIA | | 13,918,277 |
MULTILINE RETAIL - 4.6% |
General Merchandise Stores - 4.6% |
Dollar Tree, Inc. (a) | 12,015 | | 1,018,992 |
Target Corp. | 34,413 | | 1,748,525 |
| | 2,767,517 |
SOFTWARE - 0.5% |
Home Entertainment Software - 0.5% |
Take-Two Interactive Software, Inc. (a) | 10,300 | | 160,680 |
Zynga, Inc. (d) | 16,200 | | 170,100 |
| | 330,780 |
Common Stocks - continued |
| Shares | | Value |
SPECIALTY RETAIL - 25.5% |
Apparel Retail - 6.2% |
Body Central Corp. (a) | 7,100 | | $ 190,848 |
Express, Inc. (a) | 16,600 | | 359,224 |
Foot Locker, Inc. | 17,257 | | 452,824 |
Inditex SA | 1,557 | | 135,833 |
Limited Brands, Inc. | 27,697 | | 1,159,396 |
TJX Companies, Inc. | 21,372 | | 1,456,288 |
| | 3,754,413 |
Automotive Retail - 3.4% |
Advance Auto Parts, Inc. | 19,020 | | 1,457,693 |
AutoZone, Inc. (a) | 1,800 | | 626,184 |
| | 2,083,877 |
Computer & Electronics Retail - 0.9% |
Best Buy Co., Inc. | 22,700 | | 543,665 |
Home Improvement Retail - 8.2% |
Home Depot, Inc. | 52,000 | | 2,308,280 |
Lowe's Companies, Inc. | 85,353 | | 2,290,021 |
Lumber Liquidators Holdings, Inc. (a) | 15,625 | | 333,750 |
| | 4,932,051 |
Homefurnishing Retail - 4.2% |
Bed Bath & Beyond, Inc. (a) | 33,452 | | 2,030,536 |
Mattress Firm Holding Corp. (d) | 6,100 | | 201,483 |
Pier 1 Imports, Inc. (a) | 17,700 | | 275,235 |
| | 2,507,254 |
Specialty Stores - 2.6% |
Tiffany & Co., Inc. | 6,380 | | 407,044 |
Tractor Supply Co. | 8,935 | | 721,680 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 5,950 | | 453,509 |
| | 1,582,233 |
TOTAL SPECIALTY RETAIL | | 15,403,493 |
TEXTILES, APPAREL & LUXURY GOODS - 8.3% |
Apparel, Accessories & Luxury Goods - 4.4% |
Michael Kors Holdings Ltd. | 4,600 | | 142,370 |
PVH Corp. | 8,133 | | 627,786 |
|
| Shares | | Value |
Ralph Lauren Corp. | 4,800 | | $ 729,600 |
Vera Bradley, Inc. (a)(d) | 10,594 | | 379,477 |
VF Corp. | 5,800 | | 762,642 |
| | 2,641,875 |
Footwear - 3.9% |
Deckers Outdoor Corp. (a) | 5,000 | | 404,250 |
NIKE, Inc. Class B | 18,648 | | 1,939,206 |
| | 2,343,456 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 4,985,331 |
TOTAL COMMON STOCKS (Cost $52,205,611) |
59,650,711
|
Money Market Funds - 6.8% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 857,743 | | 857,743 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,248,475 | | 3,248,475 |
TOTAL MONEY MARKET FUNDS (Cost $4,106,218) |
4,106,218
|
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $56,311,829) | | 63,756,929 |
NET OTHER ASSETS (LIABILITIES) - (5.6)% | | (3,383,247) |
NET ASSETS - 100% | $ 60,373,682 |
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 | $ 254 |
Fidelity Securities Lending Cash Central Fund | 29,203 |
Total | $ 29,457 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 59,650,711 | $ 59,355,748 | $ 294,963 | $ - |
Money Market Funds | 4,106,218 | 4,106,218 | - | - |
Total Investments in Securities: | $ 63,756,929 | $ 63,461,966 | $ 294,963 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,146,840) - See accompanying schedule: Unaffiliated issuers (cost $52,205,611) | $ 59,650,711 | |
Fidelity Central Funds (cost $4,106,218) | 4,106,218 | |
Total Investments (cost $56,311,829) | | $ 63,756,929 |
Receivable for investments sold | | 1,371,597 |
Receivable for fund shares sold | | 183,293 |
Dividends receivable | | 31,806 |
Distributions receivable from Fidelity Central Funds | | 13,369 |
Prepaid expenses | | 120 |
Other receivables | | 1,191 |
Total assets | | 65,358,305 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,468,222 | |
Payable for fund shares redeemed | 178,692 | |
Accrued management fee | 31,676 | |
Distribution and service plan fees payable | 17,042 | |
Other affiliated payables | 13,383 | |
Other payables and accrued expenses | 27,133 | |
Collateral on securities loaned, at value | 3,248,475 | |
Total liabilities | | 4,984,623 |
| | |
Net Assets | | $ 60,373,682 |
Net Assets consist of: | | |
Paid in capital | | $ 52,804,826 |
Accumulated net investment loss | | (11,838) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 135,755 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 7,444,939 |
Net Assets | | $ 60,373,682 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($20,997,882 ÷ 1,371,960 shares) | | $ 15.31 |
| | |
Maximum offering price per share (100/94.25 of $15.31) | | $ 16.24 |
Class T:
Net Asset Value and redemption price per share ($9,767,607 ÷ 663,844 shares) | | $ 14.71 |
| | |
Maximum offering price per share (100/96.50 of $14.71) | | $ 15.24 |
Class B:
Net Asset Value and offering price per share ($2,935,388 ÷ 217,743 shares)A | | $ 13.48 |
| | |
Class C:
Net Asset Value and offering price per share ($7,806,984 ÷ 577,726 shares)A | | $ 13.51 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($18,865,821 ÷ 1,175,905 shares) | | $ 16.04 |
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 Consumer Discretionary Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 420,914 |
Interest | | 1 |
Income from Fidelity Central Funds (including $29,203 from security lending) | | 29,457 |
Total income | | 450,372 |
| | |
Expenses | | |
Management fee | $ 138,043 | |
Transfer agent fees | 68,201 | |
Distribution and service plan fees | 95,482 | |
Accounting and security lending fees | 9,767 | |
Custodian fees and expenses | 9,734 | |
Independent trustees' compensation | 162 | |
Registration fees | 38,796 | |
Audit | 27,564 | |
Legal | 112 | |
Miscellaneous | 225 | |
Total expenses before reductions | 388,086 | |
Expense reductions | (16,633) | 371,453 |
Net investment income (loss) | | 78,919 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $2,532) | 408,074 | |
Foreign currency transactions | (4,705) | |
Total net realized gain (loss) | | 403,369 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $6,492) | 711,594 | |
Assets and liabilities in foreign currencies | 403 | |
Total change in net unrealized appreciation (depreciation) | | 711,997 |
Net gain (loss) | | 1,115,366 |
Net increase (decrease) in net assets resulting from operations | | $ 1,194,285 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 78,919 | $ (180,164) |
Net realized gain (loss) | 403,369 | 5,895,581 |
Change in net unrealized appreciation (depreciation) | 711,997 | 6,053,008 |
Net increase (decrease) in net assets resulting from operations | 1,194,285 | 11,768,425 |
Distributions to shareholders from net investment income | (82,290) | - |
Distributions to shareholders from net realized gain | (2,716,672) | - |
Total distributions | (2,798,962) | - |
Share transactions - net increase (decrease) | 8,715,377 | (7,894,650) |
Redemption fees | 2,015 | 1,559 |
Total increase (decrease) in net assets | 7,112,715 | 3,875,334 |
| | |
Net Assets | | |
Beginning of period | 53,260,967 | 49,385,633 |
End of period (including accumulated net investment loss of $11,838 and accumulated net investment loss of $8,467, respectively) | $ 60,373,682 | $ 53,260,967 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.00 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.02) | (.02) | .04 | .02 | .02 H |
Net realized and unrealized gain (loss) | .14 | 3.27 | 2.51 | (1.16) | (3.09) | 1.83 |
Total from investment operations | .17 | 3.25 | 2.49 | (1.12) | (3.07) | 1.85 |
Distributions from net investment income | (.03) | - | - | (.03) | - | (.05) |
Distributions from net realized gain | (.83) | - | - | - | (1.41) | (2.30) |
Total distributions | (.86) | - | - | (.03) | (1.41) | (2.35) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.31 | $ 16.00 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 |
Total Return B,C,D | 1.90% | 25.49% | 24.27% | (9.81)% | (21.24)% | 11.67% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.47% A | 1.39% | 1.44% | 1.62% | 1.40% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.38% | 1.39% | 1.40% | 1.40% | 1.39% |
Net investment income (loss) | .44% A | (.15)% | (.15)% | .42% | .15% | .11% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,998 | $ 23,447 | $ 19,423 | $ 13,010 | $ 11,899 | $ 19,708 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.43 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.06) | (.05) | .01 | (.01) | (.02) H |
Net realized and unrealized gain (loss) | .12 | 3.17 | 2.43 | (1.12) | (3.00) | 1.79 |
Total from investment operations | .13 | 3.11 | 2.38 | (1.11) | (3.01) | 1.77 |
Distributions from net investment income | (.02) | - | - | (.02) | - | (.03) |
Distributions from net realized gain | (.83) | - | - | - | (1.39) | (2.30) |
Total distributions | (.85) | - | - | (.02) | (1.39) | (2.33) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.71 | $ 15.43 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 |
Total Return B,C,D | 1.68% | 25.24% | 23.94% | (10.04)% | (21.41)% | 11.43% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.73% A | 1.66% | 1.71% | 1.89% | 1.64% | 1.69% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.64% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.64% | 1.65% | 1.62% | 1.61% |
Net investment income (loss) | .19% A | (.40)% | (.40)% | .17% | (.08)% | (.10)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,768 | $ 9,897 | $ 8,018 | $ 6,738 | $ 9,095 | $ 14,787 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.23 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.12) | (.10) | (.03) | (.07) | (.10) H |
Net realized and unrealized gain (loss) | .10 | 2.93 | 2.26 | (1.06) | (2.81) | 1.70 |
Total from investment operations | .08 | 2.81 | 2.16 | (1.09) | (2.88) | 1.60 |
Distributions from net realized gain | (.83) | - | - | - | (1.33) | (2.30) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.48 | $ 14.23 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 |
Total Return B,C,D | 1.46% | 24.61% | 23.33% | (10.53)% | (21.80)% | 10.82% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.22% A | 2.15% | 2.21% | 2.38% | 2.14% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.14% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.14% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.31)% A | (.90)% | (.90)% | (.33)% | (.60)% | (.64)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,935 | $ 3,170 | $ 3,643 | $ 3,550 | $ 5,090 | $ 11,081 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.26 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.12) | (.10) | (.03) | (.07) | (.10) H |
Net realized and unrealized gain (loss) | .10 | 2.94 | 2.27 | (1.07) | (2.81) | 1.71 |
Total from investment operations | .08 | 2.82 | 2.17 | (1.10) | (2.88) | 1.61 |
Distributions from net realized gain | (.83) | - | - | - | (1.34) | (2.30) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.51 | $ 14.26 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 |
Total Return B,C,D | 1.46% | 24.65% | 23.41% | (10.61)% | (21.77)% | 10.88% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.22% A | 2.11% | 2.12% | 2.38% | 2.15% | 2.16% |
Expenses net of fee waivers, if any | 2.15% A | 2.11% | 2.12% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.09% | 2.11% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.31)% A | (.86)% | (.87)% | (.33)% | (.60)% | (.64)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,807 | $ 7,341 | $ 9,288 | $ 2,955 | $ 3,430 | $ 8,051 |
Portfolio turnover rate G | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.72 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .03 | .02 | .06 | .06 | .06 G |
Net realized and unrealized gain (loss) | .14 | 3.42 | 2.60 | (1.20) | (3.22) | 1.89 |
Total from investment operations | .20 | 3.45 | 2.62 | (1.14) | (3.16) | 1.95 |
Distributions from net investment income | (.05) | - | (.01) | (.04) | - | (.06) |
Distributions from net realized gain | (.83) | - | - | - | (1.41) | (2.30) |
Total distributions | (.88) | - | (.01) | (.04) | (1.41) | (2.36) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.04 | $ 16.72 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 |
Total Return B,C | 1.98% | 26.00% | 24.62% | (9.59)% | (21.09)% | 12.04% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | 1.06% A | 1.03% | 1.09% | 1.15% | 1.14% | 1.15% |
Expenses net of fee waivers, if any | 1.06% A | 1.03% | 1.09% | 1.15% | 1.14% | 1.15% |
Expenses net of all reductions | 1.05% A | 1.01% | 1.08% | 1.15% | 1.14% | 1.14% |
Net investment income (loss) | .78% A | .22% | .16% | .67% | .40% | .36% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,866 | $ 9,406 | $ 9,013 | $ 5,990 | $ 398 | $ 1,385 |
Portfolio turnover rate F | 179% A | 179% | 163% | 99% | 63% | 164% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is 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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 foreign currency transactions, certain foreign taxes, deferred trustees compensation, 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 | $ 8,060,075 |
Gross unrealized depreciation | (1,116,612) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,943,463 |
| |
Tax cost | $ 56,813,466 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $50,987,362 and $45,727,813, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 25,025 | $ 1,254 |
Class T | .25% | .25% | 22,650 | - |
Class B | .75% | .25% | 14,293 | 10,720 |
Class C | .75% | .25% | 33,514 | 6,593 |
| | | $ 95,482 | $ 18,567 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 1,913 |
Class T | 1,280 |
Class B* | 2,049 |
Class C* | 361 |
| $ 5,603 |
* 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
5. 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
Average
Net Assets* |
Class A | $ 30,507 | .30 |
Class T | 14,322 | .32 |
Class B | 4,341 | .30 |
Class C | 10,009 | .30 |
Institutional Class | 9,022 | .17 |
| $ 68,201 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,472 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $68 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 7,192 |
Class T | 1.65% | 3,817 |
Class B | 2.15% | 1,062 |
Class C | 2.15% | 2,330 |
| | $ 14,401 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $2,232 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 44,402 | $ - |
Class T | 11,934 | - |
Institutional Class | 25,954 | - |
Total | $ 82,290 | $ - |
From net realized gain | | |
Class A | $ 1,117,697 | $ - |
Class T | 525,372 | - |
Class B | 185,641 | - |
Class C | 423,815 | - |
Institutional Class | 464,147 | - |
Total | $ 2,716,672 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 237,900 | 665,093 | $ 3,438,963 | $ 10,095,802 |
Reinvestment of distributions | 76,740 | - | 1,020,698 | - |
Shares redeemed | (407,837) | (723,296) | (5,816,225) | (10,778,369) |
Net increase (decrease) | (93,197) | (58,203) | $ (1,356,564) | $ (682,567) |
Class T | | | | |
Shares sold | 53,500 | 187,572 | $ 745,357 | $ 2,764,268 |
Reinvestment of distributions | 40,961 | - | 523,233 | - |
Shares redeemed | (72,138) | (196,717) | (988,977) | (2,907,152) |
Net increase (decrease) | 22,323 | (9,145) | $ 279,613 | $ (142,884) |
Class B | | | | |
Shares sold | 13,748 | 40,939 | $ 169,530 | $ 519,870 |
Reinvestment of distributions | 13,190 | - | 154,193 | - |
Shares redeemed | (31,992) | (137,051) | (403,549) | (1,818,569) |
Net increase (decrease) | (5,054) | (96,112) | $ (79,826) | $ (1,298,699) |
Class C | | | | |
Shares sold | 127,867 | 588,992 | $ 1,640,233 | $ 8,103,013 |
Reinvestment of distributions | 33,472 | - | 392,295 | - |
Shares redeemed | (98,361) | (885,890) | (1,240,984) | (12,399,353) |
Net increase (decrease) | 62,978 | (296,898) | $ 791,544 | $ (4,296,340) |
Institutional Class | | | | |
Shares sold | 837,357 | 346,649 | $ 12,503,594 | $ 5,583,185 |
Reinvestment of distributions | 13,483 | - | 188,283 | - |
Shares redeemed | (237,516) | (463,053) | (3,611,267) | (7,057,345) |
Net increase (decrease) | 613,324 | (116,404) | $ 9,080,610 | $ (1,474,160) |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,047.00 | $ 7.20 |
Hypothetical A | | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,045.80 | $ 8.49 |
Hypothetical A | | $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,043.40 | $ 11.04 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,043.40 | $ 11.04 |
Hypothetical A | | $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,047.90 | $ 5.92 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Marvell Technology Group Ltd. | 9.1 | 10.6 |
Texas Instruments, Inc. | 8.6 | 2.7 |
Broadcom Corp. Class A | 8.3 | 9.7 |
Freescale Semiconductor Holdings I Ltd. | 3.6 | 3.1 |
Intersil Corp. Class A | 3.6 | 3.5 |
Intel Corp. | 3.6 | 7.8 |
ON Semiconductor Corp. | 3.5 | 3.4 |
Advanced Micro Devices, Inc. | 2.9 | 4.9 |
Skyworks Solutions, Inc. | 2.7 | 1.3 |
NXP Semiconductors NV | 2.7 | 3.4 |
| 48.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Semiconductors & Semiconductor Equipment | 83.8% | |
| Electronic Equipment & Components | 5.4% | |
| Communications Equipment | 2.7% | |
| Computers & Peripherals | 2.4% | |
| Internet Software & Services | 0.7% | |
| All Others* | 5.0% | |
As of July 31, 2011 |
| Semiconductors & Semiconductor Equipment | 88.2% | |
| Electronic Equipment & Components | 4.0% | |
| Communications Equipment | 3.4% | |
| Computers & Peripherals | 3.0% | |
| Internet Software & Services | 0.3% | |
| All Others* | 1.1% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 2.7% |
Communications Equipment - 2.7% |
Juniper Networks, Inc. (a) | 5,700 | | $ 119,301 |
QUALCOMM, Inc. | 5,534 | | 325,510 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 3,200 | | 29,664 |
| | 474,475 |
COMPUTERS & PERIPHERALS - 2.4% |
Computer Storage & Peripherals - 2.4% |
NetApp, Inc. (a) | 900 | | 33,966 |
SanDisk Corp. (a) | 8,086 | | 370,986 |
Synaptics, Inc. (a) | 130 | | 4,980 |
| | 409,932 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.4% |
Electronic Components - 1.8% |
Aeroflex Holding Corp. (a) | 15,668 | | 198,514 |
Amphenol Corp. Class A | 110 | | 5,987 |
Corning, Inc. | 8,671 | | 111,596 |
| | 316,097 |
Electronic Manufacturing Services - 3.5% |
Benchmark Electronics, Inc. (a) | 4,121 | | 70,881 |
Fabrinet (a) | 1,388 | | 22,860 |
Flextronics International Ltd. (a) | 37,195 | | 255,530 |
Jabil Circuit, Inc. | 3,654 | | 82,800 |
TE Connectivity Ltd. | 1,900 | | 64,790 |
TTM Technologies, Inc. (a) | 8,868 | | 108,810 |
Viasystems Group, Inc. (a) | 12 | | 204 |
| | 605,875 |
Technology Distributors - 0.1% |
Avnet, Inc. (a) | 200 | | 6,974 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 928,946 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Google, Inc. Class A (a) | 200 | | 116,022 |
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 - 81.5% |
Semiconductor Equipment - 9.1% |
Advanced Energy Industries, Inc. (a) | 15 | | 160 |
Amkor Technology, Inc. (a)(d) | 68,574 | | 392,929 |
Applied Materials, Inc. | 3,274 | | 40,205 |
ASML Holding NV | 4,410 | | 189,586 |
Cabot Microelectronics Corp. (a) | 50 | | 2,521 |
Cohu, Inc. | 20 | | 263 |
Cymer, Inc. (a) | 6,632 | | 330,207 |
Entegris, Inc. (a) | 8,851 | | 84,793 |
|
| Shares | | Value |
KLA-Tencor Corp. | 1,130 | | $ 57,777 |
Lam Research Corp. (a) | 7,458 | | 317,636 |
MEMC Electronic Materials, Inc. (a) | 8,762 | | 40,042 |
Nanometrics, Inc. (a) | 340 | | 6,885 |
Nova Measuring Instruments Ltd. (a) | 220 | | 1,890 |
Teradyne, Inc. (a) | 330 | | 5,396 |
Tessera Technologies, Inc. (a) | 4,624 | | 91,555 |
Ultratech, Inc. (a) | 210 | | 6,143 |
| | 1,567,988 |
Semiconductors - 72.4% |
Advanced Micro Devices, Inc. (a) | 73,234 | | 491,400 |
Alpha & Omega Semiconductor Ltd. (a) | 7,197 | | 66,788 |
Altera Corp. | 9,749 | | 387,913 |
Analog Devices, Inc. | 2,780 | | 108,781 |
Applied Micro Circuits Corp. (a) | 6,383 | | 49,979 |
Atmel Corp. (a) | 20,216 | | 196,297 |
Avago Technologies Ltd. | 8,986 | | 304,985 |
BCD Semiconductor Manufacturing Ltd. ADR | 21,295 | | 86,884 |
Broadcom Corp. Class A | 41,829 | | 1,436,408 |
Cirrus Logic, Inc. (a) | 2,630 | | 53,731 |
Cree, Inc. (a) | 2,190 | | 55,692 |
Cypress Semiconductor Corp. | 7,915 | | 136,098 |
Entropic Communications, Inc. (a) | 8,300 | | 48,472 |
Exar Corp. (a) | 200 | | 1,336 |
Fairchild Semiconductor International, Inc. (a) | 19,741 | | 275,979 |
First Solar, Inc. (a) | 78 | | 3,298 |
Freescale Semiconductor Holdings I Ltd. (d) | 39,054 | | 623,692 |
Himax Technologies, Inc. sponsored ADR | 21,438 | | 29,799 |
Intel Corp. | 23,300 | | 615,586 |
Intermolecular, Inc. | 7,117 | | 59,925 |
International Rectifier Corp. (a) | 6,389 | | 145,669 |
Intersil Corp. Class A | 55,176 | | 621,282 |
JA Solar Holdings Co. Ltd. ADR (a) | 18,550 | | 32,648 |
Linear Technology Corp. | 30 | | 1,000 |
LSI Corp. (a) | 3,357 | | 25,412 |
MagnaChip Semiconductor Corp. | 7,500 | | 72,900 |
Marvell Technology Group Ltd. (a) | 101,096 | | 1,570,016 |
Maxim Integrated Products, Inc. | 2,310 | | 62,000 |
Micron Technology, Inc. (a) | 58,351 | | 442,884 |
Monolithic Power Systems, Inc. (a) | 7,912 | | 129,678 |
Motech Industries, Inc. | 1 | | 2 |
NVIDIA Corp. (a) | 30,309 | | 447,664 |
NXP Semiconductors NV (a) | 21,768 | | 462,135 |
O2Micro International Ltd. sponsored ADR (a) | 4,700 | | 22,278 |
Omnivision Technologies, Inc. (a) | 2,000 | | 26,620 |
ON Semiconductor Corp. (a) | 69,184 | | 601,901 |
PMC-Sierra, Inc. (a) | 46,631 | | 303,102 |
RDA Microelectronics, Inc. sponsored ADR (a) | 818 | | 10,757 |
RF Micro Devices, Inc. (a) | 10,191 | | 50,853 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Skyworks Solutions, Inc. (a) | 21,939 | | $ 473,444 |
Spansion, Inc. Class A (a) | 25,172 | | 252,475 |
Standard Microsystems Corp. (a) | 1,914 | | 49,305 |
STATS ChipPAC Ltd. (a) | 123,000 | | 51,338 |
Supertex, Inc. (a) | 540 | | 9,979 |
Texas Instruments, Inc. | 45,918 | | 1,486,825 |
Trident Microsystems, Inc. (a) | 19 | | 3 |
Trina Solar Ltd. (a)(d) | 1,800 | | 14,472 |
TriQuint Semiconductor, Inc. (a) | 8,400 | | 50,316 |
Volterra Semiconductor Corp. (a) | 800 | | 24,136 |
Xilinx, Inc. | 70 | | 2,510 |
| | 12,476,647 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 14,044,635 |
TOTAL COMMON STOCKS (Cost $18,549,621) |
15,974,011
|
Convertible Bonds - 2.3% |
| Principal Amount | | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.3% |
Semiconductors - 2.3% |
Micron Technology, Inc.: | | | | |
1.5% 8/1/31 (e) | | $ 60,000 | | 59,475 |
1.875% 8/1/31 (e) | | 140,000 | | 140,175 |
4.25% 10/15/13 | | 60,000 | | 95,850 |
ON Semiconductor Corp. 1.875% 12/15/25 | | 70,000 | | 92,575 |
| | 388,075 |
Money Market Funds - 8.2% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 501,098 | | $ 501,098 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 909,615 | | 909,615 |
TOTAL MONEY MARKET FUNDS (Cost $1,410,713) |
1,410,713
|
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $20,279,062) | | 17,772,799 |
NET OTHER ASSETS (LIABILITIES) - (3.2)% | | (547,213) |
NET ASSETS - 100% | $ 17,225,586 |
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 $199,650 or 1.2% 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 | $ 135 |
Fidelity Securities Lending Cash Central Fund | 1,190 |
Total | $ 1,325 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 at the end of this listing in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 15,974,011 | $ 15,974,010 | $ - | $ 1 |
Convertible Bonds | 388,075 | - | 388,075 | - |
Money Market Funds | 1,410,713 | 1,410,713 | - | - |
Total Investments in Securities: | $ 17,772,799 | $ 17,384,723 | $ 388,075 | $ 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, 2012 | $ - |
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 | 77.7% |
Bermuda | 13.1% |
Netherlands | 3.8% |
Singapore | 3.6% |
Cayman Islands | 1.3% |
Others (Individually Less Than 1%) | 0.5% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $876,145) - See accompanying schedule: Unaffiliated issuers (cost $18,868,349) | $ 16,362,086 | |
Fidelity Central Funds (cost $1,410,713) | 1,410,713 | |
Total Investments (cost $20,279,062) | | $ 17,772,799 |
Receivable for investments sold | | 2,276,060 |
Receivable for fund shares sold | | 19,446 |
Dividends receivable | | 7,466 |
Interest receivable | | 2,709 |
Distributions receivable from Fidelity Central Funds | | 181 |
Prepaid expenses | | 44 |
Receivable from investment adviser for expense reductions | | 3,883 |
Other receivables | | 5,618 |
Total assets | | 20,088,206 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,162,480 | |
Payable for investments purchased | 730,241 | |
Payable for fund shares redeemed | 14,493 | |
Accrued management fee | 7,535 | |
Distribution and service plan fees payable | 6,550 | |
Other affiliated payables | 4,087 | |
Other payables and accrued expenses | 27,619 | |
Collateral on securities loaned, at value | 909,615 | |
Total liabilities | | 2,862,620 |
| | |
Net Assets | | $ 17,225,586 |
Net Assets consist of: | | |
Paid in capital | | $ 28,661,638 |
Accumulated net investment loss | | (62,497) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (8,867,339) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (2,506,216) |
Net Assets | | $ 17,225,586 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($6,911,668 ÷ 739,294 shares) | | $ 9.35 |
| | |
Maximum offering price per share (100/94.25 of $9.35) | | $ 9.92 |
Class T:
Net Asset Value and redemption price per share ($4,441,023 ÷ 486,358 shares) | | $ 9.13 |
| | |
Maximum offering price per share (100/96.50 of $9.13) | | $ 9.46 |
Class B:
Net Asset Value and offering price per share ($580,714 ÷ 67,097 shares)A | | $ 8.65 |
| | |
Class C:
Net Asset Value and offering price per share ($3,916,188 ÷ 452,964 shares)A | | $ 8.65 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,375,993 ÷ 142,829 shares) | | $ 9.63 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 56,523 |
Interest | | 4,291 |
Income from Fidelity Central Funds | | 1,325 |
Total income | | 62,139 |
| | |
Expenses | | |
Management fee | $ 43,157 | |
Transfer agent fees | 23,688 | |
Distribution and service plan fees | 36,831 | |
Accounting and security lending fees | 3,122 | |
Custodian fees and expenses | 14,581 | |
Independent trustees' compensation | 53 | |
Registration fees | 47,076 | |
Audit | 23,228 | |
Legal | 69 | |
Miscellaneous | 75 | |
Total expenses before reductions | 191,880 | |
Expense reductions | (67,244) | 124,636 |
Net investment income (loss) | | (62,497) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (589,750) | |
Foreign currency transactions | (105) | |
Total net realized gain (loss) | | (589,855) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,098,354 | |
Assets and liabilities in foreign currencies | 51 | |
Total change in net unrealized appreciation (depreciation) | | 1,098,405 |
Net gain (loss) | | 508,550 |
Net increase (decrease) in net assets resulting from operations | | $ 446,053 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (62,497) | $ (122,750) |
Net realized gain (loss) | (589,855) | 4,303,621 |
Change in net unrealized appreciation (depreciation) | 1,098,405 | (1,162,047) |
Net increase (decrease) in net assets resulting from operations | 446,053 | 3,018,824 |
Share transactions - net increase (decrease) | (1,526,259) | 1,054,457 |
Redemption fees | 190 | 1,863 |
Total increase (decrease) in net assets | (1,080,016) | 4,075,144 |
| | |
Net Assets | | |
Beginning of period | 18,305,602 | 14,230,458 |
End of period (including accumulated net investment loss of $62,497 and undistributed net investment income of $0, respectively) | $ 17,225,586 | $ 18,305,602 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.93 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.04) | (.01) | .04 | - I | (.03) |
Net realized and unrealized gain (loss) | .44 | 1.83 | .59 | (.24) | (2.32) | 1.76 |
Total from investment operations | .42 | 1.79 | .58 | (.20) | (2.32) | 1.73 |
Distributions from net investment income | - | - | (.03) | - | - | - |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.35 | $ 8.93 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 |
Total Return B,C,D | 4.70% | 25.07% | 8.74% | (2.95)% | (25.47)% | 23.44% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.26% A | 1.89% | 1.97% | 2.44% | 1.72% | 1.60% |
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 | 1.39% | 1.39% | 1.40% | 1.39% | 1.38% |
Net investment income (loss) | (.58)% A | (.40)% | (.15)% | .69% | (.02)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,912 | $ 7,537 | $ 5,394 | $ 5,433 | $ 3,970 | $ 7,551 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.73 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.06) | (.03) | .02 | (.02) | (.05) |
Net realized and unrealized gain (loss) | .43 | 1.79 | .58 | (.23) | (2.29) | 1.74 |
Total from investment operations | .40 | 1.73 | .55 | (.21) | (2.31) | 1.69 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.13 | $ 8.73 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 |
Total Return B,C,D | 4.58% | 24.71% | 8.50% | (3.15)% | (25.72)% | 23.18% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.56% A | 2.25% | 2.26% | 2.77% | 2.02% | 1.89% |
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% | 1.64% | 1.65% | 1.64% | 1.64% |
Net investment income (loss) | (.83)% A | (.65)% | (.40)% | .44% | (.27)% | (.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,441 | $ 4,476 | $ 3,862 | $ 4,195 | $ 4,635 | $ 8,103 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.06) | - I | (.06) | (.09) |
Net realized and unrealized gain (loss) | .41 | 1.69 | .56 | (.24) | (2.21) | 1.69 |
Total from investment operations | .36 | 1.60 | .50 | (.24) | (2.27) | 1.60 |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.65 | $ 8.29 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 |
Total Return B,C,D | 4.34% | 23.92% | 8.08% | (3.73)% | (26.09)% | 22.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.01% A | 2.76% | 2.73% | 3.22% | 2.48% | 2.36% |
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 | 2.14% | 2.15% | 2.15% | 2.14% | 2.13% |
Net investment income (loss) | (1.33)% A | (1.15)% | (.90)% | (.06)% | (.77)% | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 581 | $ 691 | $ 1,073 | $ 1,197 | $ 2,027 | $ 4,572 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.06) | - I | (.06) | (.09) |
Net realized and unrealized gain (loss) | .41 | 1.70 | .56 | (.24) | (2.21) | 1.69 |
Total from investment operations | .36 | 1.61 | .50 | (.24) | (2.27) | 1.60 |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.65 | $ 8.29 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 |
Total Return B,C,D | 4.34% | 24.10% | 8.09% | (3.74)% | (26.12)% | 22.57% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.99% A | 2.70% | 2.72% | 3.21% | 2.47% | 2.34% |
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 | 2.14% | 2.14% | 2.15% | 2.14% | 2.13% |
Net investment income (loss) | (1.33)% A | (1.15)% | (.90)% | (.06)% | (.77)% | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,916 | $ 3,836 | $ 3,256 | $ 3,016 | $ 3,325 | $ 8,389 |
Portfolio turnover rate G | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.19 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | (.01) | .01 | .05 | .02 | (.01) |
Net realized and unrealized gain (loss) | .45 | 1.87 | .60 | (.24) | (2.38) | 1.80 |
Total from investment operations | .44 | 1.86 | .61 | (.19) | (2.36) | 1.79 |
Distributions from net investment income | - | - | (.03) | - | - | - |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 9.63 | $ 9.19 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 |
Total Return B,C | 4.79% | 25.38% | 9.10% | (2.74)% | (25.38)% | 23.83% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 1.91% A | 1.42% | 1.64% | 2.16% | 1.47% | 1.26% |
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 | 1.14% | 1.14% | 1.15% | 1.14% | 1.13% |
Net investment income (loss) | (.33)% A | (.15)% | .11% | .94% | .23% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,376 | $ 1,765 | $ 645 | $ 367 | $ 353 | $ 730 |
Portfolio turnover rate F | 137% A | 166% | 87% | 92% | 93% | 97% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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. 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.
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 | $ 492,679 |
Gross unrealized depreciation | (3,242,188) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (2,749,509) |
| |
Tax cost | $ 20,522,308 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2012 | $ (2,152,369) |
2013 | (279,201) |
2016 | (310,663) |
2017 | (5,202,838) |
Total capital loss carryforward | (7,945,071) |
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 $10,645,364 and $12,843,613, 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 an annualized 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
Notes to Financial Statements (Unaudited) - continued
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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 7,853 | $ 443 |
Class T | .25% | .25% | 9,944 | - |
Class B | .75% | .25% | 2,861 | 2,146 |
Class C | .75% | .25% | 16,173 | 2,070 |
| | | $ 36,831 | $ 4,659 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 589 |
Class T | 713 |
Class B* | 236 |
Class C* | 256 |
| $ 1,794 |
* 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
Average
Net Assets* |
Class A | $ 9,486 | .30 |
Class T | 7,084 | .36 |
Class B | 871 | .30 |
Class C | 4,873 | .30 |
Institutional Class | 1,374 | .20 |
| $ 23,688 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $1,106 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $22 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,190. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 26,875 |
Class T | 1.65% | 18,150 |
Class B | 2.15% | 2,467 |
Class C | 2.15% | 13,625 |
Institutional Class | 1.15% | 5,211 |
| | $ 66,328 |
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 $916 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 85,258 | 823,348 | $ 735,140 | $ 7,674,866 |
Shares redeemed | (190,330) | (734,519) | (1,559,667) | (6,789,005) |
Net increase (decrease) | (105,072) | 88,829 | $ (824,527) | $ 885,861 |
Class T | | | | |
Shares sold | 37,715 | 227,766 | $ 311,896 | $ 2,032,968 |
Shares redeemed | (64,166) | (266,704) | (517,898) | (2,292,080) |
Net increase (decrease) | (26,451) | (38,938) | $ (206,002) | $ (259,112) |
Class B | | | | |
Shares sold | 299 | 17,689 | $ 2,245 | $ 152,131 |
Shares redeemed | (16,547) | (94,901) | (128,163) | (767,577) |
Net increase (decrease) | (16,248) | (77,212) | $ (125,918) | $ (615,446) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class C | | | | |
Shares sold | 88,807 | 179,286 | $ 757,937 | $ 1,565,088 |
Shares redeemed | (98,812) | (203,889) | (739,913) | (1,673,259) |
Net increase (decrease) | (10,005) | (24,603) | $ 18,024 | $ (108,171) |
Institutional Class | | | | |
Shares sold | 38,769 | 302,052 | $ 349,416 | $ 3,051,352 |
Shares redeemed | (88,077) | (197,907) | (737,252) | (1,900,027) |
Net increase (decrease) | (49,308) | 104,145 | $ (387,836) | $ 1,151,325 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.18% | | | |
Actual | | $ 1,000.00 | $ 893.50 | $ 5.62 |
Hypothetical A | | $ 1,000.00 | $ 1,019.20 | $ 5.99 |
Class T | 1.39% | | | |
Actual | | $ 1,000.00 | $ 892.70 | $ 6.61 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.05 |
Class B | 1.93% | | | |
Actual | | $ 1,000.00 | $ 890.40 | $ 9.17 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.78 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 890.50 | $ 9.12 |
Hypothetical A | | $ 1,000.00 | $ 1,015.48 | $ 9.73 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 895.10 | $ 4.10 |
Hypothetical A | | $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Chevron Corp. | 15.0 | 11.1 |
Occidental Petroleum Corp. | 7.6 | 5.3 |
Exxon Mobil Corp. | 7.3 | 10.4 |
Schlumberger Ltd. | 5.6 | 7.1 |
Hess Corp. | 4.8 | 3.6 |
Marathon Oil Corp. | 4.5 | 3.3 |
National Oilwell Varco, Inc. | 4.4 | 3.0 |
EOG Resources, Inc. | 3.7 | 0.0 |
Halliburton Co. | 3.3 | 4.4 |
Marathon Petroleum Corp. | 2.9 | 2.3 |
| 59.1 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Oil, Gas & Consumable Fuels | 71.7% | |
| Energy Equipment & Services | 26.1% | |
 | Chemicals | 1.5% | |
| Construction & Engineering | 0.5% | |
| All Others* | 0.2% | |
As of July 31, 2011 |
| Oil, Gas & Consumable Fuels | 62.2% | |
| Energy Equipment & Services | 35.4% | |
| Chemicals | 1.2% | |
| Construction & Engineering | 0.6% | |
| Metals & Mining | 0.6% | |
| All Others* | 0.0% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% |
| Shares | | Value |
CHEMICALS - 1.5% |
Specialty Chemicals - 1.5% |
LyondellBasell Industries NV Class A | 256,010 | | $ 11,034,031 |
CONSTRUCTION & ENGINEERING - 0.5% |
Construction & Engineering - 0.5% |
Foster Wheeler AG (a) | 158,675 | | 3,563,841 |
ENERGY EQUIPMENT & SERVICES - 26.1% |
Oil & Gas Drilling - 7.7% |
Discovery Offshore S.A. (a)(e) | 748,490 | | 1,084,324 |
Ensco International Ltd. ADR | 380,651 | | 20,037,469 |
Helmerich & Payne, Inc. | 91,800 | | 5,664,978 |
Noble Corp. | 312,364 | | 10,882,762 |
Northern Offshore Ltd. | 346,187 | | 769,973 |
Ocean Rig UDW, Inc. (United States) | 177,000 | | 2,701,020 |
Parker Drilling Co. (a) | 421,740 | | 2,741,310 |
Rowan Companies, Inc. (a) | 293,100 | | 9,968,331 |
Tuscany International Drilling, Inc. (a) | 112,000 | | 78,185 |
Vantage Drilling Co. (a) | 1,039,400 | | 1,288,856 |
| | 55,217,208 |
Oil & Gas Equipment & Services - 18.4% |
Baker Hughes, Inc. | 152,054 | | 7,470,413 |
Cal Dive International, Inc. (a) | 165,830 | | 499,148 |
Cameron International Corp. (a) | 27,100 | | 1,441,720 |
Compagnie Generale de Geophysique SA (a) | 138,278 | | 3,870,029 |
Halliburton Co. | 645,219 | | 23,731,155 |
Key Energy Services, Inc. (a) | 104,700 | | 1,516,056 |
McDermott International, Inc. (a) | 235,414 | | 2,862,634 |
National Oilwell Varco, Inc. | 430,695 | | 31,862,816 |
Oil States International, Inc. (a) | 124,050 | | 9,885,545 |
RPC, Inc. (d) | 33,900 | | 516,975 |
Schlumberger Ltd. | 537,832 | | 40,428,831 |
Schoeller-Bleckmann Oilfield Equipment AG | 12,691 | | 1,066,000 |
Superior Energy Services, Inc. (a) | 47,784 | | 1,362,322 |
Weatherford International Ltd. (a) | 349,367 | | 5,848,404 |
Willbros Group, Inc. (a) | 134,016 | | 570,908 |
| | 132,932,956 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 188,150,164 |
OIL, GAS & CONSUMABLE FUELS - 71.7% |
Coal & Consumable Fuels - 2.5% |
Alpha Natural Resources, Inc. (a) | 579,372 | | 11,656,965 |
Peabody Energy Corp. | 188,016 | | 6,409,465 |
| | 18,066,430 |
|
| Shares | | Value |
Integrated Oil & Gas - 37.4% |
Chevron Corp. | 1,050,732 | | $ 108,309,455 |
Exxon Mobil Corp. | 627,628 | | 52,557,569 |
Hess Corp. | 618,245 | | 34,807,194 |
Occidental Petroleum Corp. | 547,877 | | 54,661,688 |
Suncor Energy, Inc. | 550,900 | | 18,975,902 |
| | 269,311,808 |
Oil & Gas Exploration & Production - 23.1% |
Anadarko Petroleum Corp. | 99,558 | | 8,036,322 |
Apache Corp. | 184,037 | | 18,197,579 |
Bankers Petroleum Ltd. (a) | 764,700 | | 4,087,551 |
Canadian Natural Resources Ltd. | 148,900 | | 5,898,088 |
Concho Resources, Inc. (a) | 6,900 | | 735,954 |
EOG Resources, Inc. | 252,520 | | 26,802,473 |
EV Energy Partners LP | 66,800 | | 4,456,896 |
EXCO Resources, Inc. | 61,900 | | 486,534 |
Gran Tierra Energy, Inc. (Canada) (a) | 953,400 | | 5,438,492 |
Magnum Hunter Resources Corp. | 57,743 | | 340,106 |
Marathon Oil Corp. | 1,021,126 | | 32,053,145 |
Niko Resources Ltd. | 14,500 | | 708,407 |
Noble Energy, Inc. | 111,044 | | 11,178,799 |
Northern Oil & Gas, Inc. (a) | 41,547 | | 1,038,675 |
Oasis Petroleum, Inc. (a)(d) | 136,256 | | 4,597,277 |
Pacific Rubiales Energy Corp. | 63,100 | | 1,587,647 |
Painted Pony Petroleum Ltd. (a)(e) | 5,000 | | 41,685 |
Painted Pony Petroleum Ltd. Class A (a) | 86,400 | | 720,323 |
Petrominerales Ltd. | 40,372 | | 842,669 |
Pioneer Natural Resources Co. | 165,400 | | 16,424,220 |
Plains Exploration & Production Co. (a) | 77,100 | | 2,908,212 |
QEP Resources, Inc. | 54,500 | | 1,560,880 |
Rosetta Resources, Inc. (a) | 29,400 | | 1,410,906 |
SM Energy Co. | 189,293 | | 13,738,886 |
Stone Energy Corp. (a) | 32,600 | | 914,430 |
Swift Energy Co. (a) | 55,958 | | 1,855,008 |
| | 166,061,164 |
Oil & Gas Refining & Marketing - 8.0% |
CVR Energy, Inc. (a) | 148,333 | | 3,699,425 |
HollyFrontier Corp. | 376,550 | | 11,047,977 |
Marathon Petroleum Corp. | 538,604 | | 20,585,445 |
Tesoro Corp. (a) | 354,100 | | 8,863,123 |
Valero Energy Corp. | 565,413 | | 13,564,258 |
| | 57,760,228 |
Oil & Gas Storage & Transport - 0.7% |
Atlas Energy LP | 13,625 | | 355,885 |
Atlas Pipeline Partners, LP | 95,200 | | 3,570,952 |
Cheniere Energy, Inc. (a) | 96,100 | | 1,229,119 |
| | 5,155,956 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 516,355,586 |
TOTAL COMMON STOCKS (Cost $671,719,016) |
719,103,622
|
Money Market Funds - 0.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 1,487,775 | | $ 1,487,775 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 4,109,175 | | 4,109,175 |
TOTAL MONEY MARKET FUNDS (Cost $5,596,950) |
5,596,950
|
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $677,315,966) | | 724,700,572 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | | (4,026,367) |
NET ASSETS - 100% | $ 720,674,205 |
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 $1,126,009 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 | $ 2,439 |
Fidelity Securities Lending Cash Central Fund | 57,164 |
Total | $ 59,603 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 719,103,622 | $ 715,233,593 | $ 3,870,029 | $ - |
Money Market Funds | 5,596,950 | 5,596,950 | - | - |
Total Investments in Securities: | $ 724,700,572 | $ 720,830,543 | $ 3,870,029 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.9% |
Curacao | 5.6% |
Canada | 4.6% |
Switzerland | 2.8% |
United Kingdom | 2.8% |
Netherlands | 1.5% |
Others (Individually Less Than 1%) | 1.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Energy Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $4,118,329) - See accompanying schedule: Unaffiliated issuers (cost $671,719,016) | $ 719,103,622 | |
Fidelity Central Funds (cost $5,596,950) | 5,596,950 | |
Total Investments (cost $677,315,966) | | $ 724,700,572 |
Receivable for investments sold | | 8,660,239 |
Receivable for fund shares sold | | 597,716 |
Dividends receivable | | 93,954 |
Distributions receivable from Fidelity Central Funds | | 745 |
Prepaid expenses | | 2,127 |
Other receivables | | 6,528 |
Total assets | | 734,061,881 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,125,974 | |
Payable for fund shares redeemed | 3,324,940 | |
Accrued management fee | 335,313 | |
Distribution and service plan fees payable | 279,630 | |
Other affiliated payables | 183,781 | |
Other payables and accrued expenses | 28,863 | |
Collateral on securities loaned, at value | 4,109,175 | |
Total liabilities | | 13,387,676 |
| | |
Net Assets | | $ 720,674,205 |
Net Assets consist of: | | |
Paid in capital | | $ 707,908,618 |
Accumulated net investment loss | | (1,895,665) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (32,723,072) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 47,384,324 |
Net Assets | | $ 720,674,205 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($278,971,810 ÷ 7,817,887 shares) | | $ 35.68 |
| | |
Maximum offering price per share (100/94.25 of $35.68) | | $ 37.86 |
Class T:
Net Asset Value and redemption price per share ($243,034,374 ÷ 6,666,339 shares) | | $ 36.46 |
| | |
Maximum offering price per share (100/96.50 of $36.46) | | $ 37.78 |
Class B:
Net Asset Value and offering price per share ($37,596,503 ÷ 1,126,459 shares)A | | $ 33.38 |
| | |
Class C:
Net Asset Value and offering price per share ($107,207,847 ÷ 3,189,249 shares)A | | $ 33.62 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($53,863,671 ÷ 1,444,600 shares) | | $ 37.29 |
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 Energy Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,537,121 |
Interest | | 5,903 |
Income from Fidelity Central Funds | | 59,603 |
Total income | | 6,602,627 |
| | |
Expenses | | |
Management fee | $ 1,971,968 | |
Transfer agent fees | 996,828 | |
Distribution and service plan fees | 1,668,767 | |
Accounting and security lending fees | 126,520 | |
Custodian fees and expenses | 11,225 | |
Independent trustees' compensation | 2,391 | |
Registration fees | 68,157 | |
Audit | 24,988 | |
Legal | 1,808 | |
Miscellaneous | 3,360 | |
Total expenses before reductions | 4,876,012 | |
Expense reductions | (3,345) | 4,872,667 |
Net investment income (loss) | | 1,729,960 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (17,938,453) | |
Foreign currency transactions | (8,489) | |
Total net realized gain (loss) | | (17,946,942) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,510,067) | |
Assets and liabilities in foreign currencies | (397) | |
Total change in net unrealized appreciation (depreciation) | | (78,510,464) |
Net gain (loss) | | (96,457,406) |
Net increase (decrease) in net assets resulting from operations | | $ (94,727,446) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,729,960 | $ 609,873 |
Net realized gain (loss) | (17,946,942) | 108,257,689 |
Change in net unrealized appreciation (depreciation) | (78,510,464) | 148,374,915 |
Net increase (decrease) in net assets resulting from operations | (94,727,446) | 257,242,477 |
Distributions to shareholders from net investment income | (3,625,438) | (1,542,989) |
Share transactions - net increase (decrease) | (39,924,987) | 7,476,541 |
Redemption fees | 26,835 | 27,523 |
Total increase (decrease) in net assets | (138,251,036) | 263,203,552 |
| | |
Net Assets | | |
Beginning of period | 858,925,241 | 595,721,689 |
End of period (including accumulated net investment loss of $1,895,665 and accumulated net investment loss of $187, respectively) | $ 720,674,205 | $ 858,925,241 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 40.17 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .11 | (.05) | (.04) | (.17) | (.02) H |
Net realized and unrealized gain (loss) | (4.40) | 12.47 | 1.93 | (17.48) | 5.59 | 8.42 |
Total from investment operations | (4.28) | 12.58 | 1.88 | (17.52) | 5.42 | 8.40 |
Distributions from net investment income | (.21) | (.11) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.46) | (6.51) |
Total distributions | (.21) | (.11) | - | (6.90) | (3.46) | (6.51) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 35.68 | $ 40.17 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 |
Total Return B,C,D | (10.65)% | 45.46% | 7.28% | (38.86)% | 11.52% | 22.08% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.18% A | 1.16% | 1.20% | 1.22% | 1.14% | 1.19% |
Expenses net of fee waivers, if any | 1.18% A | 1.16% | 1.20% | 1.22% | 1.14% | 1.19% |
Expenses net of all reductions | 1.18% A | 1.16% | 1.19% | 1.21% | 1.14% | 1.19% |
Net investment income (loss) | .70% A | .30% | (.16)% | (.14)% | (.32)% | (.05)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 278,972 | $ 331,120 | $ 214,407 | $ 216,595 | $ 355,200 | $ 268,108 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 41.04 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .03 | (.11) | (.10) | (.29) | (.11) H |
Net realized and unrealized gain (loss) | (4.49) | 12.75 | 1.97 | (17.93) | 5.72 | 8.61 |
Total from investment operations | (4.41) | 12.78 | 1.86 | (18.03) | 5.43 | 8.50 |
Distributions from net investment income | (.17) | (.07) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.29) | (6.42) |
Total distributions | (.17) | (.07) | - | (6.90) | (3.29) | (6.42) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 36.46 | $ 41.04 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 |
Total Return B,C,D | (10.73)% | 45.16% | 7.03% | (38.99)% | 11.27% | 21.84% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.39% A | 1.37% | 1.41% | 1.45% | 1.36% | 1.40% |
Expenses net of fee waivers, if any | 1.39% A | 1.37% | 1.41% | 1.45% | 1.36% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.37% | 1.41% | 1.45% | 1.35% | 1.39% |
Net investment income (loss) | .48% A | .09% | (.37)% | (.38)% | (.54)% | (.26)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 243,034 | $ 290,512 | $ 219,051 | $ 224,376 | $ 407,784 | $ 382,222 |
Portfolio turnover rate G | 81 A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.61 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.25) | (.22) | (.56) | (.34) H |
Net realized and unrealized gain (loss) | (4.12) | 11.71 | 1.83 | (16.75) | 5.41 | 8.17 |
Total from investment operations | (4.13) | 11.56 | 1.58 | (16.97) | 4.85 | 7.83 |
Distributions from net investment income | (.10) | (.01) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.14) | (6.29) |
Total distributions | (.10) | (.01) | - | (6.90) | (3.14) | (6.29) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 33.38 | $ 37.61 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 |
Total Return B,C,D | (10.96)% | 44.38% | 6.45% | (39.31)% | 10.62% | 21.18% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.93% A | 1.93% | 1.96% | 1.96% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.93% A | 1.93% | 1.96% | 1.96% | 1.93% | 1.96% |
Expenses net of all reductions | 1.92% A | 1.92% | 1.95% | 1.96% | 1.93% | 1.95% |
Net investment income (loss) | (.05)% A | (.46)% | (.92)% | (.89)% | (1.11)% | (.82)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 37,597 | $ 49,793 | $ 44,330 | $ 47,795 | $ 98,602 | $ 116,487 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.88 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.25) | (.21) | (.54) | (.32) H |
Net realized and unrealized gain (loss) | (4.14) | 11.80 | 1.85 | (16.87) | 5.45 | 8.20 |
Total from investment operations | (4.15) | 11.65 | 1.60 | (17.08) | 4.91 | 7.88 |
Distributions from net investment income | (.11) | (.02) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.16) | (6.33) |
Total distributions | (.11) | (.02) | - | (6.90) | (3.16) | (6.33) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 33.62 | $ 37.88 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 |
Total Return B,C,D | (10.95)% | 44.38% | 6.49% | (39.31)% | 10.71% | 21.22% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.92% A | 1.90% | 1.94% | 1.96% | 1.87% | 1.91% |
Expenses net of fee waivers, if any | 1.92% A | 1.90% | 1.94% | 1.96% | 1.87% | 1.91% |
Expenses net of all reductions | 1.92% A | 1.89% | 1.93% | 1.95% | 1.87% | 1.91% |
Net investment income (loss) | (.05)% A | (.43)% | (.90)% | (.88)% | (1.05)% | (.77)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 107,208 | $ 133,476 | $ 90,596 | $ 86,650 | $ 156,393 | $ 135,072 |
Portfolio turnover rate G | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 41.95 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .18 | .23 | .04 | .03 | (.02) | .11 G |
Net realized and unrealized gain (loss) | (4.59) | 12.99 | 2.00 | (18.06) | 5.74 | 8.67 |
Total from investment operations | (4.41) | 13.22 | 2.04 | (18.03) | 5.72 | 8.78 |
Distributions from net investment income | (.25) | (.14) | - | - | - | - |
Distributions from net realized gain | - | - | - | (6.90) | (3.64) | (6.58) |
Total distributions | (.25) | (.14) | - | (6.90) | (3.64) | (6.58) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 37.29 | $ 41.95 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 |
Total Return B,C | (10.49)% | 45.87% | 7.60% | (38.68)% | 11.83% | 22.47% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .86% A | .86% | .90% | .95% | .85% | .88% |
Expenses net of fee waivers, if any | .86% A | .86% | .90% | .95% | .85% | .88% |
Expenses net of all reductions | .86% A | .85% | .90% | .94% | .85% | .88% |
Net investment income (loss) | 1.01% A | .60% | .14% | .13% | (.03)% | .25% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 53,864 | $ 54,024 | $ 27,338 | $ 18,631 | $ 22,250 | $ 17,127 |
Portfolio turnover rate F | 81% A | 91% | 103% | 148% | 90% | 80% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred trustees compensation, passive foreign investment companies (PFIC), capital loss carryforwards, and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 89,646,076 |
Gross unrealized depreciation | (46,497,564) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 43,148,512 |
| |
Tax cost | $ 681,552,060 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (2,846,796) |
2018 | (2,715,383) |
Total capital loss carryforward | $ (5,562,179) |
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 $292,628,721 and $334,824,474, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 341,862 | $ 9,241 |
Class T | .25% | .25% | 594,584 | - |
Class B | .75% | .25% | 194,292 | 145,719 |
Class C | .75% | .25% | 538,029 | 87,860 |
| | | $ 1,668,767 | $ 242,820 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 59,209 |
Class T | 10,789 |
Class B* | 31,905 |
Class C* | 8,804 |
| $ 110,707 |
* 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
Average
Net Assets* |
Class A | $ 410,364 | .30 |
Class T | 312,622 | .26 |
Class B | 58,547 | .30 |
Class C | 159,294 | .30 |
Institutional Class | 56,001 | .24 |
| $ 996,828 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $2,738 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $1,018 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 $152,500. Security lending income represents the income earned on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $57,164, including $6 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 $3,345 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 1,638,737 | $ 788,179 |
Class T | 1,147,865 | 537,026 |
Class B | 121,615 | 21,298 |
Class C | 359,185 | 59,062 |
Institutional Class | 358,036 | 137,424 |
Total | $ 3,625,438 | $ 1,542,989 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,067,535 | 2,848,824 | $ 36,425,325 | $ 108,457,523 |
Reinvestment of distributions | 41,823 | 20,239 | 1,442,045 | 701,079 |
Shares redeemed | (1,534,589) | (2,366,298) | (52,336,234) | (85,322,989) |
Net increase (decrease) | (425,231) | 502,765 | $ (14,468,864) | $ 23,835,613 |
Class T | | | | |
Shares sold | 375,625 | 1,191,543 | $ 13,003,662 | $ 45,538,389 |
Reinvestment of distributions | 30,771 | 14,153 | 1,084,071 | 502,257 |
Shares redeemed | (819,250) | (1,858,422) | (28,280,583) | (68,540,609) |
Net increase (decrease) | (412,854) | (652,726) | $ (14,192,850) | $ (22,499,963) |
Class B | | | | |
Shares sold | 44,161 | 118,268 | $ 1,390,015 | $ 4,084,617 |
Reinvestment of distributions | 3,337 | 560 | 107,704 | 18,656 |
Shares redeemed | (245,036) | (495,702) | (7,806,011) | (16,527,555) |
Net increase (decrease) | (197,538) | (376,874) | $ (6,308,292) | $ (12,424,282) |
Class C | | | | |
Shares sold | 222,144 | 964,253 | $ 7,133,875 | $ 34,720,800 |
Reinvestment of distributions | 9,390 | 1,513 | 305,281 | 50,476 |
Shares redeemed | (565,757) | (893,659) | (17,960,063) | (30,160,985) |
Net increase (decrease) | (334,223) | 72,107 | $ (10,520,907) | $ 4,610,291 |
Institutional Class | | | | |
Shares sold | 481,850 | 771,369 | $ 17,024,448 | $ 30,606,839 |
Reinvestment of distributions | 7,770 | 3,300 | 279,800 | 119,042 |
Shares redeemed | (332,831) | (433,932) | (11,738,322) | (16,770,999) |
Net increase (decrease) | 156,789 | 340,737 | $ 5,565,926 | $ 13,954,882 |
Semiannual Report
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.30% | | | |
Actual | | $ 1,000.00 | $ 977.60 | $ 6.46 |
Hypothetical A | | $ 1,000.00 | $ 1,018.60 | $ 6.60 |
Class T | 1.56% | | | |
Actual | | $ 1,000.00 | $ 976.40 | $ 7.75 |
Hypothetical A | | $ 1,000.00 | $ 1,017.29 | $ 7.91 |
Class B | 2.04% | | | |
Actual | | $ 1,000.00 | $ 974.30 | $ 10.12 |
Hypothetical A | | $ 1,000.00 | $ 1,014.88 | $ 10.33 |
Class C | 2.04% | | | |
Actual | | $ 1,000.00 | $ 974.10 | $ 10.12 |
Hypothetical A | | $ 1,000.00 | $ 1,014.88 | $ 10.33 |
Institutional Class | 1.02% | | | |
Actual | | $ 1,000.00 | $ 979.00 | $ 5.07 |
Hypothetical A | | $ 1,000.00 | $ 1,020.01 | $ 5.18 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Citigroup, Inc. | 5.2 | 5.4 |
Morgan Stanley | 5.2 | 4.9 |
JPMorgan Chase & Co. | 5.1 | 4.1 |
Bank of America Corp. | 4.3 | 0.0 |
Genworth Financial, Inc. Class A | 3.7 | 0.3 |
Simon Property Group, Inc. | 3.5 | 0.0 |
eBay, Inc. | 3.2 | 0.0 |
ICICI Bank Ltd. sponsored ADR | 3.1 | 0.0 |
Sotheby's Class A (Ltd. vtg.) | 2.5 | 0.2 |
ACE Ltd. | 2.2 | 1.1 |
| 38.0 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Capital Markets | 17.0% | |
| Commercial Banks | 16.7% | |
| Diversified Financial Services | 16.6% | |
 | Real Estate Investment Trusts | 16.0% | |
| Insurance | 14.6% | |
| All Others* | 19.1% | |
As of July 31, 2011 |
| Capital Markets | 28.3% | |
| Commercial Banks | 15.3% | |
| Real Estate Investment Trusts | 12.5% | |
| Diversified Financial Services | 11.6% | |
| Insurance | 10.6% | |
| All Others* | 21.7% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
CAPITAL MARKETS - 17.0% |
Asset Management & Custody Banks - 5.9% |
A.F.P. Provida SA sponsored ADR | 400 | | $ 28,576 |
Affiliated Managers Group, Inc. (a) | 1,686 | | 169,460 |
Ameriprise Financial, Inc. | 100 | | 5,355 |
Apollo Global Management LLC Class A | 122,349 | | 1,820,553 |
Bank of New York Mellon Corp. | 500 | | 10,065 |
BlackRock, Inc. Class A | 56 | | 10,192 |
Franklin Resources, Inc. | 100 | | 10,610 |
Invesco Ltd. | 39,838 | | 899,144 |
Julius Baer Group Ltd. | 300 | | 12,192 |
Legg Mason, Inc. | 853 | | 21,726 |
Northern Trust Corp. | 8,107 | | 334,089 |
State Street Corp. | 49,990 | | 1,958,608 |
The Blackstone Group LP | 116,483 | | 1,841,596 |
| | 7,122,166 |
Diversified Capital Markets - 0.3% |
Credit Suisse Group sponsored ADR | 400 | | 10,416 |
Deutsche Bank AG (NY Shares) | 109 | | 4,653 |
HFF, Inc. (a) | 7,600 | | 107,236 |
UBS AG (NY Shares) (a) | 22,033 | | 299,428 |
| | 421,733 |
Investment Banking & Brokerage - 10.8% |
Charles Schwab Corp. | 900 | | 10,485 |
E*TRADE Financial Corp. (a) | 203,334 | | 1,665,305 |
Evercore Partners, Inc. Class A | 67,900 | | 1,914,101 |
GFI Group, Inc. | 320,278 | | 1,482,887 |
Goldman Sachs Group, Inc. | 173 | | 19,284 |
Investment Technology Group, Inc. (a) | 3,825 | | 43,376 |
Lazard Ltd. Class A | 57,443 | | 1,649,763 |
Macquarie Group Ltd. | 393 | | 10,639 |
Morgan Stanley | 333,795 | | 6,225,277 |
| | 13,021,117 |
TOTAL CAPITAL MARKETS | | 20,565,016 |
COMMERCIAL BANKS - 16.7% |
Diversified Banks - 9.5% |
Banco ABC Brasil SA | 2,500 | | 17,986 |
Banco Bradesco SA (PN) sponsored ADR | 700 | | 12,516 |
Banco de Chile sponsored ADR | 100 | | 8,989 |
Banco Macro SA sponsored ADR | 600 | | 14,844 |
Banco Pine SA | 200 | | 1,505 |
Banco Santander Chile sponsored ADR | 200 | | 16,300 |
Banco Santander SA (Brasil) ADR | 2,800 | | 25,536 |
BanColombia SA sponsored ADR | 10,500 | | 651,105 |
Bank of Baroda | 7,728 | | 120,327 |
Barclays PLC sponsored ADR | 850 | | 11,501 |
BBVA Banco Frances SA sponsored ADR | 2,300 | | 14,145 |
BNP Paribas SA | 302 | | 12,786 |
China CITIC Bank Corp. Ltd. (H Shares) | 2,358,000 | | 1,505,058 |
Comerica, Inc. | 800 | | 22,136 |
|
| Shares | | Value |
CorpBanca SA sponsored ADR | 550 | | $ 12,216 |
Credicorp Ltd. (NY Shares) | 2,728 | | 310,064 |
Credit Agricole SA | 200 | | 1,232 |
Grupo Financiero Galicia SA sponsored ADR (d) | 1,800 | | 13,914 |
Guaranty Trust Bank PLC GDR (Reg. S) | 5,300 | | 24,910 |
HSBC Holdings PLC sponsored ADR | 14,300 | | 598,169 |
ICICI Bank Ltd. sponsored ADR | 104,100 | | 3,769,461 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 6,000 | | 4,201 |
Intesa Sanpaolo SpA | 7,261 | | 13,866 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 619 | | 12,355 |
National Australia Bank Ltd. | 254 | | 6,431 |
Nordea Bank AB | 1,200 | | 10,047 |
PT Bank Central Asia Tbk | 13,500 | | 12,013 |
Raiffeisen International Bank-Holding AG (d) | 1,300 | | 44,209 |
Sberbank (Savings Bank of the Russian Federation) sponsored ADR | 1,100 | | 13,200 |
Standard Chartered PLC (United Kingdom) | 2,482 | | 60,004 |
Sumitomo Mitsui Financial Group, Inc. | 2,100 | | 67,150 |
Swedbank AB (A Shares) | 900 | | 12,927 |
The Jammu & Kashmir Bank Ltd. | 7,298 | | 122,260 |
U.S. Bancorp | 8,627 | | 243,454 |
UniCredit SpA | 630 | | 3,123 |
United Overseas Bank Ltd. | 1,000 | | 13,785 |
Wells Fargo & Co. | 91,715 | | 2,678,995 |
Yes Bank Ltd. | 143,376 | | 956,853 |
| | 11,439,573 |
Regional Banks - 7.2% |
Banco Daycoval SA (PN) | 20,300 | | 113,165 |
Bancorp New Jersey, Inc. | 100 | | 940 |
BancTrust Financial Group, Inc. (a) | 28,700 | | 36,736 |
Bank of the Ozarks, Inc. | 316 | | 8,845 |
BB&T Corp. | 870 | | 23,655 |
Boston Private Financial Holdings, Inc. | 2,200 | | 18,128 |
Bridge Capital Holdings (a) | 48,490 | | 524,662 |
Canadian Western Bank, Edmonton | 2,200 | | 58,074 |
Cascade Bancorp (a) | 900 | | 4,779 |
CIT Group, Inc. (a) | 373 | | 14,226 |
Citizens & Northern Corp. | 520 | | 10,925 |
City Holding Co. | 500 | | 17,770 |
City National Corp. | 6,200 | | 284,456 |
CNB Financial Corp., Pennsylvania | 803 | | 13,258 |
CoBiz, Inc. | 166,600 | | 996,268 |
Cullen/Frost Bankers, Inc. | 100 | | 5,567 |
Fifth Third Bancorp | 900 | | 11,709 |
First Business Finance Services, Inc. | 200 | | 3,322 |
First Commonwealth Financial Corp. | 25,722 | | 142,500 |
First Horizon National Corp. | 94,800 | | 827,604 |
First Interstate Bancsystem, Inc. | 69,209 | | 952,316 |
First Midwest Bancorp, Inc., Delaware | 600 | | 6,528 |
Common Stocks - continued |
| Shares | | Value |
COMMERCIAL BANKS - CONTINUED |
Regional Banks - continued |
FNB Corp., Pennsylvania | 11,300 | | $ 132,436 |
Glacier Bancorp, Inc. | 2,024 | | 28,275 |
Huntington Bancshares, Inc. | 2,230 | | 12,733 |
KeyCorp | 1,500 | | 11,655 |
NBT Bancorp, Inc. | 200 | | 4,500 |
Northrim Bancorp, Inc. | 2,269 | | 45,584 |
Pacific Continental Corp. | 27,028 | | 239,468 |
PNC Financial Services Group, Inc. | 200 | | 11,784 |
PT Bank Tabungan Negara Tbk | 1,468,500 | | 196,018 |
Regions Financial Corp. | 187,425 | | 978,359 |
Sandy Spring Bancorp, Inc. | 200 | | 3,652 |
Savannah Bancorp, Inc. (a) | 14,998 | | 74,840 |
SCBT Financial Corp. | 800 | | 24,744 |
SunTrust Banks, Inc. | 22,636 | | 465,623 |
Susquehanna Bancshares, Inc. | 62,314 | | 569,550 |
SVB Financial Group (a) | 312 | | 18,108 |
Synovus Financial Corp. (d) | 425,582 | | 740,513 |
TCF Financial Corp. | 1,037 | | 10,411 |
Texas Capital Bancshares, Inc. (a) | 400 | | 12,688 |
Umpqua Holdings Corp. | 100 | | 1,217 |
Valley National Bancorp | 4,908 | | 58,503 |
Virginia Commerce Bancorp, Inc. (a) | 3,000 | | 26,580 |
Washington Trust Bancorp, Inc. | 544 | | 13,431 |
Webster Financial Corp. | 26,200 | | 555,440 |
Westamerica Bancorp. | 100 | | 4,645 |
Western Alliance Bancorp. (a) | 49,100 | | 392,309 |
Zions Bancorporation | 700 | | 11,788 |
| | 8,720,287 |
TOTAL COMMERCIAL BANKS | | 20,159,860 |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Diversified Support Services - 0.0% |
Intrum Justitia AB | 1,000 | | 15,767 |
CONSUMER FINANCE - 4.0% |
Consumer Finance - 4.0% |
Advance America Cash Advance Centers, Inc. | 219,253 | | 1,725,521 |
American Express Co. | 223 | | 11,181 |
Capital One Financial Corp. | 52,898 | | 2,420,084 |
Discover Financial Services | 500 | | 13,590 |
EZCORP, Inc. (non-vtg.) Class A (a) | 2,240 | | 60,077 |
First Cash Financial Services, Inc. (a) | 4,790 | | 192,798 |
Green Dot Corp. Class A (a)(d) | 1,900 | | 53,922 |
International Personal Finance PLC | 86,603 | | 259,733 |
Nelnet, Inc. Class A | 700 | | 17,255 |
Netspend Holdings, Inc. (a) | 1,331 | | 11,620 |
PT Clipan Finance Indonesia Tbk | 338,000 | | 17,295 |
SLM Corp. | 3,465 | | 51,802 |
| | 4,834,878 |
|
| Shares | | Value |
DIVERSIFIED CONSUMER SERVICES - 2.5% |
Specialized Consumer Services - 2.5% |
Sotheby's Class A (Ltd. vtg.) | 89,650 | | $ 3,005,965 |
DIVERSIFIED FINANCIAL SERVICES - 16.6% |
Other Diversified Financial Services - 14.6% |
Bank of America Corp. | 720,300 | | 5,135,739 |
Citigroup, Inc. | 204,875 | | 6,293,759 |
JPMorgan Chase & Co. | 166,490 | | 6,210,077 |
| | 17,639,575 |
Specialized Finance - 2.0% |
BM&F Bovespa SA | 51,000 | | 320,793 |
CME Group, Inc. | 86 | | 20,598 |
IntercontinentalExchange, Inc. (a) | 84 | | 9,616 |
Moody's Corp. | 300 | | 11,169 |
NYSE Euronext | 2,200 | | 58,432 |
PHH Corp. (a) | 173,218 | | 2,007,597 |
| | 2,428,205 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 20,067,780 |
ENERGY EQUIPMENT & SERVICES - 0.0% |
Oil & Gas Equipment & Services - 0.0% |
SBM Offshore NV | 1,200 | | 20,349 |
HOTELS, RESTAURANTS & LEISURE - 0.2% |
Casinos & Gaming - 0.0% |
MGM Mirage, Inc. (a) | 915 | | 11,941 |
Hotels, Resorts & Cruise Lines - 0.2% |
Starwood Hotels & Resorts Worldwide, Inc. | 4,700 | | 254,928 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 266,869 |
HOUSEHOLD DURABLES - 0.8% |
Homebuilding - 0.8% |
Meritage Homes Corp. (a) | 5,000 | | 121,000 |
PulteGroup, Inc. (a) | 33,000 | | 245,850 |
Standard Pacific Corp. (a)(d) | 149,426 | | 543,911 |
| | 910,761 |
INDUSTRIAL CONGLOMERATES - 0.0% |
Industrial Conglomerates - 0.0% |
Keppel Corp. Ltd. | 1,000 | | 8,626 |
INSURANCE - 14.6% |
Insurance Brokers - 1.7% |
Aon Corp. | 39,000 | | 1,888,770 |
Brasil Insurance Participacoes e Administracao SA | 16,500 | | 186,985 |
| | 2,075,755 |
Life & Health Insurance - 3.0% |
AFLAC, Inc. | 51,904 | | 2,503,330 |
Citizens, Inc. Class A (a) | 2,100 | | 21,651 |
CNO Financial Group, Inc. (a) | 1,900 | | 12,768 |
Common Stocks - continued |
| Shares | | Value |
INSURANCE - CONTINUED |
Life & Health Insurance - continued |
FBL Financial Group, Inc. Class A | 400 | | $ 13,896 |
Lincoln National Corp. | 500 | | 10,770 |
MetLife, Inc. | 16,835 | | 594,781 |
Phoenix Companies, Inc. (a) | 5,700 | | 11,742 |
Ping An Insurance Group Co. China Ltd. (H Shares) | 15,500 | | 122,717 |
Prudential Financial, Inc. | 4,200 | | 240,408 |
Resolution Ltd. | 2,800 | | 12,051 |
StanCorp Financial Group, Inc. | 300 | | 11,598 |
Symetra Financial Corp. | 1,100 | | 10,142 |
Torchmark Corp. | 300 | | 13,701 |
Unum Group | 600 | | 13,698 |
| | 3,593,253 |
Multi-Line Insurance - 3.9% |
American International Group, Inc. (a) | 400 | | 10,044 |
Genworth Financial, Inc. Class A (a) | 580,950 | | 4,479,125 |
Hartford Financial Services Group, Inc. | 6,100 | | 106,872 |
Loews Corp. | 3,200 | | 119,392 |
Porto Seguro SA | 2,200 | | 26,153 |
| | 4,741,586 |
Property & Casualty Insurance - 4.5% |
ACE Ltd. | 38,500 | | 2,679,600 |
Allied World Assurance Co.
Holdings Ltd. | 1,800 | | 110,754 |
Allstate Corp. | 6,100 | | 175,985 |
Assured Guaranty Ltd. | 500 | | 7,755 |
Axis Capital Holdings Ltd. | 19,200 | | 590,976 |
Berkshire Hathaway, Inc. Class B (a) | 3,525 | | 276,254 |
Erie Indemnity Co. Class A | 163 | | 12,497 |
Fidelity National Financial, Inc. Class A | 19,915 | | 362,254 |
First American Financial Corp. | 19,200 | | 284,544 |
The Travelers Companies, Inc. | 100 | | 5,830 |
W.R. Berkley Corp. | 4,200 | | 143,934 |
XL Group PLC Class A | 37,805 | | 766,307 |
| | 5,416,690 |
Reinsurance - 1.5% |
Arch Capital Group Ltd. (a) | 10,400 | | 374,920 |
Montpelier Re Holdings Ltd. | 700 | | 12,159 |
Platinum Underwriters Holdings Ltd. | 9,300 | | 318,525 |
Validus Holdings Ltd. | 35,100 | | 1,125,657 |
| | 1,831,261 |
TOTAL INSURANCE | | 17,658,545 |
INTERNET SOFTWARE & SERVICES - 3.2% |
Internet Software & Services - 3.2% |
eBay, Inc. (a) | 123,647 | | 3,907,245 |
IT SERVICES - 0.7% |
Data Processing & Outsourced Services - 0.7% |
Alliance Data Systems Corp. (a) | 100 | | 11,080 |
|
| Shares | | Value |
Cielo SA | 400 | | $ 11,916 |
Fidelity National Information Services, Inc. | 600 | | 17,136 |
Fiserv, Inc. (a) | 233 | | 14,653 |
MasterCard, Inc. Class A | 832 | | 295,834 |
MoneyGram International, Inc. (a) | 700 | | 12,992 |
Redecard SA | 700 | | 12,620 |
The Western Union Co. | 12,370 | | 236,267 |
Total System Services, Inc. | 500 | | 10,720 |
VeriFone Systems, Inc. (a) | 305 | | 13,024 |
Visa, Inc. Class A | 1,100 | | 110,704 |
| | 746,946 |
IT Consulting & Other Services - 0.0% |
Accenture PLC Class A | 200 | | 11,468 |
Cognizant Technology Solutions Corp. Class A (a) | 99 | | 7,103 |
| | 18,571 |
TOTAL IT SERVICES | | 765,517 |
PROFESSIONAL SERVICES - 0.0% |
Research & Consulting Services - 0.0% |
Equifax, Inc. | 370 | | 14,419 |
REAL ESTATE INVESTMENT TRUSTS - 16.0% |
Diversified REITs - 0.1% |
American Assets Trust, Inc. | 6,100 | | 135,054 |
Vornado Realty Trust | 200 | | 16,176 |
| | 151,230 |
Industrial REITs - 0.2% |
DCT Industrial Trust, Inc. | 45,500 | | 251,160 |
Prologis, Inc. | 400 | | 12,684 |
Stag Industrial, Inc. | 1,100 | | 13,178 |
| | 277,022 |
Mortgage REITs - 0.3% |
American Capital Agency Corp. | 418 | | 12,256 |
American Capital Mortgage Investment Corp. | 1,700 | | 33,286 |
Pennymac Mortgage Investment Trust | 700 | | 12,397 |
Two Harbors Investment Corp. | 32,200 | | 319,746 |
| | 377,685 |
Office REITs - 2.8% |
Boston Properties, Inc. | 5,900 | | 613,895 |
Corporate Office Properties Trust (SBI) | 400 | | 9,692 |
Douglas Emmett, Inc. | 40,861 | | 854,404 |
Highwoods Properties, Inc. (SBI) | 6,780 | | 224,350 |
Lexington Corporate Properties Trust (d) | 192,700 | | 1,657,220 |
MPG Office Trust, Inc. (a) | 5,300 | | 13,515 |
SL Green Realty Corp. | 200 | | 14,706 |
| | 3,387,782 |
Residential REITs - 3.1% |
American Campus Communities, Inc. | 3,200 | | 136,960 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
Residential REITs - continued |
Apartment Investment & Management Co. Class A | 541 | | $ 13,287 |
AvalonBay Communities, Inc. | 2,267 | | 308,335 |
BRE Properties, Inc. | 500 | | 25,910 |
Camden Property Trust (SBI) | 14,000 | | 903,000 |
Campus Crest Communities, Inc. | 1,100 | | 11,759 |
Colonial Properties Trust (SBI) | 37,400 | | 799,612 |
Equity Lifestyle Properties, Inc. | 5,000 | | 350,700 |
Equity Residential (SBI) | 1,100 | | 65,505 |
Essex Property Trust, Inc. | 200 | | 28,800 |
Home Properties, Inc. | 2,200 | | 131,076 |
Post Properties, Inc. | 14,285 | | 638,397 |
UDR, Inc. | 13,948 | | 362,927 |
| | 3,776,268 |
Retail REITs - 3.6% |
Federal Realty Investment Trust (SBI) | 100 | | 9,446 |
Glimcher Realty Trust | 400 | | 3,852 |
Kimco Realty Corp. | 700 | | 12,775 |
Simon Property Group, Inc. | 31,038 | | 4,216,823 |
Urstadt Biddle Properties, Inc. Class A | 1,300 | | 25,428 |
| | 4,268,324 |
Specialized REITs - 5.9% |
American Tower Corp. | 300 | | 19,053 |
Big Yellow Group PLC | 341,379 | | 1,505,361 |
CubeSmart | 1,000 | | 11,380 |
DiamondRock Hospitality Co. | 21,100 | | 222,394 |
HCP, Inc. | 23,900 | | 1,004,517 |
Health Care REIT, Inc. | 5,100 | | 291,771 |
Host Hotels & Resorts, Inc. | 19,000 | | 311,980 |
Plum Creek Timber Co., Inc. | 3,100 | | 120,218 |
Potlatch Corp. | 2,100 | | 64,092 |
Public Storage | 77 | | 10,692 |
Rayonier, Inc. | 600 | | 27,438 |
Strategic Hotel & Resorts, Inc. (a) | 375,284 | | 2,330,514 |
Sunstone Hotel Investors, Inc. (a) | 22,100 | | 205,309 |
Ventas, Inc. | 9,935 | | 579,310 |
Weyerhaeuser Co. | 21,600 | | 432,432 |
| | 7,136,461 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 19,374,772 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.7% |
Diversified Real Estate Activities - 1.6% |
Tejon Ranch Co. (a) | 8,564 | | 244,074 |
The St. Joe Co. (a)(d) | 101,150 | | 1,615,366 |
| | 1,859,440 |
Real Estate Development - 0.0% |
Bukit Sembawang Estates Ltd. | 7,000 | | 23,874 |
|
| Shares | | Value |
Real Estate Operating Companies - 0.0% |
BR Malls Participacoes SA | 700 | | $ 7,640 |
Castellum AB | 927 | | 11,789 |
Thomas Properties Group, Inc. | 2,262 | | 7,261 |
| | 26,690 |
Real Estate Services - 1.1% |
CBRE Group, Inc. (a) | 687 | | 13,259 |
Jones Lang LaSalle, Inc. | 16,510 | | 1,300,328 |
Kennedy-Wilson Holdings, Inc. | 2,000 | | 26,860 |
| | 1,340,447 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 3,250,451 |
SOFTWARE - 0.0% |
Application Software - 0.0% |
Fair Isaac Corp. | 100 | | 3,624 |
SPECIALTY RETAIL - 1.9% |
Computer & Electronics Retail - 1.7% |
Rent-A-Center, Inc. | 59,016 | | 1,995,921 |
Home Improvement Retail - 0.2% |
Home Depot, Inc. | 6,600 | | 292,974 |
TOTAL SPECIALTY RETAIL | | 2,288,895 |
THRIFTS & MORTGAGE FINANCE - 0.1% |
Thrifts & Mortgage Finance - 0.1% |
BankUnited, Inc. | 500 | | 11,455 |
Brookline Bancorp, Inc., Delaware | 800 | | 7,416 |
Cape Bancorp, Inc. (a) | 1,400 | | 11,858 |
Cheviot Financial Corp. | 7,610 | | 62,098 |
Hudson City Bancorp, Inc. | 800 | | 5,384 |
People's United Financial, Inc. | 1,100 | | 13,563 |
| | 111,774 |
TOTAL COMMON STOCKS (Cost $118,193,784) |
117,231,113
|
Money Market Funds - 6.6% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 5,260,005 | | 5,260,005 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 2,722,048 | | 2,722,048 |
TOTAL MONEY MARKET FUNDS (Cost $7,982,053) |
7,982,053
|
TOTAL INVESTMENT PORTFOLIO - 103.6% (Cost $126,175,837) | | 125,213,166 |
NET OTHER ASSETS (LIABILITIES) - (3.6)% | | (4,335,972) |
NET ASSETS - 100% | $ 120,877,194 |
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 | $ 1,875 |
Fidelity Securities Lending Cash Central Fund | 11,987 |
Total | $ 13,862 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 117,231,113 | $ 117,043,636 | $ 187,477 | $ - |
Money Market Funds | 7,982,053 | 7,982,053 | - | - |
Total Investments in Securities: | $ 125,213,166 | $ 125,025,689 | $ 187,477 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.3% |
Bermuda | 4.5% |
India | 4.1% |
Switzerland | 2.5% |
United Kingdom | 2.0% |
China | 1.4% |
Others (Individually Less Than 1%) | 2.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Financial Services Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,584,648) - See accompanying schedule: Unaffiliated issuers (cost $118,193,784) | $ 117,231,113 | |
Fidelity Central Funds (cost $7,982,053) | 7,982,053 | |
Total Investments (cost $126,175,837) | | $ 125,213,166 |
Receivable for investments sold | | 3,102,418 |
Receivable for fund shares sold | | 161,700 |
Dividends receivable | | 33,995 |
Distributions receivable from Fidelity Central Funds | | 1,844 |
Prepaid expenses | | 251 |
Other receivables | | 30,736 |
Total assets | | 128,544,110 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,664,169 | |
Payable for fund shares redeemed | 120,575 | |
Accrued management fee | 55,164 | |
Distribution and service plan fees payable | 44,149 | |
Other affiliated payables | 30,926 | |
Other payables and accrued expenses | 29,885 | |
Collateral on securities loaned, at value | 2,722,048 | |
Total liabilities | | 7,666,916 |
| | |
Net Assets | | $ 120,877,194 |
Net Assets consist of: | | |
Paid in capital | | $ 215,614,635 |
Accumulated net investment loss | | (108,763) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (93,665,935) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (962,743) |
Net Assets | | $ 120,877,194 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($62,755,575 ÷ 6,387,962 shares) | | $ 9.82 |
| | |
Maximum offering price per share (100/94.25 of $9.82) | | $ 10.42 |
Class T:
Net Asset Value and redemption price per share ($23,963,801 ÷ 2,452,695 shares) | | $ 9.77 |
| | |
Maximum offering price per share (100/96.50 of $9.77) | | $ 10.12 |
Class B:
Net Asset Value and offering price per share ($6,214,784 ÷ 655,611 shares)A | | $ 9.48 |
| | |
Class C:
Net Asset Value and offering price per share ($20,363,292 ÷ 2,167,420 shares)A | | $ 9.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($7,579,742 ÷ 754,870 shares) | | $ 10.04 |
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, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 906,043 |
Income from Fidelity Central Funds | | 13,862 |
Total income | | 919,905 |
| | |
Expenses | | |
Management fee | $ 314,138 | |
Transfer agent fees | 167,101 | |
Distribution and service plan fees | 253,421 | |
Accounting and security lending fees | 22,196 | |
Custodian fees and expenses | 14,123 | |
Independent trustees' compensation | 398 | |
Registration fees | 41,026 | |
Audit | 27,600 | |
Legal | 514 | |
Miscellaneous | 576 | |
Total expenses before reductions | 841,093 | |
Expense reductions | (36,022) | 805,071 |
Net investment income (loss) | | 114,834 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (9,856,545) | |
Foreign currency transactions | (56,325) | |
Total net realized gain (loss) | | (9,912,870) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,216,119 | |
Assets and liabilities in foreign currencies | 457 | |
Total change in net unrealized appreciation (depreciation) | | 6,216,576 |
Net gain (loss) | | (3,696,294) |
Net increase (decrease) in net assets resulting from operations | | $ (3,581,460) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 114,834 | $ (682,395) |
Net realized gain (loss) | (9,912,870) | (942,210) |
Change in net unrealized appreciation (depreciation) | 6,216,576 | (2,518,839) |
Net increase (decrease) in net assets resulting from operations | (3,581,460) | (4,143,444) |
Distributions to shareholders from net investment income | (107,549) | - |
Share transactions - net increase (decrease) | (5,248,151) | (16,036,954) |
Redemption fees | 2,675 | 4,715 |
Total increase (decrease) in net assets | (8,934,485) | (20,175,683) |
| | |
Net Assets | | |
Beginning of period | 129,811,679 | 149,987,362 |
End of period (including accumulated net investment loss of $108,763 and accumulated net investment loss of $116,048, respectively) | $ 120,877,194 | $ 129,811,679 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.06 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.02) | (.01) | .19 | .30 | .23 |
Net realized and unrealized gain (loss) | (.25) | (.27) | .93 | (3.58) | (6.41) | .92 |
Total from investment operations | (.23) | (.29) | .92 | (3.39) | (6.11) | 1.15 |
Distributions from net investment income | (.01) | - | (.10) | (.24) | (.27) | (.22) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | (.01) | - | (.10) | (.26) | (1.73) | (3.47) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.82 | $ 10.06 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 |
Total Return B,C,D | (2.24)% | (2.80)% | 9.61% | (25.87)% | (31.67)% | 4.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.30% A | 1.26% | 1.27% | 1.29% | 1.21% | 1.23% |
Expenses net of fee waivers, if any | 1.30% A | 1.26% | 1.27% | 1.29% | 1.21% | 1.23% |
Expenses net of all reductions | 1.23% A | 1.21% | 1.22% | 1.28% | 1.21% | 1.22% |
Net investment income (loss) | .41% A | (.24)% | (.09)% | 2.12% | 1.75% | 1.01% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 62,756 | $ 63,937 | $ 69,723 | $ 68,245 | $ 90,037 | $ 106,722 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.47 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $3.250 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.01 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.05) | (.04) | .16 | .26 | .18 |
Net realized and unrealized gain (loss) | (.25) | (.26) | .92 | (3.56) | (6.41) | .91 |
Total from investment operations | (.24) | (.31) | .88 | (3.40) | (6.15) | 1.09 |
Distributions from net investment income | - | - | (.08) | (.20) | (.19) | (.16) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | - | - | (.08) | (.22) | (1.65) | (3.41) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.77 | $ 10.01 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 |
Total Return B,C,D | (2.36)% | (3.00)% | 9.26% | (26.00)% | (31.85)% | 4.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.56% A | 1.52% | 1.53% | 1.55% | 1.47% | 1.46% |
Expenses net of fee waivers, if any | 1.56% A | 1.52% | 1.53% | 1.55% | 1.47% | 1.46% |
Expenses net of all reductions | 1.49% A | 1.47% | 1.47% | 1.54% | 1.47% | 1.46% |
Net investment income (loss) | .15% A | (.49)% | (.35)% | 1.86% | 1.50% | .77% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,964 | $ 27,037 | $ 33,310 | $ 34,927 | $ 53,526 | $ 95,426 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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 January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.73 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.09) | .12 | .18 | .06 |
Net realized and unrealized gain (loss) | (.24) | (.26) | .91 | (3.50) | (6.29) | .89 |
Total from investment operations | (.25) | (.36) | .82 | (3.38) | (6.11) | .95 |
Distributions from net investment income | - | - | (.06) | (.12) | (.04) | (.02) |
Distributions from net realized gain | - | - | - | (.02) | (1.44) | (3.25) |
Total distributions | - | - | (.06) | (.14) | (1.48) | (3.26) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.48 | $ 9.73 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 |
Total Return B,C,D | (2.57)% | (3.57)% | 8.78% | (26.35)% | (32.21)% | 3.71% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.98% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.98% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.97% | 2.03% | 1.96% | 1.98% |
Net investment income (loss) | (.34)% A | (.98)% | (.85)% | 1.38% | 1.01% | .25% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,215 | $ 7,480 | $ 10,992 | $ 12,477 | $ 20,420 | $ 64,837 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.26 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $3.247 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.09) | .12 | .17 | .06 |
Net realized and unrealized gain (loss) | (.24) | (.25) | .90 | (3.48) | (6.24) | .90 |
Total from investment operations | (.25) | (.35) | .81 | (3.36) | (6.07) | .96 |
Distributions from net investment income | - | - | (.06) | (.15) | (.09) | (.05) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | - | - | (.06) | (.17) | (1.55) | (3.30) J |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.40 | $ 9.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 |
Total Return B,C,D | (2.59)% | (3.50)% | 8.79% | (26.38)% | (32.18)% | 3.75% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.94% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 2.02% | 2.04% | 1.96% | 1.94% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.96% | 2.03% | 1.96% | 1.94% |
Net investment income (loss) | (.34)% A | (.99)% | (.84)% | 1.37% | 1.01% | .29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,363 | $ 23,196 | $ 30,804 | $ 29,849 | $ 37,777 | $ 55,219 |
Portfolio turnover rate G | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.30 per share is comprised of distributions from net investment income of $.049 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.28 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .01 | .02 | .21 | .36 | .31 |
Net realized and unrealized gain (loss) | (.25) | (.28) | .95 | (3.63) | (6.51) | .93 |
Total from investment operations | (.22) | (.27) | .97 | (3.42) | (6.15) | 1.24 |
Distributions from net investment income | (.02) | - | (.11) | (.25) | (.33) | (.30) |
Distributions from net realized gain | - | - | - | (.02) | (1.46) | (3.25) |
Total distributions | (.02) | - | (.11) | (.27) | (1.79) | (3.55) I |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.04 | $ 10.28 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 |
Total Return B,C | (2.10)% | (2.56)% | 9.99% | (25.68)% | (31.47)% | 4.88% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 1.02% A | .96% | .99% | 1.04% | .93% | .89% |
Expenses net of fee waivers, if any | 1.02% A | .96% | .99% | 1.04% | .93% | .89% |
Expenses net of all reductions | .96% A | .91% | .94% | 1.03% | .92% | .88% |
Net investment income (loss) | .68% A | .07% | .19% | 2.37% | 2.04% | 1.34% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,580 | $ 8,162 | $ 5,158 | $ 3,797 | $ 5,819 | $ 8,474 |
Portfolio turnover rate F | 439% A | 260% | 254% | 269% | 48% | 53% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services 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, except for exchanges and reinvestments. 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. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 foreign currency transaction, certain foreign taxes, partnerships, deferred trustees compensation, passive foreign investment companies (PFIC), equity-debt classification, 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 | $ 6,287,978 |
Gross unrealized depreciation | (9,872,363) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (3,584,385) |
| |
Tax cost | $ 128,797,551 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (55,672,202) |
2018 | (23,251,884) |
2019 | (450,657) |
Total capital loss carryforward | (79,374,743) |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $2,671,096 of losses recognized during the period November 1, 2010 to July 31, 2011.
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 $247,151,080 and $253,623,660, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 72,492 | $ 14,212 |
Class T | .25% | .25% | 56,190 | - |
Class B | .75% | .25% | 30,351 | 22,763 |
Class C | .75% | .25% | 94,388 | 10,615 |
| | | $ 253,421 | $ 47,590 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC* |
Class A | $ 29,987 |
Class T | 1,336 |
Class B* | 6,465 |
Class C* | 1,242 |
| $ 39,030 |
* 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
Average
Net Assets* |
Class A | $ 85,994 | .30 |
Class T | 34,640 | .31 |
Class B | 9,043 | .30 |
Class C | 28,060 | .30 |
Institutional Class | 9,364 | .27 |
| $ 167,101 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $13,758 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $160 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $11,987. 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 $36,022 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 83,840 | $ - |
Class T | 7,542 | - |
Institutional Class | 16,167 | - |
Total | $ 107,549 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,124,637 | 2,161,457 | $ 9,810,658 | $ 22,928,387 |
Reinvestment of distributions | 8,251 | - | 73,682 | - |
Shares redeemed | (1,097,833) | (2,543,428) | (9,760,920) | (27,053,427) |
Net increase (decrease) | 35,055 | (381,971) | $ 123,420 | $ (4,125,040) |
Class T | | | | |
Shares sold | 162,160 | 432,428 | $ 1,439,761 | $ 4,608,539 |
Reinvestment of distributions | 806 | - | 7,158 | - |
Shares redeemed | (410,971) | (958,085) | (3,587,339) | (10,097,220) |
Net increase (decrease) | (248,005) | (525,657) | $ (2,140,420) | $ (5,488,681) |
Class B | | | | |
Shares sold | 3,494 | 48,520 | $ 30,052 | $ 510,105 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (116,321) | (369,736) | (987,614) | (3,763,785) |
Net increase (decrease) | (112,827) | (321,216) | $ (957,562) | $ (3,253,680) |
Class C | | | | |
Shares sold | 151,282 | 446,364 | $ 1,317,802 | $ 4,631,347 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (388,342) | (1,122,959) | (3,266,392) | (11,383,791) |
Net increase (decrease) | (237,060) | (676,595) | $ (1,948,590) | $ (6,752,444) |
Institutional Class | | | | |
Shares sold | 162,693 | 691,657 | $ 1,481,803 | $ 7,779,752 |
Reinvestment of distributions | 1,570 | - | 14,317 | - |
Shares redeemed | (203,196) | (387,007) | (1,821,119) | (4,196,861) |
Net increase (decrease) | (38,933) | 304,650 | $ (324,999) | $ 3,582,891 |
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 Health Care Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,017.90 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.10 | $ 6.09 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 1,016.40 | $ 7.40 |
Hypothetical A | | $ 1,000.00 | $ 1,017.80 | $ 7.41 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,014.30 | $ 9.87 |
Hypothetical A | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,014.40 | $ 9.72 |
Hypothetical A | | $ 1,000.00 | $ 1,015.48 | $ 9.73 |
Institutional Class | .91% | | | |
Actual | | $ 1,000.00 | $ 1,019.20 | $ 4.62 |
Hypothetical A | | $ 1,000.00 | $ 1,020.56 | $ 4.62 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Amgen, Inc. | 6.7 | 5.0 |
Covidien PLC | 4.4 | 6.3 |
UnitedHealth Group, Inc. | 4.1 | 1.4 |
Gilead Sciences, Inc. | 4.1 | 1.3 |
Merck & Co., Inc. | 3.9 | 2.2 |
WellPoint, Inc. | 3.6 | 2.0 |
Express Scripts, Inc. | 3.4 | 2.5 |
Medco Health Solutions, Inc. | 3.3 | 2.9 |
GlaxoSmithKline PLC sponsored ADR | 2.8 | 0.0 |
Biogen Idec, Inc. | 2.7 | 1.5 |
| 39.0 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Health Care Providers & Services | 31.5% | |
| Biotechnology | 26.8% | |
| Pharmaceuticals | 19.0% | |
| Health Care Equipment & Supplies | 12.8% | |
| Food & Staples Retailing | 2.1% | |
| All Others* | 7.8% | |
As of July 31, 2011 |
| Health Care Equipment & Supplies | 23.1% | |
| Biotechnology | 21.9% | |
| Health Care Providers & Services | 21.4% | |
| Pharmaceuticals | 15.3% | |
| Life Sciences Tools & Services | 9.7% | |
| All Others* | 8.6% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
BIOTECHNOLOGY - 26.8% |
Biotechnology - 26.8% |
Achillion Pharmaceuticals, Inc. (a)(d) | 210,600 | | $ 2,335,554 |
Acorda Therapeutics, Inc. (a) | 132,427 | | 3,380,861 |
Alexion Pharmaceuticals, Inc. (a) | 139,786 | | 10,729,973 |
AMAG Pharmaceuticals, Inc. (a) | 32,589 | | 535,111 |
Amgen, Inc. | 463,365 | | 31,467,119 |
Anthera Pharmaceuticals, Inc. (a) | 147,688 | | 1,163,781 |
Ardea Biosciences, Inc. (a) | 148,785 | | 2,706,399 |
ARIAD Pharmaceuticals, Inc. (a) | 330,000 | | 4,867,500 |
AVEO Pharmaceuticals, Inc. (a)(d) | 106,182 | | 1,399,479 |
Biogen Idec, Inc. (a) | 107,479 | | 12,673,924 |
BioMarin Pharmaceutical, Inc. (a) | 298,040 | | 10,631,087 |
Chelsea Therapeutics International Ltd. (a) | 31,700 | | 142,650 |
Dynavax Technologies Corp. (a)(d) | 769,400 | | 2,677,512 |
Gilead Sciences, Inc. (a) | 394,167 | | 19,251,116 |
Human Genome Sciences, Inc. (a) | 128,000 | | 1,259,520 |
Medivation, Inc. (a) | 43,564 | | 2,413,881 |
Neurocrine Biosciences, Inc. (a) | 197,518 | | 1,836,917 |
NPS Pharmaceuticals, Inc. (a) | 217,900 | | 1,673,472 |
ONYX Pharmaceuticals, Inc. (a) | 54,200 | | 2,218,948 |
Rigel Pharmaceuticals, Inc. (a) | 23,100 | | 225,687 |
Seattle Genetics, Inc. (a)(d) | 111,357 | | 2,107,988 |
Synageva BioPharma Corp. (a) | 16,200 | | 575,586 |
Targacept, Inc. (a) | 130,715 | | 794,747 |
Theravance, Inc. (a)(d) | 153,600 | | 2,724,864 |
United Therapeutics Corp. (a) | 88,104 | | 4,332,955 |
Vical, Inc. (a) | 279,000 | | 979,290 |
ZIOPHARM Oncology, Inc. (a) | 102,100 | | 542,151 |
| | 125,648,072 |
DIVERSIFIED CONSUMER SERVICES - 0.5% |
Specialized Consumer Services - 0.5% |
Carriage Services, Inc. | 221,955 | | 1,271,802 |
Stewart Enterprises, Inc. Class A | 154,043 | | 947,364 |
| | 2,219,166 |
FOOD & STAPLES RETAILING - 2.1% |
Drug Retail - 2.1% |
CVS Caremark Corp. | 132,100 | | 5,515,175 |
Drogasil SA | 506,400 | | 4,202,610 |
| | 9,717,785 |
HEALTH CARE EQUIPMENT & SUPPLIES - 12.8% |
Health Care Equipment - 11.4% |
Baxter International, Inc. | 22,000 | | 1,220,560 |
Boston Scientific Corp. (a) | 1,291,611 | | 7,698,002 |
C. R. Bard, Inc. | 21,900 | | 2,026,188 |
Conceptus, Inc. (a) | 160,600 | | 1,988,228 |
CONMED Corp. (a) | 56,000 | | 1,646,400 |
Covidien PLC | 403,454 | | 20,777,881 |
|
| Shares | | Value |
Cyberonics, Inc. (a) | 65,720 | | $ 2,135,900 |
HeartWare International, Inc. (a) | 30,700 | | 2,125,361 |
Opto Circuits India Ltd. | 214,591 | | 1,028,858 |
Orthofix International NV (a) | 43,205 | | 1,734,681 |
William Demant Holding A/S (a) | 25,263 | | 2,092,304 |
Wright Medical Group, Inc. (a) | 220,900 | | 3,744,255 |
Zeltiq Aesthetics, Inc. (d) | 82,300 | | 987,600 |
Zimmer Holdings, Inc. | 73,300 | | 4,452,975 |
| | 53,659,193 |
Health Care Supplies - 1.4% |
The Cooper Companies, Inc. | 88,250 | | 6,366,355 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 60,025,548 |
HEALTH CARE PROVIDERS & SERVICES - 31.5% |
Health Care Distributors & Services - 1.6% |
Amplifon SpA | 304,971 | | 1,372,171 |
McKesson Corp. | 54,720 | | 4,471,718 |
PharMerica Corp. (a) | 131,800 | | 1,654,090 |
| | 7,497,979 |
Health Care Facilities - 1.3% |
Emeritus Corp. (a) | 97,675 | | 1,705,406 |
Hanger Orthopedic Group, Inc. (a) | 65,665 | | 1,286,377 |
LCA-Vision, Inc. (a) | 191,300 | | 971,804 |
Sunrise Senior Living, Inc. (a)(d) | 291,509 | | 2,072,629 |
| | 6,036,216 |
Health Care Services - 16.4% |
Accretive Health, Inc. (a) | 142,845 | | 3,832,531 |
Catalyst Health Solutions, Inc. (a) | 96,500 | | 5,284,340 |
Express Scripts, Inc. (a) | 313,786 | | 16,053,292 |
Fresenius Medical Care AG & Co. KGaA | 62,713 | | 4,483,235 |
HMS Holdings Corp. (a) | 90,300 | | 2,980,803 |
Laboratory Corp. of America Holdings (a) | 87,570 | | 8,003,022 |
Medco Health Solutions, Inc. (a) | 253,075 | | 15,695,712 |
MEDNAX, Inc. (a) | 89,700 | | 6,388,434 |
Omnicare, Inc. | 244,326 | | 8,021,223 |
Quest Diagnostics, Inc. | 109,548 | | 6,362,548 |
Team Health Holdings, Inc. (a) | 12,500 | | 257,500 |
| | 77,362,640 |
Managed Health Care - 12.2% |
Aetna, Inc. | 155,300 | | 6,786,610 |
Health Net, Inc. (a) | 132,700 | | 5,008,098 |
Humana, Inc. | 95,800 | | 8,528,116 |
UnitedHealth Group, Inc. | 374,167 | | 19,378,109 |
Universal American Spin Corp. (a) | 53,300 | | 585,767 |
WellPoint, Inc. | 263,896 | | 16,973,791 |
| | 57,260,491 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 148,157,326 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE TECHNOLOGY - 1.5% |
Health Care Technology - 1.5% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 109,643 | | $ 2,096,374 |
athenahealth, Inc. (a) | 66,800 | | 3,886,424 |
Epocrates, Inc. (a) | 107,000 | | 1,036,830 |
| | 7,019,628 |
LIFE SCIENCES TOOLS & SERVICES - 1.0% |
Life Sciences Tools & Services - 1.0% |
Illumina, Inc. (a) | 91,700 | | 4,746,392 |
PERSONAL PRODUCTS - 0.4% |
Personal Products - 0.4% |
Prestige Brands Holdings, Inc. (a) | 161,172 | | 2,069,448 |
PHARMACEUTICALS - 18.9% |
Pharmaceuticals - 18.9% |
Cardiome Pharma Corp. (a) | 358,700 | | 850,120 |
Elan Corp. PLC sponsored ADR (a) | 336,200 | | 4,575,682 |
Eli Lilly & Co. | 150,300 | | 5,972,922 |
Endo Pharmaceuticals Holdings, Inc. (a) | 65,900 | | 2,449,503 |
Forest Laboratories, Inc. (a) | 55,200 | | 1,754,256 |
GlaxoSmithKline PLC sponsored ADR | 297,700 | | 13,259,558 |
Meda AB (A Shares) | 178,100 | | 1,879,974 |
Medicis Pharmaceutical Corp. Class A | 36,403 | | 1,204,575 |
Merck & Co., Inc. | 481,995 | | 18,441,129 |
Optimer Pharmaceuticals, Inc. (a)(d) | 171,954 | | 2,230,243 |
Pacira Pharmaceuticals, Inc. | 62,200 | | 672,382 |
Pfizer, Inc. | 110,388 | | 2,362,303 |
Sanofi-aventis sponsored ADR | 265,400 | | 9,854,302 |
Shire PLC sponsored ADR | 88,900 | | 8,847,328 |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 197,704 | | 9,574,177 |
Watson Pharmaceuticals, Inc. (a) | 77,900 | | 4,567,277 |
XenoPort, Inc. (a) | 118,900 | | 498,191 |
| | 88,993,922 |
PROFESSIONAL SERVICES - 1.2% |
Research & Consulting Services - 1.2% |
Advisory Board Co. (a) | 33,300 | | 2,540,124 |
Qualicorp SA | 334,000 | | 3,305,208 |
| | 5,845,332 |
SOFTWARE - 0.5% |
Application Software - 0.5% |
Nuance Communications, Inc. (a) | 77,318 | | 2,205,109 |
TOTAL COMMON STOCKS (Cost $382,509,970) |
456,647,728
|
Convertible Preferred Stocks - 0.1% |
| Shares | | Value |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
Merrimack Pharmaceuticals, Inc.
Series G (e)
(Cost $562,611) | 80,373 | | $ 578,686 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.12% (b) | 11,763,827 | | 11,763,827 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 8,458,300 | | 8,458,300 |
TOTAL MONEY MARKET FUNDS (Cost $20,222,127) |
20,222,127
|
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $403,294,708) | | 477,448,541 |
NET OTHER ASSETS (LIABILITIES) - (1.6)% | | (7,665,926) |
NET ASSETS - 100% | $ 469,782,615 |
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 $578,686 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 562,611 |
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 | $ 12,246 |
Fidelity Securities Lending Cash Central Fund | 39,783 |
Total | $ 52,029 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 456,647,728 | $ 452,164,493 | $ 4,483,235 | $ - |
Convertible Preferred Stocks | 578,686 | - | - | 578,686 |
Money Market Funds | 20,222,127 | 20,222,127 | - | - |
Total Investments in Securities: | $ 477,448,541 | $ 472,386,620 | $ 4,483,235 | $ 578,686 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 562,611 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 16,075 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 578,686 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 16,075 |
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 | 81.4% |
Ireland | 5.4% |
United Kingdom | 2.8% |
Canada | 2.2% |
France | 2.1% |
Bailiwick of Jersey | 1.9% |
Brazil | 1.6% |
Others (Individually Less Than 1%) | 2.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $8,033,211) - See accompanying schedule: Unaffiliated issuers (cost $383,072,581) | $ 457,226,414 | |
Fidelity Central Funds (cost $20,222,127) | 20,222,127 | |
Total Investments (cost $403,294,708) | | $ 477,448,541 |
Receivable for investments sold | | 5,852,924 |
Receivable for fund shares sold | | 393,705 |
Dividends receivable | | 165,386 |
Distributions receivable from Fidelity Central Funds | | 8,778 |
Prepaid expenses | | 1,163 |
Other receivables | | 10,249 |
Total assets | | 483,880,746 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,451,180 | |
Payable for fund shares redeemed | 656,815 | |
Accrued management fee | 214,524 | |
Distribution and service plan fees payable | 168,446 | |
Other affiliated payables | 119,099 | |
Other payables and accrued expenses | 29,767 | |
Collateral on securities loaned, at value | 8,458,300 | |
Total liabilities | | 14,098,131 |
| | |
Net Assets | | $ 469,782,615 |
Net Assets consist of: | | |
Paid in capital | | $ 388,249,432 |
Accumulated net investment loss | | (1,141,603) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 8,518,953 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 74,155,833 |
Net Assets | | $ 469,782,615 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($221,706,339 ÷ 9,622,804 shares) | | $ 23.04 |
| | |
Maximum offering price per share (100/94.25 of $23.04) | | $ 24.45 |
Class T:
Net Asset Value and redemption price per share ($116,479,102 ÷ 5,249,903 shares) | | $ 22.19 |
| | |
Maximum offering price per share (100/96.50 of $22.19) | | $ 22.99 |
Class B:
Net Asset Value and offering price per share ($17,420,177 ÷ 851,160 shares)A | | $ 20.47 |
| | |
Class C:
Net Asset Value and offering price per share ($74,410,936 ÷ 3,642,714 shares)A | | $ 20.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($39,766,061 ÷ 1,644,276 shares) | | $ 24.18 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,801,224 |
Income from Fidelity Central Funds | | 52,029 |
Total income | | 1,853,253 |
| | |
Expenses | | |
Management fee | $ 1,198,848 | |
Transfer agent fees | 626,581 | |
Distribution and service plan fees | 954,919 | |
Accounting and security lending fees | 85,414 | |
Custodian fees and expenses | 16,990 | |
Independent trustees' compensation | 1,474 | |
Registration fees | 56,367 | |
Audit | 29,479 | |
Legal | 1,481 | |
Miscellaneous | 1,999 | |
Total expenses before reductions | 2,973,552 | |
Expense reductions | (22,424) | 2,951,128 |
Net investment income (loss) | | (1,097,875) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 11,268,341 | |
Foreign currency transactions | (83,944) | |
Total net realized gain (loss) | | 11,184,397 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,674,821) | |
Assets and liabilities in foreign currencies | (2,520) | |
Total change in net unrealized appreciation (depreciation) | | (6,677,341) |
Net gain (loss) | | 4,507,056 |
Net increase (decrease) in net assets resulting from operations | | $ 3,409,181 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (1,097,875) | $ (2,816,326) |
Net realized gain (loss) | 11,184,397 | 84,545,757 |
Change in net unrealized appreciation (depreciation) | (6,677,341) | 41,597,148 |
Net increase (decrease) in net assets resulting from operations | 3,409,181 | 123,326,579 |
Distributions to shareholders from net realized gain | (49,973,324) | - |
Share transactions - net increase (decrease) | 24,613,700 | (10,714,611) |
Redemption fees | 66,623 | 9,972 |
Total increase (decrease) in net assets | (21,883,820) | 112,621,940 |
| | |
Net Assets | | |
Beginning of period | 491,666,435 | 379,044,495 |
End of period (including accumulated net investment loss of $1,141,603 and accumulated net investment loss of $43,728, respectively) | $ 469,782,615 | $ 491,666,435 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.60 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.10) | (.07) | .02 | (.03) | (.03) |
Net realized and unrealized gain (loss) | .11 | 6.69 | 1.93 | (2.22) | (1.08) | 1.91 |
Total from investment operations | .08 | 6.59 | 1.86 | (2.20) | (1.11) | 1.88 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (2.07) | (2.75) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 23.04 | $ 25.60 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 |
Total Return B,C,D | 1.79% | 34.67% | 10.85% | (11.37)% | (5.64)% | 8.54% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.20% A | 1.19% | 1.22% | 1.23% | 1.20% | 1.22% |
Expenses net of fee waivers, if any | 1.20% A | 1.19% | 1.22% | 1.23% | 1.20% | 1.22% |
Expenses net of all reductions | 1.19% A | 1.18% | 1.21% | 1.23% | 1.19% | 1.21% |
Net investment income (loss) | (.32)% A | (.43)% | (.36)% | .11% | (.13)% | (.14)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 221,706 | $ 224,704 | $ 179,586 | $ 177,890 | $ 220,888 | $ 234,656 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.80 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.16) | (.12) | (.02) | (.08) | (.09) |
Net realized and unrealized gain (loss) | .09 | 6.50 | 1.89 | (2.18) | (1.06) | 1.87 |
Total from investment operations | .03 | 6.34 | 1.77 | (2.20) | (1.14) | 1.78 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.99) | (2.65) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 22.19 | $ 24.80 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 |
Total Return B,C,D | 1.64% | 34.34% | 10.61% | (11.65)% | (5.86)% | 8.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.46% A | 1.44% | 1.47% | 1.49% | 1.46% | 1.48% |
Expenses net of fee waivers, if any | 1.46% A | 1.44% | 1.47% | 1.49% | 1.46% | 1.48% |
Expenses net of all reductions | 1.44% A | 1.43% | 1.46% | 1.49% | 1.45% | 1.47% |
Net investment income (loss) | (.58)% A | (.69)% | (.62)% | (.15)% | (.40)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 116,479 | $ 123,606 | $ 100,883 | $ 103,772 | $ 143,237 | $ 186,628 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.15 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.25) | (.20) | (.09) | (.18) | (.20) |
Net realized and unrealized gain (loss) | .06 | 6.08 | 1.78 | (2.07) | (.99) | 1.79 |
Total from investment operations | (.04) | 5.83 | 1.58 | (2.16) | (1.17) | 1.59 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.85) | (2.47) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.47 | $ 23.15 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 |
Total Return B,C,D | 1.43% | 33.66% | 10.04% | (12.07)% | (6.30)% | 7.66% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.95% A | 1.94% | 1.97% | 1.98% | 1.95% | 1.99% |
Expenses net of fee waivers, if any | 1.95% A | 1.94% | 1.97% | 1.98% | 1.95% | 1.99% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.96% | 1.98% | 1.94% | 1.98% |
Net investment income (loss) | (1.07)% A | (1.19)% | (1.11)% | (.64)% | (.89)% | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,420 | $ 20,365 | $ 23,543 | $ 29,381 | $ 55,589 | $ 113,384 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.11 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.24) | (.19) | (.09) | (.17) | (.19) |
Net realized and unrealized gain (loss) | .06 | 6.06 | 1.78 | (2.07) | (1.00) | 1.79 |
Total from investment operations | (.04) | 5.82 | 1.59 | (2.16) | (1.17) | 1.60 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (1.89) | (2.55) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.43 | $ 23.11 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 |
Total Return B,C,D | 1.44% | 33.66% | 10.13% | (12.09)% | (6.31)% | 7.75% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.92% A | 1.90% | 1.94% | 1.98% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 1.92% A | 1.90% | 1.94% | 1.98% | 1.94% | 1.94% |
Expenses net of all reductions | 1.91% A | 1.89% | 1.93% | 1.98% | 1.94% | 1.93% |
Net investment income (loss) | (1.04)% A | (1.15)% | (1.08)% | (.64)% | (.88)% | (.86)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 74,411 | $ 77,749 | $ 60,861 | $ 64,002 | $ 83,133 | $ 105,519 |
Portfolio turnover rate G | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.69 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - H | (.03) | (.02) | .06 | .03 | .05 |
Net realized and unrealized gain (loss) | .13 | 6.95 | 2.01 | (2.30) | (1.12) | 1.96 |
Total from investment operations | .13 | 6.92 | 1.99 | (2.24) | (1.09) | 2.01 |
Distributions from net realized gain | (2.64) | - | - | (.37) | (2.14) | (2.82) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 24.18 | $ 26.69 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 |
Total Return B,C | 1.92% | 35.00% | 11.19% | (11.19)% | (5.36)% | 8.90% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .91% A | .89% | .96% | .98% | .93% | .88% |
Expenses net of fee waivers, if any | .91% A | .89% | .96% | .98% | .93% | .88% |
Expenses net of all reductions | .90% A | .88% | .95% | .98% | .92% | .87% |
Net investment income (loss) | (.04)% A | (.13)% | (.10)% | .36% | .14% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 39,766 | $ 45,243 | $ 14,172 | $ 13,452 | $ 18,825 | $ 22,174 |
Portfolio turnover rate F | 130% A | 125% | 103% | 172% | 134% | 141% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 transaction, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 84,810,597 |
Gross unrealized depreciation | (12,923,235) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 71,887,362 |
| |
Tax cost | $ 405,561,179 |
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 $276,921,972 and $305,788,677, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 250,813 | $ 896 |
Class T | .25% | .25% | 273,114 | - |
Class B | .75% | .25% | 85,028 | 63,849 |
Class C | .75% | .25% | 345,964 | 19,904 |
| | | $ 954,919 | $ 84,649 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 24,539 |
Class T | 6,577 |
Class B* | 9,098 |
Class C* | 1,261 |
| $ 41,475 |
* 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
Average
Net Assets* |
Class A | $ 299,325 | .30 |
Class T | 167,023 | .31 |
Class B | 25,386 | .30 |
Class C | 92,240 | .27 |
Institutional Class | 42,607 | .26 |
| $ 626,581 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $4,970 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $607 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $39,783, including $387 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $22,421 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net realized gain | | |
Class A | $ 22,637,769 | $ - |
Class T | 12,838,932 | - |
Class B | 2,229,080 | - |
Class C | 8,852,071 | - |
Institutional Class | 3,415,472 | - |
Total | $ 49,973,324 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,032,206 | 2,257,884 | $ 22,279,810 | $ 55,506,569 |
Reinvestment of distributions | 974,554 | - | 19,678,527 | - |
Shares redeemed | (1,159,974) | (2,927,010) | (25,116,579) | (69,236,135) |
Net increase (decrease) | 846,786 | (669,126) | $ 16,841,758 | $ (13,729,566) |
Class T | | | | |
Shares sold | 284,334 | 610,720 | $ 5,929,169 | $ 14,273,371 |
Reinvestment of distributions | 626,615 | - | 12,200,301 | - |
Shares redeemed | (646,144) | (1,090,770) | (13,547,106) | (24,737,327) |
Net increase (decrease) | 264,805 | (480,050) | $ 4,582,364 | $ (10,463,956) |
Class B | | | | |
Shares sold | 49,607 | 46,091 | $ 959,426 | $ 1,030,863 |
Reinvestment of distributions | 107,208 | - | 1,929,279 | - |
Shares redeemed | (185,194) | (525,569) | (3,554,322) | (10,871,447) |
Net increase (decrease) | (28,379) | (479,478) | $ (665,617) | $ (9,840,584) |
Class C | | | | |
Shares sold | 315,121 | 524,474 | $ 6,091,318 | $ 11,843,311 |
Reinvestment of distributions | 406,182 | - | 7,293,865 | - |
Shares redeemed | (442,646) | (681,222) | (8,433,876) | (14,258,065) |
Net increase (decrease) | 278,657 | (156,748) | $ 4,951,307 | $ (2,414,754) |
Institutional Class | | | | |
Shares sold | 572,486 | 1,277,086 | $ 13,101,073 | $ 33,336,034 |
Reinvestment of distributions | 134,306 | - | 2,842,866 | - |
Shares redeemed | (757,356) | (299,253) | (17,040,051) | (7,601,785) |
Net increase (decrease) | (50,564) | 977,833 | $ (1,096,112) | $ 25,734,249 |
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 Industrials Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,033.80 | $ 5.93 |
Hypothetical A | | $ 1,000.00 | $ 1,019.30 | $ 5.89 |
Class T | 1.41% | | | |
Actual | | $ 1,000.00 | $ 1,032.30 | $ 7.20 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.15 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,029.70 | $ 9.95 |
Hypothetical A | | $ 1,000.00 | $ 1,015.33 | $ 9.88 |
Class C | 1.91% | | | |
Actual | | $ 1,000.00 | $ 1,030.10 | $ 9.75 |
Hypothetical A | | $ 1,000.00 | $ 1,015.53 | $ 9.68 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,035.30 | $ 4.40 |
Hypothetical A | | $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
General Electric Co. | 11.7 | 13.5 |
United Technologies Corp. | 6.1 | 6.0 |
Danaher Corp. | 3.9 | 3.7 |
3M Co. | 3.8 | 1.0 |
Union Pacific Corp. | 3.8 | 5.0 |
Emerson Electric Co. | 3.3 | 3.7 |
United Parcel Service, Inc. Class B | 3.3 | 0.0 |
Honeywell International, Inc. | 3.1 | 3.2 |
Cummins, Inc. | 3.0 | 3.3 |
CSX Corp. | 2.7 | 0.0 |
| 44.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Industrial Conglomerates | 22.4% | |
| Machinery | 19.9% | |
| Aerospace & Defense | 12.9% | |
| Electrical Equipment | 11.4% | |
| Road & Rail | 7.0% | |
| All Others* | 26.4% | |
As of July 31, 2011 |
| Aerospace & Defense | 21.9% | |
| Industrial Conglomerates | 21.8% | |
| Machinery | 16.7% | |
| Electrical Equipment | 11.8% | |
| Construction & Engineering | 6.9% | |
| All Others* | 20.9% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
AEROSPACE & DEFENSE - 12.9% |
Aerospace & Defense - 12.9% |
Esterline Technologies Corp. (a) | 37,017 | | $ 2,263,590 |
Honeywell International, Inc. | 221,929 | | 12,880,759 |
Rockwell Collins, Inc. | 72,997 | | 4,225,796 |
Textron, Inc. | 346,458 | | 8,827,750 |
United Technologies Corp. | 320,023 | | 25,073,802 |
| | 53,271,697 |
AIR FREIGHT & LOGISTICS - 4.5% |
Air Freight & Logistics - 4.5% |
C.H. Robinson Worldwide, Inc. | 40,246 | | 2,770,535 |
United Parcel Service, Inc. Class B | 179,050 | | 13,545,133 |
UTI Worldwide, Inc. | 167,823 | | 2,498,884 |
| | 18,814,552 |
AUTO COMPONENTS - 1.0% |
Auto Parts & Equipment - 1.0% |
Autoliv, Inc. (d) | 65,700 | | 4,145,013 |
BUILDING PRODUCTS - 2.5% |
Building Products - 2.5% |
Armstrong World Industries, Inc. (a) | 78,878 | | 3,683,603 |
Fortune Brands Home & Security, Inc. (a) | 66,700 | | 1,238,619 |
Owens Corning (a) | 164,088 | | 5,537,970 |
| | 10,460,192 |
COMMERCIAL SERVICES & SUPPLIES - 2.1% |
Environmental & Facility Services - 1.5% |
Republic Services, Inc. | 218,932 | | 6,410,329 |
Office Services & Supplies - 0.6% |
Mine Safety Appliances Co. | 61,011 | | 2,082,916 |
Pitney Bowes, Inc. (d) | 10,600 | | 201,082 |
| | 2,283,998 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 8,694,327 |
CONSTRUCTION & ENGINEERING - 4.7% |
Construction & Engineering - 4.7% |
AECOM Technology Corp. (a) | 147,036 | | 3,365,654 |
EMCOR Group, Inc. | 121,498 | | 3,502,787 |
Fluor Corp. | 79,111 | | 4,449,203 |
Foster Wheeler AG (a) | 116,631 | | 2,619,532 |
Jacobs Engineering Group, Inc. (a) | 75,887 | | 3,396,702 |
Quanta Services, Inc. (a) | 99,078 | | 2,140,085 |
| | 19,473,963 |
ELECTRICAL EQUIPMENT - 11.4% |
Electrical Components & Equipment - 11.4% |
AMETEK, Inc. | 118,200 | | 5,555,400 |
Cooper Industries PLC Class A | 86,220 | | 5,097,326 |
Emerson Electric Co. | 268,872 | | 13,814,643 |
GrafTech International Ltd. (a) | 257,700 | | 4,231,434 |
Hubbell, Inc. Class B | 64,500 | | 4,641,420 |
|
| Shares | | Value |
Polypore International, Inc. (a) | 50,300 | | $ 1,915,424 |
Prysmian SpA | 267,976 | | 4,023,731 |
Regal-Beloit Corp. | 101,165 | | 5,743,137 |
Roper Industries, Inc. | 23,300 | | 2,175,987 |
| | 47,198,502 |
ENERGY EQUIPMENT & SERVICES - 0.2% |
Oil & Gas Equipment & Services - 0.2% |
McDermott International, Inc. (a) | 78,847 | | 958,780 |
INDUSTRIAL CONGLOMERATES - 22.4% |
Industrial Conglomerates - 22.4% |
3M Co. | 182,151 | | 15,794,313 |
Carlisle Companies, Inc. | 57,294 | | 2,734,643 |
Danaher Corp. | 306,682 | | 16,103,872 |
General Electric Co. | 2,601,050 | | 48,665,646 |
Tyco International Ltd. | 185,314 | | 9,441,748 |
| | 92,740,222 |
LIFE SCIENCES TOOLS & SERVICES - 0.4% |
Life Sciences Tools & Services - 0.4% |
Agilent Technologies, Inc. | 34,241 | | 1,454,215 |
MACHINERY - 19.9% |
Construction & Farm Machinery & Heavy Trucks - 7.4% |
Caterpillar, Inc. | 60,600 | | 6,612,672 |
Cummins, Inc. | 118,724 | | 12,347,296 |
Fiat Industrial SpA (a) | 331,900 | | 3,251,473 |
Jain Irrigation Systems Ltd. | 489,270 | | 942,177 |
Manitowoc Co., Inc. | 277,640 | | 3,731,482 |
WABCO Holdings, Inc. (a) | 74,100 | | 3,842,085 |
| | 30,727,185 |
Industrial Machinery - 12.5% |
Actuant Corp. Class A | 97,260 | | 2,465,541 |
Dover Corp. | 80,100 | | 5,079,141 |
Flowserve Corp. | 42,300 | | 4,660,191 |
Graco, Inc. | 109,926 | | 5,054,397 |
Harsco Corp. | 45,127 | | 1,003,173 |
Illinois Tool Works, Inc. | 147,816 | | 7,838,682 |
Ingersoll-Rand PLC | 201,747 | | 7,049,040 |
Pall Corp. | 95,961 | | 5,726,952 |
Parker Hannifin Corp. | 88,742 | | 7,159,705 |
SPX Corp. | 27,700 | | 1,928,751 |
TriMas Corp. (a) | 172,130 | | 3,730,057 |
| | 51,695,630 |
TOTAL MACHINERY | | 82,422,815 |
PROFESSIONAL SERVICES - 4.1% |
Human Resource & Employment Services - 2.0% |
Kforce, Inc. (a) | 127,329 | | 1,583,973 |
Manpower, Inc. | 53,900 | | 2,161,929 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Human Resource & Employment Services - continued |
Robert Half International, Inc. | 103,200 | | $ 2,857,608 |
Towers Watson & Co. | 30,500 | | 1,823,900 |
| | 8,427,410 |
Research & Consulting Services - 2.1% |
Bureau Veritas SA | 16,400 | | 1,202,723 |
Dun & Bradstreet Corp. | 29,576 | | 2,449,189 |
IHS, Inc. Class A (a) | 55,174 | | 4,936,970 |
| | 8,588,882 |
TOTAL PROFESSIONAL SERVICES | | 17,016,292 |
ROAD & RAIL - 7.0% |
Railroads - 6.5% |
CSX Corp. | 495,244 | | 11,167,752 |
Union Pacific Corp. | 136,995 | | 15,659,898 |
| | 26,827,650 |
Trucking - 0.5% |
Con-way, Inc. | 64,864 | | 2,058,783 |
TOTAL ROAD & RAIL | | 28,886,433 |
SOFTWARE - 0.4% |
Application Software - 0.4% |
Solera Holdings, Inc. | 30,133 | | 1,439,453 |
TRADING COMPANIES & DISTRIBUTORS - 3.2% |
Trading Companies & Distributors - 3.2% |
Mills Estruturas e Servicos de Engenharia SA | 167,900 | | 2,083,375 |
W.W. Grainger, Inc. | 17,400 | | 3,318,876 |
Watsco, Inc. | 43,000 | | 2,965,710 |
WESCO International, Inc. (a) | 75,201 | | 4,728,639 |
| | 13,096,600 |
TOTAL COMMON STOCKS (Cost $355,138,226) |
400,073,056
|
Convertible Bonds - 0.5% |
| Principal Amount | | |
BUILDING PRODUCTS - 0.5% |
Building Products - 0.5% |
Aspen Aerogels, Inc.: | | | | |
8% 6/1/14 (f) | | $ 1,041,431 | | 1,041,431 |
8% 12/6/14 (f) | | 850,700 | | 850,700 |
| | 1,892,131 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | Value |
U.S. Treasury Bills, yield at date of purchase 0.01% 3/1/12 (e)
(Cost $649,996) | $ 650,000 | | $ 649,977 |
Money Market Funds - 3.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.12% (b) | 11,163,912 | | 11,163,912 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,002,887 | | 3,002,887 |
TOTAL MONEY MARKET FUNDS (Cost $14,166,799) |
14,166,799
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $371,847,152) | | 416,781,963 |
NET OTHER ASSETS (LIABILITIES) - (0.7)% | | (2,945,433) |
NET ASSETS - 100% | $ 413,836,530 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value | | Unrealized Appreciation/(Depreciation) |
Purchased |
Equity Index Contracts |
120 CME E-mini S&P Select Sector Industrial Index Contracts | March 2012 | | $ 4,326,000 | | $ 287,982 |
The face value of futures purchased as a percentage of net assets is 1% |
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 or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $649,977. |
(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 $1,892,131 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/14/11 | $ 1,041,431 |
Aspen Aerogels, Inc. 8% 12/6/14 | 12/6/11 | $ 850,700 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,405 |
Fidelity Securities Lending Cash Central Fund | 9,303 |
Total | $ 15,708 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 400,073,056 | $ 400,073,056 | $ - | $ - |
Convertible Bonds | 1,892,131 | - | - | 1,892,131 |
U.S. Treasury Obligations | 649,977 | - | 649,977 | - |
Money Market Funds | 14,166,799 | 14,166,799 | - | - |
Total Investments in Securities: | $ 416,781,963 | $ 414,239,855 | $ 649,977 | $ 1,892,131 |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 287,982 | $ 287,982 | $ - | $ - |
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) | - |
Cost of Purchases | 850,700 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 1,041,431 |
Transfers out of Level 3 | - |
Ending Balance | $ 1,892,131 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
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. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 287,982 | $ - |
Total Value of Derivatives | $ 287,982 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,913,664) - See accompanying schedule: Unaffiliated issuers (cost $357,680,353) | $ 402,615,164 | |
Fidelity Central Funds (cost $14,166,799) | 14,166,799 | |
Total Investments (cost $371,847,152) | | $ 416,781,963 |
Foreign currency held at value (cost $191,718) | | 191,718 |
Receivable for investments sold | | 1,908,468 |
Receivable for fund shares sold | | 2,135,142 |
Dividends receivable | | 115,488 |
Interest receivable | | 62,511 |
Distributions receivable from Fidelity Central Funds | | 990 |
Prepaid expenses | | 1,237 |
Other receivables | | 5,031 |
Total assets | | 421,202,548 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,244,090 | |
Payable for fund shares redeemed | 652,252 | |
Accrued management fee | 186,953 | |
Distribution and service plan fees payable | 145,281 | |
Payable for daily variation margin on futures contracts | 14,400 | |
Other affiliated payables | 92,587 | |
Other payables and accrued expenses | 27,568 | |
Collateral on securities loaned, at value | 3,002,887 | |
Total liabilities | | 7,366,018 |
| | |
Net Assets | | $ 413,836,530 |
Net Assets consist of: | | |
Paid in capital | | $ 388,981,164 |
Distributions in excess of net investment income | | (316,523) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (20,051,715) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 45,223,604 |
Net Assets | | $ 413,836,530 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($211,441,851 ÷ 8,080,297 shares) | | $ 26.17 |
| | |
Maximum offering price per share (100/94.25 of $26.17) | | $ 27.77 |
Class T:
Net Asset Value and redemption price per share ($65,755,622 ÷ 2,551,198 shares) | | $ 25.77 |
| | |
Maximum offering price per share (100/96.50 of $25.77) | | $ 26.70 |
Class B:
Net Asset Value and offering price per share ($24,015,224 ÷ 985,111 shares)A | | $ 24.38 |
| | |
Class C:
Net Asset Value and offering price per share ($69,385,969 ÷ 2,837,108 shares)A | | $ 24.46 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($43,237,864 ÷ 1,593,920 shares) | | $ 27.13 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,336,996 |
Interest | | 51,909 |
Income from Fidelity Central Funds | | 15,708 |
Total income | | 3,404,613 |
| | |
Expenses | | |
Management fee | $ 1,066,131 | |
Transfer agent fees | 485,517 | |
Distribution and service plan fees | 824,019 | |
Accounting and security lending fees | 74,380 | |
Custodian fees and expenses | 12,177 | |
Independent trustees' compensation | 1,311 | |
Registration fees | 62,135 | |
Audit | 24,141 | |
Legal | 927 | |
Interest | 576 | |
Miscellaneous | 1,871 | |
Total expenses before reductions | 2,553,185 | |
Expense reductions | (10,610) | 2,542,575 |
Net investment income (loss) | | 862,038 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (18,753,754) | |
Foreign currency transactions | (21,128) | |
Futures contracts | 930,439 | |
Total net realized gain (loss) | | (17,844,443) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 21,482,579 | |
Assets and liabilities in foreign currencies | (1,151) | |
Futures contracts | 287,982 | |
Total change in net unrealized appreciation (depreciation) | | 21,769,410 |
Net gain (loss) | | 3,924,967 |
Net increase (decrease) in net assets resulting from operations | | $ 4,787,005 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 862,038 | $ 791,669 |
Net realized gain (loss) | (17,844,443) | 55,819,724 |
Change in net unrealized appreciation (depreciation) | 21,769,410 | 3,563,495 |
Net increase (decrease) in net assets resulting from operations | 4,787,005 | 60,174,888 |
Distributions to shareholders from net investment income | (1,437,740) | (328,907) |
Distributions to shareholders from net realized gain | (4,219,307) | - |
Total distributions | (5,657,047) | (328,907) |
Share transactions - net increase (decrease) | (54,549,003) | 75,767,831 |
Redemption fees | 12,710 | 11,341 |
Total increase (decrease) in net assets | (55,406,335) | 135,625,153 |
| | |
Net Assets | | |
Beginning of period | 469,242,865 | 333,617,712 |
End of period (including distributions in excess of net investment income of $316,523 and undistributed net investment income of $259,179, respectively) | $ 413,836,530 | $ 469,242,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.73 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .09 | .06 | .13 | .11 | .09 |
Net realized and unrealized gain (loss) | .73 | 4.13 | 4.68 | (5.08) | (1.17) | 5.11 |
Total from investment operations | .80 | 4.22 | 4.74 | (4.95) | (1.06) | 5.20 |
Distributions from net investment income | (.11) | (.03) | (.07) | (.13) | - | (.06) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.46) | (1.81) |
Total distributions | (.36) | (.03) | (.07) | (.15) | (2.46) | (1.87) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.17 | $ 25.73 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 |
Total Return B,C,D | 3.38% | 19.59% | 28.13% | (22.49)% | (4.71)% | 25.13% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.16% A | 1.13% | 1.18% | 1.23% | 1.17% | 1.21% |
Expenses net of fee waivers, if any | 1.16% A | 1.13% | 1.18% | 1.23% | 1.17% | 1.21% |
Expenses net of all reductions | 1.15% A | 1.13% | 1.17% | 1.23% | 1.16% | 1.21% |
Net investment income (loss) | .63% A | .36% | .31% | .89% | .46% | .38% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 211,442 | $ 228,106 | $ 165,029 | $ 130,860 | $ 188,859 | $ 157,451 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.33 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 | .03 | .01 | .10 | .05 | .03 |
Net realized and unrealized gain (loss) | .72 | 4.07 | 4.61 | (5.03) | (1.15) | 5.05 |
Total from investment operations | .76 | 4.10 | 4.62 | (4.93) | (1.10) | 5.08 |
Distributions from net investment income | (.07) | (.01) | (.02) | (.08) | - | (.03) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.40) | (1.74) |
Total distributions | (.32) | (.01) | (.02) | (.10) | (2.40) | (1.77) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.77 | $ 25.33 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 |
Total Return B,C,D | 3.23% | 19.28% | 27.80% | (22.68)% | (4.96)% | 24.82% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.41% A | 1.39% | 1.44% | 1.48% | 1.41% | 1.46% |
Expenses net of fee waivers, if any | 1.41% A | 1.39% | 1.44% | 1.48% | 1.41% | 1.46% |
Expenses net of all reductions | 1.41% A | 1.38% | 1.43% | 1.48% | 1.41% | 1.46% |
Net investment income (loss) | .38% A | .10% | .06% | .63% | .21% | .13% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 65,756 | $ 71,542 | $ 58,202 | $ 48,054 | $ 85,025 | $ 75,530 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.99 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.11) | (.09) | .02 | (.07) | (.09) |
Net realized and unrealized gain (loss) | .68 | 3.88 | 4.41 | (4.82) | (1.10) | 4.87 |
Total from investment operations | .66 | 3.77 | 4.32 | (4.80) | (1.17) | 4.78 |
Distributions from net investment income | (.02) | - | - | (.04) | - | - |
Distributions from net realized gain | (.25) | - | - | - | (2.28) | (1.61) |
Total distributions | (.27) | - | - | (.04) | (2.28) | (1.61) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 24.38 | $ 23.99 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 |
Total Return B,C,D | 2.97% | 18.64% | 27.17% | (23.10)% | (5.46)% | 24.18% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.95% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Expenses net of fee waivers, if any | 1.95% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.97% | 1.98% | 1.95% | 2.00% |
Net investment income (loss) | (.16)% A | (.44)% | (.48)% | .13% | (.33)% | (.41)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,015 | $ 28,600 | $ 29,048 | $ 25,212 | $ 39,989 | $ 44,330 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.07 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.09) | (.08) | .02 | (.06) | (.08) |
Net realized and unrealized gain (loss) | .68 | 3.88 | 4.42 | (4.83) | (1.11) | 4.88 |
Total from investment operations | .67 | 3.79 | 4.34 | (4.81) | (1.17) | 4.80 |
Distributions from net investment income | (.03) | - | - | (.04) | - | - |
Distributions from net realized gain | (.25) | - | - | - | (2.30) | (1.70) |
Total distributions | (.28) | - | - | (.04) | (2.30) | (1.70) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 24.46 | $ 24.07 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 |
Total Return B,C,D | 3.01% | 18.69% | 27.23% | (23.09)% | (5.44)% | 24.25% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.91% A | 1.89% | 1.93% | 1.98% | 1.91% | 1.94% |
Expenses net of fee waivers, if any | 1.91% A | 1.89% | 1.93% | 1.98% | 1.91% | 1.94% |
Expenses net of all reductions | 1.90% A | 1.88% | 1.92% | 1.98% | 1.90% | 1.94% |
Net investment income (loss) | (.12)% A | (.40)% | (.43)% | .14% | (.28)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 69,386 | $ 72,673 | $ 51,760 | $ 37,862 | $ 57,742 | $ 57,862 |
Portfolio turnover rate G | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.69 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .17 | .13 | .19 | .18 | .16 |
Net realized and unrealized gain (loss) | .75 | 4.28 | 4.83 | (5.27) | (1.19) | 5.27 |
Total from investment operations | .86 | 4.45 | 4.96 | (5.08) | (1.01) | 5.43 |
Distributions from net investment income | (.17) | (.06) | (.11) | (.17) | - | (.13) |
Distributions from net realized gain | (.25) | - | - | (.02) | (2.53) | (1.81) |
Total distributions | (.42) | (.06) | (.11) | (.19) | (2.53) | (1.94) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.13 | $ 26.69 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 |
Total Return B,C | 3.53% | 19.95% | 28.52% | (22.31)% | (4.40)% | 25.53% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .86% A | .85% | .89% | .96% | .88% | .92% |
Expenses net of fee waivers, if any | .86% A | .85% | .89% | .96% | .88% | .92% |
Expenses net of all reductions | .86% A | .84% | .88% | .95% | .87% | .91% |
Net investment income (loss) | .93% A | .65% | .61% | 1.16% | .75% | .67% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 43,238 | $ 68,323 | $ 29,578 | $ 12,762 | $ 33,642 | $ 19,498 |
Portfolio turnover rate F | 99% A | 75% | 110% | 135% | 91% | 130% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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 on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. 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, 2012, 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
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 and U.S. government and government agency obligations, 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.
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.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 48,662,753 |
Gross unrealized depreciation | (7,419,520) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 41,243,233 |
| |
Tax cost | $ 375,538,730 |
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. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
(depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $930,439 and a change in net unrealized appreciation (depreciation) of $287,982 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $191,022,522 and $259,724,230, respectively.
7. 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 240,223 | $ 4,564 |
Class T | .25% | .25% | 150,390 | - |
Class B | .75% | .25% | 118,852 | 89,140 |
Class C | .75% | .25% | 314,554 | 68,895 |
| | | $ 824,019 | $ 162,599 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 25,057 |
Class T | 3,049 |
Class B* | 23,850 |
Class C* | 7,149 |
| $ 59,105 |
* 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
7. 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
Average
Net Assets* |
Class A | $ 246,710 | .26 |
Class T | 78,335 | .26 |
Class B | 35,550 | .30 |
Class C | 80,060 | .25 |
Institutional Class | 44,862 | .21 |
| $ 485,517 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $3,610 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,097,500 | .37% | $ 576 |
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $554 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,303. During the period, there were no securities loaned to FCM.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $10,610 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 896,458 | $ 235,263 |
Class T | 170,680 | 13,200 |
Class B | 16,830 | - |
Class C | 70,972 | - |
Institutional Class | 282,800 | 80,444 |
Total | $ 1,437,740 | $ 328,907 |
From net realized gain | | |
Class A | $ 2,092,354 | $ - |
Class T | 659,892 | - |
Class B | 286,480 | - |
Class C | 731,497 | - |
Institutional Class | 449,084 | - |
Total | $ 4,219,307 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31, 2012 | Year ended
July 31, 2011 | Six months ended January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,053,783 | 3,645,278 | $ 25,180,767 | $ 95,442,701 |
Reinvestment of distributions | 118,075 | 8,108 | 2,609,664 | 205,122 |
Shares redeemed | (1,956,128) | (2,451,683) | (45,475,396) | (63,502,279) |
Net increase (decrease) | (784,270) | 1,201,703 | $ (17,684,965) | $ 32,145,544 |
Class T | | | | |
Shares sold | 215,326 | 757,485 | $ 5,002,023 | $ 19,402,949 |
Reinvestment of distributions | 36,910 | 500 | 800,817 | 12,596 |
Shares redeemed | (524,898) | (674,809) | (11,827,249) | (16,619,027) |
Net increase (decrease) | (272,662) | 83,176 | $ (6,024,409) | $ 2,796,518 |
Class B | | | | |
Shares sold | 48,558 | 89,875 | $ 1,038,294 | $ 2,150,821 |
Reinvestment of distributions | 12,641 | - | 255,322 | - |
Shares redeemed | (268,071) | (334,639) | (5,844,495) | (7,838,637) |
Net increase (decrease) | (206,872) | (244,764) | $ (4,550,879) | $ (5,687,816) |
Class C | | | | |
Shares sold | 206,599 | 1,054,416 | $ 4,594,169 | $ 25,772,946 |
Reinvestment of distributions | 31,555 | - | 641,832 | - |
Shares redeemed | (419,789) | (588,462) | (9,022,618) | (13,948,935) |
Net increase (decrease) | (181,635) | 465,954 | $ (3,786,617) | $ 11,824,011 |
Institutional Class | | | | |
Shares sold | 376,575 | 2,320,182 | $ 9,162,970 | $ 63,208,570 |
Reinvestment of distributions | 22,926 | 2,269 | 525,598 | 59,382 |
Shares redeemed | (1,365,468) | (1,089,149) | (32,190,701) | (28,578,378) |
Net increase (decrease) | (965,967) | 1,233,302 | $ (22,502,133) | $ 34,689,574 |
13. 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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.19% | | | |
Actual | | $ 1,000.00 | $ 971.40 | $ 5.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.15 | $ 6.04 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 970.00 | $ 7.13 |
HypotheticalA | | $ 1,000.00 | $ 1,017.90 | $ 7.30 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 967.80 | $ 9.60 |
HypotheticalA | | $ 1,000.00 | $ 1,015.38 | $ 9.83 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 967.50 | $ 9.59 |
HypotheticalA | | $ 1,000.00 | $ 1,015.38 | $ 9.83 |
Institutional Class | .88% | | | |
Actual | | $ 1,000.00 | $ 972.60 | $ 4.36 |
HypotheticalA | | $ 1,000.00 | $ 1,020.71 | $ 4.47 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 15.3 | 11.0 |
Microsoft Corp. | 4.4 | 3.3 |
Oracle Corp. | 3.2 | 5.9 |
Google, Inc. Class A | 3.0 | 6.0 |
salesforce.com, Inc. | 2.3 | 3.6 |
QUALCOMM, Inc. | 2.0 | 0.2 |
Altera Corp. | 2.0 | 0.1 |
Citrix Systems, Inc. | 1.6 | 1.5 |
International Business Machines Corp. | 1.5 | 0.3 |
NXP Semiconductors NV | 1.5 | 0.8 |
| 36.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Semiconductors & Semiconductor Equipment | 23.6% | |
| Software | 22.8% | |
| Computers & Peripherals | 18.6% | |
| Internet Software & Services | 9.6% | |
| Communications Equipment | 7.5% | |
| All Others* | 17.9% | |
As of July 31, 2011 |
| Software | 29.1% | |
| Computers & Peripherals | 17.9% | |
| Semiconductors & Semiconductor Equipment | 13.7% | |
| Internet Software & Services | 12.3% | |
| IT Services | 8.5% | |
| All Others* | 18.5% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.8% |
| Shares | | Value |
AUTOMOBILES - 0.0% |
Automobile Manufacturers - 0.0% |
Tesla Motors, Inc. (a) | 12,300 | | $ 357,561 |
CHEMICALS - 0.6% |
Specialty Chemicals - 0.6% |
JSR Corp. | 196,100 | | 4,007,921 |
Shin-Etsu Chemical Co., Ltd. | 6,900 | | 358,442 |
| | 4,366,363 |
COMMUNICATIONS EQUIPMENT - 7.3% |
Communications Equipment - 7.3% |
Acme Packet, Inc. (a) | 92,075 | | 2,691,352 |
ADTRAN, Inc. | 10,771 | | 373,000 |
Aruba Networks, Inc. (a) | 7,200 | | 159,696 |
Brocade Communications Systems, Inc. (a) | 92,800 | | 520,608 |
Ciena Corp. (a)(d) | 111,656 | | 1,624,595 |
Cisco Systems, Inc. | 229,370 | | 4,502,533 |
Comba Telecom Systems Holdings Ltd. | 187,500 | | 131,282 |
F5 Networks, Inc. (a) | 79,512 | | 9,520,767 |
Finisar Corp. (a) | 137,740 | | 2,790,612 |
Infinera Corp. (a) | 70,900 | | 506,226 |
JDS Uniphase Corp. (a) | 168,700 | | 2,140,803 |
Juniper Networks, Inc. (a) | 3,198 | | 66,934 |
Motorola Solutions, Inc. | 14,700 | | 682,227 |
Oclaro, Inc. (a) | 23,926 | | 99,054 |
Polycom, Inc. (a) | 293,093 | | 5,847,205 |
QUALCOMM, Inc. | 240,032 | | 14,118,682 |
Riverbed Technology, Inc. (a) | 47,370 | | 1,134,038 |
Sandvine Corp. (a) | 751,600 | | 959,462 |
Sandvine Corp. (U.K.) (a) | 554,200 | | 768,225 |
Spirent Communications PLC | 185,100 | | 346,561 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 6,741 | | 62,489 |
ZTE Corp. (H Shares) | 1,092,120 | | 2,971,372 |
| | 52,017,723 |
COMPUTERS & PERIPHERALS - 18.6% |
Computer Hardware - 15.9% |
Advantech Co. Ltd. | 123,000 | | 372,387 |
Apple, Inc. (a) | 238,779 | | 108,997,837 |
Hewlett-Packard Co. | 12,382 | | 346,448 |
Pegatron Corp. | 776,000 | | 938,699 |
Stratasys, Inc. (a) | 49,675 | | 1,825,556 |
Wistron Corp. | 247,000 | | 370,563 |
| | 112,851,490 |
Computer Storage & Peripherals - 2.7% |
ADLINK Technology, Inc. | 61,000 | | 72,141 |
EMC Corp. (a) | 358,367 | | 9,231,534 |
Fusion-io, Inc. | 15,200 | | 351,272 |
Imagination Technologies Group PLC (a) | 155,759 | | 1,418,852 |
|
| Shares | | Value |
NetApp, Inc. (a) | 1,837 | | $ 69,328 |
SanDisk Corp. (a) | 107,191 | | 4,917,923 |
Smart Technologies, Inc. Class A (a) | 26,500 | | 109,445 |
Synaptics, Inc. (a) | 76,184 | | 2,918,609 |
| | 19,089,104 |
TOTAL COMPUTERS & PERIPHERALS | | 131,940,594 |
DIVERSIFIED CONSUMER SERVICES - 0.2% |
Education Services - 0.2% |
Educomp Solutions Ltd. | 16,123 | | 70,285 |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 57,932 | | 1,379,940 |
| | 1,450,225 |
ELECTRONIC EQUIPMENT & COMPONENTS - 4.4% |
Electronic Components - 1.8% |
Aeroflex Holding Corp. (a) | 46,070 | | 583,707 |
Amphenol Corp. Class A | 6,566 | | 357,387 |
Cheng Uei Precision Industries Co. Ltd. | 193,408 | | 456,154 |
Chimei Innolux Corp. (a) | 16,000 | | 7,407 |
J Touch Corp. | 36,024 | | 47,046 |
Omron Corp. | 3,400 | | 68,553 |
Universal Display Corp. (a)(d) | 220,767 | | 9,296,498 |
Vishay Intertechnology, Inc. (a) | 172,408 | | 2,117,170 |
| | 12,933,922 |
Electronic Equipment & Instruments - 0.3% |
Chroma ATE, Inc. | 331,683 | | 758,741 |
Itron, Inc. (a) | 1,768 | | 68,581 |
Keyence Corp. | 1,300 | | 323,849 |
National Instruments Corp. | 13,300 | | 357,903 |
RealD, Inc. (a)(d) | 26,949 | | 236,343 |
SFA Engineering Corp. | 5,488 | | 269,694 |
SNU Precision Co. Ltd. | 26,457 | | 249,669 |
Test Research, Inc. | 18,655 | | 22,566 |
| | 2,287,346 |
Electronic Manufacturing Services - 1.7% |
Benchmark Electronics, Inc. (a) | 1,200 | | 20,640 |
IPG Photonics Corp. (a) | 2,200 | | 116,138 |
Jabil Circuit, Inc. | 169,973 | | 3,851,588 |
KEMET Corp. (a) | 94,696 | | 870,256 |
TE Connectivity Ltd. | 61,474 | | 2,096,263 |
Trimble Navigation Ltd. (a) | 106,049 | | 4,966,275 |
| | 11,921,160 |
Technology Distributors - 0.6% |
Arrow Electronics, Inc. (a) | 1,753 | | 72,381 |
Avnet, Inc. (a) | 2,700 | | 94,149 |
Digital China Holdings Ltd. (H Shares) | 1,068,000 | | 1,762,728 |
VST Holdings Ltd. (a) | 2,000,000 | | 304,310 |
Common Stocks - continued |
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED |
Technology Distributors - continued |
WPG Holding Co. Ltd. | 1,112,975 | | $ 1,555,044 |
WT Microelectronics Co. Ltd. | 249,000 | | 366,832 |
| | 4,155,444 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 31,297,872 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3% |
Health Care Equipment - 0.3% |
Biosensors International Group Ltd. (a) | 1,618,000 | | 2,083,841 |
China Kanghui Holdings sponsored ADR (a) | 9,000 | | 156,600 |
| | 2,240,441 |
HEALTH CARE TECHNOLOGY - 0.2% |
Health Care Technology - 0.2% |
athenahealth, Inc. (a) | 600 | | 34,908 |
So-net M3, Inc. | 240 | | 1,037,387 |
| | 1,072,295 |
HOUSEHOLD DURABLES - 0.1% |
Household Appliances - 0.1% |
Haier Electronics Group Co. Ltd. (a) | 17,000 | | 17,493 |
Techtronic Industries Co. Ltd. | 348,000 | | 386,804 |
| | 404,297 |
HOUSEHOLD PRODUCTS - 0.1% |
Household Products - 0.1% |
NVC Lighting Holdings Ltd. | 1,254,000 | | 515,813 |
INTERNET & CATALOG RETAIL - 0.9% |
Internet Retail - 0.9% |
Amazon.com, Inc. (a) | 16,164 | | 3,142,928 |
E-Commerce China Dangdang, Inc. ADR (a) | 260 | | 1,911 |
Groupon, Inc. Class A (a) | 14,700 | | 299,733 |
Priceline.com, Inc. (a) | 103 | | 54,536 |
Rakuten, Inc. | 2,073 | | 2,091,220 |
Start Today Co. Ltd. | 48,200 | | 940,858 |
| | 6,531,186 |
INTERNET SOFTWARE & SERVICES - 9.6% |
Internet Software & Services - 9.6% |
Active Network, Inc. | 25,200 | | 374,976 |
Akamai Technologies, Inc. (a) | 58,713 | | 1,893,494 |
Bankrate, Inc. | 19,400 | | 453,766 |
Cornerstone OnDemand, Inc. | 46,600 | | 849,984 |
DealerTrack Holdings, Inc. (a) | 12,300 | | 336,159 |
eBay, Inc. (a) | 312,976 | | 9,890,042 |
Facebook, Inc. Class B (f) | 37,876 | | 946,900 |
Google, Inc. Class A (a) | 36,862 | | 21,384,015 |
INFO Edge India Ltd. | 17,918 | | 226,133 |
Kakaku.com, Inc. | 56,200 | | 1,820,989 |
LogMeIn, Inc. (a) | 59,994 | | 2,389,561 |
|
| Shares | | Value |
Mail.ru Group Ltd. GDR (a)(e) | 1,800 | | $ 59,400 |
MercadoLibre, Inc. | 45,934 | | 4,014,632 |
NHN Corp. (a) | 8,879 | | 1,675,783 |
Open Text Corp. (a) | 49,100 | | 2,488,419 |
OpenTable, Inc. (a)(d) | 1,147 | | 55,251 |
Opera Software ASA (d) | 111,900 | | 556,887 |
PChome Online, Inc. | 111,000 | | 631,982 |
Qihoo 360 Technology Co. Ltd. ADR (d) | 48,800 | | 883,280 |
Rackspace Hosting, Inc. (a) | 147,109 | | 6,386,002 |
Renren, Inc. ADR (d) | 5,900 | | 32,745 |
Responsys, Inc. | 50,448 | | 591,755 |
SciQuest, Inc. (a) | 31,677 | | 463,435 |
SINA Corp. (a)(d) | 66,573 | | 4,678,085 |
Tudou Holdings Ltd. ADR (d) | 300 | | 4,200 |
Velti PLC (a) | 50,436 | | 441,315 |
VeriSign, Inc. | 2,200 | | 81,532 |
Vocus, Inc. (a) | 14,700 | | 337,659 |
XO Group, Inc. (a) | 5,200 | | 42,848 |
Yahoo!, Inc. (a) | 216,919 | | 3,355,737 |
Yandex NV | 33,576 | | 683,943 |
YouKu.com, Inc. ADR (a) | 13,000 | | 278,070 |
| | 68,308,979 |
IT SERVICES - 4.7% |
Data Processing & Outsourced Services - 1.6% |
MasterCard, Inc. Class A | 10,100 | | 3,591,257 |
Syntel, Inc. | 7,600 | | 356,592 |
Visa, Inc. Class A | 72,060 | | 7,252,118 |
| | 11,199,967 |
IT Consulting & Other Services - 3.1% |
Accenture PLC Class A | 19,240 | | 1,103,222 |
Camelot Information Systems, Inc. ADR (a) | 145 | | 368 |
ChinaSoft International Ltd. (a) | 20,000 | | 5,854 |
Cognizant Technology Solutions Corp. Class A (a) | 99,222 | | 7,119,179 |
HiSoft Technology International Ltd. ADR (a) | 11,117 | | 126,400 |
International Business Machines Corp. | 55,224 | | 10,636,142 |
ServiceSource International, Inc. | 139,146 | | 2,354,350 |
Teradata Corp. (a) | 12,993 | | 695,905 |
| | 22,041,420 |
TOTAL IT SERVICES | | 33,241,387 |
LIFE SCIENCES TOOLS & SERVICES - 0.2% |
Life Sciences Tools & Services - 0.2% |
Illumina, Inc. (a)(d) | 13,800 | | 714,288 |
Life Technologies Corp. (a) | 7,503 | | 363,370 |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 27,300 | | 370,734 |
| | 1,448,392 |
Common Stocks - continued |
| Shares | | Value |
MACHINERY - 0.4% |
Industrial Machinery - 0.4% |
Airtac International Group | 64,000 | | $ 322,217 |
Fanuc Corp. | 900 | | 151,240 |
HIWIN Technologies Corp. | 16,390 | | 151,467 |
Mirle Automation Corp. | 92,950 | | 71,766 |
Nippon Thompson Co. Ltd. | 149,000 | | 883,484 |
THK Co. Ltd. | 57,600 | | 1,237,686 |
| | 2,817,860 |
MEDIA - 0.3% |
Advertising - 0.2% |
Dentsu, Inc. | 1,100 | | 36,753 |
Focus Media Holding Ltd. ADR (a)(d) | 39,800 | | 796,000 |
ReachLocal, Inc. (a)(d) | 57,644 | | 454,235 |
| | 1,286,988 |
Cable & Satellite - 0.1% |
DISH Network Corp. Class A | 25,760 | | 719,219 |
Movies & Entertainment - 0.0% |
IMAX Corp. (a) | 18,930 | | 392,040 |
TOTAL MEDIA | | 2,398,247 |
OFFICE ELECTRONICS - 0.0% |
Office Electronics - 0.0% |
Xerox Corp. | 8,333 | | 64,581 |
PHARMACEUTICALS - 0.1% |
Pharmaceuticals - 0.1% |
China Medical System Holding Ltd. | 839,500 | | 548,824 |
PROFESSIONAL SERVICES - 0.3% |
Human Resource & Employment Services - 0.3% |
51job, Inc. sponsored ADR (a) | 41,041 | | 1,841,920 |
Research & Consulting Services - 0.0% |
Acacia Research Corp. - Acacia Technologies (a) | 8,600 | | 353,976 |
TOTAL PROFESSIONAL SERVICES | | 2,195,896 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0% |
Real Estate Services - 0.0% |
China Real Estate Information Corp. ADR (a) | 64,549 | | 313,708 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 23.3% |
Semiconductor Equipment - 3.9% |
Advanced Energy Industries, Inc. (a) | 5,757 | | 61,254 |
Amkor Technology, Inc. (a)(d) | 188,093 | | 1,077,773 |
Asia Pacific Systems, Inc. (a) | 33,164 | | 374,963 |
ASM International NV unit | 70,300 | | 2,341,693 |
ASM Pacific Technology Ltd. | 28,700 | | 369,332 |
ASML Holding NV | 132,135 | | 5,680,484 |
Axcelis Technologies, Inc. (a) | 53,309 | | 95,956 |
centrotherm photovoltaics AG | 1,493 | | 22,564 |
|
| Shares | | Value |
Cymer, Inc. (a) | 72,779 | | $ 3,623,666 |
Dainippon Screen Manufacturing Co. Ltd. | 9,000 | | 75,679 |
Entegris, Inc. (a) | 183,408 | | 1,757,049 |
GCL-Poly Energy Holdings Ltd. | 1,078,000 | | 371,137 |
Genesis Photonics, Inc. | 69,000 | | 93,842 |
ICD Co. Ltd. (a) | 13,952 | | 653,341 |
KLA-Tencor Corp. | 1,400 | | 71,582 |
Novellus Systems, Inc. (a) | 90,659 | | 4,274,572 |
Rubicon Technology, Inc. (a)(d) | 52,000 | | 563,160 |
Sumco Corp. (a) | 57,800 | | 495,125 |
Teradyne, Inc. (a) | 64,420 | | 1,053,267 |
Ultratech, Inc. (a) | 142,260 | | 4,161,105 |
Visual Photonics Epitaxy Co. Ltd. | 142,000 | | 204,399 |
| | 27,421,943 |
Semiconductors - 19.4% |
Advanced Micro Devices, Inc. (a) | 52,578 | | 352,798 |
Advanced Semiconductor Engineering, Inc. | 1,470,000 | | 1,545,404 |
Advanced Semiconductor Engineering, Inc. sponsored ADR (d) | 253,551 | | 1,336,214 |
Alpha & Omega Semiconductor Ltd. (a) | 33,538 | | 311,233 |
Altera Corp. | 354,011 | | 14,086,098 |
Analog Devices, Inc. | 9,053 | | 354,244 |
Applied Micro Circuits Corp. (a) | 157,393 | | 1,232,387 |
ARM Holdings PLC sponsored ADR | 25,019 | | 722,549 |
Atmel Corp. (a) | 234,876 | | 2,280,646 |
Avago Technologies Ltd. | 136,234 | | 4,623,782 |
Broadcom Corp. Class A | 233,580 | | 8,021,137 |
Canadian Solar, Inc. (a) | 32 | | 122 |
Cavium, Inc. (a)(d) | 143,265 | | 4,604,537 |
Cirrus Logic, Inc. (a) | 88,897 | | 1,816,166 |
Cree, Inc. (a)(d) | 268,656 | | 6,831,922 |
Cypress Semiconductor Corp. | 135,922 | | 2,337,179 |
Diodes, Inc. (a) | 52,400 | | 1,350,872 |
Duksan Hi-Metal Co. Ltd. (a) | 131,173 | | 2,738,452 |
Epistar Corp. | 685,000 | | 1,678,071 |
Fairchild Semiconductor International, Inc. (a) | 271,977 | | 3,802,238 |
First Solar, Inc. (a) | 15 | | 634 |
Freescale Semiconductor Holdings I Ltd. | 273,836 | | 4,373,161 |
Global Unichip Corp. | 266,000 | | 1,056,091 |
Hittite Microwave Corp. (a) | 3,779 | | 207,921 |
Hynix Semiconductor, Inc. | 14,730 | | 352,099 |
Infineon Technologies AG | 377,900 | | 3,448,058 |
Inphi Corp. (a) | 70,389 | | 1,032,607 |
International Rectifier Corp. (a) | 45,200 | | 1,030,560 |
Intersil Corp. Class A | 110,228 | | 1,241,167 |
JA Solar Holdings Co. Ltd. ADR (a) | 98,416 | | 173,212 |
LSI Corp. (a) | 225,065 | | 1,703,742 |
MagnaChip Semiconductor Corp. | 109,889 | | 1,068,121 |
Marvell Technology Group Ltd. (a) | 45,000 | | 698,850 |
Maxim Integrated Products, Inc. | 2,582 | | 69,301 |
Melfas, Inc. | 16 | | 325 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Mellanox Technologies Ltd. (a) | 8,600 | | $ 315,362 |
Micrel, Inc. | 29,083 | | 336,199 |
Micron Technology, Inc. (a) | 1,172,267 | | 8,897,507 |
Microsemi Corp. (a) | 4,100 | | 81,098 |
Monolithic Power Systems, Inc. (a) | 105,197 | | 1,724,179 |
MStar Semiconductor, Inc. | 123,000 | | 781,348 |
NVIDIA Corp. (a) | 4,805 | | 70,970 |
NXP Semiconductors NV (a) | 491,139 | | 10,426,881 |
O2Micro International Ltd. sponsored ADR (a) | 38,400 | | 182,016 |
Omnivision Technologies, Inc. (a) | 10,300 | | 137,093 |
ON Semiconductor Corp. (a) | 859,821 | | 7,480,443 |
Phison Electronics Corp. | 103,000 | | 755,229 |
PMC-Sierra, Inc. (a) | 323,597 | | 2,103,381 |
Power Integrations, Inc. | 9,073 | | 326,537 |
Radiant Opto-Electronics Corp. | 268,365 | | 1,020,141 |
Rambus, Inc. (a) | 226,707 | | 1,652,694 |
RDA Microelectronics, Inc. sponsored ADR (a) | 7,600 | | 99,940 |
RF Micro Devices, Inc. (a) | 542,308 | | 2,706,117 |
Samsung Electronics Co. Ltd. | 359 | | 353,802 |
Seoul Semiconductor Co. Ltd. | 46,510 | | 1,041,363 |
Silicon Laboratories, Inc. (a) | 1,700 | | 74,528 |
Silicon Motion Technology Corp. sponsored ADR (a) | 84,600 | | 1,825,668 |
Siliconware Precision Industries Co. Ltd. | 1,021,000 | | 1,174,854 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 386,700 | | 2,184,855 |
Skyworks Solutions, Inc. (a) | 136,559 | | 2,946,943 |
Spansion, Inc. Class A (a) | 132,193 | | 1,325,896 |
Spreadtrum Communications, Inc. ADR (d) | 160,365 | | 2,480,847 |
Standard Microsystems Corp. (a) | 99,971 | | 2,575,253 |
Texas Instruments, Inc. | 54,574 | | 1,767,106 |
Trina Solar Ltd. (a)(d) | 19,794 | | 159,144 |
United Microelectronics Corp. | 742,000 | | 391,270 |
United Microelectronics Corp. sponsored ADR | 322,700 | | 874,517 |
Vanguard International Semiconductor Corp. | 2,450,000 | | 993,411 |
Win Semiconductors Corp. | 115,867 | | 158,561 |
Xilinx, Inc. | 49,393 | | 1,770,739 |
YoungTek Electronics Corp. | 1,146 | | 2,625 |
| | 137,680,417 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 165,102,360 |
SOFTWARE - 22.8% |
Application Software - 11.4% |
ANSYS, Inc. (a) | 37,553 | | 2,271,581 |
AsiaInfo-Linkage, Inc. (a) | 8,641 | | 101,359 |
|
| Shares | | Value |
Aspen Technology, Inc. (a) | 210,537 | | $ 3,791,771 |
Autodesk, Inc. (a) | 183,190 | | 6,594,840 |
AutoNavi Holdings Ltd. ADR (a) | 54,221 | | 598,600 |
BroadSoft, Inc. (a)(d) | 78,565 | | 2,190,392 |
Cadence Design Systems, Inc. (a) | 7,487 | | 79,063 |
Citrix Systems, Inc. (a) | 174,870 | | 11,403,273 |
Concur Technologies, Inc. (a) | 102,775 | | 5,380,271 |
Convio, Inc. (a) | 36,934 | | 588,359 |
Descartes Systems Group, Inc. (a) | 179,500 | | 1,439,222 |
Informatica Corp. (a) | 40,976 | | 1,733,285 |
Intuit, Inc. | 12,322 | | 695,454 |
JDA Software Group, Inc. (a) | 19,341 | | 569,979 |
Jive Software, Inc. | 1,700 | | 25,245 |
Kingdee International Software Group Co. Ltd. | 9,620,800 | | 2,865,678 |
Magma Design Automation, Inc. (a) | 47,800 | | 342,248 |
Manhattan Associates, Inc. (a) | 4,557 | | 200,007 |
MicroStrategy, Inc. Class A (a) | 22,300 | | 2,567,176 |
Nuance Communications, Inc. (a) | 54,516 | | 1,554,796 |
Parametric Technology Corp. (a) | 170,322 | | 4,287,005 |
Pegasystems, Inc. (d) | 64,865 | | 1,839,571 |
PROS Holdings, Inc. (a) | 8,633 | | 140,027 |
QLIK Technologies, Inc. (a) | 75,287 | | 2,123,093 |
RealPage, Inc. (a) | 34,200 | | 879,624 |
salesforce.com, Inc. (a) | 137,953 | | 16,112,910 |
SolarWinds, Inc. (a) | 105,164 | | 3,324,234 |
SuccessFactors, Inc. (a) | 26,100 | | 1,038,780 |
Synchronoss Technologies, Inc. (a) | 30,216 | | 1,009,819 |
Synopsys, Inc. (a) | 2,500 | | 72,950 |
Taleo Corp. Class A (a) | 107,903 | | 3,885,587 |
TIBCO Software, Inc. (a) | 2,642 | | 68,877 |
TiVo, Inc. (a) | 8,000 | | 83,040 |
VanceInfo Technologies, Inc. ADR (a)(d) | 98,753 | | 1,241,325 |
| | 81,099,441 |
Home Entertainment Software - 0.1% |
Activision Blizzard, Inc. | 5,800 | | 71,572 |
NCsoft Corp. | 2,610 | | 684,295 |
| | 755,867 |
Systems Software - 11.3% |
Ariba, Inc. (a) | 148,719 | | 4,060,029 |
Check Point Software Technologies Ltd. (a) | 13,297 | | 748,488 |
CommVault Systems, Inc. (a) | 117,444 | | 5,519,868 |
DemandTec, Inc. (a) | 36,900 | | 486,342 |
Fortinet, Inc. (a) | 132,348 | | 3,018,858 |
Microsoft Corp. | 1,052,303 | | 31,074,508 |
NetSuite, Inc. (a) | 32,168 | | 1,347,196 |
Oracle Corp. | 805,711 | | 22,721,050 |
Red Hat, Inc. (a) | 129,194 | | 5,990,726 |
Sourcefire, Inc. (a) | 44,266 | | 1,373,131 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Systems Software - continued |
Symantec Corp. (a) | 4,000 | | $ 68,760 |
VMware, Inc. Class A (a) | 36,489 | | 3,330,351 |
| | 79,739,307 |
TOTAL SOFTWARE | | 161,594,615 |
WIRELESS TELECOMMUNICATION SERVICES - 0.4% |
Wireless Telecommunication Services - 0.4% |
SBA Communications Corp. Class A (a) | 67,349 | | 3,079,196 |
TOTAL COMMON STOCKS (Cost $643,249,721) |
673,308,415
|
Convertible Bonds - 0.5% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.2% |
Communications Equipment - 0.2% |
Ciena Corp. 0.25% 5/1/13 | | $ 1,270,000 | | 1,250,061 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.3% |
Semiconductors - 0.3% |
JA Solar Holdings Co. Ltd. 4.5% 5/15/13 | | 2,179,000 | | 1,830,360 |
TOTAL CONVERTIBLE BONDS (Cost $2,975,658) |
3,080,421
|
Master Notes - 0.0% |
|
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $183,894) | | 180,662 | |
180,662
|
Money Market Funds - 6.7% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.12% (b) | 27,524,099 | | $ 27,524,099 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 19,943,057 | | 19,943,057 |
TOTAL MONEY MARKET FUNDS (Cost $47,467,156) |
47,467,156
|
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $693,876,429) | | 724,036,654 |
NET OTHER ASSETS (LIABILITIES) - (2.0)% | | (14,021,482) |
NET ASSETS - 100% | $ 710,015,172 |
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 $59,400 or 0.0% 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 $1,127,562 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 947,157 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 185,227 |
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 | $ 19,365 |
Fidelity Securities Lending Cash Central Fund | 420,607 |
Total | $ 439,972 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, 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 | $ 673,308,415 | $ 669,249,987 | $ 3,111,528 | $ 946,900 |
Convertible Bonds | 3,080,421 | - | 3,080,421 | - |
Master Notes | 180,662 | - | - | 180,662 |
Money Market Funds | 47,467,156 | 47,467,156 | - | - |
Total Investments in Securities: | $ 724,036,654 | $ 716,717,143 | $ 6,191,949 | $ 1,127,562 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 1,357,916 |
Total Realized Gain (Loss) | (3,162,588) |
Total Unrealized Gain (Loss) | 3,022,590 |
Cost of Purchases | - |
Proceeds of Sales | (89,712) |
Amortization/Accretion | (644) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,127,562 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,809 |
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 | 82.7% |
Cayman Islands | 3.8% |
Taiwan | 2.7% |
Netherlands | 2.7% |
Japan | 2.0% |
Bermuda | 1.3% |
Korea (South) | 1.2% |
Others (Individually Less Than 1%) | 3.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Technology Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $19,369,162) - See accompanying schedule: Unaffiliated issuers (cost $646,409,273) | $ 676,569,498 | |
Fidelity Central Funds (cost $47,467,156) | 47,467,156 | |
Total Investments (cost $693,876,429) | | $ 724,036,654 |
Foreign currency held at value (cost $1,416,597) | | 1,416,597 |
Receivable for investments sold | | 44,562,865 |
Receivable for fund shares sold | | 857,499 |
Dividends receivable | | 120,940 |
Interest receivable | | 32,399 |
Distributions receivable from Fidelity Central Funds | | 22,515 |
Prepaid expenses | | 1,828 |
Other receivables | | 37,371 |
Total assets | | 771,088,668 |
| | |
Liabilities | | |
Payable for investments purchased | $ 39,208,890 | |
Payable for fund shares redeemed | 1,151,710 | |
Accrued management fee | 320,749 | |
Distribution and service plan fees payable | 223,390 | |
Other affiliated payables | 183,335 | |
Other payables and accrued expenses | 42,365 | |
Collateral on securities loaned, at value | 19,943,057 | |
Total liabilities | | 61,073,496 |
| | |
Net Assets | | $ 710,015,172 |
Net Assets consist of: | | |
Paid in capital | | $ 830,061,578 |
Accumulated net investment loss | | (2,691,729) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (147,503,660) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 30,148,983 |
Net Assets | | $ 710,015,172 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($336,801,920 ÷ 13,794,486 shares) | | $ 24.42 |
| | |
Maximum offering price per share (100/94.25 of $24.42) | | $ 25.91 |
Class T:
Net Asset Value and redemption price per share ($179,444,739 ÷ 7,603,604 shares) | | $ 23.60 |
| | |
Maximum offering price per share (100/96.50 of $23.60) | | $ 24.46 |
Class B:
Net Asset Value and offering price per share ($20,462,716 ÷ 932,859 shares)A | | $ 21.94 |
| | |
Class C:
Net Asset Value and offering price per share ($81,572,117 ÷ 3,702,266 shares)A | | $ 22.03 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($91,733,680 ÷ 3,586,331 shares) | | $ 25.58 |
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 Technology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,196,874 |
Interest | | 144,985 |
Income from Fidelity Central Funds (including $420,607 from security lending) | | 439,972 |
Total income | | 1,781,831 |
| | |
Expenses | | |
Management fee | $ 1,911,295 | |
Transfer agent fees | 1,007,805 | |
Distribution and service plan fees | 1,351,568 | |
Accounting and security lending fees | 126,517 | |
Custodian fees and expenses | 52,357 | |
Independent trustees' compensation | 2,368 | |
Registration fees | 58,497 | |
Audit | 25,354 | |
Legal | 2,134 | |
Miscellaneous | 3,191 | |
Total expenses before reductions | 4,541,086 | |
Expense reductions | (67,550) | 4,473,536 |
Net investment income (loss) | | (2,691,705) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (8,775,352) | |
Foreign currency transactions | 33,005 | |
Total net realized gain (loss) | | (8,742,347) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (14,191,446) | |
Assets and liabilities in foreign currencies | (14,252) | |
Total change in net unrealized appreciation (depreciation) | | (14,205,698) |
Net gain (loss) | | (22,948,045) |
Net increase (decrease) in net assets resulting from operations | | $ (25,639,750) |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (2,691,705) | $ (6,857,636) |
Net realized gain (loss) | (8,742,347) | 189,083,406 |
Change in net unrealized appreciation (depreciation) | (14,205,698) | (20,605,446) |
Net increase (decrease) in net assets resulting from operations | (25,639,750) | 161,620,324 |
Share transactions - net increase (decrease) | (33,562,458) | (15,631,022) |
Redemption fees | 17,740 | 32,306 |
Total increase (decrease) in net assets | (59,184,468) | 146,021,608 |
| | |
Net Assets | | |
Beginning of period | 769,199,640 | 623,178,032 |
End of period (including accumulated net investment loss of $2,691,729 and accumulated net investment loss of $24, respectively) | $ 710,015,172 | $ 769,199,640 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 25.14 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.18) | (.16) | .02 H | (.10) | (.17) |
Net realized and unrealized gain (loss) | (.65) | 5.49 | 3.96 | (1.03) | (3.41) | 5.13 |
Total from investment operations | (.72) | 5.31 | 3.80 | (1.01) | (3.51) | 4.96 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 24.42 | $ 25.14 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 |
Total Return B, C, D | (2.86)% | 26.78% | 23.71% | (5.93)% | (17.08)% | 31.82% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.19% A | 1.18% | 1.21% | 1.23% | 1.21% | 1.25% |
Expenses net of fee waivers, if any | 1.19% A | 1.18% | 1.21% | 1.23% | 1.21% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.16% | 1.18% | 1.22% | 1.19% | 1.24% |
Net investment income (loss) | (.65)% A | (.73)% | (.83)% | .17% H | (.49)% | (.91)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 336,802 | $ 375,609 | $ 312,659 | $ 258,433 | $ 275,117 | $ 309,105 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 24.33 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.23) | (.20) | (.01) H | (.14) | (.21) |
Net realized and unrealized gain (loss) | (.63) | 5.32 | 3.85 | (1.02) | (3.33) | 5.02 |
Total from investment operations | (.73) | 5.09 | 3.65 | (1.03) | (3.47) | 4.81 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.60 | $ 24.33 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 |
Total Return B, C, D | (3.00)% | 26.46% | 23.41% | (6.20)% | (17.27)% | 31.48% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.44% A | 1.43% | 1.46% | 1.49% | 1.46% | 1.51% |
Expenses net of fee waivers, if any | 1.44% A | 1.43% | 1.46% | 1.49% | 1.46% | 1.51% |
Expenses net of all reductions | 1.42% A | 1.40% | 1.44% | 1.48% | 1.45% | 1.49% |
Net investment income (loss) | (.90)% A | (.98)% | (1.09)% | (.09)% H | (.74)% | (1.16)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 179,445 | $ 196,913 | $ 169,049 | $ 151,170 | $ 173,917 | $ 260,339 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.67 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.15) | (.33) | (.27) | (.07) H | (.23) | (.28) |
Net realized and unrealized gain (loss) | (.58) | 4.99 | 3.61 | (.98) | (3.15) | 4.79 |
Total from investment operations | (.73) | 4.66 | 3.34 | (1.05) | (3.38) | 4.51 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 21.94 | $ 22.67 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 |
Total Return B, C, D | (3.22)% | 25.87% | 22.77% | (6.68)% | (17.70)% | 30.91% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.94% A | 1.93% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.94% A | 1.93% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of all reductions | 1.92% A | 1.91% | 1.94% | 1.97% | 1.94% | 2.00% |
Net investment income (loss) | (1.40)% A | (1.49)% | (1.59)% | (.58)% H | (1.24)% | (1.67)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,463 | $ 25,508 | $ 29,176 | $ 30,580 | $ 47,294 | $ 102,655 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.77 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.15) | (.33) | (.28) | (.07) H | (.23) | (.29) |
Net realized and unrealized gain (loss) | (.59) | 5.01 | 3.63 | (.98) | (3.16) | 4.81 |
Total from investment operations | (.74) | 4.68 | 3.35 | (1.05) | (3.39) | 4.52 |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 22.03 | $ 22.77 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 |
Total Return B, C, D | (3.25)% | 25.87% | 22.73% | (6.65)% | (17.67)% | 30.83% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.94% A | 1.92% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of fee waivers, if any | 1.94% A | 1.92% | 1.96% | 1.98% | 1.96% | 2.01% |
Expenses net of all reductions | 1.92% A | 1.90% | 1.93% | 1.97% | 1.94% | 1.99% |
Net investment income (loss) | (1.40)% A | (1.48)% | (1.58)% | (.58)% H | (1.24)% | (1.66)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 81,572 | $ 89,819 | $ 70,017 | $ 55,645 | $ 63,590 | $ 86,974 |
Portfolio turnover rate G | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.30 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.04) | (.11) | (.11) | .06 G | (.04) | (.11) |
Net realized and unrealized gain (loss) | (.68) | 5.73 | 4.12 | (1.07) | (3.54) | 5.30 |
Total from investment operations | (.72) | 5.62 | 4.01 | (1.01) | (3.58) | 5.19 |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.58 | $ 26.30 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 |
Total Return B, C | (2.74)% | 27.18% | 24.06% | (5.71)% | (16.84)% | 32.30% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .88% A | .87% | .92% | .98% | .94% | .93% |
Expenses net of fee waivers, if any | .88% A | .87% | .92% | .98% | .94% | .93% |
Expenses net of all reductions | .86% A | .85% | .90% | .97% | .92% | .92% |
Net investment income (loss) | (.34)% A | (.43)% | (.55)% | .42% G | (.22)% | (.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 91,734 | $ 81,350 | $ 42,277 | $ 26,285 | $ 22,021 | $ 21,111 |
Portfolio turnover rate F | 225% A | 167% | 115% | 225% | 214% | 208% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring 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, 2012 (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, except for exchanges and reinvestments. 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, 2012, 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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 and master notes, 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. 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.
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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 72,583,990 |
Gross unrealized depreciation | (49,463,997) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 23,119,993 |
| |
Tax cost | $ 700,916,661 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (132,837,596) |
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 $749,936,696 and $810,214,618, 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 an annualized 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 413,657 | $ 3,156 |
Class T | .25% | .25% | 437,146 | - |
Class B | .75% | .25% | 106,253 | 79,802 |
Class C | .75% | .25% | 394,512 | 54,896 |
| | | $ 1,351,568 | $ 137,854 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% 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
by FDC |
Class A | $ 25,203 |
Class T | 5,485 |
Class B* | 12,656 |
Class C* | 6,403 |
| $ 49,747 |
* 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 receives no fees for providing transfer agency services to Class F. 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
Average
Net Assets* |
Class A | $ 497,567 | .30 |
Class T | 266,434 | .30 |
Class B | 32,010 | .30 |
Class C | 118,484 | .30 |
Institutional Class | 93,310 | .24 |
| $ 1,007,805 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $28,310 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $978 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
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $3,636 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 $67,513 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $37.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 | Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 1,191,367 | 3,825,268 | $ 27,376,639 | $ 95,895,792 |
Shares redeemed | (2,335,510) | (4,656,846) | (53,558,317) | (115,935,925) |
Net increase (decrease) | (1,144,143) | (831,578) | $ (26,181,678) | $ (20,040,133) |
Class T | | | | |
Shares sold | 460,399 | 1,318,401 | $ 10,346,418 | $ 31,818,569 |
Shares redeemed | (948,796) | (2,014,796) | (20,932,846) | (47,878,372) |
Net increase (decrease) | (488,397) | (696,395) | $ (10,586,428) | $ (16,059,803) |
Class B | | | | |
Shares sold | 34,392 | 98,795 | $ 716,198 | $ 2,198,114 |
Shares redeemed | (226,522) | (593,453) | (4,699,641) | (13,054,972) |
Net increase (decrease) | (192,130) | (494,658) | $ (3,983,443) | $ (10,856,858) |
Class C | | | | |
Shares sold | 249,537 | 982,784 | $ 5,238,024 | $ 22,502,223 |
Shares redeemed | (491,044) | (908,933) | (10,119,473) | (20,073,701) |
Net increase (decrease) | (241,507) | 73,851 | $ (4,881,449) | $ 2,428,522 |
Institutional Class | | | | |
Shares sold | 1,131,581 | 2,740,439 | $ 27,421,818 | $ 73,729,514 |
Shares redeemed | (638,336) | (1,692,072) | (15,351,278) | (44,832,264) |
Net increase (decrease) | 493,245 | 1,048,367 | $ 12,070,540 | $ 28,897,250 |
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
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2011 | Ending
Account Value
January 31, 2012 | Expenses Paid
During Period*
August 1, 2011 to January 31, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,001.40 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.85 | $ 6.34 |
Class T | 1.51% | | | |
Actual | | $ 1,000.00 | $ 1,000.60 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,017.55 | $ 7.66 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 997.60 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.08 | $ 10.13 |
Class C | 1.98% | | | |
Actual | | $ 1,000.00 | $ 997.80 | $ 9.94 |
HypotheticalA | | $ 1,000.00 | $ 1,015.18 | $ 10.03 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 1,002.80 | $ 4.88 |
HypotheticalA | | $ 1,000.00 | $ 1,020.26 | $ 4.93 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Duke Energy Corp. | 10.6 | 0.0 |
FirstEnergy Corp. | 8.4 | 7.1 |
NextEra Energy, Inc. | 7.9 | 10.0 |
Edison International | 7.5 | 7.1 |
Sempra Energy | 7.5 | 4.2 |
PG&E Corp. | 6.1 | 4.8 |
Dominion Resources, Inc. | 5.2 | 0.0 |
Progress Energy, Inc. | 4.9 | 0.0 |
The AES Corp. | 4.9 | 5.7 |
American Electric Power Co., Inc. | 4.8 | 4.9 |
| 67.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2012 |
| Electric Utilities | 44.5% | |
| Multi-Utilities | 30.3% | |
| Independent Power Producers & Energy Traders | 11.5% | |
| Gas Utilities | 5.2% | |
| Oil, Gas & Consumable Fuels | 3.7% | |
| All Others* | 4.8% | |
As of July 31, 2011 |
| Electric Utilities | 47.6% | |
| Multi-Utilities | 22.1% | |
| Independent Power Producers & Energy Traders | 21.2% | |
| Gas Utilities | 5.8% | |
| Oil, Gas & Consumable Fuels | 2.1% | |
| All Others* | 1.2% | |
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% |
| Shares | | Value |
ELECTRIC UTILITIES - 44.5% |
Electric Utilities - 44.5% |
American Electric Power Co., Inc. | 212,600 | | $ 8,410,456 |
Duke Energy Corp. | 867,848 | | 18,493,842 |
Edison International | 318,835 | | 13,084,988 |
FirstEnergy Corp. | 345,791 | | 14,599,296 |
ITC Holdings Corp. | 8,110 | | 597,788 |
NextEra Energy, Inc. | 228,533 | | 13,677,700 |
Progress Energy, Inc. | 158,129 | | 8,591,149 |
| | 77,455,219 |
GAS UTILITIES - 5.2% |
Gas Utilities - 5.2% |
National Fuel Gas Co. | 44,369 | | 2,230,873 |
ONEOK, Inc. | 81,200 | | 6,752,592 |
| | 8,983,465 |
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 11.5% |
Independent Power Producers & Energy Traders - 11.5% |
Calpine Corp. (a) | 340,392 | | 4,969,723 |
Constellation Energy Group, Inc. | 161,782 | | 5,893,718 |
GenOn Energy, Inc. (a) | 259,700 | | 553,161 |
The AES Corp. (a) | 669,698 | | 8,545,346 |
| | 19,961,948 |
MULTI-UTILITIES - 30.3% |
Multi-Utilities - 30.3% |
CenterPoint Energy, Inc. | 410,068 | | 7,573,956 |
Dominion Resources, Inc. | 181,591 | | 9,086,814 |
NiSource, Inc. | 348,549 | | 7,922,519 |
OGE Energy Corp. | 83,049 | | 4,389,970 |
PG&E Corp. | 262,200 | | 10,661,052 |
Sempra Energy | 229,431 | | 13,054,624 |
| | 52,688,935 |
|
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - 3.7% |
Oil & Gas Refining & Marketing - 1.0% |
Sunoco, Inc. | 45,000 | | $ 1,726,200 |
Oil & Gas Storage & Transport - 2.7% |
El Paso Corp. | 103,600 | | 2,783,732 |
Williams Companies, Inc. | 64,500 | | 1,858,890 |
| | 4,642,622 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 6,368,822 |
WATER UTILITIES - 3.1% |
Water Utilities - 3.1% |
American Water Works Co., Inc. | 162,425 | | 5,478,595 |
TOTAL COMMON STOCKS (Cost $167,131,614) |
170,936,984
|
Money Market Funds - 0.8% |
| | | |
Fidelity Cash Central Fund, 0.12% (b)
(Cost $1,411,526) | 1,411,526 | |
1,411,526
|
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $168,543,140) | | 172,348,510 |
NET OTHER ASSETS (LIABILITIES) - 0.9% | | 1,499,572 |
NET ASSETS - 100% | $ 173,848,082 |
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. |
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 | $ 1,647 |
Fidelity Securities Lending Cash Central Fund | 11,856 |
Total | $ 13,503 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Utilities Fund
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $167,131,614) | $ 170,936,984 | |
Fidelity Central Funds (cost $1,411,526) | 1,411,526 | |
Total Investments (cost $168,543,140) | | $ 172,348,510 |
Receivable for investments sold | | 11,366,539 |
Receivable for fund shares sold | | 217,731 |
Dividends receivable | | 49,532 |
Distributions receivable from Fidelity Central Funds | | 112 |
Prepaid expenses | | 357 |
Other receivables | | 3,609 |
Total assets | | 183,986,390 |
| | |
Liabilities | | |
Payable for investments purchased | $ 9,582,773 | |
Payable for fund shares redeemed | 333,340 | |
Accrued management fee | 82,805 | |
Distribution and service plan fees payable | 65,780 | |
Other affiliated payables | 48,480 | |
Other payables and accrued expenses | 25,130 | |
Total liabilities | | 10,138,308 |
| | |
Net Assets | | $ 173,848,082 |
Net Assets consist of: | | |
Paid in capital | | $ 209,655,658 |
Distributions in excess of net investment income | | (82,912) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (39,530,034) |
Net unrealized appreciation (depreciation) on investments | | 3,805,370 |
Net Assets | | $ 173,848,082 |
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,053,008 ÷ 4,596,184 shares) | | $ 18.72 |
| | |
Maximum offering price per share (100/94.25 of $18.72) | | $ 19.86 |
Class T:
Net Asset Value and redemption price per share ($36,662,450 ÷ 1,954,738 shares) | | $ 18.76 |
| | |
Maximum offering price per share (100/96.50 of $18.76) | | $ 19.44 |
Class B:
Net Asset Value and offering price per share ($7,050,406 ÷ 379,497 shares)A | | $ 18.58 |
| | |
Class C:
Net Asset Value and offering price per share ($30,474,096 ÷ 1,652,735 shares)A | | $ 18.44 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($13,608,122 ÷ 716,034 shares) | | $ 19.00 |
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 Utilities Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,900,595 |
Income from Fidelity Central Funds | | 13,503 |
Total income | | 2,914,098 |
| | |
Expenses | | |
Management fee | $ 463,366 | |
Transfer agent fees | 246,507 | |
Distribution and service plan fees | 371,212 | |
Accounting and security lending fees | 32,270 | |
Custodian fees and expenses | 4,826 | |
Independent trustees' compensation | 547 | |
Registration fees | 45,733 | |
Audit | 27,387 | |
Legal | 1,210 | |
Miscellaneous | 2,179 | |
Total expenses | | 1,195,237 |
Net investment income (loss) | | 1,718,861 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,347,243 | |
Foreign currency transactions | (4,830) | |
Total net realized gain (loss) | | 4,342,413 |
Change in net unrealized appreciation (depreciation) on investment securities | | (5,871,073) |
Net gain (loss) | | (1,528,660) |
Net increase (decrease) in net assets resulting from operations | | $ 190,201 |
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended
July 31,
2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,718,861 | $ 2,899,329 |
Net realized gain (loss) | 4,342,413 | 15,534,119 |
Change in net unrealized appreciation (depreciation) | (5,871,073) | 4,885,719 |
Net increase (decrease) in net assets resulting from operations | 190,201 | 23,319,167 |
Distributions to shareholders from net investment income | (3,107,112) | (2,864,390) |
Share transactions - net increase (decrease) | 17,143,363 | 3,898,632 |
Redemption fees | 5,927 | 2,026 |
Total increase (decrease) in net assets | 14,232,379 | 24,355,435 |
| | |
Net Assets | | |
Beginning of period | 159,615,703 | 135,260,268 |
End of period (including distributions in excess of net investment income of $82,912 and undistributed net investment income of $1,305,339, respectively) | $ 173,848,082 | $ 159,615,703 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .21 | .39 | .40 | .35 | .24 | .21 |
Net realized and unrealized gain (loss) | (.19) | 2.50 | 1.32 | (5.10) | (.38) | 3.56 |
Total from investment operations | .02 | 2.89 | 1.72 | (4.75) | (.14) | 3.77 |
Distributions from net investment income | (.39) | (.39) | (.40) | (.26) | (.32) | (.23) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.72 | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 |
Total Return B, C, D | .14% | 17.71% | 11.42% | (23.44)% | (.82)% | 22.14% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.25% A | 1.24% | 1.26% | 1.26% | 1.21% | 1.27% |
Expenses net of fee waivers, if any | 1.25% A | 1.24% | 1.26% | 1.26% | 1.21% | 1.27% |
Expenses net of all reductions | 1.25% A | 1.20% | 1.22% | 1.26% | 1.21% | 1.26% |
Net investment income (loss) | 2.27% A | 2.18% | 2.49% | 2.37% | 1.11% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,053 | $ 78,312 | $ 64,890 | $ 66,064 | $ 105,219 | $ 94,842 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .19 | .35 | .35 | .31 | .18 | .15 |
Net realized and unrealized gain (loss) | (.19) | 2.50 | 1.33 | (5.10) | (.39) | 3.56 |
Total from investment operations | - I | 2.85 | 1.68 | (4.79) | (.21) | 3.71 |
Distributions from net investment income | (.33) | (.35) | (.36) | (.20) | (.24) | (.18) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.76 | $ 19.09 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 |
Total Return B, C, D | .06% | 17.39% | 11.13% | (23.61)% | (1.11)% | 21.74% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.51% A | 1.50% | 1.52% | 1.52% | 1.47% | 1.54% |
Expenses net of fee waivers, if any | 1.51% A | 1.50% | 1.52% | 1.52% | 1.47% | 1.54% |
Expenses net of all reductions | 1.51% A | 1.46% | 1.49% | 1.52% | 1.47% | 1.54% |
Net investment income (loss) | 2.01% A | 1.92% | 2.23% | 2.11% | .84% | .76% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 36,662 | $ 35,701 | $ 33,651 | $ 33,989 | $ 54,346 | $ 62,592 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.86 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .25 | .27 | .24 | .08 | .05 |
Net realized and unrealized gain (loss) | (.19) | 2.49 | 1.31 | (5.04) | (.39) | 3.52 |
Total from investment operations | (.05) | 2.74 | 1.58 | (4.80) | (.31) | 3.57 |
Distributions from net investment income | (.23) | (.26) | (.28) | (.13) | (.08) | (.07) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.58 | $ 18.86 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 |
Total Return B, C, D | (.24)% | 16.87% | 10.56% | (23.97)% | (1.59)% | 21.18% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.00% A | 1.99% | 2.01% | 2.01% | 1.96% | 2.04% |
Expenses net of fee waivers, if any | 2.00% A | 1.99% | 2.01% | 2.01% | 1.96% | 2.04% |
Expenses net of all reductions | 2.00% A | 1.95% | 1.98% | 2.01% | 1.95% | 2.03% |
Net investment income (loss) | 1.52% A | 1.43% | 1.74% | 1.62% | .36% | .27% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,050 | $ 7,773 | $ 8,794 | $ 10,634 | $ 20,747 | $ 43,845 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.75 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .26 | .27 | .24 | .08 | .06 |
Net realized and unrealized gain (loss) | (.18) | 2.46 | 1.30 | (5.02) | (.39) | 3.51 |
Total from investment operations | (.04) | 2.72 | 1.57 | (4.78) | (.31) | 3.57 |
Distributions from net investment income | (.27) | (.27) | (.29) | (.13) | (.14) | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.44 | $ 18.75 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 |
Total Return B, C, D | (.22)% | 16.85% | 10.54% | (23.96)% | (1.58)% | 21.23% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.98% A | 1.98% | 2.01% | 2.01% | 1.95% | 1.99% |
Expenses net of fee waivers, if any | 1.98% A | 1.98% | 2.01% | 2.01% | 1.95% | 1.99% |
Expenses net of all reductions | 1.98% A | 1.94% | 1.97% | 2.01% | 1.95% | 1.99% |
Net investment income (loss) | 1.55% A | 1.43% | 1.74% | 1.62% | .36% | .32% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 30,474 | $ 26,915 | $ 21,415 | $ 22,352 | $ 37,387 | $ 43,292 |
Portfolio turnover rate G | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G 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, 2012 | Years ended July 31, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.40 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .24 | .45 | .44 | .39 | .31 | .29 |
Net realized and unrealized gain (loss) | (.20) | 2.54 | 1.35 | (5.17) | (.38) | 3.58 |
Total from investment operations | .04 | 2.99 | 1.79 | (4.78) | (.07) | 3.87 |
Distributions from net investment income | (.44) | (.44) | (.45) | (.23) | (.36) | (.30) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 19.00 | $ 19.40 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 |
Total Return B, C | .28% | 18.05% | 11.66% | (23.24)% | (.49)% | 22.54% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .97% A | .98% | 1.00% | 1.00% | .91% | .92% |
Expenses net of fee waivers, if any | .97% A | .98% | 1.00% | 1.00% | .91% | .92% |
Expenses net of all reductions | .97% A | .94% | .97% | 1.00% | .90% | .92% |
Net investment income (loss) | 2.56% A | 2.44% | 2.75% | 2.63% | 1.41% | 1.39% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,608 | $ 10,914 | $ 6,511 | $ 4,373 | $ 5,704 | $ 12,822 |
Portfolio turnover rate F | 218% A | 201% | 216% | 247% | 77% | 118% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F 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, 2012 (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, except for exchanges and reinvestments. 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. 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.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 deferred trustees compensation, foreign currency transactions, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 6,675,822 |
Gross unrealized depreciation | (3,116,404) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,559,418 |
| |
Tax cost | $ 168,789,092 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration | |
2017 | $ (13,867,918) |
2018 | (28,082,034) |
Total capital loss carryforward | $ (41,949,952) |
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 $195,082,698 and $180,202,699, 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 an annualized 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
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 100,394 | $ 1,824 |
Class T | .25% | .25% | 89,528 | - |
Class B | .75% | .25% | 36,682 | 27,512 |
Class C | .75% | .25% | 144,608 | 21,292 |
| | | $ 371,212 | $ 50,628 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 42,604 |
Class T | 6,866 |
Class B* | 9,098 |
Class C* | 909 |
| $ 59,477 |
* 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
Average
Net Assets* |
Class A | $ 121,217 | .30 |
Class T | 56,285 | .31 |
Class B | 11,125 | .30 |
Class C | 40,153 | .28 |
Institutional Class | 17,727 | .27 |
| $ 246,507 | |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $6,561 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $227 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $11,856. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
From net investment income | | |
Class A | $ 1,654,303 | $ 1,536,373 |
Class T | 639,462 | 680,070 |
Class B | 91,242 | 128,700 |
Class C | 419,210 | 350,529 |
Institutional Class | 302,895 | 168,718 |
Total | $ 3,107,112 | $ 2,864,390 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2012 | Year ended
July 31, 2011 | Six months ended
January 31, 2012 | Year ended
July 31, 2011 |
Class A | | | | |
Shares sold | 864,208 | 951,835 | $ 16,220,936 | $ 17,339,635 |
Reinvestment of distributions | 77,893 | 78,008 | 1,433,959 | 1,339,641 |
Shares redeemed | (447,953) | (840,008) | (8,343,876) | (15,213,828) |
Net increase (decrease) | 494,148 | 189,835 | $ 9,311,019 | $ 3,465,448 |
Class T | | | | |
Shares sold | 290,317 | 251,762 | $ 5,434,277 | $ 4,579,718 |
Reinvestment of distributions | 32,850 | 37,445 | 606,115 | 644,378 |
Shares redeemed | (238,147) | (448,193) | (4,429,798) | (8,103,122) |
Net increase (decrease) | 85,020 | (158,986) | $ 1,610,594 | $ (2,879,026) |
Class B | | | | |
Shares sold | 50,306 | 39,073 | $ 929,402 | $ 679,580 |
Reinvestment of distributions | 4,324 | 6,858 | 79,307 | 116,904 |
Shares redeemed | (87,367) | (170,627) | (1,612,471) | (3,021,254) |
Net increase (decrease) | (32,737) | (124,696) | $ (603,762) | $ (2,224,770) |
Class C | | | | |
Shares sold | 392,436 | 405,545 | $ 7,196,817 | $ 7,271,889 |
Reinvestment of distributions | 18,237 | 15,668 | 332,155 | 265,763 |
Shares redeemed | (193,485) | (299,716) | (3,517,586) | (5,335,908) |
Net increase (decrease) | 217,188 | 121,497 | $ 4,011,386 | $ 2,201,744 |
Institutional Class | | | | |
Shares sold | 387,876 | 343,779 | $ 7,267,425 | $ 6,436,483 |
Reinvestment of distributions | 14,596 | 7,398 | 273,126 | 128,959 |
Shares redeemed | (248,911) | (175,049) | (4,726,425) | (3,230,206) |
Net increase (decrease) | 153,561 | 176,128 | $ 2,814,126 | $ 3,335,236 |
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
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-0312
1.789280.109
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 23, 2012 |
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 23, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | March 23, 2012 |
