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)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | July 31 |
| |
Date of reporting period: | January 31, 2015 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
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. |
Board Approval of Investment Advisory Contracts and Management Fees | (Click Here) | |
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. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-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
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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,175.30 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 1,174.30 | $ 7.40 |
HypotheticalA | | $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class B | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,171.00 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Class C | 1.88% | | | |
Actual | | $ 1,000.00 | $ 1,170.80 | $ 10.29 |
HypotheticalA | | $ 1,000.00 | $ 1,015.73 | $ 9.55 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,176.90 | $ 4.72 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 12.4 | 12.5 |
Boston Properties, Inc. | 5.8 | 5.8 |
HCP, Inc. | 5.1 | 4.2 |
Essex Property Trust, Inc. | 4.9 | 4.8 |
SL Green Realty Corp. | 4.6 | 4.1 |
Digital Realty Trust, Inc. | 3.8 | 3.7 |
Alexandria Real Estate Equities, Inc. | 3.8 | 3.6 |
Federal Realty Investment Trust (SBI) | 3.5 | 3.7 |
Public Storage | 3.3 | 5.1 |
Extra Space Storage, Inc. | 3.3 | 1.4 |
| 50.5 | |
Top Five REIT Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 17.2 | 16.8 |
REITs - Office Property | 15.9 | 19.1 |
REITs - Regional Malls | 15.7 | 15.9 |
REITs - Health Care | 11.5 | 10.4 |
REITs - Shopping Centers | 9.4 | 8.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 | As of July 31, 2014 |
 | Stocks 98.5% | | | Stocks 99.0% | |
 | Short-Term
Investments and
Net Other Assets
(Liabilities) 1.5% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 1.0% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - 96.3% |
REITs - Apartments - 17.2% |
American Campus Communities, Inc. | 644,700 | | $ 28,341,012 |
AvalonBay Communities, Inc. | 114,240 | | 19,762,378 |
Equity Residential (SBI) | 277,009 | | 21,498,668 |
Essex Property Trust, Inc. | 220,247 | | 49,786,834 |
Post Properties, Inc. | 377,600 | | 22,939,200 |
UDR, Inc. | 1,001,700 | | 33,316,542 |
TOTAL REITS - APARTMENTS | | 175,644,634 |
REITs - Diversified - 8.0% |
Cousins Properties, Inc. | 1,064,900 | | 11,756,496 |
Digital Realty Trust, Inc. (d) | 530,900 | | 38,723,846 |
Duke Realty LP | 936,200 | | 20,437,246 |
Vornado Realty Trust | 93,383 | | 10,313,219 |
TOTAL REITS - DIVERSIFIED | | 81,230,807 |
REITs - Health Care - 11.5% |
HCP, Inc. | 1,101,695 | | 52,099,157 |
Health Care REIT, Inc. | 164,969 | | 13,519,210 |
Medical Properties Trust, Inc. | 269,800 | | 4,146,826 |
Sabra Health Care REIT, Inc. | 168,300 | | 5,503,410 |
Senior Housing Properties Trust (SBI) | 701,600 | | 16,340,264 |
Ventas, Inc. | 328,605 | | 26,225,965 |
TOTAL REITS - HEALTH CARE | | 117,834,832 |
REITs - Hotels - 6.2% |
Ashford Hospitality Prime, Inc. | 330,700 | | 5,674,812 |
FelCor Lodging Trust, Inc. | 1,983,189 | | 19,851,722 |
Host Hotels & Resorts, Inc. | 528,134 | | 12,088,987 |
LaSalle Hotel Properties (SBI) | 198,000 | | 8,011,080 |
RLJ Lodging Trust | 301,400 | | 10,268,698 |
Sunstone Hotel Investors, Inc. | 433,655 | | 7,393,818 |
TOTAL REITS - HOTELS | | 63,289,117 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Manufactured Homes - 1.6% |
Equity Lifestyle Properties, Inc. | 28,541 | | $ 1,562,049 |
Sun Communities, Inc. | 216,222 | | 14,644,716 |
TOTAL REITS - MANUFACTURED HOMES | | 16,206,765 |
REITs - Office Property - 15.9% |
Alexandria Real Estate Equities, Inc. | 396,633 | | 38,679,650 |
Boston Properties, Inc. | 424,947 | | 58,982,644 |
Gramercy Property Trust, Inc. | 617,800 | | 4,275,176 |
New York (REIT), Inc. | 505,700 | | 5,274,451 |
Piedmont Office Realty Trust, Inc. Class A | 432,700 | | 8,450,631 |
SL Green Realty Corp. | 367,465 | | 46,300,590 |
TOTAL REITS - OFFICE PROPERTY | | 161,963,142 |
REITs - Regional Malls - 15.7% |
Simon Property Group, Inc. | 636,750 | | 126,496,752 |
Tanger Factory Outlet Centers, Inc. | 69,500 | | 2,734,825 |
Taubman Centers, Inc. | 378,300 | | 31,001,685 |
TOTAL REITS - REGIONAL MALLS | | 160,233,262 |
REITs - Shopping Centers - 9.4% |
Cedar Shopping Centers, Inc. | 1,186,675 | | 9,445,933 |
Excel Trust, Inc. | 284,225 | | 3,990,519 |
Federal Realty Investment Trust (SBI) | 244,302 | | 35,123,299 |
Kite Realty Group Trust | 540,932 | | 16,530,882 |
Ramco-Gershenson Properties Trust (SBI) | 138,500 | | 2,710,445 |
Urban Edge Properties | 430,241 | | 10,213,921 |
WP Glimcher, Inc. | 1,002,275 | | 17,720,222 |
TOTAL REITS - SHOPPING CENTERS | | 95,735,221 |
REITs - Single Tenant - 0.0% |
Select Income (REIT) | 18,500 | | 460,095 |
REITs - Storage - 6.6% |
Extra Space Storage, Inc. | 508,300 | | 33,547,800 |
Public Storage | 168,350 | | 33,811,414 |
TOTAL REITS - STORAGE | | 67,359,214 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Warehouse/Industrial - 4.2% |
DCT Industrial Trust, Inc. | 694,050 | | $ 26,207,328 |
Prologis, Inc. | 235,977 | | 10,652,002 |
Terreno Realty Corp. | 267,300 | | 6,094,440 |
TOTAL REITS - WAREHOUSE/INDUSTRIAL | | 42,953,770 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 982,910,859 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% |
Real Estate Operating Companies - 2.2% |
Forest City Enterprises, Inc. Class A (a) | 906,867 | | 22,218,242 |
TOTAL COMMON STOCKS (Cost $732,114,087) |
1,005,129,101
|
Money Market Funds - 2.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 19,607,237 | | 19,607,237 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,764,975 | | 1,764,975 |
TOTAL MONEY MARKET FUNDS (Cost $21,372,212) |
21,372,212
|
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $753,486,299) | | 1,026,501,313 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | | (5,785,896) |
NET ASSETS - 100% | $ 1,020,715,417 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 6,791 |
Fidelity Securities Lending Cash Central Fund | 29,817 |
Total | $ 36,608 |
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 Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,699,502) - See accompanying schedule: Unaffiliated issuers (cost $732,114,087) | $ 1,005,129,101 | |
Fidelity Central Funds (cost $21,372,212) | 21,372,212 | |
Total Investments (cost $753,486,299) | | $ 1,026,501,313 |
Receivable for investments sold | | 6,227,599 |
Receivable for fund shares sold | | 3,315,884 |
Dividends receivable | | 800,304 |
Distributions receivable from Fidelity Central Funds | | 3,706 |
Prepaid expenses | | 3,604 |
Other receivables | | 31,154 |
Total assets | | 1,036,883,564 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,381,444 | |
Payable for fund shares redeemed | 3,054,419 | |
Accrued management fee | 455,611 | |
Distribution and service plan fees payable | 221,382 | |
Other affiliated payables | 203,234 | |
Other payables and accrued expenses | 87,082 | |
Collateral on securities loaned, at value | 1,764,975 | |
Total liabilities | | 16,168,147 |
| | |
Net Assets | | $ 1,020,715,417 |
Net Assets consist of: | | |
Paid in capital | | $ 736,118,785 |
Distributions in excess of net investment income | | (1,798,496) |
Accumulated undistributed net realized gain (loss) on investments | | 13,380,114 |
Net unrealized appreciation (depreciation) on investments | | 273,015,014 |
Net Assets | | $ 1,020,715,417 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($368,495,414 ÷ 14,989,737 shares) | | $ 24.58 |
| | |
Maximum offering price per share (100/94.25 of $24.58) | | $ 26.08 |
Class T:
Net Asset Value and redemption price per share ($175,248,366 ÷ 7,132,824 shares) | | $ 24.57 |
| | |
Maximum offering price per share (100/96.50 of $24.57) | | $ 25.46 |
Class B:
Net Asset Value and offering price per share ($5,862,146 ÷ 241,543 shares)A | | $ 24.27 |
| | |
Class C:
Net Asset Value and offering price per share ($87,770,639 ÷ 3,628,511 shares)A | | $ 24.19 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($383,338,852 ÷ 15,468,437 shares) | | $ 24.78 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 8,208,542 |
Special dividends | | 2,088,052 |
Income from Fidelity Central Funds | | 36,608 |
Total income | | 10,333,202 |
| | |
Expenses | | |
Management fee | $ 2,351,776 | |
Transfer agent fees | 1,027,989 | |
Distribution and service plan fees | 1,142,201 | |
Accounting and security lending fees | 148,809 | |
Custodian fees and expenses | 17,854 | |
Independent trustees' compensation | 7,518 | |
Registration fees | 102,825 | |
Audit | 24,130 | |
Legal | 4,300 | |
Miscellaneous | 4,077 | |
Total expenses before reductions | 4,831,479 | |
Expense reductions | (39,750) | 4,791,729 |
Net investment income (loss) | | 5,541,473 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 31,717,547 |
Change in net unrealized appreciation (depreciation) on investment securities | | 105,900,024 |
Net gain (loss) | | 137,617,571 |
Net increase (decrease) in net assets resulting from operations | | $ 143,159,044 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 5,541,473 | $ 10,579,301 |
Net realized gain (loss) | 31,717,547 | 45,747,977 |
Change in net unrealized appreciation (depreciation) | 105,900,024 | 22,594,134 |
Net increase (decrease) in net assets resulting
from operations | 143,159,044 | 78,921,412 |
Distributions to shareholders from net investment income | (9,433,200) | (9,317,425) |
Distributions to shareholders from net realized gain | (53,617,767) | (17,838,487) |
Total distributions | (63,050,967) | (27,155,912) |
Share transactions - net increase (decrease) | 158,303,503 | (20,280,229) |
Total increase (decrease) in net assets | 238,411,580 | 31,485,271 |
| | |
Net Assets | | |
Beginning of period | 782,303,837 | 750,818,566 |
End of period (including distributions in excess of net investment income of $1,798,496 and undistributed net investment income of $2,093,231, respectively) | $ 1,020,715,417 | $ 782,303,837 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.57 | $ 20.92 | $ 19.83 | $ 18.24 | $ 14.88 | $ 9.41 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 H | .31 | .22 | .17 | .12 | .19 |
Net realized and unrealized gain (loss) | 3.61 | 2.13 | 1.27 | 2.02 | 3.37 | 5.46 |
Total from investment operations | 3.76 | 2.44 | 1.49 | 2.19 | 3.49 | 5.65 |
Distributions from net investment income | (.26) | (.27) | (.23) | (.13) | (.13) | (.18) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.75) | (.79) | (.40) | (.60) | (.13) | (.18) |
Net asset value, end of period | $ 24.58 | $ 22.57 | $ 20.92 | $ 19.83 | $ 18.24 | $ 14.88 |
Total ReturnB, C, D | 17.53% | 12.34% | 7.66% | 12.81% | 23.63% | 60.38% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.12%A | 1.16% | 1.17% | 1.19% | 1.19% | 1.23% |
Expenses net of fee waivers, if any | 1.12%A | 1.16% | 1.17% | 1.19% | 1.19% | 1.23% |
Expenses net of all reductions | 1.11%A | 1.15% | 1.16% | 1.18% | 1.18% | 1.22% |
Net investment income (loss) | 1.31%A, H | 1.47% | 1.06% | .98% | .69% | 1.45% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 368,495 | $ 274,136 | $ 246,323 | $ 199,303 | $ 178,978 | $ 117,929 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .82%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.55 | $ 20.91 | $ 19.82 | $ 18.24 | $ 14.90 | $ 9.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 H | .26 | .17 | .13 | .07 | .15 |
Net realized and unrealized gain (loss) | 3.61 | 2.13 | 1.28 | 2.02 | 3.38 | 5.47 |
Total from investment operations | 3.73 | 2.39 | 1.45 | 2.15 | 3.45 | 5.62 |
Distributions from net investment income | (.22) | (.23) | (.19) | (.10) | (.11) | (.14) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.71) | (.75) | (.36) | (.57) | (.11) | (.14) |
Net asset value, end of period | $ 24.57 | $ 22.55 | $ 20.91 | $ 19.82 | $ 18.24 | $ 14.90 |
Total ReturnB, C, D | 17.43% | 12.07% | 7.43% | 12.52% | 23.28% | 60.02% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.35%A | 1.37% | 1.38% | 1.43% | 1.44% | 1.49% |
Expenses net of fee waivers, if any | 1.35%A | 1.37% | 1.38% | 1.43% | 1.44% | 1.49% |
Expenses net of all reductions | 1.34%A | 1.36% | 1.38% | 1.43% | 1.44% | 1.48% |
Net investment income (loss) | 1.08%A, H | 1.26% | .85% | .73% | .43% | 1.19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 175,248 | $ 138,783 | $ 114,717 | $ 86,987 | $ 76,785 | $ 59,529 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .59%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.28 | $ 20.66 | $ 19.59 | $ 18.05 | $ 14.77 | $ 9.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 H | .14 | .06 | .04 | (.01) | .09 |
Net realized and unrealized gain (loss) | 3.56 | 2.10 | 1.26 | 2.00 | 3.35 | 5.42 |
Total from investment operations | 3.62 | 2.24 | 1.32 | 2.04 | 3.34 | 5.51 |
Distributions from net investment income | (.14) | (.11) | (.08) | (.03) | (.06) | (.09) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.63) | (.62) J | (.25) | (.50) | (.06) | (.09) |
Net asset value, end of period | $ 24.27 | $ 22.28 | $ 20.66 | $ 19.59 | $ 18.05 | $ 14.77 |
Total ReturnB, C, D | 17.10% | 11.45% | 6.84% | 11.99% | 22.69% | 59.14% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.92%A | 1.92% | 1.92% | 1.93% | 1.94% | 1.98% |
Expenses net of fee waivers, if any | 1.92%A | 1.92% | 1.92% | 1.93% | 1.94% | 1.98% |
Expenses net of all reductions | 1.91%A | 1.91% | 1.91% | 1.93% | 1.93% | 1.97% |
Net investment income (loss) | .51%A, H | .70% | .31% | .23% | (.07)% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,862 | $ 5,631 | $ 8,697 | $ 9,481 | $ 11,542 | $ 12,078 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .02%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Total distributions of $.62 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $.518 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.23 | $ 20.61 | $ 19.55 | $ 18.03 | $ 14.76 | $ 9.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 H | .15 | .07 | .04 | (.01) | .09 |
Net realized and unrealized gain (loss) | 3.55 | 2.10 | 1.26 | 1.98 | 3.35 | 5.43 |
Total from investment operations | 3.61 | 2.25 | 1.33 | 2.02 | 3.34 | 5.52 |
Distributions from net investment income | (.16) | (.11) | (.10) | (.03) | (.07) | (.10) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.65) | (.63) | (.27) | (.50) | (.07) | (.10) |
Net asset value, end of period | $ 24.19 | $ 22.23 | $ 20.61 | $ 19.55 | $ 18.03 | $ 14.76 |
Total ReturnB, C, D | 17.08% | 11.52% | 6.89% | 11.92% | 22.69% | 59.28% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.88%A | 1.90% | 1.90% | 1.93% | 1.94% | 1.98% |
Expenses net of fee waivers, if any | 1.88%A | 1.90% | 1.90% | 1.93% | 1.94% | 1.98% |
Expenses net of all reductions | 1.87%A | 1.89% | 1.89% | 1.93% | 1.93% | 1.97% |
Net investment income (loss) | .55%A, H | .73% | .33% | .23% | (.07)% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 87,771 | $ 64,822 | $ 75,461 | $ 55,064 | $ 47,406 | $ 31,204 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .06%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
January 31, | (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.74 | $ 21.07 | $ 19.97 | $ 18.36 | $ 14.96 | $ 9.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .18 G | .36 | .28 | .22 | .16 | .23 |
Net realized and unrealized gain (loss) | 3.64 | 2.15 | 1.27 | 2.03 | 3.39 | 5.47 |
Total from investment operations | 3.82 | 2.51 | 1.55 | 2.25 | 3.55 | 5.70 |
Distributions from net investment income | (.29) | (.32) | (.28) | (.17) | (.15) | (.20) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.78) | (.84) | (.45) | (.64) | (.15) | (.20) |
Net asset value, end of period | $ 24.78 | $ 22.74 | $ 21.07 | $ 19.97 | $ 18.36 | $ 14.96 |
Total ReturnB, C | 17.69% | 12.64% | 7.92% | 13.12% | 23.92% | 60.75% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .86%A | .89% | .90% | .93% | .93% | .97% |
Expenses net of fee waivers, if any | .86%A | .89% | .90% | .93% | .93% | .97% |
Expenses net of all reductions | .85%A | .88% | .89% | .93% | .92% | .96% |
Net investment income (loss) | 1.57%A, G | 1.74% | 1.33% | 1.23% | .94% | 1.71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 383,339 | $ 298,932 | $ 305,619 | $ 283,054 | $ 174,655 | $ 167,699 |
Portfolio turnover rateF | 51% A | 83% | 63% | 48% | 63% | 60% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.08%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation 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 | $ 272,588,309 |
Gross unrealized depreciation | (2,288,894) |
Net unrealized appreciation (depreciation) on securities | $ 270,299,415 |
| |
Tax cost | $ 756,201,898 |
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $317,805,688 and $217,617,945, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 380,588 | $ 982 |
Class T | .25% | .25% | 374,264 | - |
Class B | .75% | .25% | 27,745 | 20,809 |
Class C | .75% | .25% | 359,604 | 53,875 |
| | | $ 1,142,201 | $ 75,666 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 shares, 1.00% for Class C shares, 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 | $ 49,637 |
Class T | 6,710 |
Class B* | 1,413 |
Class C* | 2,323 |
| $ 60,083 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 370,286 | .24 |
Class T | 168,828 | .23 |
Class B | 8,252 | .30 |
Class C | 91,993 | .26 |
Institutional Class | 388,630 | .24 |
| $ 1,027,989 | |
* Annualized
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2,178 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $561 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $29,817.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $39,710 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 $40.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 3,417,146 | $ 3,106,444 |
Class T | 1,466,953 | 1,272,835 |
Class B | 34,655 | 37,346 |
Class C | 511,460 | 367,021 |
Institutional Class | 4,002,986 | 4,533,779 |
Total | $ 9,433,200 | $ 9,317,425 |
From net realized gain | | |
Class A | $ 19,013,151 | $ 5,987,252 |
Class T | 9,450,491 | 2,831,247 |
Class B | 364,345 | 199,888 |
Class C | 4,547,451 | 1,765,927 |
Institutional Class | 20,242,329 | 7,054,173 |
Total | $ 53,617,767 | $ 17,838,487 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 3,660,395 | 4,612,676 | $ 84,512,730 | $ 96,531,161 |
Reinvestment of distributions | 966,946 | 447,921 | 21,690,286 | 8,629,179 |
Shares redeemed | (1,783,755) | (4,687,177) | (40,493,076) | (96,076,538) |
Net increase (decrease) | 2,843,586 | 373,420 | $ 65,709,940 | $ 9,083,802 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class T | | | | |
Shares sold | 1,272,316 | 2,099,117 | $ 29,325,490 | $ 43,800,189 |
Reinvestment of distributions | 477,901 | 210,229 | 10,709,289 | 4,035,945 |
Shares redeemed | (770,790) | (1,641,944) | (17,244,672) | (33,718,920) |
Net increase (decrease) | 979,427 | 667,402 | $ 22,790,107 | $ 14,117,214 |
Class B | | | | |
Shares sold | 9,658 | 10,023 | $ 216,293 | $ 207,585 |
Reinvestment of distributions | 16,893 | 10,943 | 373,842 | 205,776 |
Shares redeemed | (37,694) | (189,250) | (842,240) | (3,819,153) |
Net increase (decrease) | (11,143) | (168,284) | $ (252,105) | $ (3,405,792) |
Class C | | | | |
Shares sold | 783,489 | 717,656 | $ 17,783,547 | $ 14,827,663 |
Reinvestment of distributions | 210,659 | 103,592 | 4,650,894 | 1,942,789 |
Shares redeemed | (282,206) | (1,565,975) | (6,265,706) | (31,183,633) |
Net increase (decrease) | 711,942 | (744,727) | $ 16,168,735 | $ (14,413,181) |
Institutional Class | | | | |
Shares sold | 3,489,802 | 9,124,799 | $ 81,078,744 | $ 190,381,315 |
Reinvestment of distributions | 819,785 | 444,680 | 18,525,789 | 8,636,132 |
Shares redeemed | (1,986,547) | (10,926,683) | (45,717,707) | (224,679,719) |
Net increase (decrease) | 2,323,040 | (1,357,204) | $ 53,886,826 | $ (25,662,272) |
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
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Real Estate Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2015 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of SelectCo and the sub-advisers (together with SelectCo, the Investment Advisers) as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the investment staff of the Investment Advisers, including its size, education, experience, and resources, as well as the Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
Semiannual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing SelectCo to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; tactical opportunities for investment; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2014.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and making the competitive group more inclusive.
Semiannual Report
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the chart and considered by the Board.
Fidelity Advisor Real Estate Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for the 12-month period ended June 30, 2014.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each class ranked below its competitive median for the 12-month period ended June 30, 2014.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Semiannual Report
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the profitability analysis used by Fidelity. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under SelectCo's management plus assets under FMR's management). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total group assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (viii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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-0315
1.789731.112
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
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. |
Board Approval of Investment Advisory Contracts and Management Fees | (Click Here) | |
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. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-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
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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,175.30 | $ 6.14 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 1,174.30 | $ 7.40 |
HypotheticalA | | $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class B | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,171.00 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Class C | 1.88% | | | |
Actual | | $ 1,000.00 | $ 1,170.80 | $ 10.29 |
HypotheticalA | | $ 1,000.00 | $ 1,015.73 | $ 9.55 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,176.90 | $ 4.72 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 12.4 | 12.5 |
Boston Properties, Inc. | 5.8 | 5.8 |
HCP, Inc. | 5.1 | 4.2 |
Essex Property Trust, Inc. | 4.9 | 4.8 |
SL Green Realty Corp. | 4.6 | 4.1 |
Digital Realty Trust, Inc. | 3.8 | 3.7 |
Alexandria Real Estate Equities, Inc. | 3.8 | 3.6 |
Federal Realty Investment Trust (SBI) | 3.5 | 3.7 |
Public Storage | 3.3 | 5.1 |
Extra Space Storage, Inc. | 3.3 | 1.4 |
| 50.5 | |
Top Five REIT Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 17.2 | 16.8 |
REITs - Office Property | 15.9 | 19.1 |
REITs - Regional Malls | 15.7 | 15.9 |
REITs - Health Care | 11.5 | 10.4 |
REITs - Shopping Centers | 9.4 | 8.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 | As of July 31, 2014 |
 | Stocks 98.5% | | | Stocks 99.0% | |
 | Short-Term
Investments and
Net Other Assets
(Liabilities) 1.5% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 1.0% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - 96.3% |
REITs - Apartments - 17.2% |
American Campus Communities, Inc. | 644,700 | | $ 28,341,012 |
AvalonBay Communities, Inc. | 114,240 | | 19,762,378 |
Equity Residential (SBI) | 277,009 | | 21,498,668 |
Essex Property Trust, Inc. | 220,247 | | 49,786,834 |
Post Properties, Inc. | 377,600 | | 22,939,200 |
UDR, Inc. | 1,001,700 | | 33,316,542 |
TOTAL REITS - APARTMENTS | | 175,644,634 |
REITs - Diversified - 8.0% |
Cousins Properties, Inc. | 1,064,900 | | 11,756,496 |
Digital Realty Trust, Inc. (d) | 530,900 | | 38,723,846 |
Duke Realty LP | 936,200 | | 20,437,246 |
Vornado Realty Trust | 93,383 | | 10,313,219 |
TOTAL REITS - DIVERSIFIED | | 81,230,807 |
REITs - Health Care - 11.5% |
HCP, Inc. | 1,101,695 | | 52,099,157 |
Health Care REIT, Inc. | 164,969 | | 13,519,210 |
Medical Properties Trust, Inc. | 269,800 | | 4,146,826 |
Sabra Health Care REIT, Inc. | 168,300 | | 5,503,410 |
Senior Housing Properties Trust (SBI) | 701,600 | | 16,340,264 |
Ventas, Inc. | 328,605 | | 26,225,965 |
TOTAL REITS - HEALTH CARE | | 117,834,832 |
REITs - Hotels - 6.2% |
Ashford Hospitality Prime, Inc. | 330,700 | | 5,674,812 |
FelCor Lodging Trust, Inc. | 1,983,189 | | 19,851,722 |
Host Hotels & Resorts, Inc. | 528,134 | | 12,088,987 |
LaSalle Hotel Properties (SBI) | 198,000 | | 8,011,080 |
RLJ Lodging Trust | 301,400 | | 10,268,698 |
Sunstone Hotel Investors, Inc. | 433,655 | | 7,393,818 |
TOTAL REITS - HOTELS | | 63,289,117 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Manufactured Homes - 1.6% |
Equity Lifestyle Properties, Inc. | 28,541 | | $ 1,562,049 |
Sun Communities, Inc. | 216,222 | | 14,644,716 |
TOTAL REITS - MANUFACTURED HOMES | | 16,206,765 |
REITs - Office Property - 15.9% |
Alexandria Real Estate Equities, Inc. | 396,633 | | 38,679,650 |
Boston Properties, Inc. | 424,947 | | 58,982,644 |
Gramercy Property Trust, Inc. | 617,800 | | 4,275,176 |
New York (REIT), Inc. | 505,700 | | 5,274,451 |
Piedmont Office Realty Trust, Inc. Class A | 432,700 | | 8,450,631 |
SL Green Realty Corp. | 367,465 | | 46,300,590 |
TOTAL REITS - OFFICE PROPERTY | | 161,963,142 |
REITs - Regional Malls - 15.7% |
Simon Property Group, Inc. | 636,750 | | 126,496,752 |
Tanger Factory Outlet Centers, Inc. | 69,500 | | 2,734,825 |
Taubman Centers, Inc. | 378,300 | | 31,001,685 |
TOTAL REITS - REGIONAL MALLS | | 160,233,262 |
REITs - Shopping Centers - 9.4% |
Cedar Shopping Centers, Inc. | 1,186,675 | | 9,445,933 |
Excel Trust, Inc. | 284,225 | | 3,990,519 |
Federal Realty Investment Trust (SBI) | 244,302 | | 35,123,299 |
Kite Realty Group Trust | 540,932 | | 16,530,882 |
Ramco-Gershenson Properties Trust (SBI) | 138,500 | | 2,710,445 |
Urban Edge Properties | 430,241 | | 10,213,921 |
WP Glimcher, Inc. | 1,002,275 | | 17,720,222 |
TOTAL REITS - SHOPPING CENTERS | | 95,735,221 |
REITs - Single Tenant - 0.0% |
Select Income (REIT) | 18,500 | | 460,095 |
REITs - Storage - 6.6% |
Extra Space Storage, Inc. | 508,300 | | 33,547,800 |
Public Storage | 168,350 | | 33,811,414 |
TOTAL REITS - STORAGE | | 67,359,214 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Warehouse/Industrial - 4.2% |
DCT Industrial Trust, Inc. | 694,050 | | $ 26,207,328 |
Prologis, Inc. | 235,977 | | 10,652,002 |
Terreno Realty Corp. | 267,300 | | 6,094,440 |
TOTAL REITS - WAREHOUSE/INDUSTRIAL | | 42,953,770 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 982,910,859 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% |
Real Estate Operating Companies - 2.2% |
Forest City Enterprises, Inc. Class A (a) | 906,867 | | 22,218,242 |
TOTAL COMMON STOCKS (Cost $732,114,087) |
1,005,129,101
|
Money Market Funds - 2.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 19,607,237 | | 19,607,237 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,764,975 | | 1,764,975 |
TOTAL MONEY MARKET FUNDS (Cost $21,372,212) |
21,372,212
|
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $753,486,299) | | 1,026,501,313 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | | (5,785,896) |
NET ASSETS - 100% | $ 1,020,715,417 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 6,791 |
Fidelity Securities Lending Cash Central Fund | 29,817 |
Total | $ 36,608 |
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 Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,699,502) - See accompanying schedule: Unaffiliated issuers (cost $732,114,087) | $ 1,005,129,101 | |
Fidelity Central Funds (cost $21,372,212) | 21,372,212 | |
Total Investments (cost $753,486,299) | | $ 1,026,501,313 |
Receivable for investments sold | | 6,227,599 |
Receivable for fund shares sold | | 3,315,884 |
Dividends receivable | | 800,304 |
Distributions receivable from Fidelity Central Funds | | 3,706 |
Prepaid expenses | | 3,604 |
Other receivables | | 31,154 |
Total assets | | 1,036,883,564 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,381,444 | |
Payable for fund shares redeemed | 3,054,419 | |
Accrued management fee | 455,611 | |
Distribution and service plan fees payable | 221,382 | |
Other affiliated payables | 203,234 | |
Other payables and accrued expenses | 87,082 | |
Collateral on securities loaned, at value | 1,764,975 | |
Total liabilities | | 16,168,147 |
| | |
Net Assets | | $ 1,020,715,417 |
Net Assets consist of: | | |
Paid in capital | | $ 736,118,785 |
Distributions in excess of net investment income | | (1,798,496) |
Accumulated undistributed net realized gain (loss) on investments | | 13,380,114 |
Net unrealized appreciation (depreciation) on investments | | 273,015,014 |
Net Assets | | $ 1,020,715,417 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($368,495,414 ÷ 14,989,737 shares) | | $ 24.58 |
| | |
Maximum offering price per share (100/94.25 of $24.58) | | $ 26.08 |
Class T:
Net Asset Value and redemption price per share ($175,248,366 ÷ 7,132,824 shares) | | $ 24.57 |
| | |
Maximum offering price per share (100/96.50 of $24.57) | | $ 25.46 |
Class B:
Net Asset Value and offering price per share ($5,862,146 ÷ 241,543 shares)A | | $ 24.27 |
| | |
Class C:
Net Asset Value and offering price per share ($87,770,639 ÷ 3,628,511 shares)A | | $ 24.19 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($383,338,852 ÷ 15,468,437 shares) | | $ 24.78 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 8,208,542 |
Special dividends | | 2,088,052 |
Income from Fidelity Central Funds | | 36,608 |
Total income | | 10,333,202 |
| | |
Expenses | | |
Management fee | $ 2,351,776 | |
Transfer agent fees | 1,027,989 | |
Distribution and service plan fees | 1,142,201 | |
Accounting and security lending fees | 148,809 | |
Custodian fees and expenses | 17,854 | |
Independent trustees' compensation | 7,518 | |
Registration fees | 102,825 | |
Audit | 24,130 | |
Legal | 4,300 | |
Miscellaneous | 4,077 | |
Total expenses before reductions | 4,831,479 | |
Expense reductions | (39,750) | 4,791,729 |
Net investment income (loss) | | 5,541,473 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 31,717,547 |
Change in net unrealized appreciation (depreciation) on investment securities | | 105,900,024 |
Net gain (loss) | | 137,617,571 |
Net increase (decrease) in net assets resulting from operations | | $ 143,159,044 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 5,541,473 | $ 10,579,301 |
Net realized gain (loss) | 31,717,547 | 45,747,977 |
Change in net unrealized appreciation (depreciation) | 105,900,024 | 22,594,134 |
Net increase (decrease) in net assets resulting
from operations | 143,159,044 | 78,921,412 |
Distributions to shareholders from net investment income | (9,433,200) | (9,317,425) |
Distributions to shareholders from net realized gain | (53,617,767) | (17,838,487) |
Total distributions | (63,050,967) | (27,155,912) |
Share transactions - net increase (decrease) | 158,303,503 | (20,280,229) |
Total increase (decrease) in net assets | 238,411,580 | 31,485,271 |
| | |
Net Assets | | |
Beginning of period | 782,303,837 | 750,818,566 |
End of period (including distributions in excess of net investment income of $1,798,496 and undistributed net investment income of $2,093,231, respectively) | $ 1,020,715,417 | $ 782,303,837 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.57 | $ 20.92 | $ 19.83 | $ 18.24 | $ 14.88 | $ 9.41 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 H | .31 | .22 | .17 | .12 | .19 |
Net realized and unrealized gain (loss) | 3.61 | 2.13 | 1.27 | 2.02 | 3.37 | 5.46 |
Total from investment operations | 3.76 | 2.44 | 1.49 | 2.19 | 3.49 | 5.65 |
Distributions from net investment income | (.26) | (.27) | (.23) | (.13) | (.13) | (.18) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.75) | (.79) | (.40) | (.60) | (.13) | (.18) |
Net asset value, end of period | $ 24.58 | $ 22.57 | $ 20.92 | $ 19.83 | $ 18.24 | $ 14.88 |
Total ReturnB, C, D | 17.53% | 12.34% | 7.66% | 12.81% | 23.63% | 60.38% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.12%A | 1.16% | 1.17% | 1.19% | 1.19% | 1.23% |
Expenses net of fee waivers, if any | 1.12%A | 1.16% | 1.17% | 1.19% | 1.19% | 1.23% |
Expenses net of all reductions | 1.11%A | 1.15% | 1.16% | 1.18% | 1.18% | 1.22% |
Net investment income (loss) | 1.31%A, H | 1.47% | 1.06% | .98% | .69% | 1.45% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 368,495 | $ 274,136 | $ 246,323 | $ 199,303 | $ 178,978 | $ 117,929 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .82%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.55 | $ 20.91 | $ 19.82 | $ 18.24 | $ 14.90 | $ 9.42 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 H | .26 | .17 | .13 | .07 | .15 |
Net realized and unrealized gain (loss) | 3.61 | 2.13 | 1.28 | 2.02 | 3.38 | 5.47 |
Total from investment operations | 3.73 | 2.39 | 1.45 | 2.15 | 3.45 | 5.62 |
Distributions from net investment income | (.22) | (.23) | (.19) | (.10) | (.11) | (.14) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.71) | (.75) | (.36) | (.57) | (.11) | (.14) |
Net asset value, end of period | $ 24.57 | $ 22.55 | $ 20.91 | $ 19.82 | $ 18.24 | $ 14.90 |
Total ReturnB, C, D | 17.43% | 12.07% | 7.43% | 12.52% | 23.28% | 60.02% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.35%A | 1.37% | 1.38% | 1.43% | 1.44% | 1.49% |
Expenses net of fee waivers, if any | 1.35%A | 1.37% | 1.38% | 1.43% | 1.44% | 1.49% |
Expenses net of all reductions | 1.34%A | 1.36% | 1.38% | 1.43% | 1.44% | 1.48% |
Net investment income (loss) | 1.08%A, H | 1.26% | .85% | .73% | .43% | 1.19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 175,248 | $ 138,783 | $ 114,717 | $ 86,987 | $ 76,785 | $ 59,529 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .59%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.28 | $ 20.66 | $ 19.59 | $ 18.05 | $ 14.77 | $ 9.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 H | .14 | .06 | .04 | (.01) | .09 |
Net realized and unrealized gain (loss) | 3.56 | 2.10 | 1.26 | 2.00 | 3.35 | 5.42 |
Total from investment operations | 3.62 | 2.24 | 1.32 | 2.04 | 3.34 | 5.51 |
Distributions from net investment income | (.14) | (.11) | (.08) | (.03) | (.06) | (.09) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.63) | (.62) J | (.25) | (.50) | (.06) | (.09) |
Net asset value, end of period | $ 24.27 | $ 22.28 | $ 20.66 | $ 19.59 | $ 18.05 | $ 14.77 |
Total ReturnB, C, D | 17.10% | 11.45% | 6.84% | 11.99% | 22.69% | 59.14% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.92%A | 1.92% | 1.92% | 1.93% | 1.94% | 1.98% |
Expenses net of fee waivers, if any | 1.92%A | 1.92% | 1.92% | 1.93% | 1.94% | 1.98% |
Expenses net of all reductions | 1.91%A | 1.91% | 1.91% | 1.93% | 1.93% | 1.97% |
Net investment income (loss) | .51%A, H | .70% | .31% | .23% | (.07)% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,862 | $ 5,631 | $ 8,697 | $ 9,481 | $ 11,542 | $ 12,078 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .02%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Total distributions of $.62 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $.518 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.23 | $ 20.61 | $ 19.55 | $ 18.03 | $ 14.76 | $ 9.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 H | .15 | .07 | .04 | (.01) | .09 |
Net realized and unrealized gain (loss) | 3.55 | 2.10 | 1.26 | 1.98 | 3.35 | 5.43 |
Total from investment operations | 3.61 | 2.25 | 1.33 | 2.02 | 3.34 | 5.52 |
Distributions from net investment income | (.16) | (.11) | (.10) | (.03) | (.07) | (.10) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.65) | (.63) | (.27) | (.50) | (.07) | (.10) |
Net asset value, end of period | $ 24.19 | $ 22.23 | $ 20.61 | $ 19.55 | $ 18.03 | $ 14.76 |
Total ReturnB, C, D | 17.08% | 11.52% | 6.89% | 11.92% | 22.69% | 59.28% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 1.88%A | 1.90% | 1.90% | 1.93% | 1.94% | 1.98% |
Expenses net of fee waivers, if any | 1.88%A | 1.90% | 1.90% | 1.93% | 1.94% | 1.98% |
Expenses net of all reductions | 1.87%A | 1.89% | 1.89% | 1.93% | 1.93% | 1.97% |
Net investment income (loss) | .55%A, H | .73% | .33% | .23% | (.07)% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 87,771 | $ 64,822 | $ 75,461 | $ 55,064 | $ 47,406 | $ 31,204 |
Portfolio turnover rateG | 51% A | 83% | 63% | 48% | 63% | 60% |
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 .06%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
January 31, | (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.74 | $ 21.07 | $ 19.97 | $ 18.36 | $ 14.96 | $ 9.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .18 G | .36 | .28 | .22 | .16 | .23 |
Net realized and unrealized gain (loss) | 3.64 | 2.15 | 1.27 | 2.03 | 3.39 | 5.47 |
Total from investment operations | 3.82 | 2.51 | 1.55 | 2.25 | 3.55 | 5.70 |
Distributions from net investment income | (.29) | (.32) | (.28) | (.17) | (.15) | (.20) |
Distributions from net realized gain | (1.49) | (.52) | (.17) | (.47) | - | - |
Total distributions | (1.78) | (.84) | (.45) | (.64) | (.15) | (.20) |
Net asset value, end of period | $ 24.78 | $ 22.74 | $ 21.07 | $ 19.97 | $ 18.36 | $ 14.96 |
Total ReturnB, C | 17.69% | 12.64% | 7.92% | 13.12% | 23.92% | 60.75% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .86%A | .89% | .90% | .93% | .93% | .97% |
Expenses net of fee waivers, if any | .86%A | .89% | .90% | .93% | .93% | .97% |
Expenses net of all reductions | .85%A | .88% | .89% | .93% | .92% | .96% |
Net investment income (loss) | 1.57%A, G | 1.74% | 1.33% | 1.23% | .94% | 1.71% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 383,339 | $ 298,932 | $ 305,619 | $ 283,054 | $ 174,655 | $ 167,699 |
Portfolio turnover rateF | 51% A | 83% | 63% | 48% | 63% | 60% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.08%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation 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 | $ 272,588,309 |
Gross unrealized depreciation | (2,288,894) |
Net unrealized appreciation (depreciation) on securities | $ 270,299,415 |
| |
Tax cost | $ 756,201,898 |
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $317,805,688 and $217,617,945, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 380,588 | $ 982 |
Class T | .25% | .25% | 374,264 | - |
Class B | .75% | .25% | 27,745 | 20,809 |
Class C | .75% | .25% | 359,604 | 53,875 |
| | | $ 1,142,201 | $ 75,666 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 shares, 1.00% for Class C shares, 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 | $ 49,637 |
Class T | 6,710 |
Class B* | 1,413 |
Class C* | 2,323 |
| $ 60,083 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 370,286 | .24 |
Class T | 168,828 | .23 |
Class B | 8,252 | .30 |
Class C | 91,993 | .26 |
Institutional Class | 388,630 | .24 |
| $ 1,027,989 | |
* Annualized
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2,178 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $561 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $29,817.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $39,710 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 $40.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 3,417,146 | $ 3,106,444 |
Class T | 1,466,953 | 1,272,835 |
Class B | 34,655 | 37,346 |
Class C | 511,460 | 367,021 |
Institutional Class | 4,002,986 | 4,533,779 |
Total | $ 9,433,200 | $ 9,317,425 |
From net realized gain | | |
Class A | $ 19,013,151 | $ 5,987,252 |
Class T | 9,450,491 | 2,831,247 |
Class B | 364,345 | 199,888 |
Class C | 4,547,451 | 1,765,927 |
Institutional Class | 20,242,329 | 7,054,173 |
Total | $ 53,617,767 | $ 17,838,487 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 3,660,395 | 4,612,676 | $ 84,512,730 | $ 96,531,161 |
Reinvestment of distributions | 966,946 | 447,921 | 21,690,286 | 8,629,179 |
Shares redeemed | (1,783,755) | (4,687,177) | (40,493,076) | (96,076,538) |
Net increase (decrease) | 2,843,586 | 373,420 | $ 65,709,940 | $ 9,083,802 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class T | | | | |
Shares sold | 1,272,316 | 2,099,117 | $ 29,325,490 | $ 43,800,189 |
Reinvestment of distributions | 477,901 | 210,229 | 10,709,289 | 4,035,945 |
Shares redeemed | (770,790) | (1,641,944) | (17,244,672) | (33,718,920) |
Net increase (decrease) | 979,427 | 667,402 | $ 22,790,107 | $ 14,117,214 |
Class B | | | | |
Shares sold | 9,658 | 10,023 | $ 216,293 | $ 207,585 |
Reinvestment of distributions | 16,893 | 10,943 | 373,842 | 205,776 |
Shares redeemed | (37,694) | (189,250) | (842,240) | (3,819,153) |
Net increase (decrease) | (11,143) | (168,284) | $ (252,105) | $ (3,405,792) |
Class C | | | | |
Shares sold | 783,489 | 717,656 | $ 17,783,547 | $ 14,827,663 |
Reinvestment of distributions | 210,659 | 103,592 | 4,650,894 | 1,942,789 |
Shares redeemed | (282,206) | (1,565,975) | (6,265,706) | (31,183,633) |
Net increase (decrease) | 711,942 | (744,727) | $ 16,168,735 | $ (14,413,181) |
Institutional Class | | | | |
Shares sold | 3,489,802 | 9,124,799 | $ 81,078,744 | $ 190,381,315 |
Reinvestment of distributions | 819,785 | 444,680 | 18,525,789 | 8,636,132 |
Shares redeemed | (1,986,547) | (10,926,683) | (45,717,707) | (224,679,719) |
Net increase (decrease) | 2,323,040 | (1,357,204) | $ 53,886,826 | $ (25,662,272) |
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
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Real Estate Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2015 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of SelectCo and the sub-advisers (together with SelectCo, the Investment Advisers) as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the investment staff of the Investment Advisers, including its size, education, experience, and resources, as well as the Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
Semiannual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing SelectCo to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; tactical opportunities for investment; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2014.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and making the competitive group more inclusive.
Semiannual Report
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the chart and considered by the Board.
Fidelity Advisor Real Estate Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for the 12-month period ended June 30, 2014.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each class ranked below its competitive median for the 12-month period ended June 30, 2014.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Semiannual Report
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the profitability analysis used by Fidelity. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under SelectCo's management plus assets under FMR's management). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total group assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (viii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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-0315
1.789730.112
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, 2015
(Fidelity Cover Art)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 FMR LLC. All rights reserved.
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
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,335.00 | $ 6.24 |
HypotheticalA | | $ 1,000.00 | $ 1,019.86 | $ 5.40 |
Class T | 1.37% | | | |
Actual | | $ 1,000.00 | $ 1,332.80 | $ 8.06 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.97 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,329.40 | $ 10.86 |
HypotheticalA | | $ 1,000.00 | $ 1,015.88 | $ 9.40 |
Class C | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,330.00 | $ 10.63 |
HypotheticalA | | $ 1,000.00 | $ 1,016.08 | $ 9.20 |
Institutional Class | .79% | | | |
Actual | | $ 1,000.00 | $ 1,336.40 | $ 4.65 |
HypotheticalA | | $ 1,000.00 | $ 1,021.22 | $ 4.02 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Gilead Sciences, Inc. | 11.3 | 15.3 |
Celgene Corp. | 7.3 | 6.1 |
Biogen Idec, Inc. | 7.1 | 3.7 |
Alexion Pharmaceuticals, Inc. | 4.7 | 3.4 |
Regeneron Pharmaceuticals, Inc. | 4.1 | 3.3 |
Vertex Pharmaceuticals, Inc. | 4.0 | 5.5 |
BioMarin Pharmaceutical, Inc. | 2.7 | 1.9 |
Amgen, Inc. | 2.3 | 3.4 |
Zafgen, Inc. | 1.9 | 1.0 |
Receptos, Inc. | 1.9 | 0.6 |
| 47.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
 | Biotechnology | 94.2% | |
 | Pharmaceuticals | 5.2% | |
 | Health Care Equipment & Supplies | 0.1% | |
 | Life Sciences Tools & Services | 0.0%† | |
 | Personal Products | 0.0%† | |
 | All Others* | 0.5% | |
As of July 31, 2014 |
| Biotechnology | 94.8% | |
| Pharmaceuticals | 5.1% | |
| Life Sciences Tools & Services | 0.0%† | |
| Personal Products | 0.0%† | |
| Health Care Equipment & Supplies | 0.0%† | |
| All Others* | 0.1% | |
* Includes short-term investments and net other assets (liabilities). |
† Amount represents less than 0.1% |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
BIOTECHNOLOGY - 93.7% |
Biotechnology - 93.7% |
ACADIA Pharmaceuticals, Inc. (a)(d) | 419,186 | | $ 12,755,830 |
Acceleron Pharma, Inc. (a) | 509,544 | | 20,111,702 |
Achillion Pharmaceuticals, Inc. (a)(d) | 1,230,172 | | 18,268,054 |
Acorda Therapeutics, Inc. (a) | 665,453 | | 27,649,572 |
Actelion Ltd. | 75,331 | | 8,368,288 |
Adamas Pharmaceuticals, Inc. | 291,247 | | 4,901,687 |
ADMA Biologics, Inc. (a) | 50,300 | | 543,240 |
Aegerion Pharmaceuticals, Inc. (a)(d) | 516,697 | | 11,997,704 |
Agenus, Inc. (a) | 9,425 | | 47,408 |
Agenus, Inc. warrants 1/9/18 (a) | 452,000 | | 18,523 |
Agios Pharmaceuticals, Inc. (a) | 19,487 | | 2,258,933 |
Akebia Therapeutics, Inc. (a) | 98,877 | | 1,015,467 |
Alder Biopharmaceuticals, Inc. | 60,509 | | 1,638,584 |
Aldeyra Therapeutics, Inc. (h) | 278,295 | | 3,367,370 |
Alexion Pharmaceuticals, Inc. (a) | 659,824 | | 120,906,150 |
Alkermes PLC (a) | 327,741 | | 23,679,287 |
Alnylam Pharmaceuticals, Inc. (a) | 198,961 | | 18,668,511 |
AMAG Pharmaceuticals, Inc. (a) | 118,935 | | 5,255,738 |
Amgen, Inc. | 387,830 | | 59,050,996 |
Anacor Pharmaceuticals, Inc. (a)(d) | 281,313 | | 10,577,369 |
Applied Genetic Technologies Corp. | 208,796 | | 5,215,724 |
Ardelyx, Inc. | 528,366 | | 14,271,166 |
ARIAD Pharmaceuticals, Inc. (a)(d) | 815,995 | | 5,263,168 |
Array BioPharma, Inc. (a) | 378,104 | | 2,707,225 |
Arrowhead Research Corp. (a)(d) | 209,517 | | 1,322,052 |
Asterias Biotherapeutics, Inc. (a)(d) | 115,938 | | 467,114 |
Atara Biotherapeutics, Inc. | 191,800 | | 4,672,248 |
Auspex Pharmaceuticals, Inc. | 290,317 | | 17,839,980 |
Avalanche Biotechnologies, Inc. (a) | 35,297 | | 1,400,585 |
Avalanche Biotechnologies, Inc. (e) | 89,832 | | 3,564,534 |
BioCryst Pharmaceuticals, Inc. (a) | 168,200 | | 1,712,276 |
Biogen Idec, Inc. (a) | 465,199 | | 181,036,843 |
BioMarin Pharmaceutical, Inc. (a) | 705,538 | | 68,550,072 |
Bionovo, Inc. warrants 2/2/16 (a) | 56,850 | | 1 |
bluebird bio, Inc. (a) | 26,449 | | 2,457,377 |
Calithera Biosciences, Inc. (d) | 353,800 | | 7,037,082 |
Cara Therapeutics, Inc. | 106,388 | | 1,147,927 |
Catalyst Pharmaceutical Partners, Inc.: | | | |
warrants 5/2/17 (a) | 8,557 | | 20,784 |
warrants 5/30/17 (a) | 17,900 | | 47,553 |
Celgene Corp. (a) | 1,570,303 | | 187,117,305 |
Cell Therapeutics, Inc. warrants 7/6/16 (a) | 46,404 | | 29 |
Celladon Corp. (a) | 4,066 | | 69,244 |
Celldex Therapeutics, Inc. (a)(d) | 415,302 | | 8,895,769 |
Cepheid, Inc. (a) | 51,400 | | 2,904,614 |
Cerulean Pharma, Inc. | 530,000 | | 4,107,500 |
Chimerix, Inc. (a) | 239,005 | | 9,586,491 |
Clovis Oncology, Inc. (a) | 81,334 | | 5,302,163 |
Coherus BioSciences, Inc. | 74,000 | | 1,660,560 |
CTI BioPharma Corp. (a) | 464,007 | | 1,020,815 |
|
| Shares | | Value |
Cytokinetics, Inc. (a) | 67,916 | | $ 481,524 |
Cytokinetics, Inc. warrants 6/25/17 (a) | 244,500 | | 72,066 |
Dicerna Pharmaceuticals, Inc. | 45,606 | | 972,320 |
Dyax Corp. (a) | 1,237,034 | | 18,691,584 |
Eleven Biotherapeutics, Inc. | 123,940 | | 1,437,704 |
Emergent BioSolutions, Inc. (a) | 146,555 | | 4,107,937 |
Enanta Pharmaceuticals, Inc. (a) | 140,822 | | 6,117,308 |
Epirus Biopharmaceuticals, Inc. (a) | 254,100 | | 1,257,795 |
Epizyme, Inc. (a)(d) | 1,033,471 | | 19,780,635 |
Esperion Therapeutics, Inc. (a) | 237,134 | | 10,884,451 |
Exact Sciences Corp. (a)(d) | 364,159 | | 9,908,766 |
Exelixis, Inc. (a)(d) | 263,845 | | 493,390 |
Fate Therapeutics, Inc. (a) | 145,502 | | 742,060 |
Fibrocell Science, Inc. (a) | 279,800 | | 1,158,372 |
FibroGen, Inc. | 59,400 | | 1,754,082 |
Forward Pharma A/S sponsored ADR (d) | 23,100 | | 569,877 |
Foundation Medicine, Inc. (a)(d) | 159,200 | | 7,587,472 |
Genmab A/S (a) | 358,717 | | 24,122,021 |
Genocea Biosciences, Inc. | 97,479 | | 836,370 |
Genomic Health, Inc. (a)(d) | 54,120 | | 1,746,994 |
Geron Corp. (a)(d) | 2,782,517 | | 8,848,404 |
Gilead Sciences, Inc. (a) | 2,767,007 | | 290,065,334 |
Halozyme Therapeutics, Inc. (a)(d) | 484,507 | | 6,918,760 |
Histogenics Corp. (h) | 672,534 | | 5,729,990 |
Hyperion Therapeutics, Inc. (a) | 291,271 | | 7,369,156 |
Ignyta, Inc. (a) | 237,700 | | 1,616,360 |
Immune Design Corp. (a) | 131,100 | | 3,289,299 |
ImmunoGen, Inc. (a)(d) | 184,438 | | 1,407,262 |
Immunomedics, Inc. (a)(d) | 616,759 | | 3,299,661 |
Incyte Corp. (a) | 575,009 | | 45,833,967 |
Infinity Pharmaceuticals, Inc. (a) | 287,434 | | 4,437,981 |
Insys Therapeutics, Inc. (a)(d) | 245,684 | | 11,738,782 |
Intercept Pharmaceuticals, Inc. (a)(d) | 168,060 | | 33,785,102 |
Intrexon Corp. (a)(d) | 182,908 | | 5,251,289 |
Ironwood Pharmaceuticals, Inc.
Class A (a) | 670,651 | | 10,448,743 |
Isis Pharmaceuticals, Inc. (a)(d) | 355,594 | | 24,361,745 |
Juno Therapeutics, Inc. | 214,673 | | 8,259,544 |
Juno Therapeutics, Inc. | 66,400 | | 2,838,600 |
Karyopharm Therapeutics, Inc. (a)(d) | 561,974 | | 14,909,170 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 638,024 | | 7,758,372 |
Kite Pharma, Inc. (d) | 212,437 | | 14,265,145 |
KYTHERA Biopharmaceuticals, Inc. (a)(d) | 219,330 | | 8,159,076 |
La Jolla Pharmaceutical Co. (a) | 196,861 | | 4,299,444 |
Lexicon Pharmaceuticals, Inc. (a)(d) | 5,501,792 | | 5,006,631 |
Ligand Pharmaceuticals, Inc. Class B (a) | 96,025 | | 5,465,743 |
Lion Biotechnologies, Inc. (a) | 272,346 | | 2,137,916 |
Macrogenics, Inc. (a) | 461,857 | | 14,603,918 |
MannKind Corp. (a)(d) | 1,151,662 | | 7,313,054 |
Medivation, Inc. (a) | 431,077 | | 46,909,799 |
MEI Pharma, Inc. (a) | 119,900 | | 472,406 |
Merrimack Pharmaceuticals, Inc. (a) | 60,200 | | 567,686 |
MiMedx Group, Inc. (a)(d) | 250,413 | | 2,042,118 |
Common Stocks - continued |
| Shares | | Value |
BIOTECHNOLOGY - CONTINUED |
Biotechnology - continued |
Minerva Neurosciences, Inc. | 228,600 | | $ 1,001,268 |
Momenta Pharmaceuticals, Inc. (a) | 121,037 | | 1,303,568 |
Myriad Genetics, Inc. (a)(d) | 195,057 | | 7,299,033 |
Neurocrine Biosciences, Inc. (a) | 624,728 | | 21,028,344 |
NewLink Genetics Corp. (a)(d) | 252,479 | | 9,238,207 |
Novavax, Inc. (a)(d) | 2,301,331 | | 17,973,395 |
Novelos Therapeutics, Inc. warrants 12/6/16 (a) | 137,600 | | 74 |
OncoMed Pharmaceuticals, Inc. (a)(d) | 120,434 | | 2,753,121 |
Ophthotech Corp. (a)(d) | 660,937 | | 37,177,706 |
Opko Health, Inc. (a)(d) | 586,151 | | 7,110,012 |
Oragenics, Inc. (a) | 250,308 | | 195,290 |
Orexigen Therapeutics, Inc. (a)(d) | 1,621,438 | | 8,512,550 |
Organovo Holdings, Inc. (a)(d) | 194,083 | | 1,247,954 |
Osiris Therapeutics, Inc. (a)(d) | 203,971 | | 3,290,052 |
OvaScience, Inc. (a)(d) | 193,445 | | 8,407,120 |
Paratek Pharmaceuticals, Inc. (a) | 100 | | 2,470 |
Paratek Pharmaceuticals, Inc. (e) | 399,100 | | 9,857,770 |
Pharmacyclics, Inc. (a)(d) | 277,679 | | 46,858,331 |
PolyMedix, Inc. warrants 4/10/16 (a) | 163,833 | | 2 |
Portola Pharmaceuticals, Inc. (a) | 418,182 | | 11,888,914 |
Progenics Pharmaceuticals, Inc. (a) | 793,543 | | 4,745,387 |
ProQR Therapeutics BV (a) | 11,500 | | 230,920 |
ProQR Therapeutics BV | 237,916 | | 4,299,618 |
Proteon Therapeutics, Inc. | 137,500 | | 1,450,625 |
Prothena Corp. PLC (a) | 98,834 | | 2,236,613 |
PTC Therapeutics, Inc. (a) | 338,966 | | 18,612,623 |
Puma Biotechnology, Inc. (a) | 216,958 | | 45,795,495 |
Radius Health, Inc. (a)(d) | 589,151 | | 28,391,187 |
Raptor Pharmaceutical Corp. (a)(d) | 460,173 | | 4,159,964 |
Receptos, Inc. (a) | 450,142 | | 49,592,144 |
Regeneron Pharmaceuticals, Inc. (a) | 252,661 | | 105,273,732 |
Regulus Therapeutics, Inc. (a)(d) | 254,763 | | 4,878,711 |
Repligen Corp. (a) | 361,227 | | 8,774,204 |
Rigel Pharmaceuticals, Inc. (a) | 643,465 | | 1,331,973 |
Sage Therapeutics, Inc. (d) | 230,161 | | 9,296,203 |
Sage Therapeutics, Inc. (e) | 25,896 | | 1,045,939 |
Sangamo Biosciences, Inc. (a)(d) | 657,868 | | 8,414,132 |
Sarepta Therapeutics, Inc. (a)(d) | 160,901 | | 1,930,812 |
Seattle Genetics, Inc. (a)(d) | 196,850 | | 6,133,846 |
Sophiris Bio, Inc. (a) | 141,653 | | 67,993 |
Spark Therapeutics, Inc. | 154,856 | | 7,742,800 |
Spectrum Pharmaceuticals, Inc. (a) | 338,247 | | 2,367,729 |
Stemline Therapeutics, Inc. (a)(d) | 348,093 | | 5,388,480 |
Sunesis Pharmaceuticals, Inc. (a)(d) | 830,240 | | 1,959,366 |
Synageva BioPharma Corp. (a)(d) | 226,192 | | 26,061,842 |
Synergy Pharmaceuticals, Inc. (a)(d) | 165,484 | | 481,558 |
Synta Pharmaceuticals Corp. (a)(d) | 471,286 | | 1,121,661 |
TESARO, Inc. (a)(d) | 153,779 | | 6,186,529 |
TG Therapeutics, Inc. (a)(d) | 473,786 | | 6,746,713 |
|
| Shares | | Value |
Threshold Pharmaceuticals, Inc. (a) | 26,804 | | $ 99,711 |
Threshold Pharmaceuticals, Inc. warrants 3/16/16 (a) | 35,146 | | 51,457 |
Tokai Pharmaceuticals, Inc. (d) | 91,000 | | 1,115,660 |
Ultragenyx Pharmaceutical, Inc. | 327,960 | | 19,054,476 |
uniQure B.V. | 108,149 | | 2,271,129 |
United Therapeutics Corp. (a) | 142,294 | | 20,081,952 |
Verastem, Inc. (a) | 331,008 | | 2,416,358 |
Versartis, Inc. (a)(d) | 331,876 | | 5,884,161 |
Vertex Pharmaceuticals, Inc. (a) | 916,326 | | 100,924,146 |
Vical, Inc. (a) | 659,862 | | 686,256 |
Vitae Pharmaceuticals, Inc. | 544,397 | | 7,931,864 |
Vital Therapies, Inc. | 260,400 | | 5,140,296 |
Xencor, Inc. (a) | 187,673 | | 2,843,246 |
Xenon Pharmaceuticals, Inc. | 102,215 | | 1,818,405 |
XOMA Corp. (a)(d) | 1,024,434 | | 3,646,985 |
Zafgen, Inc. (d) | 1,306,751 | | 49,669,606 |
| | 2,396,111,487 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.1% |
Health Care Equipment - 0.1% |
Alsius Corp. (a) | 14,200 | | 0 |
Ocular Therapeutix, Inc. | 35,071 | | 1,068,964 |
Zosano Pharma Corp. | 172,100 | | 1,908,589 |
| | 2,977,553 |
LIFE SCIENCES TOOLS & SERVICES - 0.0% |
Life Sciences Tools & Services - 0.0% |
Transgenomic, Inc. (a) | 13,500 | | 50,490 |
Transgenomic, Inc. warrants 2/3/17 (a) | 81,000 | | 714 |
| | 51,204 |
PERSONAL PRODUCTS - 0.0% |
Personal Products - 0.0% |
MYOS Corp. (a) | 6,666 | | 39,329 |
PHARMACEUTICALS - 4.9% |
Pharmaceuticals - 4.9% |
AcelRx Pharmaceuticals, Inc. (a)(d) | 52,410 | | 351,147 |
Achaogen, Inc. (a) | 141,215 | | 1,652,216 |
Adimab LLC unit (f)(g) | 225,035 | | 3,199,998 |
Aradigm Corp. (a) | 8,786 | | 65,483 |
Auris Medical Holding AG (a) | 261,667 | | 1,036,201 |
Dermira, Inc. | 336,700 | | 5,673,395 |
Dermira, Inc. | 162,931 | | 2,470,849 |
Egalet Corp. (d) | 329,668 | | 2,884,595 |
Flex Pharma, Inc. | 22,600 | | 333,124 |
GW Pharmaceuticals PLC ADR (a) | 25,500 | | 1,860,735 |
Horizon Pharma PLC (a)(d) | 811,450 | | 13,332,124 |
Horizon Pharma PLC warrants 9/25/17 (a) | 55,250 | | 669,369 |
Intra-Cellular Therapies, Inc. (a) | 225,154 | | 4,372,491 |
Jazz Pharmaceuticals PLC (a) | 196,031 | | 33,195,890 |
Common Stocks - continued |
| Shares | | Value |
PHARMACEUTICALS - CONTINUED |
Pharmaceuticals - continued |
Nektar Therapeutics (a) | 277,332 | | $ 4,060,140 |
NeurogesX, Inc. (a) | 150,000 | | 540 |
Pacira Pharmaceuticals, Inc. (a) | 152,160 | | 16,334,376 |
Parnell Pharmaceuticals Holdings Ltd. | 123,569 | | 543,704 |
Relypsa, Inc. (a)(d) | 18,527 | | 650,854 |
Repros Therapeutics, Inc. (a)(d) | 721,683 | | 6,206,474 |
Tetraphase Pharmaceuticals, Inc. (a) | 267,931 | | 9,741,971 |
TherapeuticsMD, Inc. (a)(d) | 696,212 | | 2,826,621 |
Theravance, Inc. (d) | 249,076 | | 2,807,087 |
Zogenix, Inc. (a)(d) | 1,284,991 | | 1,734,738 |
Zogenix, Inc. warrants 7/27/17 (a) | 32,985 | | 2,650 |
ZS Pharma, Inc. (d) | 216,586 | | 9,731,209 |
| | 125,737,981 |
TOTAL COMMON STOCKS (Cost $1,731,138,089) |
2,524,917,554
|
Preferred Stocks - 0.8% |
| | | |
Convertible Preferred Stocks - 0.8% |
BIOTECHNOLOGY - 0.5% |
Biotechnology - 0.5% |
Aduro Biotech, Inc. Series D (g) | 480,225 | | 1,298,000 |
Moderna LLC Series E (g) | 54,410 | | 3,355,465 |
Pronutria Biosciences, Inc. Series C (g) | 341,857 | | 3,445,919 |
Seres Health, Inc. 8.00% (g) | 352,270 | | 4,284,730 |
| | 12,384,114 |
PHARMACEUTICALS - 0.3% |
Pharmaceuticals - 0.3% |
aTyr Pharma, Inc. 8.00% (a)(g) | 282,494 | | 714,427 |
Global Blood Therapeutics, Inc.
Series B (a)(g) | 1,814,085 | | 4,535,213 |
Kolltan Pharmaceuticals, Inc.
Series D (g) | 1,610,391 | | 1,610,391 |
Syros Pharmaceuticals, Inc. Series B, 6.00% (g) | 163,994 | | 515,942 |
| | 7,375,973 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 19,760,087 |
Nonconvertible Preferred Stocks - 0.0% |
BIOTECHNOLOGY - 0.0% |
Biotechnology - 0.0% |
Moderna LLC Series D, 8.00% (a)(g) | 26,918 | | 1,660,033 |
TOTAL PREFERRED STOCKS (Cost $20,334,248) |
21,420,120
|
Money Market Funds - 8.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 24,979,751 | | $ 24,979,751 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 189,117,680 | | 189,117,680 |
TOTAL MONEY MARKET FUNDS (Cost $214,097,431) |
214,097,431
|
TOTAL INVESTMENT PORTFOLIO - 107.9% (Cost $1,965,569,768) | | 2,760,435,105 |
NET OTHER ASSETS (LIABILITIES) - (7.9)% | | (202,363,990) |
NET ASSETS - 100% | $ 2,558,071,115 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 $14,468,243 or 0.6% of net assets. |
(f) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $24,620,117 or 1.0% of net assets. |
(h) Affiliated company |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Adimab LLC unit | 9/17/14 | $ 3,199,998 |
Aduro Biotech, Inc. Series D | 12/19/14 | $ 1,298,000 |
aTyr Pharma, Inc. 8.00% | 4/8/13 - 5/17/13 | $ 714,427 |
Global Blood Therapeutics, Inc. Series B | 12/22/14 | $ 4,535,213 |
Kolltan Pharmaceuticals, Inc. Series D | 3/13/14 | $ 1,610,391 |
Moderna LLC Series D, 8.00% | 11/6/13 | $ 574,161 |
Moderna LLC Series E | 12/18/14 | $ 3,355,465 |
Pronutria Biosciences, Inc. Series C | 1/30/15 | $ 3,445,919 |
Seres Health, Inc. 8.00% | 11/24/14 | $ 4,284,730 |
Syros Pharmaceuticals, Inc. Series B, 6.00% | 10/9/14 | $ 515,942 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 7,294 |
Fidelity Securities Lending Cash Central Fund | 2,027,020 |
Total | $ 2,034,314 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Aldeyra Therapeutics, Inc. | $ 993,513 | $ - | $ - | $ - | $ 3,367,370 |
Histogenics Corp. | - | 7,408,337 | - | - | 5,729,990 |
Total | $ 993,513 | $ 7,408,337 | $ - | $ - | $ 9,097,360 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 2,524,917,554 | $ 2,505,804,323 | $ 15,913,233 | $ 3,199,998 |
Preferred Stocks | 21,420,120 | - | - | 21,420,120 |
Money Market Funds | 214,097,431 | 214,097,431 | - | - |
Total Investments in Securities: | $ 2,760,435,105 | $ 2,719,901,754 | $ 15,913,233 | $ 24,620,118 |
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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $181,562,173) - See accompanying schedule: Unaffiliated issuers (cost $1,741,844,659) | $ 2,537,240,314 | |
Fidelity Central Funds (cost $214,097,431) | 214,097,431 | |
Other affiliated issuers (cost $9,627,678) | 9,097,360 | |
Total Investments (cost $1,965,569,768) | | $ 2,760,435,105 |
Cash | | 94,085 |
Receivable for investments sold | | 2,775,603 |
Receivable for fund shares sold | | 21,183,472 |
Distributions receivable from Fidelity Central Funds | | 368,085 |
Prepaid expenses | | 7,000 |
Other receivables | | 7,286 |
Total assets | | 2,784,870,636 |
| | |
Liabilities | | |
Payable for investments purchased | $ 33,002,843 | |
Payable for fund shares redeemed | 2,338,706 | |
Accrued management fee | 1,100,328 | |
Distribution and service plan fees payable | 716,593 | |
Other affiliated payables | 404,671 | |
Other payables and accrued expenses | 118,700 | |
Collateral on securities loaned, at value | 189,117,680 | |
Total liabilities | | 226,799,521 |
| | |
Net Assets | | $ 2,558,071,115 |
Net Assets consist of: | | |
Paid in capital | | $ 1,726,481,626 |
Accumulated net investment loss | | (15,273,795) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 51,997,794 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 794,865,490 |
Net Assets | | $ 2,558,071,115 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($966,468,621 ÷ 36,782,345 shares) | | $ 26.28 |
| | |
Maximum offering price per share (100/94.25 of $26.23) | | $ 27.88 |
Class T:
Net Asset Value and redemption price per share ($142,282,219 ÷ 5,652,263 shares) | | $ 25.17 |
| | |
Maximum offering price per share (100/96.50 of $25.13) | | $ 26.08 |
Class B:
Net Asset Value and offering price per share ($7,477,457 ÷ 321,301 shares)A | | $ 23.27 |
| | |
Class C:
Net Asset Value and offering price per share ($591,265,520 ÷ 25,356,678 shares)A | | $ 23.32 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($850,577,298 ÷ 30,911,171 shares) | | $ 27.52 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 925,881 |
Income from Fidelity Central Funds (including $2,027,020 from security lending) | | 2,034,314 |
Total income | | 2,960,195 |
| | |
Expenses | | |
Management fee | $ 5,348,844 | |
Transfer agent fees | 1,877,212 | |
Distribution and service plan fees | 3,532,304 | |
Accounting and security lending fees | 311,239 | |
Custodian fees and expenses | 37,799 | |
Independent trustees' compensation | 16,484 | |
Registration fees | 197,824 | |
Audit | 22,381 | |
Legal | 9,037 | |
Miscellaneous | 8,170 | |
Total expenses before reductions | 11,361,294 | |
Expense reductions | (13,352) | 11,347,942 |
Net investment income (loss) | | (8,387,747) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 95,106,083 | |
Foreign currency transactions | 463 | |
Total net realized gain (loss) | | 95,106,546 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 463,590,104 | |
Assets and liabilities in foreign currencies | 153 | |
Total change in net unrealized appreciation (depreciation) | | 463,590,257 |
Net gain (loss) | | 558,696,803 |
Net increase (decrease) in net assets resulting from operations | | $ 550,309,056 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (8,387,747) | $ (9,882,130) |
Net realized gain (loss) | 95,106,546 | 15,835,693 |
Change in net unrealized appreciation (depreciation) | 463,590,257 | 126,643,560 |
Net increase (decrease) in net assets resulting from operations | 550,309,056 | 132,597,123 |
Distributions to shareholders from net investment income | (69,565) | - |
Distributions to shareholders from net realized gain | (51,361,891) | (3,083,051) |
Total distributions | (51,431,456) | (3,083,051) |
Share transactions - net increase (decrease) | 528,636,294 | 713,552,409 |
Redemption fees | 30,654 | 133,198 |
Total increase (decrease) in net assets | 1,027,544,548 | 843,199,679 |
| | |
Net Assets | | |
Beginning of period | 1,530,526,567 | 687,326,888 |
End of period (including accumulated net investment loss of $15,273,795 and accumulated net investment loss of $6,816,483, respectively) | $ 2,558,071,115 | $ 1,530,526,567 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.19 | $ 17.25 | $ 11.79 | $ 8.81 | $ 6.67 | $ 6.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.09) | (.13) | (.09) | (.07) | (.07) H | (.08) I |
Net realized and unrealized gain (loss) | 6.78 | 3.12 | 6.24 | 3.05 | 2.21 | (.19) |
Total from investment operations | 6.69 | 2.99 | 6.15 | 2.98 | 2.14 | (.27) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 26.28 | $ 20.19 | $ 17.25 | $ 11.79 | $ 8.81 | $ 6.67 |
Total ReturnB, C, D | 33.50% | 17.38% | 54.94% | 33.83% | 32.08% | (3.89)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.06%A | 1.08% | 1.15% | 1.27% | 1.35% | 1.39% |
Expenses net of fee waivers, if any | 1.06%A | 1.08% | 1.15% | 1.27% | 1.35% | 1.39% |
Expenses net of all reductions | 1.06%A | 1.08% | 1.14% | 1.27% | 1.34% | 1.38% |
Net investment income (loss) | (.75)%A | (.68)% | (.63)% | (.73)% | (.91)% H | (1.15)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 966,469 | $ 602,625 | $ 286,695 | $ 68,993 | $ 30,639 | $ 20,154 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.39 | $ 16.63 | $ 11.42 | $ 8.56 | $ 6.50 | $ 6.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.19) | (.12) | (.10) | (.09) H | (.09) I |
Net realized and unrealized gain (loss) | 6.50 | 3.00 | 6.02 | 2.96 | 2.15 | (.19) |
Total from investment operations | 6.38 | 2.81 | 5.90 | 2.86 | 2.06 | (.28) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 25.17 | $ 19.39 | $ 16.63 | $ 11.42 | $ 8.56 | $ 6.50 |
Total ReturnB, C, D | 33.28% | 16.95% | 54.50% | 33.41% | 31.69% | (4.13)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.37%A | 1.41% | 1.46% | 1.56% | 1.64% | 1.69% |
Expenses net of fee waivers, if any | 1.37%A | 1.41% | 1.46% | 1.56% | 1.64% | 1.65% |
Expenses net of all reductions | 1.37%A | 1.40% | 1.46% | 1.56% | 1.64% | 1.64% |
Net investment income (loss) | (1.07)%A | (1.01)% | (.94)% | (1.02)% | (1.21)% H | (1.41)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 142,282 | $ 95,945 | $ 67,887 | $ 28,154 | $ 16,454 | $ 11,684 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.01 | $ 15.52 | $ 10.75 | $ 8.09 | $ 6.17 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.16) | (.26) | (.17) | (.13) | (.12) H | (.12) I |
Net realized and unrealized gain (loss) | 6.02 | 2.80 | 5.63 | 2.79 | 2.04 | (.18) |
Total from investment operations | 5.86 | 2.54 | 5.46 | 2.66 | 1.92 | (.30) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 23.27 | $ 18.01 | $ 15.52 | $ 10.75 | $ 8.09 | $ 6.17 |
Total ReturnB, C, D | 32.94% | 16.42% | 53.76% | 32.88% | 31.12% | (4.64)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.85%A | 1.89% | 1.94% | 2.03% | 2.10% | 2.14% |
Expenses net of fee waivers, if any | 1.85%A | 1.89% | 1.94% | 2.03% | 2.10% | 2.14% |
Expenses net of all reductions | 1.85%A | 1.88% | 1.94% | 2.02% | 2.09% | 2.13% |
Net investment income (loss) | (1.55)%A | (1.49)% | (1.42)% | (1.49)% | (1.66)% H | (1.90)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,477 | $ 6,101 | $ 8,136 | $ 6,349 | $ 5,849 | $ 6,297 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.04 | $ 15.53 | $ 10.76 | $ 8.10 | $ 6.18 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.16) | (.25) | (.17) | (.13) | (.12) H | (.12) I |
Net realized and unrealized gain (loss) | 6.04 | 2.81 | 5.63 | 2.79 | 2.04 | (.17) |
Total from investment operations | 5.88 | 2.56 | 5.46 | 2.66 | 1.92 | (.29) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 23.32 | $ 18.04 | $ 15.53 | $ 10.76 | $ 8.10 | $ 6.18 |
Total ReturnB, C, D | 33.00% | 16.54% | 53.71% | 32.84% | 31.07% | (4.48)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.81%A | 1.83% | 1.88% | 2.01% | 2.10% | 2.14% |
Expenses net of fee waivers, if any | 1.81%A | 1.83% | 1.88% | 2.01% | 2.10% | 2.14% |
Expenses net of all reductions | 1.81%A | 1.83% | 1.87% | 2.01% | 2.09% | 2.13% |
Net investment income (loss) | (1.50)%A | (1.43)% | (1.36)% | (1.47)% | (1.66)% H | (1.90)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 591,266 | $ 359,967 | $ 146,684 | $ 31,710 | $ 15,787 | $ 11,421 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.10 | $ 17.97 | $ 12.22 | $ 9.10 | $ 6.87 | $ 7.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.06) | (.08) | (.05) | (.04) | (.05) G | (.06) H |
Net realized and unrealized gain (loss) | 7.09 | 3.26 | 6.49 | 3.16 | 2.28 | (.19) |
Total from investment operations | 7.03 | 3.18 | 6.44 | 3.12 | 2.23 | (.25) |
Distributions from net investment income | - J | - | - | - | - | - |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Total distributions | (.61) K | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 27.52 | $ 21.10 | $ 17.97 | $ 12.22 | $ 9.10 | $ 6.87 |
Total ReturnB, C | 33.64% | 17.74% | 55.39% | 34.29% | 32.46% | (3.51)% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | .79%A | .81% | .85% | .95% | 1.04% | 1.07% |
Expenses net of fee waivers, if any | .79%A | .81% | .85% | .95% | 1.04% | 1.07% |
Expenses net of all reductions | .79%A | .80% | .84% | .94% | 1.03% | 1.06% |
Net investment income (loss) | (.49)%A | (.41)% | (.32)% | (.40)% | (.60)% G | (.83)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 850,577 | $ 465,889 | $ 177,926 | $ 26,772 | $ 5,903 | $ 3,008 |
Portfolio turnover rateF | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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. K Total distributions of $.61 per share is comprised of distributions from net investment income of $.604 and distributions from net realized gain of $.003 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. During the period, the dividend income has been increased $415,705 with a corresponding decrease to unrealized appreciation (depreciation) as a result of a change in the prior period estimate, which had no impact on the total net assets or the total return of the Fund. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 881,589,325 |
Gross unrealized depreciation | (93,202,470) |
Net unrealized appreciation (depreciation) on securities | $ 788,386,855 |
| |
Tax cost | $ 1,972,048,250 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $818,445,558 and $360,337,192, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 927,482 | $ 17,418 |
Class T | .25% | .25% | 291,402 | - |
Class B | .75% | .25% | 33,592 | 25,194 |
Class C | .75% | .25% | 2,279,828 | 1,099,094 |
| | | $ 3,532,304 | $ 1,141,706 |
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 shares, 1.00% for Class C shares, 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 | $ 653,053 |
Class T | 38,213 |
Class B* | 1,888 |
Class C* | 67,270 |
| $ 760,424 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 718,187 | .19 |
Class T | 150,902 | .26 |
Class B | 8,048 | .24 |
Class C | 442,079 | .19 |
Institutional Class | 557,996 | .18 |
| $ 1,877,212 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $26,355 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,229 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $13,352 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Institutional Class | $ 69,565 | $ - |
Total | $ 69,565 | $ - |
From net realized gain | | |
Class A | $ 19,162,661 | $ 1,291,021 |
Class T | 3,137,056 | 234,772 |
Class B | 191,809 | 24,488 |
Class C | 13,249,585 | 722,216 |
Institutional Class | 15,620,780 | 810,554 |
Total | $ 51,361,891 | $ 3,083,051 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 10,821,266 | 26,291,422 | $ 259,320,079 | $ 513,888,215 |
Reinvestment of distributions | 750,773 | 64,680 | 17,834,338 | 1,162,299 |
Shares redeemed | (4,636,336) | (13,129,582) | (105,417,399) | (254,303,314) |
Net increase (decrease) | 6,935,703 | 13,226,520 | $ 171,737,018 | $ 260,747,200 |
Class T | | | | |
Shares sold | 1,107,249 | 2,490,442 | $ 25,483,097 | $ 47,007,190 |
Reinvestment of distributions | 134,415 | 13,197 | 3,058,637 | 228,306 |
Shares redeemed | (536,346) | (1,639,876) | (11,876,240) | (30,470,117) |
Net increase (decrease) | 705,318 | 863,763 | $ 16,665,494 | $ 16,765,379 |
Class B | | | | |
Shares sold | 37,870 | 92,681 | $ 799,199 | $ 1,623,597 |
Reinvestment of distributions | 8,590 | 1,384 | 180,710 | 22,292 |
Shares redeemed | (63,887) | (279,647) | (1,312,401) | (4,810,522) |
Net increase (decrease) | (17,427) | (185,582) | $ (332,492) | $ (3,164,633) |
Class C | | | | |
Shares sold | 6,566,024 | 14,509,075 | $ 140,481,223 | $ 256,484,365 |
Reinvestment of distributions | 528,129 | 36,658 | 11,164,209 | 591,299 |
Shares redeemed | (1,689,529) | (4,036,055) | (34,628,762) | (69,713,827) |
Net increase (decrease) | 5,404,624 | 10,509,678 | $ 117,016,670 | $ 187,361,837 |
Institutional Class | | | | |
Shares sold | 12,345,244 | 21,677,297 | $ 307,095,004 | $ 442,824,898 |
Reinvestment of distributions | 532,595 | 35,974 | 13,257,162 | 674,146 |
Shares redeemed | (4,051,025) | (9,529,193) | (96,802,562) | (191,656,418) |
Net increase (decrease) | 8,826,814 | 12,184,078 | $ 223,549,604 | $ 251,842,626 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,004.20 | $ 7.07 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,002.20 | $ 8.33 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,000.00 | $ 10.84 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,000.00 | $ 10.84 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,005.40 | $ 5.81 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 17.8 | 17.6 |
QUALCOMM, Inc. | 17.1 | 14.8 |
Nokia Corp. sponsored ADR | 5.5 | 5.5 |
Juniper Networks, Inc. | 5.4 | 4.7 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 4.8 | 4.6 |
Alcatel-Lucent SA sponsored ADR | 3.9 | 3.5 |
Motorola Solutions, Inc. | 2.9 | 2.3 |
Riverbed Technology, Inc. | 2.8 | 3.3 |
F5 Networks, Inc. | 2.6 | 3.3 |
BlackBerry Ltd. | 2.0 | 2.1 |
| 64.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Communications Equipment | 84.3% | |
| Internet Software & Services | 3.4% | |
| Semiconductors & Semiconductor
Equipment | 3.2% | |
| Technology Hardware, Storage & Peripherals | 2.6% | |
| Software | 2.4% | |
| All Others* | 4.1% | |
As of July 31, 2014 |
| Communications Equipment | 73.4% | |
| Technology Hardware, Storage & Peripherals | 8.9% | |
| Software | 3.6% | |
| Semiconductors & Semiconductor
Equipment | 2.7% | |
| Internet Software & Services | 2.5% | |
| All Others* | 8.9% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 84.3% |
Communications Equipment - 84.3% |
ADTRAN, Inc. | 8,600 | | $ 190,146 |
ADVA Optical Networking SE (a) | 16,128 | | 53,398 |
Alcatel-Lucent SA sponsored ADR (a) | 159,357 | | 549,782 |
Arista Networks, Inc. | 100 | | 6,312 |
Aruba Networks, Inc. (a) | 11,940 | | 197,965 |
Ciena Corp. (a)(d) | 9,900 | | 183,348 |
Cisco Systems, Inc. | 96,424 | | 2,542,220 |
CommScope Holding Co., Inc. (a) | 9,500 | | 266,998 |
F5 Networks, Inc. (a) | 3,265 | | 364,439 |
Finisar Corp. (a) | 12,600 | | 228,564 |
InterDigital, Inc. | 2,800 | | 139,944 |
Ixia (a) | 14,400 | | 146,016 |
JDS Uniphase Corp. (a) | 16,100 | | 195,615 |
Juniper Networks, Inc. | 34,188 | | 777,093 |
Motorola Solutions, Inc. | 6,647 | | 414,839 |
NETGEAR, Inc. (a) | 2,900 | | 97,933 |
Nokia Corp. sponsored ADR | 103,620 | | 787,512 |
Plantronics, Inc. | 5,300 | | 242,899 |
Polycom, Inc. (a) | 12,299 | | 163,577 |
Procera Networks, Inc. (a)(d) | 2,200 | | 19,316 |
QUALCOMM, Inc. | 39,081 | | 2,440,999 |
Radware Ltd. (a) | 5,600 | | 107,744 |
Riverbed Technology, Inc. (a) | 19,458 | | 400,446 |
Ruckus Wireless, Inc. (a) | 25,800 | | 273,222 |
ShoreTel, Inc. (a) | 10,900 | | 77,172 |
Sonus Networks, Inc. (a) | 8,240 | | 157,219 |
Spirent Communications PLC | 84,600 | | 113,726 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 56,120 | | 680,736 |
Transmode AB | 4,800 | | 41,623 |
ViaSat, Inc. (a) | 2,400 | | 134,928 |
Wi-Lan, Inc. | 15,100 | | 40,522 |
| | 12,036,253 |
ELECTRICAL EQUIPMENT - 0.4% |
Electrical Components & Equipment - 0.4% |
General Cable Corp. | 4,700 | | 53,768 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.3% |
Electronic Components - 0.3% |
II-VI, Inc. (a) | 2,700 | | 46,413 |
HEALTH CARE TECHNOLOGY - 0.4% |
Health Care Technology - 0.4% |
Vocera Communications, Inc. (a) | 7,200 | | 64,512 |
INTERNET SOFTWARE & SERVICES - 3.4% |
Internet Software & Services - 3.4% |
Google, Inc.: | | | |
Class A (a) | 399 | | 214,482 |
Class C (a) | 409 | | 218,619 |
|
| Shares | | Value |
Rackspace Hosting, Inc. (a) | 600 | | $ 26,976 |
Web.com Group, Inc. (a) | 1,600 | | 24,176 |
| | 484,253 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.2% |
Semiconductors - 3.2% |
Altera Corp. | 6,800 | | 223,890 |
GSI Technology, Inc. (a) | 7,700 | | 38,962 |
Semtech Corp. (a) | 3,900 | | 99,294 |
Xilinx, Inc. | 2,400 | | 92,580 |
| | 454,726 |
SOFTWARE - 2.4% |
Application Software - 0.6% |
BroadSoft, Inc. (a) | 1,500 | | 40,335 |
Comverse, Inc. (a) | 3,000 | | 51,690 |
| | 92,025 |
Systems Software - 1.8% |
Infoblox, Inc. (a) | 2,400 | | 44,808 |
Oracle Corp. | 3,100 | | 129,859 |
Rovi Corp. (a) | 3,300 | | 76,263 |
| | 250,930 |
TOTAL SOFTWARE | | 342,955 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 2.6% |
Technology Hardware, Storage & Peripherals - 2.6% |
BlackBerry Ltd. (a) | 27,600 | | 280,140 |
Samsung Electronics Co. Ltd. | 70 | | 86,204 |
| | 366,344 |
TOTAL COMMON STOCKS (Cost $11,967,350) |
13,849,224
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 449,642 | | 449,642 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 195,200 | | 195,200 |
TOTAL MONEY MARKET FUNDS (Cost $644,842) |
644,842
|
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $12,612,192) | | 14,494,066 |
NET OTHER ASSETS (LIABILITIES) - (1.5)% | | (219,306) |
NET ASSETS - 100% | $ 14,274,760 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 495 |
Fidelity Securities Lending Cash Central Fund | 986 |
Total | $ 1,481 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 13,849,224 | $ 13,763,020 | $ 86,204 | $ - |
Money Market Funds | 644,842 | 644,842 | - | - |
Total Investments in Securities: | $ 14,494,066 | $ 14,407,862 | $ 86,204 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 80.6% |
Finland | 5.5% |
Sweden | 5.1% |
France | 3.9% |
Canada | 2.3% |
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 Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $180,728) - See accompanying schedule: Unaffiliated issuers (cost $11,967,350) | $ 13,849,224 | |
Fidelity Central Funds (cost $644,842) | 644,842 | |
Total Investments (cost $12,612,192) | | $ 14,494,066 |
Cash | | 1,871 |
Receivable for investments sold | | 52,666 |
Receivable for fund shares sold | | 11,218 |
Dividends receivable | | 1,034 |
Distributions receivable from Fidelity Central Funds | | 192 |
Prepaid expenses | | 67 |
Receivable from investment adviser for expense reductions | | 2,107 |
Other receivables | | 17 |
Total assets | | 14,563,238 |
| | |
Liabilities | | |
Payable for investments purchased | $ 14,108 | |
Payable for fund shares redeemed | 36,073 | |
Accrued management fee | 6,890 | |
Distribution and service plan fees payable | 5,429 | |
Other affiliated payables | 3,978 | |
Other payables and accrued expenses | 26,800 | |
Collateral on securities loaned, at value | 195,200 | |
Total liabilities | | 288,478 |
| | |
Net Assets | | $ 14,274,760 |
Net Assets consist of: | | |
Paid in capital | | $ 12,640,272 |
Accumulated net investment loss | | (26,709) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (220,676) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,881,873 |
Net Assets | | $ 14,274,760 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,677,987 ÷ 391,136 shares) | | $ 11.96 |
| | |
Maximum offering price per share (100/94.25 of $11.96) | | $ 12.69 |
Class T:
Net Asset Value and redemption price per share ($3,998,479 ÷ 345,495 shares) | | $ 11.57 |
| | |
Maximum offering price per share (100/96.50 of $11.57) | | $ 11.99 |
Class B:
Net Asset Value and offering price per share ($353,372 ÷ 32,815 shares)A | | $ 10.77 |
| | |
Class C:
Net Asset Value and offering price per share ($2,684,830 ÷ 249,444 shares)A | | $ 10.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,560,092 ÷ 207,171 shares) | | $ 12.36 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 88,308 |
Income from Fidelity Central Funds | | 1,481 |
Total income | | 89,789 |
| | |
Expenses | | |
Management fee | $ 40,148 | |
Transfer agent fees | 21,710 | |
Distribution and service plan fees | 31,946 | |
Accounting and security lending fees | 2,935 | |
Custodian fees and expenses | 2,698 | |
Independent trustees' compensation | 133 | |
Registration fees | 48,492 | |
Audit | 21,964 | |
Legal | 113 | |
Miscellaneous | 44 | |
Total expenses before reductions | 170,183 | |
Expense reductions | (55,392) | 114,791 |
Net investment income (loss) | | (25,002) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 513,790 | |
Foreign currency transactions | (488) | |
Total net realized gain (loss) | | 513,302 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (459,943) | |
Assets and liabilities in foreign currencies | (3) | |
Total change in net unrealized appreciation (depreciation) | | (459,946) |
Net gain (loss) | | 53,356 |
Net increase (decrease) in net assets resulting from operations | | $ 28,354 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (25,002) | $ 32,595 |
Net realized gain (loss) | 513,302 | 685,793 |
Change in net unrealized appreciation (depreciation) | (459,946) | 1,223,850 |
Net increase (decrease) in net assets resulting from operations | 28,354 | 1,942,238 |
Distributions to shareholders from net investment income | (25,322) | - |
Share transactions - net increase (decrease) | (182,489) | 1,539,076 |
Redemption fees | 76 | 568 |
Total increase (decrease) in net assets | (179,381) | 3,481,882 |
| | |
Net Assets | | |
Beginning of period | 14,454,141 | 10,972,259 |
End of period (including accumulated net investment loss of $26,709 and undistributed net investment income of $23,615, respectively) | $ 14,274,760 | $ 14,454,141 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.94 | $ 10.22 | $ 7.71 | $ 9.73 | $ 8.67 | $ 7.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .04 H | .02 | (.01) | (.06) | (.11) |
Net realized and unrealized gain (loss) | .06 | 1.68 | 2.50 | (1.81) | 1.12 | 1.50 |
Total from investment operations | .05 | 1.72 | 2.52 | (1.82) | 1.06 | 1.39 |
Distributions from net investment income | (.03) | - | (.01) | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.03) | - | (.01) | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.96 | $ 11.94 | $ 10.22 | $ 7.71 | $ 9.73 | $ 8.67 |
Total ReturnB, C, D | .42% | 16.83% | 32.65% | (18.88)% | 12.23% | 19.09% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.15%A | 1.96% | 2.22% | 1.96% | 1.64% | 1.90% |
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% | 1.37% | 1.39% | 1.39% | 1.38% |
Net investment income (loss) | (.16)%A | .40% H | .18% | (.16)% | (.60)% | (1.32)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,678 | $ 4,725 | $ 3,962 | $ 3,568 | $ 8,787 | $ 4,860 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .14%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.55 | $ 9.91 | $ 7.49 | $ 9.48 | $ 8.46 | $ 7.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .02 H | (.01) | (.03) | (.09) | (.13) |
Net realized and unrealized gain (loss) | .05 | 1.62 | 2.43 | (1.76) | 1.11 | 1.46 |
Total from investment operations | .03 | 1.64 | 2.42 | (1.79) | 1.02 | 1.33 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.01) | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.57 | $ 11.55 | $ 9.91 | $ 7.49 | $ 9.48 | $ 8.46 |
Total ReturnB, C, D | .22% | 16.55% | 32.31% | (19.06)% | 12.06% | 18.65% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.44%A | 2.25% | 2.52% | 2.27% | 1.97% | 2.20% |
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% | 1.62% | 1.64% | 1.64% | 1.63% |
Net investment income (loss) | (.41)%A | .14% H | (.07)% | (.41)% | (.85)% | (1.57)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,998 | $ 3,995 | $ 3,342 | $ 2,843 | $ 4,607 | $ 3,273 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.77 | $ 9.28 | $ 7.05 | $ 8.99 | $ 8.06 | $ 6.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.04) H | (.05) | (.07) | (.13) | (.16) |
Net realized and unrealized gain (loss) | .05 | 1.53 | 2.28 | (1.67) | 1.06 | 1.39 |
Total from investment operations | - | 1.49 | 2.23 | (1.74) | .93 | 1.23 |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.77 | $ 10.77 | $ 9.28 | $ 7.05 | $ 8.99 | $ 8.06 |
Total ReturnB, C, D | 0.00% | 16.06% | 31.63% | (19.56)% | 11.54% | 18.01% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.92%A | 2.74% | 3.00% | 2.71% | 2.47% | 2.68% |
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% | 2.13% | 2.14% | 2.13% |
Net investment income (loss) | (.91)%A | (.36)% H | (.57)% | (.91)% | (1.35)% | (2.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 353 | $ 399 | $ 480 | $ 570 | $ 1,316 | $ 1,408 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.76 | $ 9.28 | $ 7.05 | $ 8.98 | $ 8.06 | $ 6.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.04) H | (.05) | (.07) | (.13) | (.16) |
Net realized and unrealized gain (loss) | .05 | 1.52 | 2.28 | (1.66) | 1.05 | 1.40 |
Total from investment operations | - | 1.48 | 2.23 | (1.73) | .92 | 1.24 |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.76 | $ 10.76 | $ 9.28 | $ 7.05 | $ 8.98 | $ 8.06 |
Total ReturnB, C, D | 0.00% | 15.95% | 31.63% | (19.47)% | 11.41% | 18.18% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.91%A | 2.73% | 2.98% | 2.71% | 2.40% | 2.67% |
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% | 2.12% | 2.14% | 2.14% | 2.13% |
Net investment income (loss) | (.91)%A | (.35)% H | (.57)% | (.91)% | (1.35)% | (2.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,685 | $ 2,744 | $ 2,334 | $ 2,142 | $ 5,866 | $ 3,029 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.35 | $ 10.55 | $ 7.95 | $ 10.00 | $ 8.88 | $ 7.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .08 G | .04 | .01 | (.04) | (.09) |
Net realized and unrealized gain (loss) | .06 | 1.72 | 2.58 | (1.86) | 1.16 | 1.52 |
Total from investment operations | .07 | 1.80 | 2.62 | (1.85) | 1.12 | 1.43 |
Distributions from net investment income | (.06) | - | (.02) | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.06) | - | (.02) | (.20) | - | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.36 | $ 12.35 | $ 10.55 | $ 7.95 | $ 10.00 | $ 8.88 |
Total ReturnB, C | .54% | 17.06% | 32.92% | (18.66)% | 12.61% | 19.19% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | 1.79%A | 1.45% | 1.93% | 1.66% | 1.22% | 1.54% |
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% | 1.12% | 1.13% | 1.14% | 1.13% |
Net investment income (loss) | .10%A | .65% G | .43% | .10% | (.35)% | (1.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,560 | $ 2,592 | $ 855 | $ 721 | $ 2,855 | $ 1,717 |
Portfolio turnover rateF | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .39%. 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 2,272,207 |
Gross unrealized depreciation | (506,714) |
Net unrealized appreciation (depreciation) on securities | $ 1,765,493 |
| |
Tax cost | $ 12,728,573 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $ (575,460) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,453,656 and $2,942,337, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 5,946 | $ 210 |
Class T | .25% | .25% | 10,380 | - |
Class B | .75% | .25% | 1,927 | 1,445 |
Class C | .75% | .25% | 13,693 | 1,430 |
| | | $ 31,946 | $ 3,085 |
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 shares, 1.00% for Class C shares, 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 | $ 1,966 |
Class T | 689 |
Class B* | 40 |
Class C* | 179 |
| $ 2,874 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 7,346 | .31 |
Class T | 7,030 | .34 |
Class B | 599 | .31 |
Class C | 4,256 | .31 |
Institutional Class | 2,479 | .19 |
| $ 21,710 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $222 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $986.
8. Expense Reductions.
The investment adviser 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 |
Class A | 1.40% | $ 17,823 |
Class T | 1.65% | 16,350 |
Class B | 2.15% | 1,479 |
Class C | 2.15% | 10,426 |
Institutional Class | 1.15% | 8,248 |
| | $ 54,326 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,063 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.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 11,846 | $ - |
Class T | 1,754 | - |
Institutional Class | 11,722 | - |
Total | $ 25,322 | $ - |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 52,859 | 118,184 | $ 655,663 | $ 1,378,044 |
Reinvestment of distributions | 914 | - | 11,238 | - |
Shares redeemed | (58,288) | (110,145) | (706,938) | (1,218,133) |
Net increase (decrease) | (4,515) | 8,039 | $ (40,037) | $ 159,911 |
Class T | | | | |
Shares sold | 26,028 | 51,248 | $ 307,291 | $ 564,493 |
Reinvestment of distributions | 146 | - | 1,738 | - |
Shares redeemed | (26,674) | (42,610) | (316,476) | (470,057) |
Net increase (decrease) | (500) | 8,638 | $ (7,447) | $ 94,436 |
Class B | | | | |
Shares sold | - | 64 | $ - | $ 624 |
Shares redeemed | (4,203) | (14,700) | (45,127) | (144,244) |
Net increase (decrease) | (4,203) | (14,636) | $ (45,127) | $ (143,620) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class C | | | | |
Shares sold | 21,203 | 74,081 | $ 235,520 | $ 769,830 |
Shares redeemed | (26,777) | (70,636) | (294,101) | (715,373) |
Net increase (decrease) | (5,574) | 3,445 | $ (58,581) | $ 54,457 |
Institutional Class | | | | |
Shares sold | 12,678 | 1,448,765 | $ 157,973 | $ 17,115,064 |
Reinvestment of distributions | 868 | - | 11,030 | - |
Shares redeemed | (16,251) | (1,319,932) | (200,300) | (15,741,172) |
Net increase (decrease) | (2,705) | 128,833 | $ (31,297) | $ 1,373,892 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,088.40 | $ 6.32 |
HypotheticalA | | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,087.40 | $ 7.89 |
HypotheticalA | | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.04% | | | |
Actual | | $ 1,000.00 | $ 1,084.90 | $ 10.72 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 1,085.10 | $ 10.35 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .92% | | | |
Actual | | $ 1,000.00 | $ 1,090.50 | $ 4.85 |
HypotheticalA | | $ 1,000.00 | $ 1,020.57 | $ 4.69 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
The Walt Disney Co. | 7.6 | 6.6 |
Comcast Corp. Class A | 5.8 | 2.8 |
Home Depot, Inc. | 5.5 | 5.5 |
L Brands, Inc. | 4.1 | 2.7 |
Starbucks Corp. | 3.9 | 2.9 |
NIKE, Inc. Class B | 3.3 | 3.2 |
Priceline Group, Inc. | 2.9 | 3.8 |
Wyndham Worldwide Corp. | 2.8 | 2.5 |
Naspers Ltd. Class N | 2.3 | 0.0 |
TJX Companies, Inc. | 2.2 | 3.5 |
| 40.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Media | 22.5% | |
| Hotels, Restaurants & Leisure | 21.1% | |
| Specialty Retail | 19.9% | |
| Textiles, Apparel & Luxury Goods | 11.7% | |
| Internet & Catalog Retail | 5.1% | |
| All Others* | 19.7% | |
As of July 31, 2014 |
| Media | 33.0% | |
| Specialty Retail | 19.1% | |
| Hotels, Restaurants & Leisure | 14.8% | |
| Textiles, Apparel & Luxury Goods | 11.1% | |
| Internet & Catalog Retail | 5.6% | |
| All Others* | 16.4% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
AUTO COMPONENTS - 3.1% |
Auto Parts & Equipment - 3.1% |
Delphi Automotive PLC | 41,284 | | $ 2,837,449 |
Tenneco, Inc. (a) | 29,500 | | 1,516,890 |
| | 4,354,339 |
AUTOMOBILES - 2.6% |
Automobile Manufacturers - 1.1% |
Tata Motors Ltd. (a) | 93,448 | | 880,059 |
Tesla Motors, Inc. (a) | 3,600 | | 732,960 |
| | 1,613,019 |
Motorcycle Manufacturers - 1.5% |
Harley-Davidson, Inc. | 34,700 | | 2,140,990 |
TOTAL AUTOMOBILES | | 3,754,009 |
BEVERAGES - 2.0% |
Distillers & Vintners - 0.9% |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 12,124 | | 1,339,096 |
Soft Drinks - 1.1% |
Monster Beverage Corp. (a) | 13,300 | | 1,555,435 |
TOTAL BEVERAGES | | 2,894,531 |
FOOD & STAPLES RETAILING - 0.7% |
Food Retail - 0.7% |
Sprouts Farmers Market LLC (a) | 25,700 | | 935,737 |
FOOD PRODUCTS - 1.7% |
Packaged Foods & Meats - 1.7% |
Associated British Foods PLC | 21,800 | | 1,018,875 |
Keurig Green Mountain, Inc. | 11,820 | | 1,448,659 |
| | 2,467,534 |
HOTELS, RESTAURANTS & LEISURE - 21.1% |
Casinos & Gaming - 3.1% |
Las Vegas Sands Corp. | 44,840 | | 2,437,951 |
Wynn Resorts Ltd. | 12,980 | | 1,920,391 |
| | 4,358,342 |
Hotels, Resorts & Cruise Lines - 5.9% |
China Lodging Group Ltd. ADR (a) | 18,950 | | 411,215 |
Hilton Worldwide Holdings, Inc. (a) | 73,400 | | 1,906,198 |
Marriott International, Inc. Class A | 27,230 | | 2,028,635 |
Wyndham Worldwide Corp. | 47,786 | | 4,003,989 |
| | 8,350,037 |
Leisure Facilities - 1.1% |
Vail Resorts, Inc. | 17,320 | | 1,520,003 |
Restaurants - 11.0% |
Buffalo Wild Wings, Inc. (a) | 7,700 | | 1,373,064 |
DineEquity, Inc. | 12,900 | | 1,377,075 |
Domino's Pizza, Inc. | 13,889 | | 1,375,705 |
Fiesta Restaurant Group, Inc. (a) | 28,400 | | 1,677,588 |
Jubilant Foodworks Ltd. (a) | 32,997 | | 737,661 |
|
| Shares | | Value |
Papa John's International, Inc. | 2,332 | | $ 147,989 |
Ruth's Hospitality Group, Inc. | 117,600 | | 1,707,552 |
Starbucks Corp. | 63,400 | | 5,549,402 |
Texas Roadhouse, Inc. Class A | 50,041 | | 1,680,877 |
| | 15,626,913 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 29,855,295 |
HOUSEHOLD DURABLES - 2.0% |
Homebuilding - 2.0% |
D.R. Horton, Inc. | 38,900 | | 953,828 |
Lennar Corp. Class A | 21,200 | | 952,092 |
PulteGroup, Inc. | 42,900 | | 883,311 |
| | 2,789,231 |
INTERNET & CATALOG RETAIL - 5.1% |
Internet Retail - 5.1% |
Amazon.com, Inc. (a) | 5,660 | | 2,006,640 |
Ocado Group PLC (a)(d) | 191,200 | | 1,183,620 |
Priceline Group, Inc. (a) | 4,046 | | 4,084,356 |
| | 7,274,616 |
INTERNET SOFTWARE & SERVICES - 0.8% |
Internet Software & Services - 0.8% |
Alibaba Group Holding Ltd. sponsored ADR | 6,400 | | 570,112 |
HomeAway, Inc. (a) | 24,400 | | 621,956 |
| | 1,192,068 |
LEISURE PRODUCTS - 2.3% |
Leisure Products - 2.3% |
Brunswick Corp. | 30,900 | | 1,677,252 |
Polaris Industries, Inc. | 10,900 | | 1,576,031 |
| | 3,253,283 |
MEDIA - 22.5% |
Advertising - 0.1% |
MDC Partners, Inc. Class A (sub. vtg.) | 4,300 | | 102,770 |
Broadcasting - 2.2% |
ITV PLC | 933,729 | | 3,094,042 |
Cable & Satellite - 10.0% |
Comcast Corp. Class A | 154,900 | | 8,232,161 |
DIRECTV (a) | 23,352 | | 1,991,459 |
Naspers Ltd. Class N | 22,740 | | 3,280,516 |
Time Warner Cable, Inc. | 5,320 | | 724,212 |
| | 14,228,348 |
Movies & Entertainment - 9.9% |
CTS Eventim AG | 14,870 | | 426,799 |
The Walt Disney Co. | 118,606 | | 10,788,402 |
Time Warner, Inc. | 27,600 | | 2,150,868 |
Twenty-First Century Fox, Inc. Class A | 18,933 | | 627,818 |
| | 13,993,887 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - CONTINUED |
Publishing - 0.3% |
Rightmove PLC | 11,900 | | $ 416,907 |
TOTAL MEDIA | | 31,835,954 |
MULTILINE RETAIL - 0.5% |
General Merchandise Stores - 0.5% |
B&M European Value Retail S.A. | 132,912 | | 632,106 |
Don Quijote Holdings Co. Ltd. | 1,700 | | 123,773 |
| | 755,879 |
PERSONAL PRODUCTS - 0.7% |
Personal Products - 0.7% |
Estee Lauder Companies, Inc. Class A | 13,720 | | 968,495 |
SPECIALTY RETAIL - 19.9% |
Apparel Retail - 8.1% |
L Brands, Inc. | 68,100 | | 5,763,303 |
Ross Stores, Inc. | 25,260 | | 2,316,595 |
TJX Companies, Inc. | 48,208 | | 3,178,836 |
United Arrows Ltd. | 10,600 | | 301,286 |
| | 11,560,020 |
Automotive Retail - 3.9% |
AutoZone, Inc. (a) | 4,500 | | 2,686,320 |
O'Reilly Automotive, Inc. (a) | 15,100 | | 2,829,136 |
| | 5,515,456 |
Home Improvement Retail - 5.9% |
Home Depot, Inc. | 74,560 | | 7,785,555 |
Lumber Liquidators Holdings, Inc. (a)(d) | 8,500 | | 536,775 |
| | 8,322,330 |
Specialty Stores - 2.0% |
Tiffany & Co., Inc. | 22,155 | | 1,919,509 |
World Duty Free SpA (a)(d) | 87,693 | | 968,139 |
| | 2,887,648 |
TOTAL SPECIALTY RETAIL | | 28,285,454 |
TEXTILES, APPAREL & LUXURY GOODS - 11.7% |
Apparel, Accessories & Luxury Goods - 8.4% |
Compagnie Financiere Richemont SA Series A | 7,733 | | 642,443 |
|
| Shares | | Value |
G-III Apparel Group Ltd. (a) | 23,540 | | $ 2,288,088 |
Kate Spade & Co. (a) | 56,500 | | 1,781,445 |
lululemon athletica, Inc. (a) | 2,800 | | 185,472 |
PVH Corp. | 28,623 | | 3,155,972 |
Ralph Lauren Corp. | 8,945 | | 1,492,831 |
VF Corp. | 32,904 | | 2,282,550 |
| | 11,828,801 |
Footwear - 3.3% |
NIKE, Inc. Class B | 51,317 | | 4,733,993 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 16,562,794 |
TOTAL COMMON STOCKS (Cost $121,603,237) |
137,179,219
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 4,692,926 | | 4,692,926 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,658,252 | | 1,658,252 |
TOTAL MONEY MARKET FUNDS (Cost $6,351,178) |
6,351,178
|
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $127,954,415) | | 143,530,397 |
NET OTHER ASSETS (LIABILITIES) - (1.2)% | | (1,769,284) |
NET ASSETS - 100% | $ 141,761,113 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 1,590 |
Fidelity Securities Lending Cash Central Fund | 2,034 |
Total | $ 3,624 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 137,179,219 | $ 131,213,481 | $ 5,965,738 | $ - |
Money Market Funds | 6,351,178 | 6,351,178 | - | - |
Total Investments in Securities: | $ 143,530,397 | $ 137,564,659 | $ 5,965,738 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.6% |
United Kingdom | 4.4% |
South Africa | 2.3% |
Bailiwick of Jersey | 2.0% |
India | 1.1% |
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 Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,585,759) - See accompanying schedule: Unaffiliated issuers (cost $121,603,237) | $ 137,179,219 | |
Fidelity Central Funds (cost $6,351,178) | 6,351,178 | |
Total Investments (cost $127,954,415) | | $ 143,530,397 |
Receivable for investments sold | | 4,999 |
Receivable for fund shares sold | | 1,645,872 |
Dividends receivable | | 14,711 |
Distributions receivable from Fidelity Central Funds | | 1,038 |
Prepaid expenses | | 577 |
Other receivables | | 3,195 |
Total assets | | 145,200,789 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,284,171 | |
Payable for fund shares redeemed | 301,595 | |
Accrued management fee | 60,653 | |
Distribution and service plan fees payable | 42,047 | |
Other affiliated payables | 26,331 | |
Other payables and accrued expenses | 66,627 | |
Collateral on securities loaned, at value | 1,658,252 | |
Total liabilities | | 3,439,676 |
| | |
Net Assets | | $ 141,761,113 |
Net Assets consist of: | | |
Paid in capital | | $ 123,872,208 |
Accumulated net investment loss | | (54,730) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,401,493 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 15,542,142 |
Net Assets | | $ 141,761,113 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($66,232,579 ÷ 3,458,242 shares) | | $ 19.15 |
| | |
Maximum offering price per share (100/94.25 of $19.15) | | $ 20.32 |
Class T:
Net Asset Value and redemption price per share ($20,725,637 ÷ 1,146,946 shares) | | $ 18.07 |
| | |
Maximum offering price per share (100/96.50 of $18.07) | | $ 18.73 |
Class B:
Net Asset Value and offering price per share ($1,388,014 ÷ 87,104 shares)A | | $ 15.94 |
| | |
Class C:
Net Asset Value and offering price per share ($24,464,688 ÷ 1,534,299 shares)A | | $ 15.95 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($28,950,195 ÷ 1,411,733 shares) | | $ 20.51 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 742,120 |
Income from Fidelity Central Funds | | 3,624 |
Total income | | 745,744 |
| | |
Expenses | | |
Management fee | $ 327,400 | |
Transfer agent fees | 133,111 | |
Distribution and service plan fees | 234,616 | |
Accounting and security lending fees | 23,379 | |
Custodian fees and expenses | 13,316 | |
Independent trustees' compensation | 1,096 | |
Registration fees | 48,474 | |
Audit | 22,759 | |
Legal | 684 | |
Miscellaneous | 624 | |
Total expenses before reductions | 805,459 | |
Expense reductions | (4,985) | 800,474 |
Net investment income (loss) | | (54,730) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $64) | 4,253,107 | |
Foreign currency transactions | (4,828) | |
Total net realized gain (loss) | | 4,248,279 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $33,768) | 5,167,502 | |
Assets and liabilities in foreign currencies | (907) | |
Total change in net unrealized appreciation (depreciation) | | 5,166,595 |
Net gain (loss) | | 9,414,874 |
Net increase (decrease) in net assets resulting from operations | | $ 9,360,144 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (54,730) | $ (430,703) |
Net realized gain (loss) | 4,248,279 | 17,599,668 |
Change in net unrealized appreciation (depreciation) | 5,166,595 | (7,703,576) |
Net increase (decrease) in net assets resulting from operations | 9,360,144 | 9,465,389 |
Distributions to shareholders from net realized gain | (13,923,456) | (8,442,076) |
Share transactions - net increase (decrease) | 24,193,313 | 27,584,653 |
Redemption fees | 5,699 | 3,923 |
Total increase (decrease) in net assets | 19,635,700 | 28,611,889 |
| | |
Net Assets | | |
Beginning of period | 122,125,413 | 93,513,524 |
End of period (including accumulated net investment loss of $54,730 and $0, respectively) | $ 141,761,113 | $ 122,125,413 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.75 | $ 19.59 | $ 16.22 | $ 16.00 | $ 12.75 | $ 10.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.04) | (.02) | .01 | (.02) | (.02) |
Net realized and unrealized gain (loss) | 1.67 | 1.75 | 5.04 | 1.07 | 3.27 | 2.51 |
Total from investment operations | 1.68 | 1.71 | 5.02 | 1.08 | 3.25 | 2.49 |
Distributions from net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | (2.28) | (1.55) | (1.65) | (.83) | - | - |
Total distributions | (2.28) | (1.55) | (1.65) | (.86) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.15 | $ 19.75 | $ 19.59 | $ 16.22 | $ 16.00 | $ 12.75 |
Total ReturnB, C, D | 8.84% | 9.28% | 33.65% | 7.96% | 25.49% | 24.27% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.20%A | 1.20% | 1.31% | 1.38% | 1.39% | 1.44% |
Expenses net of fee waivers, if any | 1.20%A | 1.20% | 1.31% | 1.38% | 1.39% | 1.40% |
Expenses net of all reductions | 1.20%A | 1.19% | 1.29% | 1.37% | 1.38% | 1.39% |
Net investment income (loss) | .06%A | (.21)% | (.10)% | .04% | (.15)% | (.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 66,233 | $ 59,089 | $ 45,292 | $ 26,547 | $ 23,447 | $ 19,423 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.75 | $ 18.68 | $ 15.57 | $ 15.43 | $ 12.32 | $ 9.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.10) | (.06) | (.03) | (.06) | (.05) |
Net realized and unrealized gain (loss) | 1.59 | 1.67 | 4.81 | 1.02 | 3.17 | 2.43 |
Total from investment operations | 1.57 | 1.57 | 4.75 | .99 | 3.11 | 2.38 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (2.25) | (1.50) | (1.64) | (.83) | - | - |
Total distributions | (2.25) | (1.50) | (1.64) | (.85) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.07 | $ 18.75 | $ 18.68 | $ 15.57 | $ 15.43 | $ 12.32 |
Total ReturnB, C, D | 8.74% | 8.94% | 33.25% | 7.62% | 25.24% | 23.94% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.50%A | 1.50% | 1.60% | 1.64% | 1.66% | 1.71% |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.60% | 1.64% | 1.65% | 1.65% |
Expenses net of all reductions | 1.49%A | 1.49% | 1.58% | 1.63% | 1.64% | 1.64% |
Net investment income (loss) | (.24)%A | (.51)% | (.39)% | (.23)% | (.40)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,726 | $ 18,779 | $ 15,613 | $ 10,447 | $ 9,897 | $ 8,018 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.76 | $ 16.85 | $ 14.23 | $ 14.23 | $ 11.42 | $ 9.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.17) | (.13) | (.10) | (.12) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | 1.49 | 4.36 | .93 | 2.93 | 2.26 |
Total from investment operations | 1.36 | 1.32 | 4.23 | .83 | 2.81 | 2.16 |
Distributions from net realized gain | (2.18) | (1.41) | (1.61) | (.83) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.94 | $ 16.76 | $ 16.85 | $ 14.23 | $ 14.23 | $ 11.42 |
Total ReturnB, C, D | 8.49% | 8.36% | 32.61% | 7.11% | 24.61% | 23.33% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.04%A | 2.01% | 2.09% | 2.13% | 2.15% | 2.21% |
Expenses net of fee waivers, if any | 2.04%A | 2.01% | 2.09% | 2.13% | 2.15% | 2.15% |
Expenses net of all reductions | 2.03%A | 2.01% | 2.07% | 2.12% | 2.13% | 2.14% |
Net investment income (loss) | (.78)%A | (1.02)% | (.88)% | (.72)% | (.90)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,388 | $ 1,824 | $ 2,389 | $ 2,577 | $ 3,170 | $ 3,643 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.79 | $ 16.90 | $ 14.27 | $ 14.26 | $ 11.44 | $ 9.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.16) | (.12) | (.09) | (.12) | (.10) |
Net realized and unrealized gain (loss) | 1.43 | 1.49 | 4.37 | .93 | 2.94 | 2.27 |
Total from investment operations | 1.37 | 1.33 | 4.25 | .84 | 2.82 | 2.17 |
Distributions from net realized gain | (2.21) | (1.44) | (1.62) | (.83) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.95 | $ 16.79 | $ 16.90 | $ 14.27 | $ 14.26 | $ 11.44 |
Total ReturnB, C, D | 8.51% | 8.44% | 32.68% | 7.17% | 24.65% | 23.41% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97%A | 1.97% | 2.04% | 2.09% | 2.11% | 2.12% |
Expenses net of fee waivers, if any | 1.97%A | 1.97% | 2.04% | 2.09% | 2.11% | 2.12% |
Expenses net of all reductions | 1.96%A | 1.96% | 2.02% | 2.08% | 2.09% | 2.11% |
Net investment income (loss) | (.71)%A | (.97)% | (.83)% | (.68)% | (.86)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,465 | $ 20,726 | $ 17,176 | $ 13,507 | $ 7,341 | $ 9,288 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.00 | $ 20.72 | $ 17.04 | $ 16.72 | $ 13.27 | $ 10.66 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .02 | .04 | .07 | .03 | .02 |
Net realized and unrealized gain (loss) | 1.79 | 1.85 | 5.32 | 1.13 | 3.42 | 2.60 |
Total from investment operations | 1.83 | 1.87 | 5.36 | 1.20 | 3.45 | 2.62 |
Distributions from net investment income | - | - | - | (.05) | - | (.01) |
Distributions from net realized gain | (2.32) | (1.59) | (1.68) | (.83) | - | - |
Total distributions | (2.32) | (1.59) | (1.68) | (.88) | - | (.01) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 20.51 | $ 21.00 | $ 20.72 | $ 17.04 | $ 16.72 | $ 13.27 |
Total ReturnB, C | 9.05% | 9.61% | 34.06% | 8.33% | 26.00% | 24.62% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .92%A | .91% | .97% | 1.00% | 1.03% | 1.09% |
Expenses net of fee waivers, if any | .92%A | .91% | .97% | 1.00% | 1.03% | 1.09% |
Expenses net of all reductions | .91%A | .91% | .96% | .99% | 1.01% | 1.08% |
Net investment income (loss) | .35%A | .08% | .24% | .41% | .22% | .16% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 28,950 | $ 21,708 | $ 13,044 | $ 9,984 | $ 9,406 | $ 9,013 |
Portfolio turnover rateF | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount 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, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses 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 | $ 19,473,386 |
Gross unrealized depreciation | (4,218,094) |
Net unrealized appreciation (depreciation) on securities | $ 15,255,292 |
| |
Tax cost | $ 128,275,105 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $64,514,636 and $55,592,523, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,939 | $ 1,373 |
Class T | .25% | .25% | 49,030 | - |
Class B | .75% | .25% | 8,051 | 6,038 |
Class C | .75% | .25% | 107,596 | 22,467 |
| | | $ 234,616 | $ 29,878 |
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 shares, 1.00% for Class C shares, 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 | $ 33,435 |
Class T | 2,371 |
Class B* | 1,032 |
Class C* | 2,450 |
| $ 39,288 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 61,205 | .22 |
Class T | 26,176 | .27 |
Class B | 2,427 | .30 |
Class C | 24,935 | .23 |
Institutional Class | 18,368 | .18 |
| $ 133,111 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,227 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $81 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $2,034.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,985 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
Class A | $ 6,488,273 | $ 4,039,405 |
Class T | 2,268,637 | 1,360,265 |
Class B | 224,707 | 196,098 |
Class C | 2,737,034 | 1,615,723 |
Institutional Class | 2,204,805 | 1,230,585 |
Total | $ 13,923,456 | $ 8,442,076 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,163,190 | 1,790,947 | $ 22,340,131 | $ 35,353,582 |
Reinvestment of distributions | 314,662 | 185,416 | 5,921,151 | 3,485,073 |
Shares redeemed | (1,011,988) | (1,296,503) | (18,977,442) | (25,801,801) |
Net increase (decrease) | 465,864 | 679,860 | $ 9,283,840 | $ 13,036,854 |
Class T | | | | |
Shares sold | 124,624 | 282,329 | $ 2,265,404 | $ 5,295,701 |
Reinvestment of distributions | 122,984 | 73,668 | 2,187,662 | 1,316,540 |
Shares redeemed | (101,966) | (190,454) | (1,835,001) | (3,590,224) |
Net increase (decrease) | 145,642 | 165,543 | $ 2,618,065 | $ 3,022,017 |
Class B | | | | |
Shares sold | 1,159 | 14,978 | $ 18,503 | $ 248,602 |
Reinvestment of distributions | 10,956 | 9,369 | 172,497 | 150,012 |
Shares redeemed | (33,811) | (57,312) | (537,045) | (968,609) |
Net increase (decrease) | (21,696) | (32,965) | $ (346,045) | $ (569,995) |
Class C | | | | |
Shares sold | 356,518 | 472,482 | $ 5,712,660 | $ 7,968,901 |
Reinvestment of distributions | 157,518 | 89,038 | 2,481,906 | 1,432,315 |
Shares redeemed | (213,958) | (343,513) | (3,393,677) | (5,820,370) |
Net increase (decrease) | 300,078 | 218,007 | $ 4,800,889 | $ 3,580,846 |
Institutional Class | | | | |
Shares sold | 710,119 | 777,526 | $ 14,646,045 | $ 16,341,397 |
Reinvestment of distributions | 93,807 | 51,438 | 1,886,667 | 1,028,758 |
Shares redeemed | (425,942) | (424,690) | (8,696,148) | (8,855,224) |
Net increase (decrease) | 377,984 | 404,274 | $ 7,836,564 | $ 8,514,931 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,119.40 | $ 7.48 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,118.20 | $ 8.81 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,115.50 | $ 11.46 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,115.50 | $ 11.46 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,121.50 | $ 5.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Broadcom Corp. Class A | 8.1 | 7.8 |
Intel Corp. | 7.6 | 16.9 |
QUALCOMM, Inc. | 5.5 | 2.9 |
Texas Instruments, Inc. | 4.9 | 6.7 |
Samsung Electronics Co. Ltd. | 4.8 | 4.1 |
Marvell Technology Group Ltd. | 4.2 | 2.0 |
Maxim Integrated Products, Inc. | 4.1 | 1.9 |
Micron Technology, Inc. | 3.8 | 4.8 |
Altera Corp. | 3.4 | 5.3 |
Microchip Technology, Inc. | 3.3 | 0.0 |
| 49.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Semiconductors & Semiconductor Equipment | 75.9% | |
| Communications Equipment | 6.5% | |
| Electronic Equipment & Components | 6.2% | |
| Technology Hardware, Storage & Peripherals | 4.8% | |
| Internet Software & Services | 3.5% | |
| All Others* | 3.1% | |
As of July 31, 2014 |
| Semiconductors & Semiconductor Equipment | 82.4% | |
| Communications Equipment | 4.5% | |
| Electronic Equipment & Components | 3.7% | |
| Internet Software & Services | 1.9% | |
| Software | 1.3% | |
| All Others* | 6.2% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
BIOTECHNOLOGY - 0.0% |
Biotechnology - 0.0% |
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | | $ 0 |
COMMUNICATIONS EQUIPMENT - 6.5% |
Communications Equipment - 6.5% |
Aruba Networks, Inc. (a) | 24,700 | | 409,527 |
Ciena Corp. (a) | 16,400 | | 303,728 |
Finisar Corp. (a) | 19,700 | | 357,358 |
QUALCOMM, Inc. | 94,626 | | 5,910,340 |
| | 6,980,953 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.9% |
Electronic Components - 0.1% |
Corning, Inc. | 1,057 | | 25,125 |
Vishay Intertechnology, Inc. | 7,800 | | 106,236 |
| | 131,361 |
Electronic Manufacturing Services - 4.6% |
Jabil Circuit, Inc. | 89,876 | | 1,852,344 |
Neonode, Inc. (a)(d) | 25,800 | | 66,822 |
Plexus Corp. (a) | 23,800 | | 901,782 |
TTM Technologies, Inc. (a) | 272,992 | | 1,897,294 |
Viasystems Group, Inc. (a) | 8,411 | | 134,660 |
| | 4,852,902 |
Technology Distributors - 1.2% |
Avnet, Inc. | 22,200 | | 923,964 |
Ingram Micro, Inc. Class A (a) | 14,400 | | 362,592 |
| | 1,286,556 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 6,270,819 |
INTERNET SOFTWARE & SERVICES - 3.5% |
Internet Software & Services - 3.5% |
Cornerstone OnDemand, Inc. (a) | 6,338 | | 208,837 |
Google, Inc.: | | | |
Class A (a) | 6,390 | | 3,434,945 |
Class C (a) | 5 | | 2,673 |
Web.com Group, Inc. (a) | 7,650 | | 115,592 |
| | 3,762,047 |
IT SERVICES - 0.5% |
Data Processing & Outsourced Services - 0.5% |
EVERTEC, Inc. | 23,600 | | 473,416 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 75.6% |
Semiconductor Equipment - 5.4% |
Advanced Energy Industries, Inc. (a) | 15,988 | | 383,712 |
Amkor Technology, Inc. (a) | 88,700 | | 563,245 |
Entegris, Inc. (a) | 62,700 | | 815,100 |
KLA-Tencor Corp. | 8,400 | | 516,348 |
Lam Research Corp. | 36,781 | | 2,811,540 |
PDF Solutions, Inc. (a) | 12,253 | | 203,645 |
|
| Shares | | Value |
Ultratech, Inc. (a) | 25,700 | | $ 409,658 |
Xcerra Corp. (a) | 5,400 | | 41,472 |
| | 5,744,720 |
Semiconductors - 70.2% |
Advanced Micro Devices, Inc. (a)(d) | 173,900 | | 446,923 |
Altera Corp. | 110,849 | | 3,649,703 |
Analog Devices, Inc. | 42,826 | | 2,231,449 |
Applied Micro Circuits Corp. (a) | 10,038 | | 52,700 |
Atmel Corp. | 299,479 | | 2,494,660 |
Audience, Inc. (a) | 31,525 | | 127,361 |
Avago Technologies Ltd. | 2,500 | | 257,200 |
Broadcom Corp. Class A | 204,801 | | 8,690,727 |
Cirrus Logic, Inc. (a) | 45,300 | | 1,200,450 |
Cree, Inc. (a)(d) | 25,980 | | 918,653 |
Cypress Semiconductor Corp. (d) | 94,546 | | 1,392,663 |
Exar Corp. (a) | 22,200 | | 200,244 |
EZchip Semiconductor Ltd. (a) | 13,000 | | 247,650 |
Fairchild Semiconductor International, Inc. (a) | 14,977 | | 229,897 |
Freescale Semiconductor, Inc. (a)(d) | 78,314 | | 2,513,096 |
Himax Technologies, Inc. sponsored ADR | 35,400 | | 303,732 |
Hua Hong Semiconductor Ltd. (a) | 119,000 | | 138,371 |
Infineon Technologies AG | 52,300 | | 589,631 |
Inphi Corp. (a) | 20,486 | | 401,526 |
Integrated Silicon Solution, Inc. | 8,600 | | 138,288 |
Intel Corp. | 245,578 | | 8,113,897 |
Intersil Corp. Class A | 212,037 | | 3,034,249 |
MagnaChip Semiconductor Corp. (a) | 38,036 | | 546,958 |
Marvell Technology Group Ltd. | 289,900 | | 4,490,551 |
Maxim Integrated Products, Inc. | 133,922 | | 4,431,479 |
MaxLinear, Inc. Class A (a) | 90,258 | | 726,577 |
MediaTek, Inc. | 13,000 | | 196,245 |
Micrel, Inc. | 26,600 | | 374,262 |
Microchip Technology, Inc. (d) | 77,200 | | 3,481,720 |
Micron Technology, Inc. (a) | 139,112 | | 4,071,113 |
Motech Industries, Inc. | 1 | | 1 |
NVIDIA Corp. | 61,123 | | 1,173,867 |
NXP Semiconductors NV (a) | 16,179 | | 1,283,642 |
O2Micro International Ltd. sponsored ADR (a) | 61,401 | | 144,906 |
Omnivision Technologies, Inc. (a) | 26,900 | | 727,376 |
ON Semiconductor Corp. (a) | 282,999 | | 2,832,820 |
PMC-Sierra, Inc. (a) | 180,947 | | 1,599,571 |
Semiconductor Manufacturing International Corp. (a) | 2,064,000 | | 178,905 |
Semtech Corp. (a) | 82,219 | | 2,093,296 |
Silicon Laboratories, Inc. (a) | 7,500 | | 328,200 |
Skyworks Solutions, Inc. | 26 | | 2,159 |
STMicroelectronics NV (NY Shares) unit | 19,600 | | 162,680 |
SunEdison Semiconductor Ltd. | 14,800 | | 289,488 |
Texas Instruments, Inc. | 98,518 | | 5,265,787 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Trident Microsystems, Inc. (a) | 19 | | $ 0 |
Xilinx, Inc. | 83,336 | | 3,214,686 |
| | 74,989,359 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 80,734,079 |
SOFTWARE - 0.7% |
Application Software - 0.5% |
Comverse, Inc. (a) | 10,224 | | 176,160 |
Nuance Communications, Inc. (a) | 24,500 | | 336,753 |
| | 512,913 |
Systems Software - 0.2% |
CommVault Systems, Inc. (a) | 5,600 | | 244,048 |
Infoblox, Inc. (a) | 1 | | 19 |
| | 244,067 |
TOTAL SOFTWARE | | 756,980 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 4.8% |
Technology Hardware, Storage & Peripherals - 4.8% |
BlackBerry Ltd. (a) | 100 | | 1,015 |
Samsung Electronics Co. Ltd. | 4,159 | | 5,121,764 |
| | 5,122,779 |
TOTAL COMMON STOCKS (Cost $101,995,544) |
104,101,073
|
Corporate Bonds - 0.6% |
| Principal Amount | | |
Convertible Bonds - 0.3% |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.3% |
Electronic Components - 0.3% |
InvenSense, Inc. 1.75% 11/1/18 | | $ 320,000 | | 305,200 |
|
| Principal Amount | | Value |
Nonconvertible Bonds - 0.3% |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.3% |
Semiconductors - 0.3% |
Advanced Micro Devices, Inc.: | | | | |
7% 7/1/24 | | $ 215,000 | | $ 187,588 |
7.75% 8/1/20 | | 165,000 | | 157,163 |
| | 344,751 |
TOTAL CORPORATE BONDS (Cost $623,641) |
649,951
|
Money Market Funds - 11.7% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 4,715,177 | | 4,715,177 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 7,813,498 | | 7,813,498 |
TOTAL MONEY MARKET FUNDS (Cost $12,528,675) |
12,528,675
|
TOTAL INVESTMENT PORTFOLIO - 109.8% (Cost $115,147,860) | | 117,279,699 |
NET OTHER ASSETS (LIABILITIES) - (9.8)% | | (10,485,649) |
NET ASSETS - 100% | $ 106,794,050 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 2,978 |
Fidelity Securities Lending Cash Central Fund | 10,631 |
Total | $ 13,609 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 104,101,073 | $ 98,465,786 | $ 5,635,287 | $ - |
Corporate Bonds | 649,951 | - | 649,951 | - |
Money Market Funds | 12,528,675 | 12,528,675 | - | - |
Total Investments in Securities: | $ 117,279,699 | $ 110,994,461 | $ 6,285,238 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 84.5% |
Bermuda | 6.6% |
Korea (South) | 4.8% |
Netherlands | 1.4% |
Others (Individually Less Than 1%) | 2.7% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $7,481,451) - See accompanying schedule: Unaffiliated issuers (cost $102,619,185) | $ 104,751,024 | |
Fidelity Central Funds (cost $12,528,675) | 12,528,675 | |
Total Investments (cost $115,147,860) | | $ 117,279,699 |
Receivable for investments sold | | 3,586,889 |
Receivable for fund shares sold | | 431,020 |
Dividends receivable | | 90,760 |
Interest receivable | | 9,048 |
Distributions receivable from Fidelity Central Funds | | 4,128 |
Prepaid expenses | | 252 |
Other receivables | | 1,446 |
Total assets | | 121,403,242 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,479,135 | |
Payable for fund shares redeemed | 1,163,305 | |
Accrued management fee | 50,611 | |
Distribution and service plan fees payable | 24,037 | |
Other affiliated payables | 19,827 | |
Other payables and accrued expenses | 58,779 | |
Collateral on securities loaned, at value | 7,813,498 | |
Total liabilities | | 14,609,192 |
| | |
Net Assets | | $ 106,794,050 |
Net Assets consist of: | | |
Paid in capital | | $ 102,448,259 |
Accumulated net investment loss | | (121,013) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,335,026 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,131,778 |
Net Assets | | $ 106,794,050 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($34,459,637 ÷ 2,231,318 shares) | | $ 15.44 |
| | |
Maximum offering price per share (100/94.25 of $15.44) | | $ 16.38 |
Class T:
Net Asset Value and redemption price per share ($10,099,712 ÷ 674,003 shares) | | $ 14.98 |
| | |
Maximum offering price per share (100/96.50 of $14.98) | | $ 15.52 |
Class B:
Net Asset Value and offering price per share ($406,426 ÷ 28,983 shares)A | | $ 14.02 |
| | |
Class C:
Net Asset Value and offering price per share ($15,991,972 ÷ 1,143,101 shares)A | | $ 13.99 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($45,836,303 ÷ 2,860,237 shares) | | $ 16.03 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 518,525 |
Interest | | 4,923 |
Income from Fidelity Central Funds | | 13,609 |
Total income | | 537,057 |
| | |
Expenses | | |
Management fee | $ 209,825 | |
Transfer agent fees | 89,043 | |
Distribution and service plan fees | 109,798 | |
Accounting and security lending fees | 15,152 | |
Custodian fees and expenses | 42,427 | |
Independent trustees' compensation | 607 | |
Registration fees | 62,626 | |
Audit | 22,817 | |
Legal | 317 | |
Miscellaneous | 266 | |
Total expenses before reductions | 552,878 | |
Expense reductions | (15,210) | 537,668 |
Net investment income (loss) | | (611) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,994,963 | |
Foreign currency transactions | (2,042) | |
Total net realized gain (loss) | | 4,992,921 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,287,027 | |
Assets and liabilities in foreign currencies | (61) | |
Total change in net unrealized appreciation (depreciation) | | 2,286,966 |
Net gain (loss) | | 7,279,887 |
Net increase (decrease) in net assets resulting from operations | | $ 7,279,276 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (611) | $ (66,312) |
Net realized gain (loss) | 4,992,921 | 5,071,173 |
Change in net unrealized appreciation (depreciation) | 2,286,966 | 1,173,624 |
Net increase (decrease) in net assets resulting from operations | 7,279,276 | 6,178,485 |
Distributions to shareholders from net investment income | (57,407) | - |
Distributions to shareholders from net realized gain | (377,501) | - |
Total distributions | (434,908) | - |
Share transactions - net increase (decrease) | 43,429,913 | 34,400,043 |
Redemption fees | 10,124 | 4,495 |
Total increase (decrease) in net assets | 50,284,405 | 40,583,023 |
| | |
Net Assets | | |
Beginning of period | 56,509,645 | 15,926,622 |
End of period (including accumulated net investment loss of $121,013 and accumulated net investment loss of $62,995, respectively) | $ 106,794,050 | $ 56,509,645 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.86 | $ 10.33 | $ 8.45 | $ 8.93 | $ 7.14 | $ 6.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | -I | (.02) | (.01) | (.05) | (.04) | (.01) |
Net realized and unrealized gain (loss) | 1.66 | 3.55 | 1.89 | (.43) | 1.83 | .59 |
Total from investment operations | 1.66 | 3.53 | 1.88 | (.48) | 1.79 | .58 |
Distributions from net investment income | (.01) | - | - | - | - | (.03) |
Distributions from net realized gain | (.07) | - | - | - | - | - |
Total distributions | (.08) | - | - | - | - | (.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 13.86 | $ 10.33 | $ 8.45 | $ 8.93 | $ 7.14 |
Total ReturnB, C, D | 11.94% | 34.17% | 22.25% | (5.38)% | 25.07% | 8.74% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.43%A | 1.84% | 2.18% | 1.88% | 1.89% | 1.97% |
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% | 1.37% | 1.39% | 1.39% | 1.39% |
Net investment income (loss) | .02%A | (.16)% | (.07)% | (.53)% | (.40)% | (.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 34,460 | $ 16,542 | $ 5,833 | $ 6,000 | $ 7,537 | $ 5,394 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 10.05 | $ 8.24 | $ 8.73 | $ 7.00 | $ 6.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.05) | (.03) | (.07) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 1.61 | 3.45 | 1.84 | (.42) | 1.79 | .58 |
Total from investment operations | 1.59 | 3.40 | 1.81 | (.49) | 1.73 | .55 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.06) | - | - | - | - | - |
Total distributions | (.06) | - | - | - | - | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.98 | $ 13.45 | $ 10.05 | $ 8.24 | $ 8.73 | $ 7.00 |
Total ReturnB, C, D | 11.82% | 33.83% | 21.97% | (5.61)% | 24.71% | 8.50% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.77%A | 2.19% | 2.48% | 2.23% | 2.25% | 2.26% |
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% | 1.62% | 1.64% | 1.64% | 1.64% |
Net investment income (loss) | (.23)%A | (.42)% | (.32)% | (.78)% | (.65)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,100 | $ 7,144 | $ 3,756 | $ 3,909 | $ 4,476 | $ 3,862 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.59 | $ 9.46 | $ 7.79 | $ 8.29 | $ 6.69 | $ 6.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.10) | (.07) | (.10) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.50 | 3.23 | 1.74 | (.40) | 1.69 | .56 |
Total from investment operations | 1.45 | 3.13 | 1.67 | (.50) | 1.60 | .50 |
Distributions from net realized gain | (.02) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.02 | $ 12.59 | $ 9.46 | $ 7.79 | $ 8.29 | $ 6.69 |
Total ReturnB, C, D | 11.55% | 33.09% | 21.44% | (6.03)% | 23.92% | 8.08% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.25%A | 2.68% | 2.95% | 2.70% | 2.76% | 2.73% |
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% | 2.12% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.73)%A | (.92)% | (.82)% | (1.29)% | (1.15)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 406 | $ 392 | $ 306 | $ 459 | $ 691 | $ 1,073 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.58 | $ 9.44 | $ 7.78 | $ 8.29 | $ 6.68 | $ 6.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.10) | (.07) | (.10) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.50 | 3.24 | 1.73 | (.41) | 1.70 | .56 |
Total from investment operations | 1.45 | 3.14 | 1.66 | (.51) | 1.61 | .50 |
Distributions from net realized gain | (.04) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.99 | $ 12.58 | $ 9.44 | $ 7.78 | $ 8.29 | $ 6.68 |
Total ReturnB, C, D | 11.55% | 33.26% | 21.34% | (6.15)% | 24.10% | 8.09% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.20%A | 2.60% | 2.93% | 2.65% | 2.70% | 2.72% |
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% | 2.12% | 2.14% | 2.14% | 2.14% |
Net investment income (loss) | (.73)%A | (.91)% | (.82)% | (1.28)% | (1.15)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 15,992 | $ 7,381 | $ 3,157 | $ 3,721 | $ 3,836 | $ 3,256 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.37 | $ 10.68 | $ 8.72 | $ 9.19 | $ 7.33 | $ 6.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .01 | .02 | (.02) | (.01) | .01 |
Net realized and unrealized gain (loss) | 1.73 | 3.68 | 1.94 | (.45) | 1.87 | .60 |
Total from investment operations | 1.75 | 3.69 | 1.96 | (.47) | 1.86 | .61 |
Distributions from net investment income | (.02) | - | - | - | - | (.03) |
Distributions from net realized gain | (.07) | - | - | - | - | - |
Total distributions | (.09) | - | - | - | - | (.03) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 16.03 | $ 14.37 | $ 10.68 | $ 8.72 | $ 9.19 | $ 7.33 |
Total ReturnB, C | 12.15% | 34.55% | 22.48% | (5.11)% | 25.38% | 9.10% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | 1.12%A | 1.34% | 1.86% | 1.55% | 1.42% | 1.64% |
Expenses net of fee waivers, if any | 1.12%A | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.11%A | 1.14% | 1.12% | 1.14% | 1.14% | 1.14% |
Net investment income (loss) | .30%A | .08% | .18% | (.28)% | (.15)% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 45,836 | $ 25,050 | $ 2,874 | $ 3,271 | $ 1,765 | $ 645 |
Portfolio turnover rateF | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount 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, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, 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 | $ 6,167,950 |
Gross unrealized depreciation | (4,467,112) |
Net unrealized appreciation (depreciation) on securities | $ 1,700,838 |
| |
Tax cost | $ 115,578,861 |
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ 2,041,577 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $92,094,400 and $48,402,103, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 29,588 | $ 1,649 |
Class T | .25% | .25% | 19,698 | - |
Class B | .75% | .25% | 1,880 | 1,411 |
Class C | .75% | .25% | 58,632 | 27,957 |
| | | $ 109,798 | $ 31,017 |
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 shares, 1.00% for Class C shares, 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 | $ 32,444 |
Class T | 3,099 |
Class B* | 180 |
Class C* | 1,229 |
| $ 36,952 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 29,002 | .25 |
Class T | 12,978 | .33 |
Class B | 561 | .30 |
Class C | 15,533 | .27 |
Institutional Class | 30,969 | .19 |
| $ 89,043 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,553 for the period.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,754.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $47 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $10,631.
8. Expense Reductions.
The investment adviser 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 |
Class A | 1.40% | $ 3,595 |
Class T | 1.65% | 4,756 |
Class B | 2.15% | 184 |
Class C | 2.15% | 3,420 |
| | $ 11,955 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,255 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 13,078 | $ - |
Institutional Class | 44,329 | - |
Total | $ 57,407 | $ - |
From net realized gain | | |
Class A | $ 128,913 | $ - |
Class T | 34,793 | - |
Class B | 598 | - |
Class C | 43,270 | - |
Institutional Class | 169,927 | - |
Total | $ 377,501 | $ - |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,338,209 | 772,579 | $ 19,979,580 | $ 10,230,441 |
Reinvestment of distributions | 7,643 | - | 119,544 | - |
Shares redeemed | (308,402) | (143,457) | (4,489,051) | (1,810,191) |
Net increase (decrease) | 1,037,450 | 629,122 | $ 15,610,073 | $ 8,420,250 |
Class T | | | | |
Shares sold | 232,956 | 230,216 | $ 3,403,578 | $ 2,844,843 |
Reinvestment of distributions | 2,215 | - | 33,618 | - |
Shares redeemed | (92,351) | (72,780) | (1,266,555) | (817,318) |
Net increase (decrease) | 142,820 | 157,436 | $ 2,170,641 | $ 2,027,525 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class B | | | | |
Shares sold | 7,254 | 7,793 | $ 99,818 | $ 94,749 |
Reinvestment of distributions | 39 | - | 551 | - |
Shares redeemed | (9,452) | (9,002) | (125,902) | (95,467) |
Net increase (decrease) | (2,159) | (1,209) | $ (25,533) | $ (718) |
Class C | | | | |
Shares sold | 641,744 | 357,228 | $ 8,540,835 | $ 4,283,093 |
Reinvestment of distributions | 2,732 | - | 38,744 | - |
Shares redeemed | (88,304) | (104,588) | (1,169,470) | (1,156,253) |
Net increase (decrease) | 556,172 | 252,640 | $ 7,410,109 | $ 3,126,840 |
Institutional Class | | | | |
Shares sold | 1,924,626 | 1,892,867 | $ 29,991,968 | $ 26,288,223 |
Reinvestment of distributions | 10,497 | - | 170,367 | - |
Shares redeemed | (818,586) | (418,217) | (11,897,712) | (5,462,077) |
Net increase (decrease) | 1,116,537 | 1,474,650 | $ 18,264,623 | $ 20,826,146 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.12% | | | |
Actual | | $ 1,000.00 | $ 770.00 | $ 5.00 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 769.20 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class B | 1.92% | | | |
Actual | | $ 1,000.00 | $ 767.10 | $ 8.55 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Class C | 1.86% | | | |
Actual | | $ 1,000.00 | $ 767.40 | $ 8.29 |
HypotheticalA | | $ 1,000.00 | $ 1,015.83 | $ 9.45 |
Institutional Class | .85% | | | |
Actual | | $ 1,000.00 | $ 771.10 | $ 3.79 |
HypotheticalA | | $ 1,000.00 | $ 1,020.92 | $ 4.33 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 14.1 | 16.3 |
Schlumberger Ltd. | 8.8 | 9.1 |
Chevron Corp. | 6.9 | 11.8 |
EOG Resources, Inc. | 6.6 | 5.7 |
Anadarko Petroleum Corp. | 5.1 | 4.0 |
Cimarex Energy Co. | 4.0 | 3.7 |
Baker Hughes, Inc. | 3.5 | 0.0 |
Noble Energy, Inc. | 3.2 | 2.8 |
Kinder Morgan Holding Co. LLC | 3.1 | 0.0 |
Concho Resources, Inc. | 2.5 | 2.7 |
| 57.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Oil, Gas & Consumable Fuels | 76.3% | |
| Energy Equipment & Services | 18.4% | |
| Independent Power Producers & Renewable Electricity Producers | 0.7% | |
| Independent Power and Renewable Electricity Producers | 0.5% | |
| Multi-Utilities | 0.1% | |
| All Others* | 4.0% | |
As of July 31, 2014 |
| Oil, Gas & Consumable Fuels | 75.2% | |
| Energy Equipment & Services | 22.8% | |
| Independent Power Producers & Energy Traders | 0.5% | |
| Independent Power and Renewable Electricity Producers | 0.1% | |
| Trading Companies & Distributors | 0.1% | |
| All Others* | 1.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% |
| Shares | | Value |
ENERGY EQUIPMENT & SERVICES - 18.4% |
Oil & Gas Drilling - 1.0% |
Ocean Rig UDW, Inc. (United States) | 108,900 | | $ 889,713 |
Odfjell Drilling A/S | 567,856 | | 660,033 |
Unit Corp. (a) | 122,150 | | 3,637,627 |
Vantage Drilling Co. (a) | 1,887,530 | | 736,137 |
Xtreme Drilling & Coil Services Corp. (a) | 813,202 | | 1,055,940 |
| | 6,979,450 |
Oil & Gas Equipment & Services - 17.4% |
Baker Hughes, Inc. | 433,500 | | 25,138,665 |
C&J Energy Services, Inc. (a) | 37,300 | | 384,190 |
Dril-Quip, Inc. (a) | 61,791 | | 4,586,746 |
FMC Technologies, Inc. (a) | 285,206 | | 10,689,521 |
Halliburton Co. | 128,814 | | 5,151,272 |
Oceaneering International, Inc. | 242,773 | | 12,711,594 |
Schlumberger Ltd. | 763,209 | | 62,880,790 |
Total Energy Services, Inc. | 53,200 | | 546,360 |
Weatherford International Ltd. (a) | 294,700 | | 3,044,251 |
| | 125,133,389 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 132,112,839 |
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 0.5% |
Renewable Electricity - 0.5% |
NextEra Energy Partners LP | 84,900 | | 3,403,641 |
INDEPENDENT POWER PRODUCERS & RENEWABLE ELECTRICITY PRODUCERS - 0.7% |
Independent Power Producers & Energy Traders - 0.7% |
Calpine Corp. (a) | 32,700 | | 682,776 |
Dynegy, Inc. (a) | 140,422 | | 3,836,329 |
| | 4,519,105 |
MULTI-UTILITIES - 0.1% |
Multi-Utilities - 0.1% |
NiSource, Inc. | 16,400 | | 709,464 |
OIL, GAS & CONSUMABLE FUELS - 76.3% |
Coal & Consumable Fuels - 0.1% |
Peabody Energy Corp. (d) | 118,018 | | 735,252 |
Integrated Oil & Gas - 22.5% |
BG Group PLC | 637,500 | | 8,502,890 |
Chevron Corp. | 484,609 | | 49,686,961 |
Exxon Mobil Corp. | 1,153,861 | | 100,870,528 |
Imperial Oil Ltd. | 51,500 | | 1,914,583 |
| | 160,974,962 |
Oil & Gas Exploration & Production - 34.8% |
Anadarko Petroleum Corp. | 451,083 | | 36,876,035 |
Bankers Petroleum Ltd. (a) | 549,000 | | 1,261,572 |
Bonanza Creek Energy, Inc. (a) | 143,125 | | 3,732,700 |
Canadian Natural Resources Ltd. | 77,000 | | 2,232,376 |
Chesapeake Energy Corp. | 280,200 | | 5,374,236 |
Cimarex Energy Co. | 274,847 | | 28,364,210 |
Concho Resources, Inc. (a) | 163,800 | | 18,157,230 |
|
| Shares | | Value |
ConocoPhillips Co. | 269,036 | | $ 16,943,887 |
Continental Resources, Inc. (a)(d) | 136,930 | | 6,216,622 |
Diamondback Energy, Inc. (a) | 63,300 | | 4,367,067 |
Energen Corp. | 115,713 | | 7,338,518 |
Energy XXI (Bermuda) Ltd. (d) | 225,900 | | 664,146 |
EOG Resources, Inc. | 534,186 | | 47,558,580 |
Evolution Petroleum Corp. | 60,495 | | 444,638 |
Gulfport Energy Corp. (a) | 56,100 | | 2,159,289 |
Kosmos Energy Ltd. (a) | 195,100 | | 1,711,027 |
Laredo Petroleum Holdings, Inc. (a) | 38,500 | | 377,685 |
Marathon Oil Corp. | 34,400 | | 915,040 |
Memorial Resource Development Corp. | 452,100 | | 8,657,715 |
Newfield Exploration Co. (a) | 64,000 | | 1,905,920 |
Noble Energy, Inc. | 477,708 | | 22,805,780 |
Northern Oil & Gas, Inc. (a) | 203,193 | | 1,276,052 |
Paramount Resources Ltd. Class A (a) | 32,500 | | 729,185 |
PDC Energy, Inc. (a) | 126,688 | | 5,820,047 |
Peyto Exploration & Development Corp. (d) | 39,500 | | 997,836 |
Pioneer Natural Resources Co. | 48,216 | | 7,257,954 |
RSP Permian, Inc. (a) | 15,400 | | 412,720 |
SM Energy Co. | 230,600 | | 8,721,292 |
Synergy Resources Corp. (a) | 185,615 | | 2,270,071 |
TAG Oil Ltd. (a) | 446,700 | | 506,215 |
Whiting Petroleum Corp. (a) | 125,713 | | 3,773,904 |
| | 249,829,549 |
Oil & Gas Refining & Marketing - 6.5% |
Alon U.S.A. Energy, Inc. | 50,100 | | 605,208 |
CVR Refining, LP | 33,873 | | 567,373 |
Delek U.S. Holdings, Inc. | 21,600 | | 666,360 |
Marathon Petroleum Corp. | 34,052 | | 3,152,875 |
Phillips 66 Co. | 183,123 | | 12,877,209 |
Tesoro Corp. | 215,000 | | 17,571,950 |
Valero Energy Corp. | 169,726 | | 8,975,111 |
World Fuel Services Corp. | 40,833 | | 1,999,592 |
| | 46,415,678 |
Oil & Gas Storage & Transport - 12.4% |
Cheniere Energy, Inc. (a) | 106,300 | | 7,587,694 |
Dominion Midstream Partners LP | 25,801 | | 899,165 |
Enable Midstream Partners LP | 42,900 | | 762,762 |
EQT Midstream Partners LP | 31,500 | | 2,672,775 |
Golar LNG Ltd. | 175,900 | | 4,988,524 |
Kinder Morgan Holding Co. LLC | 538,100 | | 22,089,005 |
Magellan Midstream Partners LP | 32,034 | | 2,483,276 |
MPLX LP | 83,894 | | 6,672,929 |
ONEOK, Inc. | 34,200 | | 1,505,826 |
Phillips 66 Partners LP | 92,469 | | 6,696,605 |
Plains GP Holdings LP Class A | 362,400 | | 9,451,392 |
SemGroup Corp. Class A | 23,600 | | 1,588,988 |
Targa Resources Corp. | 68,232 | | 5,924,585 |
Common Stocks - continued |
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - CONTINUED |
Oil & Gas Storage & Transport - continued |
The Williams Companies, Inc. | 191,200 | | $ 8,386,032 |
Valero Energy Partners LP | 151,243 | | 7,554,588 |
| | 89,264,146 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 547,219,587 |
REAL ESTATE INVESTMENT TRUSTS - 0.0% |
Specialized REITs - 0.0% |
InfraReit, Inc. | 7,200 | | 191,520 |
TOTAL COMMON STOCKS (Cost $713,580,596) |
688,156,156
|
Money Market Funds - 7.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 47,766,968 | | 47,766,968 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 3,118,338 | | 3,118,338 |
TOTAL MONEY MARKET FUNDS (Cost $50,885,306) |
50,885,306
|
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $764,465,902) | | 739,041,462 |
NET OTHER ASSETS (LIABILITIES) - (3.1)% | | (21,958,114) |
NET ASSETS - 100% | $ 717,083,348 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 10,878 |
Fidelity Securities Lending Cash Central Fund | 42,649 |
Total | $ 53,527 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 688,156,156 | $ 679,653,266 | $ 8,502,890 | $ - |
Money Market Funds | 50,885,306 | 50,885,306 | - | - |
Total Investments in Securities: | $ 739,041,462 | $ 730,538,572 | $ 8,502,890 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 86.9% |
Curacao | 8.8% |
Canada | 1.4% |
United Kingdom | 1.2% |
Bermuda | 1.1% |
Others (Individually Less Than 1%) | 0.6% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,075,774) - See accompanying schedule: Unaffiliated issuers (cost $713,580,596) | $ 688,156,156 | |
Fidelity Central Funds (cost $50,885,306) | 50,885,306 | |
Total Investments (cost $764,465,902) | | $ 739,041,462 |
Receivable for investments sold | | 5,521,811 |
Receivable for fund shares sold | | 5,834,744 |
Dividends receivable | | 456,621 |
Distributions receivable from Fidelity Central Funds | | 9,431 |
Prepaid expenses | | 4,101 |
Other receivables | | 24,182 |
Total assets | | 750,892,352 |
| | |
Liabilities | | |
Payable to custodian bank | $ 3,797 | |
Payable for investments purchased | 28,317,909 | |
Payable for fund shares redeemed | 1,602,937 | |
Accrued management fee | 313,081 | |
Distribution and service plan fees payable | 240,134 | |
Other affiliated payables | 162,171 | |
Other payables and accrued expenses | 50,637 | |
Collateral on securities loaned, at value | 3,118,338 | |
Total liabilities | | 33,809,004 |
| | |
Net Assets | | $ 717,083,348 |
Net Assets consist of: | | |
Paid in capital | | $ 769,959,275 |
Undistributed net investment income | | (48,189) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (27,403,234) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (25,424,504) |
Net Assets | | $ 717,083,348 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($281,042,153 ÷ 8,379,612 shares) | | $ 33.54 |
| | |
Maximum offering price per share (100/94.25 of $33.54) | | $ 35.59 |
Class T:
Net Asset Value and redemption price per share ($181,001,855 ÷ 5,275,975 shares) | | $ 34.31 |
| | |
Maximum offering price per share (100/96.50 of $34.31) | | $ 35.55 |
Class B:
Net Asset Value and offering price per share ($11,430,961 ÷ 369,953 shares)A | | $ 30.90 |
| | |
Class C:
Net Asset Value and offering price per share ($130,428,812 ÷ 4,196,992 shares)A | | $ 31.08 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($113,179,567 ÷ 3,207,398 shares) | | $ 35.29 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,632,972 |
Income from Fidelity Central Funds | | 53,527 |
Total income | | 6,686,499 |
| | |
Expenses | | |
Management fee | $ 2,066,939 | |
Transfer agent fees | 926,454 | |
Distribution and service plan fees | 1,591,878 | |
Accounting and security lending fees | 134,230 | |
Custodian fees and expenses | 6,580 | |
Independent trustees' compensation | 7,198 | |
Registration fees | 72,794 | |
Audit | 23,200 | |
Legal | 4,666 | |
Interest | 408 | |
Miscellaneous | 4,621 | |
Total expenses before reductions | 4,838,968 | |
Expense reductions | (3,090) | 4,835,878 |
Net investment income (loss) | | 1,850,621 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (26,466,355) | |
Foreign currency transactions | (4,925) | |
Total net realized gain (loss) | | (26,451,280) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (171,075,344) | |
Assets and liabilities in foreign currencies | 16 | |
Total change in net unrealized appreciation (depreciation) | | (171,075,328) |
Net gain (loss) | | (197,526,608) |
Net increase (decrease) in net assets resulting from operations | | $ (195,675,987) |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,850,621 | $ 1,451,099 |
Net realized gain (loss) | (26,451,280) | 63,966,553 |
Change in net unrealized appreciation (depreciation) | (171,075,328) | 60,343,712 |
Net increase (decrease) in net assets resulting from operations | (195,675,987) | 125,761,364 |
Distributions to shareholders from net investment income | (1,943,586) | (2,028,433) |
Distributions to shareholders from net realized gain | (36,840,330) | (32,993,983) |
Total distributions | (38,783,916) | (35,022,416) |
Share transactions - net increase (decrease) | 77,178,549 | 95,115,595 |
Redemption fees | 28,840 | 17,148 |
Total increase (decrease) in net assets | (157,252,514) | 185,871,691 |
| | |
Net Assets | | |
Beginning of period | 874,335,862 | 688,464,171 |
End of period (including undistributed net investment income of $48,189 and undistributed net investment income of $44,776, respectively) | $ 717,083,348 | $ 874,335,862 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 45.71 | $ 40.59 | $ 33.71 | $ 40.17 | $ 27.70 | $ 25.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .15 | .23 | .25 | .11 | (.05) |
Net realized and unrealized gain (loss) | (10.16) | 7.06 | 6.81 | (6.50) | 12.47 | 1.93 |
Total from investment operations | (10.03) | 7.21 | 7.04 | (6.25) | 12.58 | 1.88 |
Distributions from net investment income | (.12) | (.17) | (.16) | (.21) | (.11) | - |
Distributions from net realized gain | (2.02) | (1.93) | - | - | - | - |
Total distributions | (2.14) | (2.09) J | (.16) | (.21) | (.11) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.54 | $ 45.71 | $ 40.59 | $ 33.71 | $ 40.17 | $ 27.70 |
Total ReturnB, C, D | (23.00)% | 18.46% | 20.94% | (15.58)% | 45.46% | 7.28% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.12%A | 1.12% | 1.16% | 1.17% | 1.16% | 1.20% |
Expenses net of fee waivers, if any | 1.12%A | 1.12% | 1.16% | 1.17% | 1.16% | 1.20% |
Expenses net of all reductions | 1.12%A | 1.12% | 1.15% | 1.17% | 1.16% | 1.19% |
Net investment income (loss) | .66%A | .36% | .61% | .72% | .30% | (.16)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 281,042 | $ 369,400 | $ 279,798 | $ 253,332 | $ 331,120 | $ 214,407 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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 $2.09 per share is comprised of distributions from net investment income of $.165 and distributions from net realized gain of $1.929 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 46.64 | $ 41.38 | $ 34.40 | $ 41.04 | $ 28.33 | $ 26.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .06 | .15 | .18 | .03 | (.11) |
Net realized and unrealized gain (loss) | (10.38) | 7.21 | 6.95 | (6.65) | 12.75 | 1.97 |
Total from investment operations | (10.30) | 7.27 | 7.10 | (6.47) | 12.78 | 1.86 |
Distributions from net investment income | (.08) | (.08) | (.12) | (.17) | (.07) | - |
Distributions from net realized gain | (1.95) | (1.93) | - | - | - | - |
Total distributions | (2.03) | (2.01) | (.12) | (.17) | (.07) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 34.31 | $ 46.64 | $ 41.38 | $ 34.40 | $ 41.04 | $ 28.33 |
Total ReturnB, C, D | (23.08)% | 18.19% | 20.70% | (15.77)% | 45.16% | 7.03% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.35%A | 1.34% | 1.36% | 1.38% | 1.37% | 1.41% |
Expenses net of fee waivers, if any | 1.35%A | 1.34% | 1.36% | 1.38% | 1.37% | 1.41% |
Expenses net of all reductions | 1.35%A | 1.34% | 1.35% | 1.38% | 1.37% | 1.41% |
Net investment income (loss) | .43%A | .14% | .40% | .50% | .09% | (.37)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 181,002 | $ 245,828 | $ 223,248 | $ 215,488 | $ 290,512 | $ 219,051 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 42.08 | $ 37.65 | $ 31.41 | $ 37.61 | $ 26.06 | $ 24.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.17) | (.05) | (.01) | (.15) | (.25) |
Net realized and unrealized gain (loss) | (9.34) | 6.52 | 6.34 | (6.09) | 11.71 | 1.83 |
Total from investment operations | (9.37) | 6.35 | 6.29 | (6.10) | 11.56 | 1.58 |
Distributions from net investment income | - | - | (.05) | (.10) | (.01) | - |
Distributions from net realized gain | (1.81) | (1.92) | - | - | - | - |
Total distributions | (1.81) | (1.92) | (.05) | (.10) | (.01) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 30.90 | $ 42.08 | $ 37.65 | $ 31.41 | $ 37.61 | $ 26.06 |
Total ReturnB, C, D | (23.29)% | 17.50% | 20.04% | (16.22)% | 44.38% | 6.45% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.92%A | 1.91% | 1.92% | 1.92% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.92%A | 1.91% | 1.92% | 1.92% | 1.93% | 1.96% |
Expenses net of all reductions | 1.92%A | 1.91% | 1.91% | 1.92% | 1.92% | 1.95% |
Net investment income (loss) | (.14)%A | (.44)% | (.15)% | (.03)% | (.46)% | (.92)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,431 | $ 17,432 | $ 20,551 | $ 28,558 | $ 49,793 | $ 44,330 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 42.40 | $ 37.92 | $ 31.63 | $ 37.88 | $ 26.25 | $ 24.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.04) | (.01) | (.15) | (.25) |
Net realized and unrealized gain (loss) | (9.41) | 6.57 | 6.38 | (6.13) | 11.80 | 1.85 |
Total from investment operations | (9.42) | 6.42 | 6.34 | (6.14) | 11.65 | 1.60 |
Distributions from net investment income | (.03) | (.01) | (.05) | (.11) | (.02) | - |
Distributions from net realized gain | (1.88) | (1.93) | - | - | - | - |
Total distributions | (1.90) J | (1.94) | (.05) | (.11) | (.02) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 31.08 | $ 42.40 | $ 37.92 | $ 31.63 | $ 37.88 | $ 26.25 |
Total ReturnB, C, D | (23.26)% | 17.57% | 20.08% | (16.22)% | 44.38% | 6.49% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.86%A | 1.86% | 1.90% | 1.92% | 1.90% | 1.94% |
Expenses net of fee waivers, if any | 1.86%A | 1.86% | 1.90% | 1.92% | 1.90% | 1.94% |
Expenses net of all reductions | 1.86%A | 1.86% | 1.88% | 1.91% | 1.89% | 1.93% |
Net investment income (loss) | (.08)%A | (.38)% | (.13)% | (.03)% | (.43)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 130,429 | $ 130,881 | $ 99,833 | $ 93,504 | $ 133,476 | $ 90,596 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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 $1.90 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $1.87 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.05 | $ 42.55 | $ 35.28 | $ 41.95 | $ 28.87 | $ 26.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .19 | .28 | .35 | .37 | .23 | .04 |
Net realized and unrealized gain (loss) | (10.69) | 7.42 | 7.12 | (6.79) | 12.99 | 2.00 |
Total from investment operations | (10.50) | 7.70 | 7.47 | (6.42) | 13.22 | 2.04 |
Distributions from net investment income | (.19) | (.27) | (.20) | (.25) | (.14) | - |
Distributions from net realized gain | (2.07) | (1.93) | - | - | - | - |
Total distributions | (2.26) | (2.20) | (.20) | (.25) | (.14) | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 35.29 | $ 48.05 | $ 42.55 | $ 35.28 | $ 41.95 | $ 28.87 |
Total ReturnB, C | (22.89)% | 18.80% | 21.26% | (15.31)% | 45.87% | 7.60% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .85%A | .85% | .88% | .86% | .86% | .90% |
Expenses net of fee waivers, if any | .85%A | .85% | .88% | .86% | .86% | .90% |
Expenses net of all reductions | .85%A | .85% | .86% | .85% | .85% | .90% |
Net investment income (loss) | .92%A | .63% | .89% | 1.03% | .60% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 113,180 | $ 110,795 | $ 65,034 | $ 56,692 | $ 54,024 | $ 27,338 |
Portfolio turnover rateF | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation 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 | $ 61,683,145 |
Gross unrealized depreciation | (90,032,792) |
Net unrealized appreciation (depreciation) on securities | $ (28,349,647) |
| |
Tax cost | $ 767,391,109 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $249,482,448 and $226,637,601, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 378,615 | $ 3,342 |
Class T | .25% | .25% | 526,142 | - |
Class B | .75% | .25% | 71,052 | 53,289 |
Class C | .75% | .25% | 616,069 | 137,748 |
| | | $ 1,591,878 | $ 194,379 |
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 shares, 1.00% for Class C shares, 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 | $ 131,488 |
Class T | 18,172 |
Class B* | 5,322 |
Class C* | 10,036 |
| $ 165,018 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 386,547 | .26 |
Class T | 248,662 | .24 |
Class B | 21,475 | .30 |
Class C | 149,515 | .24 |
Institutional Class | 120,255 | .24 |
| $ 926,454 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,224 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 or other affiliated entities of 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 | $ 15,226,000 | .32% | $ 408 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $539 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $42,649.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,081 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $8.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 932,668 | $ 1,151,717 |
Class T | 410,584 | 407,949 |
Class C | 97,073 | 21,755 |
Institutional Class | 503,261 | 447,012 |
Total | $ 1,943,586 | $ 2,028,433 |
From net realized gain | | |
Class A | $ 15,270,711 | $ 13,468,952 |
Class T | 10,226,679 | 10,162,438 |
Class B | 735,565 | 951,726 |
Class C | 5,982,436 | 5,213,518 |
Institutional Class | 4,624,939 | 3,197,349 |
Total | $ 36,840,330 | $ 32,993,983 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 2,155,170 | 2,566,576 | $ 78,335,897 | $ 110,639,298 |
Reinvestment of distributions | 346,427 | 321,215 | 15,023,137 | 13,089,815 |
Shares redeemed | (2,203,798) | (1,699,770) | (86,327,968) | (72,383,987) |
Net increase (decrease) | 297,799 | 1,188,021 | $ 7,031,066 | $ 51,345,126 |
Class T | | | | |
Shares sold | 407,234 | 572,893 | $ 15,305,220 | $ 25,352,574 |
Reinvestment of distributions | 229,125 | 243,465 | 10,214,221 | 10,134,909 |
Shares redeemed | (630,980) | (940,893) | (24,522,881) | (41,085,209) |
Net increase (decrease) | 5,379 | (124,535) | $ 996,560 | $ (5,597,726) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class B | | | | |
Shares sold | 24,515 | 26,300 | $ 837,106 | $ 1,074,846 |
Reinvestment of distributions | 16,323 | 22,691 | 661,892 | 856,078 |
Shares redeemed | (85,105) | (180,679) | (2,990,614) | (7,111,293) |
Net increase (decrease) | (44,267) | (131,688) | $ (1,491,616) | $ (5,180,369) |
Class C | | | | |
Shares sold | 1,503,702 | 779,598 | $ 50,462,889 | $ 31,528,558 |
Reinvestment of distributions | 130,140 | 118,310 | 5,288,656 | 4,495,184 |
Shares redeemed | (523,316) | (444,228) | (18,155,288) | (17,602,373) |
Net increase (decrease) | 1,110,526 | 453,680 | $ 37,596,257 | $ 18,421,369 |
Institutional Class | | | | |
Shares sold | 1,670,182 | 1,344,490 | $ 63,484,338 | $ 61,641,683 |
Reinvestment of distributions | 99,377 | 75,999 | 4,498,001 | 3,249,427 |
Shares redeemed | (868,145) | (642,747) | (34,936,057) | (28,763,915) |
Net increase (decrease) | 901,414 | 777,742 | $ 33,046,282 | $ 36,127,195 |
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 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 1,021.30 | $ 6.16 |
HypotheticalA | | $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 1,019.90 | $ 7.54 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,016.80 | $ 10.12 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 1,017.10 | $ 9.86 |
HypotheticalA | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,022.50 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
JPMorgan Chase & Co. | 4.9 | 5.4 |
Bank of America Corp. | 4.9 | 5.1 |
Berkshire Hathaway, Inc. Class B | 4.9 | 4.2 |
Citigroup, Inc. | 4.8 | 4.8 |
U.S. Bancorp | 4.3 | 4.6 |
American Tower Corp. | 3.8 | 3.8 |
Capital One Financial Corp. | 3.6 | 4.1 |
Wells Fargo & Co. | 3.3 | 3.8 |
McGraw Hill Financial, Inc. | 2.6 | 2.0 |
Allstate Corp. | 2.4 | 2.0 |
| 39.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Banks | 27.9% | |
| Real Estate Investment Trusts | 13.5% | |
| Capital Markets | 12.2% | |
| Insurance | 12.0% | |
| Diversified Financial Services | 9.7% | |
| All Others* | 24.7% | |
As of July 31, 2014 |
| Banks | 29.4% | |
| Capital Markets | 14.5% | |
| Insurance | 13.4% | |
| Real Estate Investment Trusts | 10.6% | |
| Diversified Financial Services | 8.8% | |
| All Others* | 23.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% |
| Shares | | Value |
BANKS - 27.9% |
Diversified Banks - 23.0% |
Bank of America Corp. | 608,656 | | $ 9,221,138 |
Citigroup, Inc. | 194,365 | | 9,125,437 |
Comerica, Inc. | 39,619 | | 1,644,189 |
JPMorgan Chase & Co. | 170,131 | | 9,251,721 |
U.S. Bancorp | 194,408 | | 8,147,639 |
Wells Fargo & Co. | 119,848 | | 6,222,508 |
| | 43,612,632 |
Regional Banks - 4.9% |
CoBiz, Inc. | 62,491 | | 681,152 |
Fifth Third Bancorp | 162,040 | | 2,803,292 |
Popular, Inc. (a) | 34,800 | | 1,072,884 |
Prosperity Bancshares, Inc. | 37,800 | | 1,730,862 |
SunTrust Banks, Inc. | 81,000 | | 3,112,020 |
| | 9,400,210 |
TOTAL BANKS | | 53,012,842 |
CAPITAL MARKETS - 12.2% |
Asset Management & Custody Banks - 9.4% |
Affiliated Managers Group, Inc. (a) | 8,954 | | 1,840,226 |
Ameriprise Financial, Inc. | 26,100 | | 3,260,934 |
Artisan Partners Asset Management, Inc. | 46,200 | | 2,230,074 |
Invesco Ltd. | 119,938 | | 4,405,323 |
Oaktree Capital Group LLC Class A | 37,000 | | 2,049,800 |
The Blackstone Group LP | 109,365 | | 4,083,689 |
| | 17,870,046 |
Diversified Capital Markets - 0.5% |
Close Brothers Group PLC | 43,300 | | 991,973 |
Investment Banking & Brokerage - 2.3% |
E*TRADE Financial Corp. (a) | 94,900 | | 2,187,445 |
Raymond James Financial, Inc. | 40,000 | | 2,104,800 |
| | 4,292,245 |
TOTAL CAPITAL MARKETS | | 23,154,264 |
CONSUMER FINANCE - 6.0% |
Consumer Finance - 6.0% |
Capital One Financial Corp. | 93,138 | | 6,818,633 |
Navient Corp. | 141,715 | | 2,797,454 |
Springleaf Holdings, Inc. (a) | 57,900 | | 1,829,640 |
| | 11,445,727 |
DIVERSIFIED CONSUMER SERVICES - 1.2% |
Specialized Consumer Services - 1.2% |
H&R Block, Inc. | 64,500 | | 2,211,060 |
DIVERSIFIED FINANCIAL SERVICES - 9.7% |
Multi-Sector Holdings - 4.9% |
Berkshire Hathaway, Inc. Class B (a) | 64,019 | | 9,212,974 |
|
| Shares | | Value |
Specialized Finance - 4.8% |
IntercontinentalExchange Group, Inc. | 20,214 | | $ 4,158,626 |
McGraw Hill Financial, Inc. | 56,300 | | 5,035,472 |
| | 9,194,098 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 18,407,072 |
HEALTH CARE PROVIDERS & SERVICES - 1.2% |
Health Care Facilities - 1.2% |
Brookdale Senior Living, Inc. (a) | 67,800 | | 2,288,250 |
INSURANCE - 12.0% |
Insurance Brokers - 2.9% |
Arthur J. Gallagher & Co. | 32,400 | | 1,439,532 |
Brown & Brown, Inc. | 48,000 | | 1,480,800 |
Marsh & McLennan Companies, Inc. | 48,000 | | 2,580,960 |
| | 5,501,292 |
Life & Health Insurance - 3.2% |
MetLife, Inc. | 32,026 | | 1,489,209 |
Prudential PLC | 59,144 | | 1,437,814 |
Torchmark Corp. | 62,280 | | 3,118,360 |
| | 6,045,383 |
Property & Casualty Insurance - 5.9% |
Allstate Corp. | 64,290 | | 4,486,799 |
FNF Group | 72,300 | | 2,537,730 |
The Travelers Companies, Inc. | 40,192 | | 4,132,541 |
| | 11,157,070 |
TOTAL INSURANCE | | 22,703,745 |
INTERNET SOFTWARE & SERVICES - 1.1% |
Internet Software & Services - 1.1% |
eBay, Inc. (a) | 40,200 | | 2,130,600 |
IT SERVICES - 5.0% |
Data Processing & Outsourced Services - 5.0% |
EVERTEC, Inc. | 92,400 | | 1,853,544 |
Fiserv, Inc. (a) | 40,166 | | 2,913,240 |
The Western Union Co. | 103,900 | | 1,766,300 |
Visa, Inc. Class A | 11,230 | | 2,862,639 |
| | 9,395,723 |
REAL ESTATE INVESTMENT TRUSTS - 13.5% |
Mortgage REITs - 4.3% |
Altisource Residential Corp. Class B | 103,850 | | 1,870,339 |
Blackstone Mortgage Trust, Inc. | 60,800 | | 1,775,360 |
NorthStar Realty Finance Corp. | 140,650 | | 2,659,692 |
Redwood Trust, Inc. (d) | 98,900 | | 1,971,077 |
| | 8,276,468 |
Office REITs - 1.5% |
Boston Properties, Inc. | 20,100 | | 2,789,880 |
Residential REITs - 1.4% |
Essex Property Trust, Inc. | 12,000 | | 2,712,600 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
Retail REITs - 1.2% |
WP Glimcher, Inc. | 128,569 | | $ 2,273,100 |
Specialized REITs - 5.1% |
American Tower Corp. | 74,950 | | 7,266,403 |
Outfront Media, Inc. | 83,430 | | 2,365,241 |
| | 9,631,644 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 25,683,692 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.9% |
Real Estate Services - 3.9% |
CBRE Group, Inc. (a) | 136,687 | | 4,420,458 |
Realogy Holdings Corp. (a) | 64,100 | | 2,980,650 |
| | 7,401,108 |
THRIFTS & MORTGAGE FINANCE - 0.8% |
Thrifts & Mortgage Finance - 0.8% |
MGIC Investment Corp. (a) | 50,000 | | 426,000 |
Ocwen Financial Corp. (a)(d) | 111,650 | | 683,298 |
Radian Group, Inc. | 19,600 | | 308,896 |
| | 1,418,194 |
TRADING COMPANIES & DISTRIBUTORS - 0.8% |
Trading Companies & Distributors - 0.8% |
AerCap Holdings NV (a) | 39,500 | | 1,561,435 |
TOTAL COMMON STOCKS (Cost $164,601,000) |
180,813,712
|
Money Market Funds - 5.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 8,948,492 | | $ 8,948,492 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,747,550 | | 1,747,550 |
TOTAL MONEY MARKET FUNDS (Cost $10,696,042) |
10,696,042
|
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $175,297,042) | | 191,509,754 |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | | (1,678,045) |
NET ASSETS - 100% | $ 189,831,709 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,028 |
Fidelity Securities Lending Cash Central Fund | 4,760 |
Total | $ 8,788 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 180,813,712 | $ 179,375,898 | $ 1,437,814 | $ - |
Money Market Funds | 10,696,042 | 10,696,042 | - | - |
Total Investments in Securities: | $ 191,509,754 | $ 190,071,940 | $ 1,437,814 | $ - |
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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,720,859) - See accompanying schedule: Unaffiliated issuers (cost $164,601,000) | $ 180,813,712 | |
Fidelity Central Funds (cost $10,696,042) | 10,696,042 | |
Total Investments (cost $175,297,042) | | $ 191,509,754 |
Receivable for investments sold | | 757,134 |
Receivable for fund shares sold | | 717,251 |
Dividends receivable | | 90,209 |
Distributions receivable from Fidelity Central Funds | | 1,872 |
Prepaid expenses | | 783 |
Other receivables | | 2,026 |
Total assets | | 193,079,029 |
| | |
Liabilities | | |
Payable for investments purchased | $ 710,183 | |
Payable for fund shares redeemed | 555,259 | |
Accrued management fee | 88,599 | |
Distribution and service plan fees payable | 68,955 | |
Other affiliated payables | 45,629 | |
Other payables and accrued expenses | 31,145 | |
Collateral on securities loaned, at value | 1,747,550 | |
Total liabilities | | 3,247,320 |
| | |
Net Assets | | $ 189,831,709 |
Net Assets consist of: | | |
Paid in capital | | $ 229,839,787 |
Distributions in excess of net investment income | | (631,046) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (55,589,390) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 16,212,358 |
Net Assets | | $ 189,831,709 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,288,851 ÷ 5,688,433 shares) | | $ 15.17 |
| | |
Maximum offering price per share (100/94.25 of $15.17) | | $ 16.10 |
Class T:
Net Asset Value and redemption price per share ($30,961,542 ÷ 2,053,251 shares) | | $ 15.08 |
| | |
Maximum offering price per share (100/96.50 of $15.08) | | $ 15.63 |
Class B:
Net Asset Value and offering price per share ($4,620,269 ÷ 317,013 shares)A | | $ 14.57 |
| | |
Class C:
Net Asset Value and offering price per share ($38,481,244 ÷ 2,666,906 shares)A | | $ 14.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,479,803 ÷ 1,899,450 shares) | | $ 15.52 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,463,121 |
Income from Fidelity Central Funds | | 8,788 |
Total income | | 1,471,909 |
| | |
Expenses | | |
Management fee | $ 495,173 | |
Transfer agent fees | 232,017 | |
Distribution and service plan fees | 405,931 | |
Accounting and security lending fees | 35,449 | |
Custodian fees and expenses | 6,751 | |
Independent trustees' compensation | 1,648 | |
Registration fees | 52,070 | |
Audit | 27,536 | |
Legal | 1,414 | |
Miscellaneous | 871 | |
Total expenses before reductions | 1,258,860 | |
Expense reductions | (3,283) | 1,255,577 |
Net investment income (loss) | | 216,332 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,021,518 | |
Foreign currency transactions | 771 | |
Total net realized gain (loss) | | 4,022,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,077,311) | |
Assets and liabilities in foreign currencies | (656) | |
Total change in net unrealized appreciation (depreciation) | | (2,077,967) |
Net gain (loss) | | 1,944,322 |
Net increase (decrease) in net assets resulting from operations | | $ 2,160,654 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 216,332 | $ 764,187 |
Net realized gain (loss) | 4,022,289 | 7,593,535 |
Change in net unrealized appreciation (depreciation) | (2,077,967) | 9,238,319 |
Net increase (decrease) in net assets resulting from operations | 2,160,654 | 17,596,041 |
Distributions to shareholders from net investment income | (1,174,436) | (647,193) |
Distributions to shareholders from net realized gain | - | (72,538) |
Total distributions | (1,174,436) | (719,731) |
Share transactions - net increase (decrease) | 21,128,750 | 10,142,137 |
Redemption fees | 3,337 | 8,658 |
Total increase (decrease) in net assets | 22,118,305 | 27,027,105 |
| | |
Net Assets | | |
Beginning of period | 167,713,404 | 140,686,299 |
End of period (including distributions in excess of net investment income of $631,046 and undistributed net investment income of $327,058, respectively) | $ 189,831,709 | $ 167,713,404 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.97 | $ 13.41 | $ 10.18 | $ 10.06 | $ 10.35 | $ 9.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .10 | .15 | .07 | (.02) | (.01) |
Net realized and unrealized gain (loss) | .30J | 1.55 | 3.18 | .06 | (.27) | .93 |
Total from investment operations | .33 | 1.65 | 3.33 | .13 | (.29) | .92 |
Distributions from net investment income | (.13) | (.08) | (.10) | (.01) | - | (.10) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.13) | (.09) | (.10) | (.01) | - | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.17 | $ 14.97 | $ 13.41 | $ 10.18 | $ 10.06 | $ 10.35 |
Total ReturnB, C, D | 2.13%J | 12.39% | 32.99% | 1.34% | (2.80)% | 9.61% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.21%A | 1.22% | 1.29% | 1.28% | 1.26% | 1.27% |
Expenses net of fee waivers, if any | 1.21%A | 1.22% | 1.29% | 1.28% | 1.26% | 1.27% |
Expenses net of all reductions | 1.20%A | 1.22% | 1.21% | 1.20% | 1.21% | 1.22% |
Net investment income (loss) | .43%A | .68% | 1.31% | .72% | (.24)% | (.09)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,289 | $ 77,674 | $ 64,428 | $ 47,055 | $ 63,937 | $ 69,723 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been 1.90%. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.86 | $ 13.31 | $ 10.11 | $ 10.01 | $ 10.32 | $ 9.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .06 | .12 | .04 | (.05) | (.04) |
Net realized and unrealized gain (loss) | .29J | 1.55 | 3.16 | .06 | (.26) | .92 |
Total from investment operations | .30 | 1.61 | 3.28 | .10 | (.31) | .88 |
Distributions from net investment income | (.08) | (.05) | (.08) | - I | - | (.08) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.08) | (.06) | (.08) | - I | - | (.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.08 | $ 14.86 | $ 13.31 | $ 10.11 | $ 10.01 | $ 10.32 |
Total ReturnB, C, D | 1.99%J | 12.10% | 32.66% | 1.03% | (3.00)% | 9.26% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.48%A | 1.48% | 1.55% | 1.54% | 1.52% | 1.53% |
Expenses net of fee waivers, if any | 1.48%A | 1.48% | 1.55% | 1.54% | 1.52% | 1.53% |
Expenses net of all reductions | 1.48%A | 1.48% | 1.47% | 1.45% | 1.47% | 1.47% |
Net investment income (loss) | .16%A | .42% | 1.06% | .46% | (.49)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 30,962 | $ 31,596 | $ 30,576 | $ 24,367 | $ 27,037 | $ 33,310 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been 1.76%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.35 | $ 12.87 | $ 9.79 | $ 9.73 | $ 10.09 | $ 9.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.01) | .06 | - I | (.10) | (.09) |
Net realized and unrealized gain (loss) | .27J | 1.49 | 3.06 | .06 | (.26) | .91 |
Total from investment operations | .24 | 1.48 | 3.12 | .06 | (.36) | .82 |
Distributions from net investment income | (.02) | - | (.04) | - | - | (.06) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.57 | $ 14.35 | $ 12.87 | $ 9.79 | $ 9.73 | $ 10.09 |
Total ReturnB, C, D | 1.68%J | 11.50% | 32.00% | .62% | (3.57)% | 8.78% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.99%A | 1.98% | 2.04% | 2.03% | 2.01% | 2.02% |
Expenses net of fee waivers, if any | 1.99%A | 1.98% | 2.04% | 2.03% | 2.01% | 2.02% |
Expenses net of all reductions | 1.99%A | 1.98% | 1.97% | 1.94% | 1.96% | 1.97% |
Net investment income (loss) | (.35)%A | (.08)% | .56% | (.03)% | (.98)% | (.85)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,620 | $ 5,540 | $ 6,511 | $ 5,745 | $ 7,480 | $ 10,992 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been 1.45%. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.22 | $ 12.75 | $ 9.70 | $ 9.65 | $ 10.00 | $ 9.25 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | - I | .06 | - I | (.10) | (.09) |
Net realized and unrealized gain (loss) | .27J | 1.48 | 3.03 | .05 | (.25) | .90 |
Total from investment operations | .25 | 1.48 | 3.09 | .05 | (.35) | .81 |
Distributions from net investment income | (.04) | (.01) | (.04) | - | - | (.06) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.43 | $ 14.22 | $ 12.75 | $ 9.70 | $ 9.65 | $ 10.00 |
Total ReturnB, C, D | 1.71%J | 11.65% | 31.98% | .52% | (3.50)% | 8.79% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.94%A | 1.94% | 2.03% | 2.03% | 2.01% | 2.02% |
Expenses net of fee waivers, if any | 1.94%A | 1.94% | 2.03% | 2.03% | 2.01% | 2.02% |
Expenses net of all reductions | 1.94%A | 1.93% | 1.96% | 1.94% | 1.96% | 1.96% |
Net investment income (loss) | (.30)%A | (.03)% | .57% | (.03)% | (.99)% | (.84)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,481 | $ 36,740 | $ 29,897 | $ 20,875 | $ 23,196 | $ 30,804 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been 1.48%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.34 | $ 13.73 | $ 10.42 | $ 10.28 | $ 10.55 | $ 9.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .15 | .20 | .10 | .01 | .02 |
Net realized and unrealized gain (loss) | .29I | 1.60 | 3.25 | .06 | (.28) | .95 |
Total from investment operations | .35 | 1.75 | 3.45 | .16 | (.27) | .97 |
Distributions from net investment income | (.17) | (.13) | (.14) | (.02) | - | (.11) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.17) | (.14) | (.14) | (.02) | - | (.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.52 | $ 15.34 | $ 13.73 | $ 10.42 | $ 10.28 | $ 10.55 |
Total ReturnB, C | 2.25%I | 12.85% | 33.45% | 1.61% | (2.56)% | 9.99% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .86%A | .87% | .96% | .98% | .96% | .99% |
Expenses net of fee waivers, if any | .86%A | .87% | .96% | .98% | .96% | .99% |
Expenses net of all reductions | .86%A | .86% | .88% | .89% | .91% | .94% |
Net investment income (loss) | .78%A | 1.04% | 1.65% | 1.02% | .07% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,480 | $ 16,164 | $ 9,275 | $ 5,596 | $ 8,162 | $ 5,158 |
Portfolio turnover rateF | 42% A | 49% | 288% | 441% | 260% | 254% |
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. INet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .63%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services Fund (the Fund) is a fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, 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 | $ 21,982,460 |
Gross unrealized depreciation | (6,592,609) |
Net unrealized appreciation (depreciation) on securities | $ 15,389,851 |
| |
Tax cost | $ 176,119,903 |
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (35,189,589) |
2018 | (23,251,884) |
2019 | (450,657) |
Total capital loss carryforward | $ (58,892,130) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $52,414,330 and $36,447,119, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 103,337 | $ 1,366 |
Class T | .25% | .25% | 80,850 | - |
Class B | .75% | .25% | 26,535 | 19,901 |
Class C | .75% | .25% | 195,209 | 41,829 |
| | | $ 405,931 | $ 63,096 |
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 shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 23,947 |
Class T | 2,144 |
Class B* | 1,732 |
Class C* | 3,300 |
| $ 31,123 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 110,559 | .27 |
Class T | 47,249 | .29 |
Class B | 8,085 | .30 |
Class C | 48,370 | .25 |
Institutional Class | 17,754 | .17 |
| $ 232,017 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,053 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $121 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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
Semiannual Report
7. Security Lending - continued
lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,760.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,279 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 $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 677,086 | $ 405,756 |
Class T | 166,609 | 104,978 |
Class B | 7,587 | - |
Class C | 95,653 | 31,349 |
Institutional Class | 227,501 | 105,110 |
Total | $ 1,174,436 | $ 647,193 |
From net realized gain | | |
Class A | $ - | $ 43,910 |
Class T | - | 20,144 |
Institutional Class | - | 8,484 |
Total | $ - | $ 72,538 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,248,058 | 1,697,938 | $ 19,768,874 | $ 24,378,496 |
Reinvestment of distributions | 37,600 | 28,780 | 601,602 | 390,562 |
Shares redeemed | (784,908) | (1,342,224) | (12,212,188) | (19,118,798) |
Net increase (decrease) | 500,750 | 384,494 | $ 8,158,288 | $ 5,650,260 |
Class T | | | | |
Shares sold | 98,895 | 306,863 | $ 1,537,479 | $ 4,347,352 |
Reinvestment of distributions | 9,927 | 8,794 | 158,623 | 118,136 |
Shares redeemed | (181,402) | (486,368) | (2,791,224) | (6,897,348) |
Net increase (decrease) | (72,580) | (170,711) | $ (1,095,122) | $ (2,431,860) |
Class B | | | | |
Shares sold | 2,469 | 29,215 | $ 36,438 | $ 390,860 |
Reinvestment of distributions | 462 | - | 7,229 | - |
Shares redeemed | (71,941) | (149,230) | (1,087,741) | (2,060,292) |
Net increase (decrease) | (69,010) | (120,015) | $ (1,044,074) | $ (1,669,432) |
Class C | | | | |
Shares sold | 429,363 | 859,537 | $ 6,386,218 | $ 11,703,173 |
Reinvestment of distributions | 5,490 | 2,148 | 84,931 | 26,657 |
Shares redeemed | (352,282) | (621,486) | (5,176,463) | (8,469,563) |
Net increase (decrease) | 82,571 | 240,199 | $ 1,294,686 | $ 3,260,267 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Institutional Class | | | | |
Shares sold | 1,483,302 | 823,593 | $ 23,992,193 | $ 12,007,905 |
Reinvestment of distributions | 9,845 | 5,144 | 161,164 | 71,934 |
Shares redeemed | (647,709) | (450,058) | (10,338,385) | (6,746,937) |
Net increase (decrease) | 845,438 | 378,679 | $ 13,814,972 | $ 5,332,902 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,168.80 | $ 5.79 |
HypotheticalA | | $ 1,000.00 | $ 1,019.86 | $ 5.40 |
Class T | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,167.10 | $ 7.21 |
HypotheticalA | | $ 1,000.00 | $ 1,018.55 | $ 6.72 |
Class B | 1.87% | | | |
Actual | | $ 1,000.00 | $ 1,164.20 | $ 10.20 |
HypotheticalA | | $ 1,000.00 | $ 1,015.78 | $ 9.50 |
Class C | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,164.10 | $ 9.87 |
HypotheticalA | | $ 1,000.00 | $ 1,016.08 | $ 9.20 |
Institutional Class | .80% | | | |
Actual | | $ 1,000.00 | $ 1,170.10 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,021.17 | $ 4.08 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Actavis PLC | 7.5 | 6.9 |
Medtronic PLC | 5.7 | 5.6 |
Amgen, Inc. | 4.7 | 2.1 |
McKesson Corp. | 4.3 | 5.3 |
Boston Scientific Corp. | 3.7 | 3.1 |
Celgene Corp. | 3.3 | 1.3 |
Mallinckrodt PLC | 3.1 | 0.0 |
Shire PLC sponsored ADR | 3.0 | 4.9 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 2.7 | 2.4 |
Alexion Pharmaceuticals, Inc. | 2.6 | 3.3 |
| 40.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Pharmaceuticals | 29.4% | |
| Biotechnology | 27.4% | |
| Health Care Equipment & Supplies | 19.0% | |
| Health Care Providers & Services | 12.2% | |
| Health Care Technology | 4.4% | |
| All Others* | 7.6% | |
As of July 31, 2014 |
| Pharmaceuticals | 30.4% | |
| Biotechnology | 24.2% | |
| Health Care Equipment & Supplies | 16.8% | |
| Health Care Providers & Services | 14.3% | |
| Life Sciences Tools & Services | 6.0% | |
| All Others* | 8.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% |
| Shares | | Value |
BIOTECHNOLOGY - 27.4% |
Biotechnology - 27.4% |
Acceleron Pharma, Inc. (a) | 68,738 | | $ 2,713,089 |
Achillion Pharmaceuticals, Inc. (a) | 350,644 | | 5,207,063 |
Acorda Therapeutics, Inc. (a) | 137,247 | | 5,702,613 |
Actelion Ltd. | 65,456 | | 7,271,305 |
Advaxis, Inc. (a) | 320,100 | | 3,152,985 |
Alexion Pharmaceuticals, Inc. (a) | 302,214 | | 55,377,693 |
Alnylam Pharmaceuticals, Inc. (a) | 86,000 | | 8,069,380 |
Amgen, Inc. | 660,996 | | 100,643,251 |
Array BioPharma, Inc. (a)(d) | 800,000 | | 5,728,000 |
Ascendis Pharma A/S | 103,900 | | 2,060,337 |
Auspex Pharmaceuticals, Inc. | 135,100 | | 8,301,895 |
Avalanche Biotechnologies, Inc. (a) | 37,152 | | 1,474,191 |
BioCryst Pharmaceuticals, Inc. (a) | 323,700 | | 3,295,266 |
Biogen Idec, Inc. (a) | 61,684 | | 24,004,945 |
BioMarin Pharmaceutical, Inc. (a) | 233,800 | | 22,716,008 |
Celgene Corp. (a) | 603,300 | | 71,889,228 |
Celldex Therapeutics, Inc. (a) | 82,500 | | 1,767,150 |
Clovis Oncology, Inc. (a) | 91,890 | | 5,990,309 |
Discovery Laboratories, Inc. (a) | 1,296,633 | | 1,802,320 |
Dyax Corp. (a) | 363,300 | | 5,489,463 |
Flexion Therapeutics, Inc. | 196,500 | | 4,045,935 |
Gilead Sciences, Inc. (a) | 476,086 | | 49,908,095 |
Innate Pharma SA (a)(d) | 299,200 | | 3,117,245 |
Insmed, Inc. (a) | 302,519 | | 4,676,944 |
Intercept Pharmaceuticals, Inc. (a) | 45,121 | | 9,070,675 |
Mirati Therapeutics, Inc. (a) | 28,228 | | 585,731 |
Neurocrine Biosciences, Inc. (a) | 560,000 | | 18,849,600 |
Pharmacyclics, Inc. (a) | 104,200 | | 17,583,750 |
PTC Therapeutics, Inc. (a) | 137,000 | | 7,522,670 |
Puma Biotechnology, Inc. (a) | 229,358 | | 48,412,887 |
Spark Therapeutics, Inc. | 2,100 | | 48,300 |
Synageva BioPharma Corp. (a) | 21,900 | | 2,523,318 |
T2 Biosystems, Inc. (d) | 83,700 | | 1,810,431 |
Tekmira Pharmaceuticals Corp. (a) | 84,400 | | 2,161,484 |
Ultragenyx Pharmaceutical, Inc. | 162,677 | | 9,451,534 |
United Therapeutics Corp. (a) | 65,300 | | 9,215,789 |
Vanda Pharmaceuticals, Inc. (a) | 572,729 | | 6,374,474 |
Vertex Pharmaceuticals, Inc. (a) | 499,900 | | 55,058,986 |
| | 593,074,339 |
DIVERSIFIED CONSUMER SERVICES - 0.2% |
Specialized Consumer Services - 0.2% |
Carriage Services, Inc. | 188,335 | | 4,105,703 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Equipment & Instruments - 0.6% |
Keysight Technologies, Inc. (a) | 398,750 | | 13,314,263 |
HEALTH CARE EQUIPMENT & SUPPLIES - 19.0% |
Health Care Equipment - 17.0% |
Atricure, Inc. (a) | 280,000 | | 5,555,200 |
Boston Scientific Corp. (a) | 5,400,000 | | 79,974,000 |
|
| Shares | | Value |
CONMED Corp. | 240,000 | | $ 11,433,600 |
Edwards Lifesciences Corp. (a) | 163,653 | | 20,513,904 |
HeartWare International, Inc. (a) | 171,671 | | 14,339,679 |
Lumenis Ltd. Class B | 266,766 | | 2,739,687 |
Medtronic PLC | 1,712,432 | | 122,267,645 |
Neovasc, Inc. (a) | 1,000,000 | | 9,350,000 |
Nevro Corp. | 101,400 | | 4,619,784 |
NxStage Medical, Inc. (a) | 508,700 | | 9,100,643 |
PW Medtech Group Ltd. (a) | 4,226,000 | | 1,846,223 |
ResMed, Inc. (d) | 272,600 | | 17,029,322 |
Roka Bioscience, Inc. (e) | 124,300 | | 500,929 |
Smith & Nephew PLC sponsored ADR | 160,000 | | 5,728,000 |
Steris Corp. | 128,584 | | 8,386,248 |
Tornier NV (a) | 443,100 | | 10,709,727 |
Zeltiq Aesthetics, Inc. (a) | 247,318 | | 7,966,113 |
Zimmer Holdings, Inc. | 313,300 | | 35,120,930 |
| | 367,181,634 |
Health Care Supplies - 2.0% |
DENTSPLY International, Inc. | 170,000 | | 8,504,250 |
Derma Sciences, Inc. (a) | 224,595 | | 1,931,517 |
Endologix, Inc. (a) | 400,000 | | 5,572,000 |
The Cooper Companies, Inc. | 176,400 | | 27,809,460 |
| | 43,817,227 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 410,998,861 |
HEALTH CARE PROVIDERS & SERVICES - 12.1% |
Health Care Distributors & Services - 5.8% |
Amplifon SpA | 693,695 | | 4,154,539 |
Cardinal Health, Inc. | 215,000 | | 17,885,850 |
EBOS Group Ltd. | 864,595 | | 5,944,391 |
McKesson Corp. | 439,409 | | 93,440,324 |
United Drug PLC (United Kingdom) | 519,800 | | 3,060,445 |
| | 124,485,549 |
Health Care Facilities - 2.6% |
Brookdale Senior Living, Inc. (a) | 373,170 | | 12,594,488 |
HCA Holdings, Inc. (a) | 237,500 | | 16,815,000 |
Surgical Care Affiliates, Inc. (a) | 308,500 | | 9,949,125 |
Universal Health Services, Inc. Class B | 163,627 | | 16,776,676 |
| | 56,135,289 |
Health Care Services - 0.6% |
Air Methods Corp. (a) | 310,285 | | 12,892,342 |
Managed Health Care - 3.1% |
Cigna Corp. | 210,412 | | 22,478,314 |
Humana, Inc. | 144,837 | | 21,209,930 |
UnitedHealth Group, Inc. | 161,524 | | 17,161,925 |
Wellcare Health Plans, Inc. (a) | 94,900 | | 6,913,465 |
| | 67,763,634 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 261,276,814 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE TECHNOLOGY - 4.4% |
Health Care Technology - 4.4% |
athenahealth, Inc. (a)(d) | 140,800 | | $ 19,671,168 |
Castlight Health, Inc. | 336,800 | | 2,990,784 |
Castlight Health, Inc. Class B (a) | 15,400 | | 136,752 |
Cerner Corp. (a) | 619,996 | | 41,136,735 |
Connecture, Inc. | 500,000 | | 4,750,000 |
HealthStream, Inc. (a) | 304,612 | | 8,608,335 |
Medidata Solutions, Inc. (a) | 294,074 | | 12,642,241 |
Veeva Systems, Inc. Class A (a) | 192,000 | | 5,521,920 |
| | 95,457,935 |
INDUSTRIAL CONGLOMERATES - 1.1% |
Industrial Conglomerates - 1.1% |
Danaher Corp. | 284,123 | | 23,406,053 |
LIFE SCIENCES TOOLS & SERVICES - 3.3% |
Life Sciences Tools & Services - 3.3% |
Agilent Technologies, Inc. | 746,400 | | 28,191,528 |
Bruker Corp. (a) | 532,953 | | 10,051,494 |
Illumina, Inc. (a) | 39,689 | | 7,746,896 |
PRA Health Sciences, Inc. | 341,743 | | 8,929,745 |
Thermo Fisher Scientific, Inc. | 138,192 | | 17,303,020 |
| | 72,222,683 |
PHARMACEUTICALS - 29.4% |
Pharmaceuticals - 29.4% |
AbbVie, Inc. | 214,853 | | 12,966,379 |
Actavis PLC (a) | 610,755 | | 162,790,636 |
Bristol-Myers Squibb Co. | 299,203 | | 18,032,965 |
Dechra Pharmaceuticals PLC | 430,000 | | 5,602,311 |
Eisai Co. Ltd. | 131,700 | | 6,566,345 |
Endo Health Solutions, Inc. (a) | 187,800 | | 14,950,758 |
Jazz Pharmaceuticals PLC (a) | 150,626 | | 25,507,007 |
Jiangsu Hengrui Medicine Co. Ltd. | 999,943 | | 6,467,636 |
Mallinckrodt PLC (a) | 626,700 | | 66,423,933 |
Meda AB (A Shares) | 318,030 | | 4,485,521 |
Merck & Co., Inc. | 327,233 | | 19,725,605 |
Mylan, Inc. (a) | 572,057 | | 30,404,830 |
Omeros Corp. (a) | 298,200 | | 6,631,968 |
Pacira Pharmaceuticals, Inc. (a) | 101,400 | | 10,885,290 |
Perrigo Co. PLC | 299,256 | | 45,409,105 |
Prestige Brands Holdings, Inc. (a) | 454,700 | | 15,578,022 |
Relypsa, Inc. (a)(d) | 126,103 | | 4,429,998 |
Sanofi SA sponsored ADR | 469,400 | | 21,634,646 |
Shire PLC sponsored ADR | 299,200 | | 65,602,592 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,022,383 | | 58,132,697 |
TherapeuticsMD, Inc. (a) | 1,017,320 | | 4,130,319 |
UCB SA | 84,200 | | 6,562,220 |
Valeant Pharmaceuticals International (Canada) (a) | 81,100 | | 12,966,937 |
ZS Pharma, Inc. | 190,000 | | 8,536,700 |
| | 634,424,420 |
|
| Shares | | Value |
PROFESSIONAL SERVICES - 0.5% |
Human Resource & Employment Services - 0.5% |
WageWorks, Inc. (a) | 186,495 | | $ 10,264,685 |
TOTAL COMMON STOCKS (Cost $1,684,895,774) |
2,118,545,756
|
Convertible Preferred Stocks - 0.1% |
| | | |
HEALTH CARE PROVIDERS & SERVICES - 0.1% |
Health Care Services - 0.1% |
1Life Healthcare, Inc. Series G (f)
(Cost $2,121,583) | 322,145 | |
2,432,195
|
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 75,550,167 | | 75,550,167 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 16,770,523 | | 16,770,523 |
TOTAL MONEY MARKET FUNDS (Cost $92,320,690) |
92,320,690
|
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $1,779,338,047) | | 2,213,298,641 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | | (50,995,582) |
NET ASSETS - 100% | $ 2,162,303,059 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 $500,929 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 $2,432,195 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
1Life Healthcare, Inc. Series G | 4/10/14 | $ 2,121,583 |
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 | $ 25,681 |
Fidelity Securities Lending Cash Central Fund | 88,292 |
Total | $ 113,973 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 2,118,545,756 | $ 2,103,665,552 | $ 14,880,204 | $ - |
Convertible Preferred Stocks | 2,432,195 | - | - | 2,432,195 |
Money Market Funds | 92,320,690 | 92,320,690 | - | - |
Total Investments in Securities: | $ 2,213,298,641 | $ 2,195,986,242 | $ 14,880,204 | $ 2,432,195 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 68.3% |
Ireland | 20.5% |
Bailiwick of Jersey | 3.0% |
Israel | 2.8% |
France | 1.1% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 3.2% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $16,137,487) - See accompanying schedule: Unaffiliated issuers (cost $1,687,017,357) | $ 2,120,977,951 | |
Fidelity Central Funds (cost $92,320,690) | 92,320,690 | |
Total Investments (cost $1,779,338,047) | | $ 2,213,298,641 |
Receivable for investments sold | | 27,579,646 |
Receivable for fund shares sold | | 13,958,431 |
Dividends receivable | | 310,778 |
Distributions receivable from Fidelity Central Funds | | 26,614 |
Prepaid expenses | | 6,259 |
Other receivables | | 20,153 |
Total assets | | 2,255,200,522 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,994 | |
Payable for investments purchased | 71,640,220 | |
Payable for fund shares redeemed | 2,433,265 | |
Accrued management fee | 958,325 | |
Distribution and service plan fees payable | 651,941 | |
Other affiliated payables | 370,195 | |
Other payables and accrued expenses | 71,000 | |
Collateral on securities loaned, at value | 16,770,523 | |
Total liabilities | | 92,897,463 |
| | |
Net Assets | | $ 2,162,303,059 |
Net Assets consist of: | | |
Paid in capital | | $ 1,649,201,731 |
Accumulated net investment loss | | (10,196,183) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 89,340,130 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 433,957,381 |
Net Assets | | $ 2,162,303,059 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($905,382,916 ÷ 22,991,586 shares) | | $ 39.38 |
| | |
Maximum offering price per share (100/94.25 of $39.38) | | $ 41.78 |
Class T:
Net Asset Value and redemption price per share ($273,504,624 ÷ 7,340,586 shares) | | $ 37.26 |
| | |
Maximum offering price per share (100/96.50 of $37.26) | | $ 38.61 |
Class B:
Net Asset Value and offering price per share ($13,339,811 ÷ 403,527 shares)A | | $ 33.06 |
| | |
Class C:
Net Asset Value and offering price per share ($431,922,722 ÷ 13,180,008 shares)A | | $ 32.77 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($538,152,986 ÷ 12,737,535 shares) | | $ 42.25 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,449,883 |
Income from Fidelity Central Funds | | 113,973 |
Total income | | 4,563,856 |
| | |
Expenses | | |
Management fee | $ 4,809,765 | |
Transfer agent fees | 1,739,718 | |
Distribution and service plan fees | 3,276,255 | |
Accounting and security lending fees | 270,607 | |
Custodian fees and expenses | 30,336 | |
Independent trustees' compensation | 14,836 | |
Registration fees | 141,947 | |
Audit | 25,627 | |
Legal | 8,106 | |
Miscellaneous | 7,158 | |
Total expenses before reductions | 10,324,355 | |
Expense reductions | (28,346) | 10,296,009 |
Net investment income (loss) | | (5,732,153) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 159,269,917 | |
Foreign currency transactions | (11,314) | |
Total net realized gain (loss) | | 159,258,603 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 109,639,294 | |
Assets and liabilities in foreign currencies | (3,121) | |
Total change in net unrealized appreciation (depreciation) | | 109,636,173 |
Net gain (loss) | | 268,894,776 |
Net increase (decrease) in net assets resulting from operations | | $ 263,162,623 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (5,732,153) | $ (7,157,995) |
Net realized gain (loss) | 159,258,603 | 181,443,195 |
Change in net unrealized appreciation (depreciation) | 109,636,173 | 110,916,113 |
Net increase (decrease) in net assets resulting from operations | 263,162,623 | 285,201,313 |
Distributions to shareholders from net realized gain | (188,666,047) | (91,415,211) |
Share transactions - net increase (decrease) | 692,888,117 | 462,114,251 |
Redemption fees | 32,821 | 59,322 |
Total increase (decrease) in net assets | 767,417,514 | 655,959,675 |
| | |
Net Assets | | |
Beginning of period | 1,394,885,545 | 738,925,870 |
End of period (including accumulated net investment loss of $10,196,183 and accumulated net investment loss of $4,464,030, respectively) | $ 2,162,303,059 | $ 1,394,885,545 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.72 | $ 31.29 | $ 24.35 | $ 25.60 | $ 19.01 | $ 17.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.18) | - I | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 6.15 | 10.13 | 9.53 | 1.43 | 6.69 | 1.93 |
Total from investment operations | 6.05 | 9.95 | 9.53 | 1.39 | 6.59 | 1.86 |
Distributions from net realized gain | (4.39) | (3.52) | (2.59) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 39.38 | $ 37.72 | $ 31.29 | $ 24.35 | $ 25.60 | $ 19.01 |
Total ReturnB, C, D | 16.88% | 34.79% | 42.77% | 7.58% | 34.67% | 10.85% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.06%A | 1.08% | 1.14% | 1.19% | 1.19% | 1.22% |
Expenses net of fee waivers, if any | 1.06%A | 1.08% | 1.14% | 1.19% | 1.19% | 1.22% |
Expenses net of all reductions | 1.05%A | 1.07% | 1.13% | 1.18% | 1.18% | 1.21% |
Net investment income (loss) | (.53)%A | (.54)% | (.01)% | (.18)% | (.43)% | (.36)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 905,383 | $ 613,995 | $ 365,416 | $ 233,188 | $ 224,704 | $ 179,586 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.87 | $ 29.91 | $ 23.42 | $ 24.80 | $ 18.46 | $ 16.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.26) | (.07) | (.09) | (.16) | (.12) |
Net realized and unrealized gain (loss) | 5.83 | 9.67 | 9.13 | 1.35 | 6.50 | 1.89 |
Total from investment operations | 5.69 | 9.41 | 9.06 | 1.26 | 6.34 | 1.77 |
Distributions from net realized gain | (4.30) | (3.45) | (2.57) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 37.26 | $ 35.87 | $ 29.91 | $ 23.42 | $ 24.80 | $ 18.46 |
Total ReturnB, C, D | 16.71% | 34.49% | 42.39% | 7.27% | 34.34% | 10.61% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.32%A | 1.34% | 1.39% | 1.43% | 1.44% | 1.47% |
Expenses net of fee waivers, if any | 1.32%A | 1.34% | 1.39% | 1.43% | 1.44% | 1.47% |
Expenses net of all reductions | 1.32%A | 1.34% | 1.38% | 1.43% | 1.43% | 1.46% |
Net investment income (loss) | (.79)%A | (.80)% | (.26)% | (.42)% | (.69)% | (.62)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 273,505 | $ 216,973 | $ 158,611 | $ 117,969 | $ 123,606 | $ 100,883 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.17 | $ 27.16 | $ 21.55 | $ 23.15 | $ 17.32 | $ 15.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.22) | (.40) | (.18) | (.19) | (.25) | (.20) |
Net realized and unrealized gain (loss) | 5.21 | 8.71 | 8.31 | 1.23 | 6.08 | 1.78 |
Total from investment operations | 4.99 | 8.31 | 8.13 | 1.04 | 5.83 | 1.58 |
Distributions from net realized gain | (4.10) | (3.30) | (2.52) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.06 | $ 32.17 | $ 27.16 | $ 21.55 | $ 23.15 | $ 17.32 |
Total ReturnB, C, D | 16.42% | 33.72% | 41.61% | 6.78% | 33.66% | 10.04% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.87%A | 1.91% | 1.93% | 1.94% | 1.94% | 1.97% |
Expenses net of fee waivers, if any | 1.87%A | 1.91% | 1.93% | 1.94% | 1.94% | 1.97% |
Expenses net of all reductions | 1.86%A | 1.90% | 1.91% | 1.93% | 1.93% | 1.96% |
Net investment income (loss) | (1.34)%A | (1.37)% | (.80)% | (.93)% | (1.19)% | (1.11)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,340 | $ 13,405 | $ 14,517 | $ 15,403 | $ 20,365 | $ 23,543 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.03 | $ 27.11 | $ 21.51 | $ 23.11 | $ 17.29 | $ 15.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.21) | (.38) | (.17) | (.18) | (.24) | (.19) |
Net realized and unrealized gain (loss) | 5.17 | 8.68 | 8.31 | 1.22 | 6.06 | 1.78 |
Total from investment operations | 4.96 | 8.30 | 8.14 | 1.04 | 5.82 | 1.59 |
Distributions from net realized gain | (4.22) | (3.38) | (2.54) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 32.77 | $ 32.03 | $ 27.11 | $ 21.51 | $ 23.11 | $ 17.29 |
Total ReturnB, C, D | 16.41% | 33.83% | 41.74% | 6.80% | 33.66% | 10.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.81%A | 1.83% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of fee waivers, if any | 1.81%A | 1.83% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of all reductions | 1.81%A | 1.82% | 1.85% | 1.89% | 1.89% | 1.93% |
Net investment income (loss) | (1.29)%A | (1.29)% | (.74)% | (.89)% | (1.15)% | (1.08)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 431,923 | $ 257,859 | $ 125,965 | $ 78,763 | $ 77,749 | $ 60,861 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 40.22 | $ 33.12 | $ 25.60 | $ 26.69 | $ 19.77 | $ 17.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.06) | (.10) | .07 | .03 | (.03) | (.02) |
Net realized and unrealized gain (loss) | 6.57 | 10.80 | 10.07 | 1.52 | 6.95 | 2.01 |
Total from investment operations | 6.51 | 10.70 | 10.14 | 1.55 | 6.92 | 1.99 |
Distributions from net realized gain | (4.48) | (3.60) | (2.62) | (2.64) | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 42.25 | $ 40.22 | $ 33.12 | $ 25.60 | $ 26.69 | $ 19.77 |
Total ReturnB, C | 17.01% | 35.21% | 43.12% | 7.91% | 35.00% | 11.19% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .80%A | .81% | .87% | .89% | .89% | .96% |
Expenses net of fee waivers, if any | .80%A | .81% | .87% | .89% | .89% | .96% |
Expenses net of all reductions | .79%A | .81% | .85% | .88% | .88% | .95% |
Net investment income (loss) | (.27)%A | (.27)% | .26% | .12% | (.13)% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 538,153 | $ 292,654 | $ 74,417 | $ 40,737 | $ 45,243 | $ 14,172 |
Portfolio turnover rateF | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Health Care Fund (the Fund) is a fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses 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 | $ 464,003,715 |
Gross unrealized depreciation | (32,248,388) |
Net unrealized appreciation (depreciation) on securities | $ 431,755,327 |
| |
Tax cost | $ 1,781,543,314 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,315,436,051 and $831,453,923, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 931,787 | $ 7,837 |
Class T | .25% | .25% | 611,490 | - |
Class B | .75% | .25% | 67,261 | 50,446 |
Class C | .75% | .25% | 1,665,717 | 608,564 |
| | | $ 3,276,255 | $ 666,847 |
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 shares, 1.00% for Class C shares, 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 | $ 498,580 |
Class T | 49,783 |
Class B* | 719 |
Class C* | 29,444 |
| $ 578,526 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 737,419 | .20 |
Class T | 259,101 | .21 |
Class B | 17,452 | .26 |
Class C | 334,902 | .20 |
Institutional Class | 390,844 | .19 |
| $ 1,739,718 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $21,640 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,112 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $88,292.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $28,333 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 $13.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
Class A | $ 79,205,725 | $ 43,930,276 |
Class T | 27,287,168 | 18,842,643 |
Class B | 1,660,970 | 1,694,148 |
Class C | 39,450,704 | 17,484,352 |
Institutional Class | 41,061,480 | 9,463,792 |
Total | $ 188,666,047 | $ 91,415,211 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 6,936,609 | 7,083,573 | $ 266,444,360 | $ 246,500,176 |
Reinvestment of distributions | 1,907,449 | 1,286,052 | 71,990,364 | 39,516,716 |
Shares redeemed | (2,128,436) | (3,773,574) | (80,576,239) | (131,027,775) |
Net increase (decrease) | 6,715,622 | 4,596,051 | $ 257,858,485 | $ 154,989,117 |
Class T | | | | |
Shares sold | 1,003,136 | 1,019,177 | $ 36,649,544 | $ 33,380,934 |
Reinvestment of distributions | 737,477 | 618,886 | 26,318,924 | 18,107,896 |
Shares redeemed | (449,085) | (891,508) | (16,334,945) | (29,012,294) |
Net increase (decrease) | 1,291,528 | 746,555 | $ 46,633,523 | $ 22,476,536 |
Class B | | | | |
Shares sold | 24,635 | 52,714 | $ 790,758 | $ 1,492,321 |
Reinvestment of distributions | 47,751 | 57,285 | 1,514,650 | 1,511,205 |
Shares redeemed | (85,492) | (227,802) | (2,764,012) | (6,589,471) |
Net increase (decrease) | (13,106) | (117,803) | $ (458,604) | $ (3,585,945) |
Class C | | | | |
Shares sold | 4,661,873 | 3,765,135 | $ 150,473,590 | $ 111,711,536 |
Reinvestment of distributions | 1,088,198 | 567,385 | 34,382,822 | 14,940,641 |
Shares redeemed | (621,249) | (928,018) | (20,040,369) | (27,242,442) |
Net increase (decrease) | 5,128,822 | 3,404,502 | $ 164,816,043 | $ 99,409,735 |
Institutional Class | | | | |
Shares sold | 6,351,359 | 6,450,084 | $ 260,365,044 | $ 241,929,933 |
Reinvestment of distributions | 926,189 | 259,255 | 37,490,066 | 8,481,841 |
Shares redeemed | (1,817,114) | (1,678,853) | (73,816,440) | (61,586,966) |
Net increase (decrease) | 5,460,434 | 5,030,486 | $ 224,038,670 | $ 188,824,808 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity Advisor Industrials Fund
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.07% | | | |
Actual | | $ 1,000.00 | $ 1,051.90 | $ 5.53 |
HypotheticalA | | $ 1,000.00 | $ 1,019.81 | $ 5.45 |
Class T | 1.33% | | | |
Actual | | $ 1,000.00 | $ 1,050.60 | $ 6.87 |
HypotheticalA | | $ 1,000.00 | $ 1,018.50 | $ 6.77 |
Class B | 1.87% | | | |
Actual | | $ 1,000.00 | $ 1,047.80 | $ 9.65 |
HypotheticalA | | $ 1,000.00 | $ 1,015.78 | $ 9.50 |
Class C | 1.83% | | | |
Actual | | $ 1,000.00 | $ 1,048.00 | $ 9.45 |
HypotheticalA | | $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Institutional Class | .81% | | | |
Actual | | $ 1,000.00 | $ 1,053.40 | $ 4.19 |
HypotheticalA | | $ 1,000.00 | $ 1,021.12 | $ 4.13 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Technologies Corp. | 8.1 | 6.2 |
Danaher Corp. | 6.8 | 5.8 |
The Boeing Co. | 5.5 | 5.0 |
Union Pacific Corp. | 5.4 | 4.9 |
FedEx Corp. | 5.3 | 4.2 |
Honeywell International, Inc. | 4.8 | 4.0 |
J.B. Hunt Transport Services, Inc. | 3.2 | 2.3 |
Delta Air Lines, Inc. | 2.8 | 2.2 |
American Airlines Group, Inc. | 2.5 | 1.7 |
A.O. Smith Corp. | 2.3 | 1.7 |
| 46.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Aerospace & Defense | 29.3% | |
| Machinery | 12.7% | |
| Road & Rail | 11.6% | |
| Professional Services | 9.5% | |
| Industrial Conglomerates | 8.7% | |
| All Others* | 28.2% | |
As of July 31, 2014 |
| Aerospace & Defense | 22.3% | |
| Machinery | 17.2% | |
| Electrical Equipment | 9.7% | |
| Industrial Conglomerates | 9.6% | |
| Professional Services | 9.2% | |
| All Others* | 32.0% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
AEROSPACE & DEFENSE - 29.3% |
Aerospace & Defense - 29.3% |
General Dynamics Corp. | 145,662 | | $ 19,403,635 |
Honeywell International, Inc. | 408,433 | | 39,928,410 |
L-3 Communications Holdings, Inc. | 81,600 | | 10,046,592 |
Northrop Grumman Corp. | 112,200 | | 17,609,790 |
Orbital Sciences Corp. (a) | 107,600 | | 3,022,484 |
Raytheon Co. | 166,900 | | 16,698,345 |
Teledyne Technologies, Inc. (a) | 98,065 | | 9,320,098 |
Textron, Inc. | 355,678 | | 15,137,656 |
The Boeing Co. | 313,329 | | 45,548,637 |
United Technologies Corp. | 591,651 | | 67,909,702 |
| | 244,625,349 |
AIR FREIGHT & LOGISTICS - 5.3% |
Air Freight & Logistics - 5.3% |
FedEx Corp. | 260,188 | | 44,000,393 |
AIRLINES - 6.6% |
Airlines - 6.6% |
American Airlines Group, Inc. | 421,932 | | 20,708,423 |
Delta Air Lines, Inc. | 491,200 | | 23,238,672 |
United Continental Holdings, Inc. (a) | 159,900 | | 11,092,263 |
| | 55,039,358 |
BUILDING PRODUCTS - 4.1% |
Building Products - 4.1% |
A.O. Smith Corp. | 329,142 | | 19,554,326 |
Lennox International, Inc. | 151,904 | | 14,933,682 |
| | 34,488,008 |
COMMERCIAL SERVICES & SUPPLIES - 4.4% |
Diversified Support Services - 1.5% |
KAR Auction Services, Inc. | 360,400 | | 12,293,244 |
Environmental & Facility Services - 0.9% |
Waste Connections, Inc. | 179,600 | | 7,762,312 |
Office Services & Supplies - 1.0% |
West Corp. | 259,632 | | 8,489,966 |
Security & Alarm Services - 1.0% |
Tyco International Ltd. | 202,600 | | 8,268,106 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 36,813,628 |
CONSTRUCTION & ENGINEERING - 2.4% |
Construction & Engineering - 2.4% |
AECOM Technology Corp. (a) | 208,521 | | 5,300,604 |
EMCOR Group, Inc. | 218,741 | | 8,828,387 |
Jacobs Engineering Group, Inc. (a) | 149,500 | | 5,695,950 |
| | 19,824,941 |
CONSTRUCTION MATERIALS - 0.4% |
Construction Materials - 0.4% |
Caesarstone Sdot-Yam Ltd. | 48,492 | | 3,011,353 |
|
| Shares | | Value |
DIVERSIFIED CONSUMER SERVICES - 0.5% |
Specialized Consumer Services - 0.5% |
ServiceMaster Global Holdings, Inc. | 154,300 | | $ 4,360,518 |
ELECTRICAL EQUIPMENT - 2.5% |
Electrical Components & Equipment - 1.4% |
EnerSys | 89,023 | | 5,197,163 |
Hubbell, Inc. Class B | 62,326 | | 6,609,049 |
| | 11,806,212 |
Heavy Electrical Equipment - 1.1% |
Babcock & Wilcox Co. | 349,200 | | 9,508,716 |
TOTAL ELECTRICAL EQUIPMENT | | 21,314,928 |
ENERGY EQUIPMENT & SERVICES - 0.4% |
Oil & Gas Equipment & Services - 0.4% |
Aspen Aerogels, Inc. | 388,696 | | 2,977,411 |
INDUSTRIAL CONGLOMERATES - 8.7% |
Industrial Conglomerates - 8.7% |
Danaher Corp. | 692,632 | | 57,059,024 |
General Electric Co. | 655,048 | | 15,649,097 |
| | 72,708,121 |
MACHINERY - 12.7% |
Agricultural & Farm Machinery - 2.2% |
Deere & Co. | 215,050 | | 18,320,110 |
Construction Machinery & Heavy Trucks - 3.8% |
Caterpillar, Inc. | 219,753 | | 17,573,647 |
Manitowoc Co., Inc. | 756,856 | | 14,153,207 |
| | 31,726,854 |
Industrial Machinery - 6.7% |
Global Brass & Copper Holdings, Inc. | 106,540 | | 1,398,870 |
Hyster-Yale Materials Handling Class A | 15,540 | | 973,581 |
IDEX Corp. | 145,429 | | 10,521,788 |
Ingersoll-Rand PLC | 229,800 | | 15,258,720 |
Pall Corp. | 171,416 | | 16,586,212 |
Valmont Industries, Inc. (d) | 97,909 | | 11,760,829 |
| | 56,500,000 |
TOTAL MACHINERY | | 106,546,964 |
PROFESSIONAL SERVICES - 9.5% |
Human Resource & Employment Services - 2.2% |
Towers Watson & Co. | 155,984 | | 18,484,104 |
Research & Consulting Services - 7.3% |
Corporate Executive Board Co. | 130,400 | | 8,935,008 |
Dun & Bradstreet Corp. | 133,296 | | 15,343,703 |
Huron Consulting Group, Inc. (a) | 176,520 | | 13,277,834 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Research & Consulting Services - continued |
Nielsen Holdings B.V. | 263,312 | | $ 11,469,871 |
Verisk Analytics, Inc. (a) | 189,044 | | 12,164,981 |
| | 61,191,397 |
TOTAL PROFESSIONAL SERVICES | | 79,675,501 |
ROAD & RAIL - 11.6% |
Railroads - 7.0% |
CSX Corp. | 412,400 | | 13,732,920 |
Union Pacific Corp. | 383,928 | | 45,000,201 |
| | 58,733,121 |
Trucking - 4.6% |
Hertz Global Holdings, Inc. (a) | 154,700 | | 3,174,444 |
J.B. Hunt Transport Services, Inc. | 336,984 | | 26,827,296 |
Swift Transporation Co. (a) | 335,000 | | 8,234,300 |
| | 38,236,040 |
TOTAL ROAD & RAIL | | 96,969,161 |
TRADING COMPANIES & DISTRIBUTORS - 1.3% |
Trading Companies & Distributors - 1.3% |
HD Supply Holdings, Inc. (a) | 380,300 | | 10,964,049 |
TOTAL COMMON STOCKS (Cost $680,917,498) |
833,319,683
|
Money Market Funds - 0.7% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 308 | | $ 308 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 5,940,900 | | 5,940,900 |
TOTAL MONEY MARKET FUNDS (Cost $5,941,208) |
5,941,208
|
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $686,858,706) | | 839,260,891 |
NET OTHER ASSETS (LIABILITIES) - (0.4)% | | (3,258,936) |
NET ASSETS - 100% | $ 836,001,955 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,827 |
Fidelity Securities Lending Cash Central Fund | 103,402 |
Total | $ 108,229 |
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 Investment 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 Industrials Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $5,801,796) - See accompanying schedule: Unaffiliated issuers (cost $680,917,498) | $ 833,319,683 | |
Fidelity Central Funds (cost $5,941,208) | 5,941,208 | |
Total Investments (cost $686,858,706) | | $ 839,260,891 |
Cash | | 26,234 |
Receivable for investments sold | | 11,762,822 |
Receivable for fund shares sold | | 1,267,195 |
Dividends receivable | | 565,814 |
Distributions receivable from Fidelity Central Funds | | 6,786 |
Prepaid expenses | | 4,153 |
Other receivables | | 6,093 |
Total assets | | 852,899,988 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,880,873 | |
Payable for fund shares redeemed | 2,563,289 | |
Accrued management fee | 393,508 | |
Distribution and service plan fees payable | 248,889 | |
Notes payable to affiliates | 1,650,000 | |
Other affiliated payables | 168,791 | |
Other payables and accrued expenses | 51,783 | |
Collateral on securities loaned, at value | 5,940,900 | |
Total liabilities | | 16,898,033 |
| | |
Net Assets | | $ 836,001,955 |
Net Assets consist of: | | |
Paid in capital | | $ 677,018,695 |
Distributions in excess of net investment income | | (612,093) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 7,194,295 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 152,401,058 |
Net Assets | | $ 836,001,955 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($357,511,756 ÷ 9,919,433 shares) | | $ 36.04 |
| | |
Maximum offering price per share (100/94.25 of $36.04) | | $ 38.24 |
Class T:
Net Asset Value and redemption price per share ($90,250,244 ÷ 2,549,744 shares) | | $ 35.40 |
| | |
Maximum offering price per share (100/96.50 of $35.40) | | $ 36.68 |
Class B:
Net Asset Value and offering price per share ($9,928,948 ÷ 301,538 shares)A | | $ 32.93 |
| | |
Class C:
Net Asset Value and offering price per share ($147,968,163 ÷ 4,455,435 shares)A | | $ 33.21 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($230,342,844 ÷ 6,132,294 shares) | | $ 37.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,073,079 |
Income from Fidelity Central Funds | | 108,229 |
Total income | | 6,181,308 |
| | |
Expenses | | |
Management fee | $ 2,384,429 | |
Transfer agent fees | 872,996 | |
Distribution and service plan fees | 1,501,433 | |
Accounting and security lending fees | 150,384 | |
Custodian fees and expenses | 8,563 | |
Independent trustees' compensation | 8,056 | |
Registration fees | 94,774 | |
Audit | 22,434 | |
Legal | 4,860 | |
Interest | 77 | |
Miscellaneous | 4,721 | |
Total expenses before reductions | 5,052,727 | |
Expense reductions | (7,315) | 5,045,412 |
Net investment income (loss) | | 1,135,896 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 20,918,015 | |
Foreign currency transactions | (513) | |
Total net realized gain (loss) | | 20,917,502 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 20,711,594 | |
Assets and liabilities in foreign currencies | (1,615) | |
Total change in net unrealized appreciation (depreciation) | | 20,709,979 |
Net gain (loss) | | 41,627,481 |
Net increase (decrease) in net assets resulting from operations | | $ 42,763,377 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,135,896 | $ 1,948,813 |
Net realized gain (loss) | 20,917,502 | 62,719,747 |
Change in net unrealized appreciation (depreciation) | 20,709,979 | 7,086,556 |
Net increase (decrease) in net assets resulting from operations | 42,763,377 | 71,755,116 |
Distributions to shareholders from net investment income | (2,601,876) | (2,130,491) |
Distributions to shareholders from net realized gain | (62,327,925) | (26,777,623) |
Total distributions | (64,929,801) | (28,908,114) |
Share transactions - net increase (decrease) | (14,156,097) | 286,586,081 |
Redemption fees | 9,127 | 23,406 |
Total increase (decrease) in net assets | (36,313,394) | 329,456,489 |
| | |
Net Assets | | |
Beginning of period | 872,315,349 | 542,858,860 |
End of period (including distributions in excess of net investment income of $612,093 and undistributed net investment income of $853,887, respectively) | $ 836,001,955 | $ 872,315,349 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.92 | $ 34.50 | $ 26.18 | $ 25.73 | $ 21.54 | $ 16.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .13 | .23 | .20 | .09 | .06 |
Net realized and unrealized gain (loss) | 1.84 | 4.01 | 8.33 | .61 | 4.13 | 4.68 |
Total from investment operations | 1.91 | 4.14 | 8.56 | .81 | 4.22 | 4.74 |
Distributions from net investment income | (.11) | (.15) | (.24) | (.11) | (.03) | (.07) |
Distributions from net realized gain | (2.68) | (1.58) | - | (.25) | - | - |
Total distributions | (2.79) | (1.72) J | (.24) | (.36) | (.03) | (.07) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 36.04 | $ 36.92 | $ 34.50 | $ 26.18 | $ 25.73 | $ 21.54 |
Total ReturnB, C, D | 5.19% | 12.52% | 32.92% | 3.42% | 19.59% | 28.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.18% |
Expenses net of fee waivers, if any | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.18% |
Expenses net of all reductions | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.17% |
Net investment income (loss) | .36%A | .37% | .77% | .80% | .36% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 357,512 | $ 378,826 | $ 271,512 | $ 192,038 | $ 228,106 | $ 165,029 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 $1.72 per share is comprised of distributions from net investment income of $.146 and distributions from net realized gain of $1.577 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.29 | $ 33.93 | $ 25.75 | $ 25.33 | $ 21.24 | $ 16.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .04 | .15 | .13 | .03 | .01 |
Net realized and unrealized gain (loss) | 1.81 | 3.95 | 8.20 | .61 | 4.07 | 4.61 |
Total from investment operations | 1.83 | 3.99 | 8.35 | .74 | 4.10 | 4.62 |
Distributions from net investment income | (.05) | (.06) | (.17) | (.07) | (.01) | (.02) |
Distributions from net realized gain | (2.67) | (1.58) | - | (.25) | - | - |
Total distributions | (2.72) | (1.63) J | (.17) | (.32) | (.01) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 35.40 | $ 36.29 | $ 33.93 | $ 25.75 | $ 25.33 | $ 21.24 |
Total ReturnB, C, D | 5.06% | 12.27% | 32.60% | 3.15% | 19.28% | 27.80% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.33%A | 1.33% | 1.37% | 1.40% | 1.39% | 1.44% |
Expenses net of fee waivers, if any | 1.33%A | 1.33% | 1.37% | 1.40% | 1.39% | 1.44% |
Expenses net of all reductions | 1.33%A | 1.33% | 1.36% | 1.39% | 1.38% | 1.43% |
Net investment income (loss) | .09%A | .12% | .52% | .54% | .10% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 90,250 | $ 90,509 | $ 79,172 | $ 63,954 | $ 71,542 | $ 58,202 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 $1.63 per share is comprised of distributions from net investment income of $.057 and distributions from net realized gain of $1.577 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.02 | $ 31.97 | $ 24.29 | $ 23.99 | $ 20.22 | $ 15.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.14) | (.01) | - J | (.11) | (.09) |
Net realized and unrealized gain (loss) | 1.69 | 3.71 | 7.74 | .57 | 3.88 | 4.41 |
Total from investment operations | 1.62 | 3.57 | 7.73 | .57 | 3.77 | 4.32 |
Distributions from net investment income | (.03) | - | (.05) | (.02) | - | - |
Distributions from net realized gain | (2.68) | (1.52) | - | (.25) | - | - |
Total distributions | (2.71) | (1.52) | (.05) | (.27) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 32.93 | $ 34.02 | $ 31.97 | $ 24.29 | $ 23.99 | $ 20.22 |
Total ReturnB, C, D | 4.78% | 11.64% | 31.87% | 2.59% | 18.64% | 27.17% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.87%A | 1.88% | 1.92% | 1.94% | 1.93% | 1.97% |
Expenses net of fee waivers, if any | 1.87%A | 1.88% | 1.92% | 1.94% | 1.93% | 1.97% |
Expenses net of all reductions | 1.86%A | 1.87% | 1.91% | 1.94% | 1.93% | 1.97% |
Net investment income (loss) | (.44)%A | (.42)% | (.04)% | -% H | (.44)% | (.48)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,929 | $ 12,459 | $ 17,502 | $ 20,058 | $ 28,600 | $ 29,048 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 Amount represents less than .01%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.13 | $ 32.08 | $ 24.38 | $ 24.07 | $ 20.28 | $ 15.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.13) | .01 | .01 | (.09) | (.08) |
Net realized and unrealized gain (loss) | 1.70 | 3.73 | 7.75 | .58 | 3.88 | 4.42 |
Total from investment operations | 1.63 | 3.60 | 7.76 | .59 | 3.79 | 4.34 |
Distributions from net investment income | - | - | (.06) | (.03) | - | - |
Distributions from net realized gain | (2.55) | (1.55) | - | (.25) | - | - |
Total distributions | (2.55) | (1.55) | (.06) | (.28) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.21 | $ 34.13 | $ 32.08 | $ 24.38 | $ 24.07 | $ 20.28 |
Total ReturnB, C, D | 4.80% | 11.71% | 31.90% | 2.67% | 18.69% | 27.23% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.83%A | 1.83% | 1.87% | 1.89% | 1.89% | 1.93% |
Expenses net of fee waivers, if any | 1.83%A | 1.83% | 1.87% | 1.89% | 1.89% | 1.93% |
Expenses net of all reductions | 1.82%A | 1.83% | 1.86% | 1.88% | 1.88% | 1.92% |
Net investment income (loss) | (.40)%A | (.38)% | .02% | .05% | (.40)% | (.43)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 147,968 | $ 147,749 | $ 89,893 | $ 66,289 | $ 72,673 | $ 51,760 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.42 | $ 35.83 | $ 27.18 | $ 26.69 | $ 22.30 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .12 | .25 | .33 | .28 | .17 | .13 |
Net realized and unrealized gain (loss) | 1.92 | 4.16 | 8.64 | .63 | 4.28 | 4.83 |
Total from investment operations | 2.04 | 4.41 | 8.97 | .91 | 4.45 | 4.96 |
Distributions from net investment income | (.22) | (.24) | (.32) | (.17) | (.06) | (.11) |
Distributions from net realized gain | (2.68) | (1.58) | - | (.25) | - | - |
Total distributions | (2.90) | (1.82) | (.32) | (.42) | (.06) | (.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 37.56 | $ 38.42 | $ 35.83 | $ 27.18 | $ 26.69 | $ 22.30 |
Total ReturnB, C | 5.34% | 12.82% | 33.28% | 3.72% | 19.95% | 28.52% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .81%A | .81% | .84% | .85% | .85% | .89% |
Expenses net of fee waivers, if any | .81%A | .81% | .84% | .85% | .85% | .89% |
Expenses net of all reductions | .80%A | .81% | .83% | .85% | .84% | .88% |
Net investment income (loss) | .62%A | .64% | 1.04% | 1.08% | .65% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 230,343 | $ 242,772 | $ 84,780 | $ 42,850 | $ 68,323 | $ 29,578 |
Portfolio turnover rateF | 80% A | 57% | 78% | 82% | 75% | 110% |
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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, original issue discount 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 | $ 164,616,798 |
Gross unrealized depreciation | (14,042,467) |
Net unrealized appreciation (depreciation) on securities | $ 150,574,331 |
| |
Tax cost | $ 688,686,560 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $346,490,555 and $419,575,919, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 459,377 | $ 1,687 |
Class T | .25% | .25% | 230,220 | - |
Class B | .75% | .25% | 55,919 | 41,939 |
Class C | .75% | .25% | 755,917 | 217,208 |
| | | $ 1,501,433 | $ 260,834 |
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 shares, 1.00% for Class C shares, 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 | $ 72,905 |
Class T | 7,980 |
Class B* | 2,198 |
Class C* | 23,634 |
| $ 106,717 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 372,401 | .20 |
Class T | 99,011 | .22 |
Class B | 13,843 | .25 |
Class C | 156,549 | .21 |
Institutional Class | 231,192 | .19 |
| $ 872,996 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,871 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. 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 | $ 2,839,667 | .32% | $ 77 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $599 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $103,402.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7,304 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 $8.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 1,073,088 | $ 1,245,229 |
Class T | 117,188 | 134,405 |
Class B | 10,986 | - |
Institutional Class | 1,400,614 | 750,857 |
Total | $ 2,601,876 | $ 2,130,491 |
From net realized gain | | |
Class A | $ 26,712,152 | $ 13,069,252 |
Class T | 6,664,310 | 3,703,526 |
Class B | 905,701 | 784,693 |
Class C | 11,132,693 | 4,700,595 |
Institutional Class | 16,913,069 | 4,519,557 |
Total | $ 62,327,925 | $ 26,777,623 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,188,692 | 4,772,547 | $ 43,339,285 | $ 175,272,457 |
Reinvestment of distributions | 707,344 | 371,629 | 25,707,301 | 12,577,496 |
Shares redeemed | (2,237,141) | (2,753,437) | (81,207,286) | (102,587,048) |
Net increase (decrease) | (341,105) | 2,390,739 | $ (12,160,700) | $ 85,262,905 |
Class T | | | | |
Shares sold | 130,709 | 488,031 | $ 4,670,694 | $ 17,620,607 |
Reinvestment of distributions | 183,489 | 111,368 | 6,551,657 | 3,695,039 |
Shares redeemed | (258,791) | (438,393) | (9,213,989) | (15,778,298) |
Net increase (decrease) | 55,407 | 161,006 | $ 2,008,362 | $ 5,537,348 |
Class B | | | | |
Shares sold | 5,642 | 23,437 | $ 184,865 | $ 779,028 |
Reinvestment of distributions | 23,129 | 20,842 | 769,253 | 646,413 |
Shares redeemed | (93,496) | (225,514) | (3,121,127) | (7,608,429) |
Net increase (decrease) | (64,725) | (181,235) | $ (2,167,009) | $ (6,182,988) |
Class C | | | | |
Shares sold | 622,545 | 2,035,151 | $ 20,894,321 | $ 69,252,170 |
Reinvestment of distributions | 266,313 | 122,955 | 8,933,306 | 3,851,644 |
Shares redeemed | (762,375) | (631,000) | (25,434,538) | (21,673,420) |
Net increase (decrease) | 126,483 | 1,527,106 | $ 4,393,089 | $ 51,430,394 |
Institutional Class | | | | |
Shares sold | 1,967,330 | 5,450,475 | $ 74,673,271 | $ 209,069,151 |
Reinvestment of distributions | 388,187 | 116,471 | 14,699,436 | 4,133,979 |
Shares redeemed | (2,541,535) | (1,614,908) | (95,602,546) | (62,664,708) |
Net increase (decrease) | (186,018) | 3,952,038 | $ (6,229,839) | $ 150,538,422 |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity Advisor Technology Fund
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,027.20 | $ 5.62 |
HypotheticalA | | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class T | 1.36% | | | |
Actual | | $ 1,000.00 | $ 1,026.00 | $ 6.95 |
HypotheticalA | | $ 1,000.00 | $ 1,018.35 | $ 6.92 |
Class B | 1.91% | | | |
Actual | | $ 1,000.00 | $ 1,023.00 | $ 9.74 |
HypotheticalA | | $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Class C | 1.86% | | | |
Actual | | $ 1,000.00 | $ 1,023.30 | $ 9.49 |
HypotheticalA | | $ 1,000.00 | $ 1,015.83 | $ 9.45 |
Institutional Class | .76% | | | |
Actual | | $ 1,000.00 | $ 1,028.90 | $ 3.89 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 14.1 | 13.6 |
Facebook, Inc. Class A | 6.6 | 3.7 |
Google, Inc. Class C | 4.2 | 4.9 |
Google, Inc. Class A | 4.1 | 4.4 |
Yahoo!, Inc. | 3.1 | 2.3 |
Cisco Systems, Inc. | 2.9 | 0.0 |
Adobe Systems, Inc. | 2.5 | 0.4 |
Fidelity National Information Services, Inc. | 2.4 | 2.6 |
LinkedIn Corp. | 2.4 | 0.5 |
QUALCOMM, Inc. | 2.1 | 1.0 |
| 44.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Internet Software & Services | 29.9% | |
| Technology Hardware, Storage & Peripherals | 17.9% | |
| Software | 12.8% | |
| Semiconductors & Semiconductor Equipment | 9.7% | |
| Communications Equipment | 7.2% | |
| All Others* | 22.5% | |
As of July 31, 2014 |
| Internet Software & Services | 27.7% | |
| Software | 17.2% | |
| Technology Hardware, Storage & Peripherals | 17.1% | |
| Semiconductors & Semiconductor Equipment | 9.9% | |
| IT Services | 8.9% | |
| All Others* | 19.2% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
AUTOMOBILES - 0.7% |
Automobile Manufacturers - 0.7% |
Tesla Motors, Inc. (a)(d) | 52,209 | | $ 10,629,752 |
CHEMICALS - 0.1% |
Industrial Gases - 0.1% |
Sodiff Advanced Materials Co. Ltd. | 14,901 | | 868,411 |
COMMUNICATIONS EQUIPMENT - 7.2% |
Communications Equipment - 7.2% |
BYD Electronic International Co. Ltd. | 1,615,000 | | 1,689,175 |
Ciena Corp. (a) | 186,400 | | 3,452,128 |
Cisco Systems, Inc. | 1,571,800 | | 41,440,507 |
CommScope Holding Co., Inc. (a) | 283,500 | | 7,967,768 |
Finisar Corp. (a) | 150,200 | | 2,724,628 |
Ixia (a) | 320,525 | | 3,250,124 |
Juniper Networks, Inc. | 223,966 | | 5,090,747 |
Palo Alto Networks, Inc. (a) | 100 | | 12,639 |
QUALCOMM, Inc. | 489,900 | | 30,599,154 |
Radware Ltd. (a) | 89,222 | | 1,716,631 |
Sandvine Corp. (U.K.) (a) | 1,200 | | 3,060 |
Spirent Communications PLC | 3,945,488 | | 5,303,854 |
| | 103,250,415 |
CONSTRUCTION MATERIALS - 0.0% |
Construction Materials - 0.0% |
Universal Cement Corp. | 371,280 | | 314,971 |
DIVERSIFIED CONSUMER SERVICES - 0.0% |
Specialized Consumer Services - 0.0% |
LifeLock, Inc. (a) | 867 | | 12,875 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2% |
Alternative Carriers - 0.2% |
8x8, Inc. (a) | 420,300 | | 3,240,513 |
ELECTRICAL EQUIPMENT - 0.6% |
Electrical Components & Equipment - 0.4% |
Lumenpulse, Inc. (a) | 21,700 | | 272,211 |
OSRAM Licht AG | 126,518 | | 5,844,423 |
| | 6,116,634 |
Heavy Electrical Equipment - 0.2% |
Mitsubishi Electric Corp. | 253,000 | | 2,926,131 |
TOTAL ELECTRICAL EQUIPMENT | | 9,042,765 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.6% |
Electronic Components - 2.8% |
Alps Electric Co. Ltd. | 35,800 | | 745,270 |
Delta Electronics, Inc. | 2,000 | | 12,128 |
Hoya Corp. | 181,200 | | 7,021,970 |
Largan Precision Co. Ltd. | 11,000 | | 908,148 |
Ledlink Optics, Inc. | 753,405 | | 1,204,707 |
OMRON Corp. | 152,700 | | 6,104,742 |
Samsung Electro-Mechanics Co. Ltd. | 121,574 | | 7,340,060 |
Samsung SDI Co. Ltd. | 64,935 | | 7,516,833 |
|
| Shares | | Value |
Sunny Optical Technology Group Co. Ltd. | 1,222,100 | | $ 1,853,768 |
TDK Corp. | 100 | | 6,232 |
Universal Display Corp. (a)(d) | 21,800 | | 694,548 |
Yageo Corp. | 4,022,660 | | 7,152,435 |
Yaskawa Electric Corp. | 1,100 | | 14,062 |
| | 40,574,903 |
Electronic Equipment & Instruments - 0.9% |
Chroma ATE, Inc. | 2,120,683 | | 5,247,627 |
Cognex Corp. (a) | 34,600 | | 1,271,550 |
FEI Co. | 200 | | 16,444 |
PAX Global Technology Ltd. (a) | 30,000 | | 28,090 |
Posiflex Technologies, Inc. | 3,100 | | 14,195 |
TPK Holding Co. Ltd. | 1,090,000 | | 7,010,780 |
| | 13,588,686 |
Electronic Manufacturing Services - 1.5% |
AAC Technology Holdings, Inc. | 77,500 | | 495,280 |
Merry Electronics Co. Ltd. | 686,000 | | 2,253,729 |
TE Connectivity Ltd. | 229 | | 15,203 |
Trimble Navigation Ltd. (a) | 792,996 | | 18,905,025 |
| | 21,669,237 |
Technology Distributors - 0.4% |
Digital China Holdings Ltd. (H Shares) | 5,996,000 | | 5,648,678 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 81,481,504 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% |
Health Care Equipment - 0.4% |
Intai Technology Corp. | 439,000 | | 2,301,446 |
Olympus Corp. (a) | 39,700 | | 1,372,987 |
PW Medtech Group Ltd. (a) | 4,249,000 | | 1,856,271 |
| | 5,530,704 |
HEALTH CARE PROVIDERS & SERVICES - 0.0% |
Managed Health Care - 0.0% |
HealthEquity, Inc. (a) | 600 | | 12,462 |
HEALTH CARE TECHNOLOGY - 1.3% |
Health Care Technology - 1.3% |
athenahealth, Inc. (a)(d) | 56,694 | | 7,920,719 |
M3, Inc. | 197,200 | | 3,966,823 |
Medidata Solutions, Inc. (a) | 145,367 | | 6,249,327 |
| | 18,136,869 |
INTERNET & CATALOG RETAIL - 4.2% |
Internet Retail - 4.2% |
Amazon.com, Inc. (a) | 11,600 | | 4,112,548 |
ASOS PLC (a)(d) | 3,500 | | 144,814 |
Ctrip.com International Ltd. sponsored ADR (a) | 592,862 | | 28,193,552 |
Groupon, Inc. Class A (a) | 1,989,300 | | 14,243,388 |
JD.com, Inc. sponsored ADR | 28,600 | | 710,424 |
Jumei International Holding Ltd. sponsored ADR (d) | 87,500 | | 1,134,875 |
Common Stocks - continued |
| Shares | | Value |
INTERNET & CATALOG RETAIL - CONTINUED |
Internet Retail - continued |
MySale Group PLC | 19,300 | | $ 18,532 |
Qunar Cayman Islands Ltd. sponsored ADR (a) | 290,600 | | 8,526,204 |
Travelport Worldwide Ltd. | 23,000 | | 358,570 |
Vipshop Holdings Ltd. ADR (a)(d) | 61,200 | | 1,370,268 |
zulily, Inc. Class A (a)(d) | 110,300 | | 2,040,550 |
| | 60,853,725 |
INTERNET SOFTWARE & SERVICES - 29.4% |
Internet Software & Services - 29.4% |
21Vianet Group, Inc. ADR (a)(d) | 210,500 | | 3,483,775 |
58.com, Inc. ADR (a) | 213,400 | | 8,209,498 |
Alibaba Group Holding Ltd. sponsored ADR | 22,100 | | 1,968,668 |
Amber Road, Inc. (a) | 900 | | 8,559 |
Baidu.com, Inc. sponsored ADR (a) | 39,500 | | 8,607,840 |
ChannelAdvisor Corp. (a) | 197,417 | | 1,871,513 |
Constant Contact, Inc. (a) | 400 | | 15,128 |
Cornerstone OnDemand, Inc. (a)(d) | 258,632 | | 8,521,924 |
Cvent, Inc. (a) | 51,908 | | 1,296,662 |
Demandware, Inc. (a) | 137,706 | | 7,375,533 |
E2open, Inc. (a) | 145,926 | | 859,504 |
eBay, Inc. (a) | 51,500 | | 2,729,500 |
eGain Communications Corp. (a) | 64,050 | | 321,531 |
Endurance International Group Holdings, Inc. (a) | 517,700 | | 8,702,537 |
Facebook, Inc. Class A (a) | 1,256,111 | | 95,351,386 |
Google, Inc.: | | | |
Class A (a) | 110,287 | | 59,284,777 |
Class C (a) | 113,697 | | 60,773,320 |
HomeAway, Inc. (a) | 2,990 | | 76,215 |
Hortonworks, Inc. (d) | 1,500 | | 31,785 |
Just Dial Ltd. | 4,643 | | 116,323 |
LendingClub Corp. | 700 | | 13,139 |
LinkedIn Corp. (a) | 153,000 | | 34,385,220 |
Marketo, Inc. (a) | 87,813 | | 3,023,402 |
Momo, Inc. ADR (d) | 163,752 | | 1,611,320 |
NAVER Corp. | 20,718 | | 13,321,459 |
New Relic, Inc. | 400 | | 12,424 |
NIC, Inc. | 59,508 | | 977,121 |
Opower, Inc. (d) | 142,995 | | 1,631,573 |
Q2 Holdings, Inc. (a) | 700 | | 12,516 |
Rackspace Hosting, Inc. (a) | 33,439 | | 1,503,417 |
Rocket Internet AG (a) | 19 | | 996 |
Saba Software, Inc. (a) | 433,700 | | 4,180,868 |
SciQuest, Inc. (a) | 185,354 | | 2,635,734 |
Sohu.com, Inc. (a) | 55,200 | | 3,098,928 |
SouFun Holdings Ltd. ADR (d) | 972,800 | | 5,943,808 |
Textura Corp. (a) | 243,757 | | 6,079,300 |
Trulia, Inc. (a) | 2,500 | | 106,700 |
Twitter, Inc. (a) | 316,600 | | 11,881,998 |
|
| Shares | | Value |
Web.com Group, Inc. (a) | 203,586 | | $ 3,076,184 |
Yahoo!, Inc. (a) | 1,005,600 | | 44,236,344 |
Yandex NV (a) | 600 | | 8,934 |
Yelp, Inc. (a)(d) | 292,443 | | 15,344,484 |
YY, Inc. ADR (a) | 21,000 | | 1,511,580 |
| | 424,203,427 |
IT SERVICES - 6.5% |
Data Processing & Outsourced Services - 6.0% |
Euronet Worldwide, Inc. (a) | 25,835 | | 1,172,651 |
Fidelity National Information Services, Inc. | 552,795 | | 34,510,992 |
NETELLER PLC (a) | 789,450 | | 4,096,345 |
Total System Services, Inc. | 338,653 | | 11,978,157 |
Vantiv, Inc. (a) | 291,300 | | 10,017,807 |
Visa, Inc. Class A | 96,700 | | 24,649,797 |
| | 86,425,749 |
IT Consulting & Other Services - 0.5% |
Cognizant Technology Solutions Corp. Class A (a) | 135,094 | | 7,312,638 |
EPAM Systems, Inc. (a) | 2,861 | | 139,989 |
Virtusa Corp. (a) | 400 | | 14,984 |
| | 7,467,611 |
TOTAL IT SERVICES | | 93,893,360 |
LEISURE PRODUCTS - 0.9% |
Leisure Products - 0.9% |
Sega Sammy Holdings, Inc. | 1,029,600 | | 13,407,657 |
MACHINERY - 0.1% |
Industrial Machinery - 0.1% |
Harmonic Drive Systems, Inc. | 52,100 | | 825,601 |
MEDIA - 0.2% |
Advertising - 0.0% |
iCar Asia Ltd. (a)(d) | 198,859 | | 170,702 |
Cable & Satellite - 0.2% |
Naspers Ltd. Class N | 15,445 | | 2,228,125 |
Publishing - 0.0% |
NEXT Co. Ltd. | 49,700 | | 414,708 |
TOTAL MEDIA | | 2,813,535 |
PROFESSIONAL SERVICES - 0.9% |
Human Resource & Employment Services - 0.2% |
51job, Inc. sponsored ADR (a) | 400 | | 14,084 |
Paylocity Holding Corp. | 62,700 | | 1,477,212 |
WageWorks, Inc. (a) | 37,200 | | 2,047,488 |
| | 3,538,784 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Research & Consulting Services - 0.7% |
ICF International, Inc. (a) | 33,600 | | $ 1,255,296 |
Verisk Analytics, Inc. (a) | 137,768 | | 8,865,371 |
| | 10,120,667 |
TOTAL PROFESSIONAL SERVICES | | 13,659,451 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 9.7% |
Semiconductor Equipment - 0.7% |
Lam Research Corp. | 54,300 | | 4,150,692 |
Nanometrics, Inc. (a) | 9,409 | | 146,216 |
Rubicon Technology, Inc. (a)(d) | 681,267 | | 2,834,071 |
SMA Solar Technology AG (a)(d) | 28,350 | | 352,070 |
SunEdison, Inc. (a)(d) | 700 | | 13,111 |
Tessera Technologies, Inc. | 214 | | 7,935 |
Ultratech, Inc. (a) | 121,600 | | 1,938,304 |
| | 9,442,399 |
Semiconductors - 9.0% |
Atmel Corp. | 401,000 | | 3,340,330 |
Audience, Inc. (a) | 254,001 | | 1,026,164 |
Broadcom Corp. Class A | 315,622 | | 13,393,420 |
Cavium, Inc. (a) | 12,800 | | 752,768 |
Cirrus Logic, Inc. (a) | 59,028 | | 1,564,242 |
Cree, Inc. (a) | 47,745 | | 1,688,263 |
Duksan Hi-Metal Co. Ltd. (a) | 81,343 | | 822,727 |
EPISTAR Corp. | 1,766,000 | | 3,106,092 |
Everlight Electronics Co. Ltd. | 1,726,000 | | 4,110,424 |
Freescale Semiconductor, Inc. (a) | 162,756 | | 5,222,840 |
Genesis Photonics, Inc. (a) | 2,474,066 | | 1,218,881 |
Himax Technologies, Inc. sponsored ADR | 94,100 | | 807,378 |
Hua Hong Semiconductor Ltd. (a) | 3,895,000 | | 4,529,042 |
Infineon Technologies AG | 73,000 | | 823,003 |
Intermolecular, Inc. (a) | 429,154 | | 699,521 |
Intersil Corp. Class A | 166,394 | | 2,381,098 |
Lextar Electronics Corp. | 437,000 | | 411,937 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 35,494 | | 1,153,910 |
MagnaChip Semiconductor Corp. (a) | 114,554 | | 1,647,287 |
Marvell Technology Group Ltd. | 965,800 | | 14,960,242 |
Maxim Integrated Products, Inc. | 537,100 | | 17,772,639 |
Melexis NV | 293 | | 14,700 |
Micrel, Inc. | 261,300 | | 3,676,491 |
Micron Technology, Inc. (a) | 24,900 | | 728,699 |
Microsemi Corp. (a) | 111,700 | | 3,111,962 |
Monolithic Power Systems, Inc. | 76,801 | | 3,647,279 |
NXP Semiconductors NV (a) | 32,586 | | 2,585,373 |
ON Semiconductor Corp. (a) | 224,200 | | 2,244,242 |
PixArt Imaging, Inc. | 20,000 | | 55,584 |
PMC-Sierra, Inc. (a) | 198,000 | | 1,750,320 |
Qorvo, Inc. (a) | 153,558 | | 11,343,329 |
Radiant Opto-Electronics Corp. | 680,000 | | 2,135,699 |
|
| Shares | | Value |
Sanken Electric Co. Ltd. | 136,000 | | $ 1,112,371 |
Semiconductor Manufacturing International Corp. (a) | 54,477,000 | | 4,722,000 |
Semtech Corp. (a) | 84,400 | | 2,148,824 |
Seoul Semiconductor Co. Ltd. | 259,332 | | 4,552,791 |
Silicon Laboratories, Inc. (a) | 30,900 | | 1,352,184 |
STMicroelectronics NV | 444,030 | | 3,686,944 |
YoungTek Electronics Corp. | 341 | | 674 |
| | 130,301,674 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 139,744,073 |
SOFTWARE - 12.8% |
Application Software - 7.8% |
Adobe Systems, Inc. (a) | 504,016 | | 35,346,642 |
ANSYS, Inc. (a) | 175 | | 14,117 |
Autodesk, Inc. (a) | 186,700 | | 10,082,734 |
Blackbaud, Inc. | 17,200 | | 751,812 |
Citrix Systems, Inc. (a) | 57,915 | | 3,432,043 |
Guidewire Software, Inc. (a) | 190 | | 9,519 |
Informatica Corp. (a) | 112,252 | | 4,679,225 |
Interactive Intelligence Group, Inc. (a) | 129,460 | | 5,250,898 |
Intuit, Inc. | 187,200 | | 16,252,704 |
Kingdee International Software Group Co. Ltd. (a) | 11,039,800 | | 3,569,210 |
Linx SA | 700 | | 12,350 |
MicroStrategy, Inc. Class A (a) | 31,430 | | 5,079,088 |
Parametric Technology Corp. (a) | 43,100 | | 1,439,971 |
Paycom Software, Inc. | 900 | | 23,553 |
PROS Holdings, Inc. (a) | 17,933 | | 435,593 |
Qlik Technologies, Inc. (a) | 120,100 | | 3,410,840 |
salesforce.com, Inc. (a) | 347,719 | | 19,628,738 |
SolarWinds, Inc. (a) | 333 | | 16,034 |
Splunk, Inc. (a) | 21,696 | | 1,120,598 |
Ultimate Software Group, Inc. (a) | 76 | | 11,249 |
Workiva, Inc. | 51,400 | | 631,192 |
Yodlee, inc. | 1,300 | | 11,986 |
Zendesk, Inc. (d) | 62,500 | | 1,511,875 |
| | 112,721,971 |
Home Entertainment Software - 0.9% |
Activision Blizzard, Inc. | 233,170 | | 4,872,087 |
Nintendo Co. Ltd. | 69,800 | | 6,732,882 |
Ourgame International Holdings Ltd. | 3,041,000 | | 1,223,832 |
| | 12,828,801 |
Systems Software - 4.1% |
Allot Communications Ltd. (a) | 288,719 | | 2,601,358 |
CommVault Systems, Inc. (a) | 17,100 | | 745,218 |
Fleetmatics Group PLC (a) | 495,559 | | 17,547,744 |
Imperva, Inc. (a) | 300 | | 12,528 |
Infoblox, Inc. (a) | 900 | | 16,803 |
NetSuite, Inc. (a)(d) | 112,277 | | 11,051,425 |
Oracle Corp. | 240,300 | | 10,066,167 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Systems Software - continued |
Progress Software Corp. (a) | 82,300 | | $ 2,061,615 |
Red Hat, Inc. (a) | 127,848 | | 8,155,424 |
ServiceNow, Inc. (a) | 94,695 | | 6,903,266 |
Tableau Software, Inc. (a) | 3,300 | | 266,508 |
Varonis Systems, Inc. | 900 | | 29,673 |
| | 59,457,729 |
TOTAL SOFTWARE | | 185,008,501 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 17.9% |
Technology Hardware, Storage & Peripherals - 17.9% |
Apple, Inc. | 1,732,129 | | 202,936,233 |
BlackBerry Ltd. (a) | 1,486 | | 15,083 |
EMC Corp. | 500 | | 12,965 |
Hewlett-Packard Co. | 780,000 | | 28,181,400 |
NEC Corp. | 1,774,000 | | 5,010,939 |
Nimble Storage, Inc. (a) | 5,000 | | 112,150 |
Samsung Electronics Co. Ltd. | 15,772 | | 19,423,049 |
SanDisk Corp. | 11,600 | | 880,556 |
Silicon Graphics International Corp. (a) | 166,658 | | 1,571,585 |
Stratasys Ltd. (a) | 100 | | 7,949 |
| | 258,151,909 |
WIRELESS TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
RingCentral, Inc. (a) | 275,700 | | 3,721,950 |
TOTAL COMMON STOCKS (Cost $1,324,522,565) |
1,428,804,430
|
Convertible Preferred Stocks - 0.9% |
| | | |
INTERNET SOFTWARE & SERVICES - 0.5% |
Internet Software & Services - 0.5% |
Uber Technologies, Inc. Series D, 8.00% (f) | 232,064 | | 7,731,816 |
IT SERVICES - 0.1% |
Data Processing & Outsourced Services - 0.1% |
Nutanix, Inc. Series E (f) | 39,963 | | 547,893 |
PROFESSIONAL SERVICES - 0.3% |
Research & Consulting Services - 0.3% |
Meituan Corp. Series D (e)(f) | 758,456 | | 4,794,731 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $8,930,115) |
13,074,440
|
Money Market Funds - 4.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 12,299,051 | | $ 12,299,051 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 50,398,893 | | 50,398,893 |
TOTAL MONEY MARKET FUNDS (Cost $62,697,944) |
62,697,944
|
TOTAL INVESTMENT PORTFOLIO - 104.3% (Cost $1,396,150,624) | | 1,504,576,814 |
NET OTHER ASSETS (LIABILITIES) - (4.3)% | | (61,994,710) |
NET ASSETS - 100% | $ 1,442,582,104 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 purchased on a delayed delivery or when-issued basis. |
(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 $13,074,440 or 0.9% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Meituan Corp. Series D | 1/26/15 | $ 4,794,731 |
Nutanix, Inc. Series E | 8/26/14 | $ 535,364 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 3,600,020 |
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 | $ 18,857 |
Fidelity Securities Lending Cash Central Fund | 338,498 |
Total | $ 357,355 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 1,428,804,430 | $ 1,256,019,828 | $ 171,961,875 | $ 822,727 |
Convertible Preferred Stocks | 13,074,440 | - | - | 13,074,440 |
Money Market Funds | 62,697,944 | 62,697,944 | - | - |
Total Investments in Securities: | $ 1,504,576,814 | $ 1,318,717,772 | $ 171,961,875 | $ 13,897,167 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 78.4% |
Cayman Islands | 6.7% |
Korea (South) | 3.7% |
Japan | 3.5% |
Taiwan | 2.1% |
Bermuda | 1.8% |
Ireland | 1.2% |
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 Technology Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $47,877,175) - See accompanying schedule: Unaffiliated issuers (cost $1,333,452,680) | $ 1,441,878,870 | |
Fidelity Central Funds (cost $62,697,944) | 62,697,944 | |
Total Investments (cost $1,396,150,624) | | $ 1,504,576,814 |
Foreign currency held at value (cost $359,819) | | 359,818 |
Receivable for investments sold | | 40,707,015 |
Receivable for fund shares sold | | 1,304,892 |
Dividends receivable | | 468,421 |
Distributions receivable from Fidelity Central Funds | | 33,240 |
Prepaid expenses | | 5,418 |
Other receivables | | 48,992 |
Total assets | | 1,547,504,610 |
| | |
Liabilities | | |
Payable to custodian bank | $ 27,196 | |
Payable for investments purchased
Regular delivery | 47,275,121 | |
Delayed delivery | 5,039,318 | |
Payable for fund shares redeemed | 883,551 | |
Accrued management fee | 661,532 | |
Distribution and service plan fees payable | 271,614 | |
Other affiliated payables | 274,992 | |
Other payables and accrued expenses | 90,289 | |
Collateral on securities loaned, at value | 50,398,893 | |
Total liabilities | | 104,922,506 |
| | |
Net Assets | | $ 1,442,582,104 |
Net Assets consist of: | | |
Paid in capital | | $ 1,301,541,322 |
Accumulated net investment loss | | (992,252) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 33,623,771 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 108,409,263 |
Net Assets | | $ 1,442,582,104 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($416,627,183 ÷ 12,217,798 shares) | | $ 34.10 |
| | |
Maximum offering price per share (100/94.25 of $34.10) | | $ 36.18 |
Class T:
Net Asset Value and redemption price per share ($195,375,909 ÷ 5,975,696 shares) | | $ 32.70 |
| | |
Maximum offering price per share (100/96.50 of $32.70) | | $ 33.89 |
Class B:
Net Asset Value and offering price per share ($10,363,877 ÷ 346,722 shares)A | | $ 29.89 |
| | |
Class C:
Net Asset Value and offering price per share ($113,332,551 ÷ 3,778,003 shares)A | | $ 30.00 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($706,882,584 ÷ 19,591,093 shares) | | $ 36.08 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,674,700 |
Special dividends | | 3,045,103 |
Income from Fidelity Central Funds | | 357,355 |
Total income | | 8,077,158 |
| | |
Expenses | | |
Management fee | $ 3,935,807 | |
Transfer agent fees | 1,437,064 | |
Distribution and service plan fees | 1,618,834 | |
Accounting and security lending fees | 232,414 | |
Custodian fees and expenses | 72,104 | |
Independent trustees' compensation | 12,633 | |
Registration fees | 58,261 | |
Audit | 29,657 | |
Legal | 9,172 | |
Interest | 240 | |
Miscellaneous | 6,297 | |
Total expenses before reductions | 7,412,483 | |
Expense reductions | (47,818) | 7,364,665 |
Net investment income (loss) | | 712,493 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 51,933,858 | |
Redemption in-kind with affiliated entities | 23,460,718 | |
Foreign currency transactions | (142,325) | |
Total net realized gain (loss) | | 75,252,251 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $4,659) | (36,751,332) | |
Assets and liabilities in foreign currencies | (13,475) | |
Total change in net unrealized appreciation (depreciation) | | (36,764,807) |
Net gain (loss) | | 38,487,444 |
Net increase (decrease) in net assets resulting from operations | | $ 39,199,937 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 712,493 | $ (3,870,002) |
Net realized gain (loss) | 75,252,251 | 107,601,371 |
Change in net unrealized appreciation (depreciation) | (36,764,807) | 87,968,653 |
Net increase (decrease) in net assets resulting from operations | 39,199,937 | 191,700,022 |
Distributions to shareholders from net investment income | (1,694,665) | - |
Distributions to shareholders from net realized gain | (115,642,374) | (11,189,247) |
Total distributions | (117,337,039) | (11,189,247) |
Share transactions - net increase (decrease) | 342,795,057 | 150,832,224 |
Redemption fees | 15,135 | 21,186 |
Total increase (decrease) in net assets | 264,673,090 | 331,364,185 |
| | |
Net Assets | | |
Beginning of period | 1,177,909,014 | 846,544,829 |
End of period (including accumulated net investment loss of $992,252 and accumulated net investment loss of $10,080, respectively) | $ 1,442,582,104 | $ 1,177,909,014 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.06 | $ 29.90 | $ 25.25 | $ 25.14 | $ 19.83 | $ 16.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01H | (.12) | (.07) | (.13) | (.18) | (.16) |
Net realized and unrealized gain (loss) | .99 | 6.70 | 4.72 | .24 | 5.49 | 3.96 |
Total from investment operations | 1.00 | 6.58 | 4.65 | .11 | 5.31 | 3.80 |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | (2.94) | (.42) | - | - | - | - |
Total distributions | (2.96) | (.42) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 34.10 | $ 36.06 | $ 29.90 | $ 25.25 | $ 25.14 | $ 19.83 |
Total ReturnB, C, D | 2.72% | 22.15% | 18.42% | .44% | 26.78% | 23.71% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.10%A | 1.14% | 1.18% | 1.18% | 1.18% | 1.21% |
Expenses net of fee waivers, if any | 1.10%A | 1.14% | 1.18% | 1.18% | 1.18% | 1.21% |
Expenses net of all reductions | 1.10%A | 1.12% | 1.14% | 1.17% | 1.16% | 1.18% |
Net investment income (loss) | .03%A, H | (.35)% | (.25)% | (.55)% | (.73)% | (.83)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 416,627 | $ 408,687 | $ 355,306 | $ 336,693 | $ 375,609 | $ 312,659 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.66 | $ 28.79 | $ 24.38 | $ 24.33 | $ 19.24 | $ 15.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) H | (.19) | (.13) | (.19) | (.23) | (.20) |
Net realized and unrealized gain (loss) | .97 | 6.45 | 4.54 | .24 | 5.32 | 3.85 |
Total from investment operations | .93 | 6.26 | 4.41 | .05 | 5.09 | 3.65 |
Distributions from net realized gain | (2.89) | (.39) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 32.70 | $ 34.66 | $ 28.79 | $ 24.38 | $ 24.33 | $ 19.24 |
Total ReturnB, C, D | 2.60% | 21.89% | 18.09% | .21% | 26.46% | 23.41% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.36%A | 1.38% | 1.42% | 1.43% | 1.43% | 1.46% |
Expenses net of fee waivers, if any | 1.36%A | 1.38% | 1.42% | 1.43% | 1.43% | 1.46% |
Expenses net of all reductions | 1.35%A | 1.37% | 1.39% | 1.42% | 1.40% | 1.44% |
Net investment income (loss) | (.22)%A, H | (.60)% | (.50)% | (.80)% | (.98)% | (1.09)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 195,376 | $ 196,067 | $ 173,692 | $ 172,709 | $ 196,913 | $ 169,049 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.83 | $ 26.56 | $ 22.60 | $ 22.67 | $ 18.01 | $ 14.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) H | (.34) | (.24) | (.28) | (.33) | (.27) |
Net realized and unrealized gain (loss) | .88 | 5.94 | 4.20 | .21 | 4.99 | 3.61 |
Total from investment operations | .76 | 5.60 | 3.96 | (.07) | 4.66 | 3.34 |
Distributions from net realized gain | (2.70) | (.33) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 29.89 | $ 31.83 | $ 26.56 | $ 22.60 | $ 22.67 | $ 18.01 |
Total ReturnB, C, D | 2.30% | 21.21% | 17.52% | (.31)% | 25.87% | 22.77% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.91%A | 1.92% | 1.93% | 1.93% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.91%A | 1.92% | 1.93% | 1.93% | 1.93% | 1.96% |
Expenses net of all reductions | 1.91%A | 1.91% | 1.89% | 1.92% | 1.91% | 1.94% |
Net investment income (loss) | (.78)%A, H | (1.14)% | (1.01)% | (1.30)% | (1.49)% | (1.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,364 | $ 12,043 | $ 13,745 | $ 17,476 | $ 25,508 | $ 29,176 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.20)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.99 | $ 26.68 | $ 22.70 | $ 22.77 | $ 18.09 | $ 14.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) H | (.33) | (.24) | (.29) | (.33) | (.28) |
Net realized and unrealized gain (loss) | .88 | 5.98 | 4.22 | .22 | 5.01 | 3.63 |
Total from investment operations | .77 | 5.65 | 3.98 | (.07) | 4.68 | 3.35 |
Distributions from net realized gain | (2.76) | (.34) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 30.00 | $ 31.99 | $ 26.68 | $ 22.70 | $ 22.77 | $ 18.09 |
Total ReturnB, C, D | 2.33% | 21.31% | 17.53% | (.31)% | 25.87% | 22.73% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.86%A | 1.87% | 1.91% | 1.93% | 1.92% | 1.96% |
Expenses net of fee waivers, if any | 1.86%A | 1.87% | 1.91% | 1.93% | 1.92% | 1.96% |
Expenses net of all reductions | 1.85%A | 1.86% | 1.88% | 1.91% | 1.90% | 1.93% |
Net investment income (loss) | (.72)%A, H | (1.09)% | (.99)% | (1.29)% | (1.48)% | (1.58)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 113,333 | $ 105,499 | $ 84,858 | $ 88,074 | $ 89,819 | $ 70,017 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.06 | $ 31.47 | $ 26.50 | $ 26.30 | $ 20.68 | $ 16.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07G | (.02) | .02 | (.06) | (.11) | (.11) |
Net realized and unrealized gain (loss) | 1.05 | 7.06 | 4.95 | .26 | 5.73 | 4.12 |
Total from investment operations | 1.12 | 7.04 | 4.97 | .20 | 5.62 | 4.01 |
Distributions from net investment income | (.07) | - | - | - | - | - |
Distributions from net realized gain | (3.03) | (.45) | - | - | - | - |
Total distributions | (3.10) | (.45) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 36.08 | $ 38.06 | $ 31.47 | $ 26.50 | $ 26.30 | $ 20.68 |
Total ReturnB, C | 2.89% | 22.55% | 18.75% | .76% | 27.18% | 24.06% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .76%A | .83% | .86% | .86% | .87% | .92% |
Expenses net of fee waivers, if any | .76%A | .83% | .86% | .86% | .87% | .92% |
Expenses net of all reductions | .75%A | .82% | .83% | .85% | .85% | .90% |
Net investment income (loss) | .38%A, G | (.05)% | .06% | (.23)% | (.43)% | (.55)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 706,883 | $ 455,612 | $ 218,944 | $ 95,310 | $ 81,350 | $ 42,277 |
Portfolio turnover rateF | 159% A, J | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses, 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 | $ 190,387,691 |
Gross unrealized depreciation | (89,797,047) |
Net unrealized appreciation (depreciation) on securities | $ 100,590,644 |
| |
Tax cost | $ 1,403,986,170 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities and in-kind transactions, aggregated $1,157,082,881 and $1,068,043,262, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 519,507 | $ 4,315 |
Class T | .25% | .25% | 494,416 | - |
Class B | .75% | .25% | 56,587 | 42,476 |
Class C | .75% | .25% | 548,324 | 70,856 |
| | | $ 1,618,834 | $ 117,647 |
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 shares, 1.00% for Class C shares, 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 | $ 52,496 |
Class T | 7,619 |
Class B* | 1,711 |
Class C* | 5,454 |
| $ 67,280 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 510,037 | .25 |
Class T | 247,867 | .25 |
Class B | 17,153 | .30 |
Class C | 134,548 | .25 |
Institutional Class | 527,459 | .15 |
| $ 1,437,064 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $19,716 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 or other affiliated entities of 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 | $ 12,199,500 | .35% | $ 240 |
Redemptions In-Kind. During the period, 2,476,292 shares of the Fund held by affiliated entities were redeemed for investments with a value of $93,826,692. The net realized gain of $23,460,718 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Exchanges In-Kind. During the period, certain investment companies managed by the investment adviser or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered cash and investments valued at $311,440,613 in exchange for 8,219,599 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $948 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $338,498.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $47,761 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 $47.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $10.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 285,368 | $ - |
Institutional Class | 1,409,297 | - |
Total | $ 1,694,665 | $ - |
From net realized gain | | |
Class A | $ 33,752,653 | $ 4,830,573 |
Class T | 16,437,105 | 2,285,378 |
Class B | 983,656 | 152,106 |
Class C | 9,419,893 | 1,068,092 |
Institutional Class | 55,049,067 | 2,853,098 |
Total | $ 115,642,374 | $ 11,189,247 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,268,131 | 1,967,332 | $ 44,399,636 | $ 66,338,054 |
Reinvestment of distributions | 901,793 | 136,812 | 31,563,331 | 4,412,177 |
Shares redeemed | (1,285,028) | (2,655,768) | (45,036,996) | (89,258,893) |
Net increase (decrease) | 884,896 | (551,624) | $ 30,925,971 | $ (18,508,662) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class T | | | | |
Shares sold | 279,290 | 604,269 | $ 9,369,369 | $ 19,519,431 |
Reinvestment of distributions | 476,615 | 71,453 | 16,015,552 | 2,218,622 |
Shares redeemed | (437,150) | (1,051,577) | (14,672,710) | (34,073,517) |
Net increase (decrease) | 318,755 | (375,855) | $ 10,712,211 | $ (12,335,464) |
Class B | | | | |
Shares sold | 8,032 | 9,706 | $ 244,893 | $ 287,815 |
Reinvestment of distributions | 29,273 | 4,834 | 901,739 | 138,293 |
Shares redeemed | (68,899) | (153,751) | (2,120,358) | (4,566,688) |
Net increase (decrease) | (31,594) | (139,211) | $ (973,726) | $ (4,140,580) |
Class C | | | | |
Shares sold | 522,133 | 594,192 | $ 16,090,876 | $ 17,948,827 |
Reinvestment of distributions | 261,235 | 31,647 | 8,065,851 | 909,547 |
Shares redeemed | (303,523) | (507,790) | (9,274,692) | (15,090,389) |
Net increase (decrease) | 479,845 | 118,049 | $ 14,882,035 | $ 3,767,985 |
Institutional Class | | | | |
Shares sold | 22,234,239 A | 7,128,296 | $ 843,668,302 A | $ 254,841,416 |
Reinvestment of distributions | 1,510,080 | 81,545 | 55,853,504 | 2,770,913 |
Shares redeemed | (16,123,085) B | (2,196,859) | (612,273,240) B | (75,563,384) |
Net increase (decrease) | 7,621,234 | 5,012,982 | $ 287,248,566 | $ 182,048,945 |
A Amount includes in-kind exchanges (see Note 5: Exchanges In-Kind).
B Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
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.
At the end of the period, Strategic Advisers Core Fund was the owner of record of approximately 34% of the total outstanding shares of the Fund.
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.13% | | | |
Actual | | $ 1,000.00 | $ 1,088.20 | $ 5.95 |
HypotheticalA | | $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,087.10 | $ 7.47 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 1,084.10 | $ 10.19 |
HypotheticalA | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.88% | | | |
Actual | | $ 1,000.00 | $ 1,084.40 | $ 9.88 |
HypotheticalA | | $ 1,000.00 | $ 1,015.73 | $ 9.55 |
Institutional Class | .83% | | | |
Actual | | $ 1,000.00 | $ 1,090.10 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,021.02 | $ 4.23 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
NextEra Energy, Inc. | 12.3 | 10.3 |
Exelon Corp. | 9.9 | 5.9 |
Dominion Resources, Inc. | 9.7 | 10.4 |
Sempra Energy | 9.2 | 7.7 |
PG&E Corp. | 7.9 | 2.6 |
PPL Corp. | 4.9 | 7.1 |
NiSource, Inc. | 4.5 | 4.7 |
Calpine Corp. | 4.0 | 2.2 |
Southern Co. | 3.4 | 0.0 |
Edison International | 3.4 | 6.5 |
| 69.2 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Electric Utilities | 40.4% | |
| Multi-Utilities | 31.6% | |
| Independent Power Producers & Renewable Electricity Producers | 10.0% | |
| Oil, Gas & Consumable Fuels | 6.1% | |
| Media | 2.9% | |
| All Others* | 9.0% | |
As of July 31, 2014 |
| Electric Utilities | 44.3% | |
| Multi-Utilities | 25.9% | |
| Oil, Gas & Consumable Fuels | 12.0% | |
| Independent Power Producers & Energy Traders | 8.2% | |
| Media | 3.1% | |
| All Others* | 6.5% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% |
| Shares | | Value |
CONSTRUCTION & ENGINEERING - 0.8% |
Construction & Engineering - 0.8% |
Abengoa SA Class B (d) | 928,100 | | $ 2,737,245 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.7% |
Alternative Carriers - 0.7% |
Cogent Communications Group, Inc. | 68,164 | | 2,526,158 |
ELECTRIC UTILITIES - 40.4% |
Electric Utilities - 40.4% |
Edison International | 168,002 | | 11,449,336 |
Exelon Corp. | 934,700 | | 33,686,588 |
FirstEnergy Corp. | 159,700 | | 6,440,701 |
Hawaiian Electric Industries, Inc. | 16,500 | | 565,950 |
NextEra Energy, Inc. | 385,140 | | 42,072,696 |
NRG Yield, Inc. Class A (d) | 123,910 | | 6,552,361 |
OGE Energy Corp. | 241,423 | | 8,493,261 |
PPL Corp. | 475,172 | | 16,868,606 |
Southern Co. | 230,738 | | 11,703,031 |
| | 137,832,530 |
GAS UTILITIES - 0.0% |
Gas Utilities - 0.0% |
Laclede Group, Inc. | 1,500 | | 80,640 |
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 1.0% |
Renewable Electricity - 1.0% |
Abengoa Yield PLC | 105,000 | | 3,456,600 |
INDEPENDENT POWER PRODUCERS & RENEWABLE ELECTRICITY PRODUCERS - 10.0% |
Independent Power Producers & Energy Traders - 10.0% |
Black Hills Corp. | 47,200 | | 2,367,552 |
Calpine Corp. (a) | 658,117 | | 13,741,483 |
Dynegy, Inc. (a) | 142,557 | | 3,894,657 |
NRG Energy, Inc. | 378,515 | | 9,334,180 |
The AES Corp. | 397,600 | | 4,858,672 |
| | 34,196,544 |
MEDIA - 2.9% |
Cable & Satellite - 2.9% |
DISH Network Corp. Class A (a) | 88,700 | | 6,240,045 |
Liberty Global PLC Class A (a) | 75,900 | | 3,546,048 |
| | 9,786,093 |
MULTI-UTILITIES - 31.6% |
Multi-Utilities - 31.6% |
Dominion Resources, Inc. | 430,099 | | 33,070,312 |
NiSource, Inc. | 354,463 | | 15,334,069 |
PG&E Corp. | 455,118 | | 26,765,490 |
|
| Shares | | Value |
Sempra Energy | 280,837 | | $ 31,431,277 |
TECO Energy, Inc. | 50,700 | | 1,081,431 |
| | 107,682,579 |
OIL, GAS & CONSUMABLE FUELS - 6.1% |
Oil & Gas Storage & Transport - 6.1% |
Cheniere Energy Partners LP Holdings LLC | 298,262 | | 6,833,182 |
Enbridge, Inc. | 5,600 | | 271,252 |
Energy Transfer Equity LP | 141,827 | | 8,427,360 |
Plains GP Holdings LP Class A | 199,736 | | 5,209,115 |
| | 20,740,909 |
REAL ESTATE INVESTMENT TRUSTS - 1.6% |
Specialized REITs - 1.6% |
Crown Castle International Corp. | 62,400 | | 5,398,224 |
WIRELESS TELECOMMUNICATION SERVICES - 0.2% |
Wireless Telecommunication Services - 0.2% |
Telephone & Data Systems, Inc. | 28,147 | | 654,418 |
TOTAL COMMON STOCKS (Cost $286,232,860) |
325,091,940
|
Money Market Funds - 2.9% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 5,969,590 | | 5,969,590 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 3,709,574 | | 3,709,574 |
TOTAL MONEY MARKET FUNDS (Cost $9,679,164) |
9,679,164
|
TOTAL INVESTMENT PORTFOLIO - 98.2% (Cost $295,912,024) | | 334,771,104 |
NET OTHER ASSETS (LIABILITIES) - 1.8% | | 6,224,414 |
NET ASSETS - 100% | $ 340,995,518 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 2,847 |
Fidelity Securities Lending Cash Central Fund | 22,710 |
Total | $ 25,557 |
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 Investment 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,412,925) - See accompanying schedule: Unaffiliated issuers (cost $286,232,860) | $ 325,091,940 | |
Fidelity Central Funds (cost $9,679,164) | 9,679,164 | |
Total Investments (cost $295,912,024) | | $ 334,771,104 |
Receivable for investments sold | | 22,805,407 |
Receivable for fund shares sold | | 991,363 |
Dividends receivable | | 177,102 |
Distributions receivable from Fidelity Central Funds | | 6,000 |
Prepaid expenses | | 1,443 |
Other receivables | | 9,764 |
Total assets | | 358,762,183 |
| | |
Liabilities | | |
Payable for investments purchased | $ 12,919,010 | |
Payable for fund shares redeemed | 768,146 | |
Accrued management fee | 153,717 | |
Distribution and service plan fees payable | 114,117 | |
Other affiliated payables | 74,051 | |
Other payables and accrued expenses | 28,050 | |
Collateral on securities loaned, at value | 3,709,574 | |
Total liabilities | | 17,766,665 |
| | |
Net Assets | | $ 340,995,518 |
Net Assets consist of: | | |
Paid in capital | | $ 301,045,427 |
Distributions in excess of net investment income | | (410,217) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 1,507,005 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 38,853,303 |
Net Assets | | $ 340,995,518 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($171,142,152 ÷ 6,295,812 shares) | | $ 27.18 |
| | |
Maximum offering price per share (100/94.25 of $27.18) | | $ 28.84 |
Class T:
Net Asset Value and redemption price per share ($55,032,975 ÷ 2,020,523 shares) | | $ 27.24 |
| | |
Maximum offering price per share (100/96.50 of $27.24) | | $ 28.23 |
Class B:
Net Asset Value and offering price per share ($4,224,306 ÷ 156,211 shares)A | | $ 27.04 |
| | |
Class C:
Net Asset Value and offering price per share ($64,347,231 ÷ 2,412,572 shares)A | | $ 26.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($46,248,854 ÷ 1,671,937 shares) | | $ 27.66 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,001,548 |
Income from Fidelity Central Funds | | 25,557 |
Total income | | 4,027,105 |
| | |
Expenses | | |
Management fee | $ 874,839 | |
Transfer agent fees | 378,653 | |
Distribution and service plan fees | 642,396 | |
Accounting and security lending fees | 62,391 | |
Custodian fees and expenses | 5,077 | |
Independent trustees' compensation | 2,883 | |
Registration fees | 50,172 | |
Audit | 21,504 | |
Legal | 1,773 | |
Interest | 319 | |
Miscellaneous | 1,629 | |
Total expenses before reductions | 2,041,636 | |
Expense reductions | (17,169) | 2,024,467 |
Net investment income (loss) | | 2,002,638 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,721,823 | |
Foreign currency transactions | 6,609 | |
Total net realized gain (loss) | | 4,728,432 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 19,508,745 | |
Assets and liabilities in foreign currencies | (5,777) | |
Total change in net unrealized appreciation (depreciation) | | 19,502,968 |
Net gain (loss) | | 24,231,400 |
Net increase (decrease) in net assets resulting from operations | | $ 26,234,038 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,002,638 | $ 3,559,541 |
Net realized gain (loss) | 4,728,432 | 27,603,316 |
Change in net unrealized appreciation (depreciation) | 19,502,968 | 1,610,263 |
Net increase (decrease) in net assets resulting from operations | 26,234,038 | 32,773,120 |
Distributions to shareholders from net investment income | (4,008,727) | (3,729,207) |
Distributions to shareholders from net realized gain | (17,303,959) | (88,322) |
Total distributions | (21,312,686) | (3,817,529) |
Share transactions - net increase (decrease) | 27,122,903 | 71,585,618 |
Redemption fees | 2,041 | 9,809 |
Total increase (decrease) in net assets | 32,046,296 | 100,551,018 |
| | |
Net Assets | | |
Beginning of period | 308,949,222 | 208,398,204 |
End of period (including distributions in excess of net investment income of $410,217 and undistributed net investment income of $1,595,872, respectively) | $ 340,995,518 | $ 308,949,222 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.77 | $ 23.48 | $ 21.20 | $ 19.09 | $ 16.59 | $ 15.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .19 | .41 | .47 | .43 | .39 | .40 |
Net realized and unrealized gain (loss) | 2.13 | 3.35 | 2.24 | 2.07 | 2.50 | 1.32 |
Total from investment operations | 2.32 | 3.76 | 2.71 | 2.50 | 2.89 | 1.72 |
Distributions from net investment income | (.38) | (.46) | (.43) | (.39) | (.39) | (.40) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.91)J | (.47) | (.43) | (.39) | (.39) | (.40) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.18 | $ 26.77 | $ 23.48 | $ 21.20 | $ 19.09 | $ 16.59 |
Total ReturnB, C, D | 8.82% | 16.38% | 13.09% | 13.40% | 17.71% | 11.42% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.13%A | 1.16% | 1.20% | 1.23% | 1.24% | 1.26% |
Expenses net of fee waivers, if any | 1.13%A | 1.16% | 1.20% | 1.23% | 1.24% | 1.26% |
Expenses net of all reductions | 1.12%A | 1.15% | 1.16% | 1.22% | 1.20% | 1.22% |
Net investment income (loss) | 1.41%A | 1.64% | 2.16% | 2.24% | 2.18% | 2.49% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 171,142 | $ 154,134 | $ 106,851 | $ 99,813 | $ 78,312 | $ 64,890 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal distributions of $1.91 per share is comprised of distributions from net investment income of $.384 and distributions from net realized gain of $1.524 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.78 | $ 23.50 | $ 21.21 | $ 19.09 | $ 16.59 | $ 15.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .34 | .41 | .38 | .35 | .35 |
Net realized and unrealized gain (loss) | 2.14 | 3.35 | 2.25 | 2.07 | 2.50 | 1.33 |
Total from investment operations | 2.29 | 3.69 | 2.66 | 2.45 | 2.85 | 1.68 |
Distributions from net investment income | (.31) | (.40) | (.37) | (.33) | (.35) | (.36) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.83) | (.41) | (.37) | (.33) | (.35) | (.36) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.24 | $ 26.78 | $ 23.50 | $ 21.21 | $ 19.09 | $ 16.59 |
Total ReturnB, C, D | 8.71% | 15.99% | 12.81% | 13.13% | 17.39% | 11.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.42%A | 1.45% | 1.47% | 1.49% | 1.50% | 1.52% |
Expenses net of fee waivers, if any | 1.42%A | 1.45% | 1.47% | 1.49% | 1.50% | 1.52% |
Expenses net of all reductions | 1.41%A | 1.44% | 1.43% | 1.48% | 1.46% | 1.49% |
Net investment income (loss) | 1.12%A | 1.35% | 1.89% | 1.98% | 1.92% | 2.23% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 55,033 | $ 49,272 | $ 41,239 | $ 38,276 | $ 35,701 | $ 33,651 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.51 | $ 23.24 | $ 20.96 | $ 18.86 | $ 16.38 | $ 15.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .21 | .30 | .28 | .25 | .27 |
Net realized and unrealized gain (loss) | 2.12 | 3.33 | 2.23 | 2.05 | 2.49 | 1.31 |
Total from investment operations | 2.20 | 3.54 | 2.53 | 2.33 | 2.74 | 1.58 |
Distributions from net investment income | (.14) | (.26) | (.25) | (.23) | (.26) | (.28) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.67)J | (.27) | (.25) | (.23) | (.26) | (.28) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.04 | $ 26.51 | $ 23.24 | $ 20.96 | $ 18.86 | $ 16.38 |
Total ReturnB, C, D | 8.41% | 15.41% | 12.24% | 12.54% | 16.87% | 10.56% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.94%A | 1.95% | 1.96% | 1.98% | 1.99% | 2.01% |
Expenses net of fee waivers, if any | 1.94%A | 1.95% | 1.96% | 1.98% | 1.99% | 2.01% |
Expenses net of all reductions | 1.93%A | 1.94% | 1.92% | 1.97% | 1.95% | 1.98% |
Net investment income (loss) | .60%A | .85% | 1.40% | 1.49% | 1.43% | 1.74% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,224 | $ 4,598 | $ 5,289 | $ 6,677 | $ 7,773 | $ 8,794 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal distributions of $1.67 per share is comprised of distributions from net investment income of $.141 and distributions from net realized gain of $1.524 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.23 | $ 23.03 | $ 20.80 | $ 18.75 | $ 16.30 | $ 15.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .23 | .31 | .29 | .26 | .27 |
Net realized and unrealized gain (loss) | 2.09 | 3.29 | 2.20 | 2.03 | 2.46 | 1.30 |
Total from investment operations | 2.18 | 3.52 | 2.51 | 2.32 | 2.72 | 1.57 |
Distributions from net investment income | (.22) | (.31) | (.28) | (.27) | (.27) | (.29) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.74) | (.32) | (.28) | (.27) | (.27) | (.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.67 | $ 26.23 | $ 23.03 | $ 20.80 | $ 18.75 | $ 16.30 |
Total ReturnB, C, D | 8.44% | 15.52% | 12.27% | 12.56% | 16.85% | 10.54% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.88%A | 1.89% | 1.93% | 1.95% | 1.98% | 2.01% |
Expenses net of fee waivers, if any | 1.88%A | 1.89% | 1.93% | 1.95% | 1.98% | 2.01% |
Expenses net of all reductions | 1.87%A | 1.88% | 1.89% | 1.95% | 1.94% | 1.97% |
Net investment income (loss) | .66%A | .91% | 1.43% | 1.51% | 1.43% | 1.74% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 64,347 | $ 54,810 | $ 35,457 | $ 29,942 | $ 26,915 | $ 21,415 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 27.24 | $ 23.87 | $ 21.56 | $ 19.40 | $ 16.85 | $ 15.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .23 | .51 | .55 | .50 | .45 | .44 |
Net realized and unrealized gain (loss) | 2.18 | 3.39 | 2.26 | 2.10 | 2.54 | 1.35 |
Total from investment operations | 2.41 | 3.90 | 2.81 | 2.60 | 2.99 | 1.79 |
Distributions from net investment income | (.46) | (.52) | (.50) | (.44) | (.44) | (.45) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.99)I | (.53) | (.50) | (.44) | (.44) | (.45) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.66 | $ 27.24 | $ 23.87 | $ 21.56 | $ 19.40 | $ 16.85 |
Total ReturnB, C | 9.01% | 16.74% | 13.40% | 13.79% | 18.05% | 11.66% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .83%A | .85% | .89% | .92% | .98% | 1.00% |
Expenses net of fee waivers, if any | .83%A | .85% | .89% | .92% | .98% | 1.00% |
Expenses net of all reductions | .82%A | .84% | .85% | .91% | .94% | .97% |
Net investment income (loss) | 1.71%A | 1.95% | 2.46% | 2.55% | 2.44% | 2.75% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 46,249 | $ 46,135 | $ 19,562 | $ 20,564 | $ 10,914 | $ 6,511 |
Portfolio turnover rateF | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.01 per share. ITotal distributions of $1.99 per share is comprised of distributions from net investment income of $.463 and distributions from net realized gain of $1.524 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, 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 | $ 42,380,602 |
Gross unrealized depreciation | (3,972,631) |
Net unrealized appreciation (depreciation) on securities | $ 38,407,971 |
| |
Tax cost | $ 296,363,133 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $202,904,200 and $210,315,178, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 198,788 | $ 4,172 |
Class T | .25% | .25% | 131,329 | - |
Class B | .75% | .25% | 22,519 | 16,889 |
Class C | .75% | .25% | 289,760 | 69,392 |
| | | $ 642,396 | $ 90,453 |
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 shares, 1.00% for Class C shares, 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 | $ 73,450 |
Class T | 8,754 |
Class B* | 783 |
Class C* | 6,206 |
| $ 89,193 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 187,870 | .24 |
Class T | 73,849 | .28 |
Class B | 6,763 | .30 |
Class C | 68,417 | .24 |
Institutional Class | 41,754 | .19 |
| $ 378,653 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,294 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 or other affiliated entities of 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 | $ 4,247,125 | .34% | $ 319 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $215 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $22,710.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $17,166 for the period.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $3.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 2,209,427 | $ 2,098,780 |
Class T | 589,264 | 689,503 |
Class B | 23,317 | 54,086 |
Class C | 465,161 | 483,241 |
Institutional Class | 721,558 | 403,597 |
Total | $ 4,008,727 | $ 3,729,207 |
From net realized gain | | |
Class A | $ 8,639,872 | $ 45,735 |
Class T | 2,863,111 | 17,387 |
Class B | 255,750 | 2,010 |
Class C | 3,177,658 | 15,931 |
Institutional Class | 2,367,568 | 7,259 |
Total | $ 17,303,959 | $ 88,322 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,232,070 | 2,276,742 | $ 33,153,812 | $ 59,563,163 |
Reinvestment of distributions | 365,507 | 82,514 | 9,845,503 | 1,888,613 |
Shares redeemed | (1,060,041) | (1,151,286) | (28,299,423) | (29,069,514) |
Net increase (decrease) | 537,536 | 1,207,970 | $ 14,699,892 | $ 32,382,262 |
Class T | | | | |
Shares sold | 251,907 | 365,889 | $ 6,778,803 | $ 9,445,083 |
Reinvestment of distributions | 123,163 | 29,388 | 3,324,292 | 673,761 |
Shares redeemed | (194,314) | (310,668) | (5,228,033) | (7,776,879) |
Net increase (decrease) | 180,756 | 84,609 | $ 4,875,062 | $ 2,341,965 |
Class B | | | | |
Shares sold | 9,463 | 19,626 | $ 251,303 | $ 511,179 |
Reinvestment of distributions | 9,053 | 2,105 | 242,668 | 47,986 |
Shares redeemed | (35,716) | (75,934) | (955,802) | (1,892,640) |
Net increase (decrease) | (17,200) | (54,203) | $ (461,831) | $ (1,333,475) |
Class C | | | | |
Shares sold | 538,739 | 898,033 | $ 14,211,844 | $ 23,064,197 |
Reinvestment of distributions | 116,026 | 17,647 | 3,068,131 | 397,963 |
Shares redeemed | (331,574) | (365,639) | (8,758,933) | (9,096,804) |
Net increase (decrease) | 323,191 | 550,041 | $ 8,521,042 | $ 14,365,356 |
Institutional Class | | | | |
Shares sold | 575,685 | 1,373,720 | $ 15,757,380 | $ 36,918,565 |
Reinvestment of distributions | 90,001 | 15,288 | 2,465,972 | 354,761 |
Shares redeemed | (687,270) | (514,863) | (18,734,614) | (13,443,816) |
Net increase (decrease) | (21,584) | 874,145 | $ (511,262) | $ 23,829,510 |
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
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Focus Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2015 meeting, the Board, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale exist and would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of SelectCo and the sub-advisers (together with SelectCo, the Investment Advisers) as it relates to the funds, including the backgrounds of investment personnel of SelectCo, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the investment staff of the Investment Advisers, including its size, education, experience, and resources, as well as the Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers, and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing SelectCo to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for Advisor Communications Equipment and Advisor Consumer Discretionary in September 2014 and June 2014, respectively.
The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund, for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance. Advisor Consumer Discretionary underperformed its benchmark for the one-, three-, and five-year periods ended May 31, 2014, and as a result, the Board will continue to discuss with SelectCo the steps it has taken and is taking to address the fund's performance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; tactical opportunities for investment; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for each fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2014.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and making the competitive group more inclusive.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the charts and considered by the Board.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Fidelity Advisor Communications Equipment Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Advisor Consumer Discretionary Fund
Fidelity Advisor Electronics Fund
Semiannual Report
Fidelity Advisor Energy Fund
Fidelity Advisor Financial Services Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Advisor Health Care Fund
Fidelity Advisor Industrials Fund
Semiannual Report
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Fund
The Board noted that each fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for the 12-month period ended June 30, 2014.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that each fund receives and the other factors considered.
Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the funds. As part of its review, the Board also considered the current and historical total expense ratios of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
For Advisor Energy, Advisor Health Care, Advisor Industrials, and Advisor Technology, the Board noted that the total expense ratio of each class ranked below its competitive median for the 12-month period ended June 30, 2014.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
For Advisor Biotechnology, the Board noted that the total expense ratio of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of Class T ranked equal to its competitive median for the 12-month period ended June 30, 2014.
For Advisor Consumer Discretionary, Advisor Financial Services, and Advisor Utilities, the Board noted that the total expense ratio of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of Class T ranked above its competitive median for the 12-month period ended June 30, 2014.
For Advisor Communications Equipment and Advisor Electronics, the Board noted that the total expense ratio of Class A ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of each of Class T, Class B, Class C, and Institutional Class ranked above its competitive median for the 12-month period ended June 30, 2014. The Board noted that total expenses ratios for these classes were above the median as a result of higher transfer agent fees to due to small average account sizes as compared to other Fidelity funds.
The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Class T of certain funds was above the competitive median primarily because of higher 12b-1 fees on Class T as compared to most competitor funds. Class T has a higher 12b-1 fee, but a lower front-end sales charge, than traditionally priced front-end sales charge classes. The Board considered that Class T is primarily sold load-waived in the retirement plan market where its 0.50% 12b-1 fee is comparable to competing no-load, higher 12b-1 fee classes designed specifically for retirement plans. The Board noted that each fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes of each fund vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that each fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the profitability analysis used by Fidelity. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Semiannual Report
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under SelectCo's management plus assets under FMR's management). SelectCo calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total group assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (viii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Semiannual Report
Investments
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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-0315
1.789279.112
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, 2015
(Fidelity Cover Art)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 FMR LLC. All rights reserved.
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
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,335.00 | $ 6.24 |
HypotheticalA | | $ 1,000.00 | $ 1,019.86 | $ 5.40 |
Class T | 1.37% | | | |
Actual | | $ 1,000.00 | $ 1,332.80 | $ 8.06 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.97 |
Class B | 1.85% | | | |
Actual | | $ 1,000.00 | $ 1,329.40 | $ 10.86 |
HypotheticalA | | $ 1,000.00 | $ 1,015.88 | $ 9.40 |
Class C | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,330.00 | $ 10.63 |
HypotheticalA | | $ 1,000.00 | $ 1,016.08 | $ 9.20 |
Institutional Class | .79% | | | |
Actual | | $ 1,000.00 | $ 1,336.40 | $ 4.65 |
HypotheticalA | | $ 1,000.00 | $ 1,021.22 | $ 4.02 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Gilead Sciences, Inc. | 11.3 | 15.3 |
Celgene Corp. | 7.3 | 6.1 |
Biogen Idec, Inc. | 7.1 | 3.7 |
Alexion Pharmaceuticals, Inc. | 4.7 | 3.4 |
Regeneron Pharmaceuticals, Inc. | 4.1 | 3.3 |
Vertex Pharmaceuticals, Inc. | 4.0 | 5.5 |
BioMarin Pharmaceutical, Inc. | 2.7 | 1.9 |
Amgen, Inc. | 2.3 | 3.4 |
Zafgen, Inc. | 1.9 | 1.0 |
Receptos, Inc. | 1.9 | 0.6 |
| 47.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
 | Biotechnology | 94.2% | |
 | Pharmaceuticals | 5.2% | |
 | Health Care Equipment & Supplies | 0.1% | |
 | Life Sciences Tools & Services | 0.0%† | |
 | Personal Products | 0.0%† | |
 | All Others* | 0.5% | |
As of July 31, 2014 |
| Biotechnology | 94.8% | |
| Pharmaceuticals | 5.1% | |
| Life Sciences Tools & Services | 0.0%† | |
| Personal Products | 0.0%† | |
| Health Care Equipment & Supplies | 0.0%† | |
| All Others* | 0.1% | |
* Includes short-term investments and net other assets (liabilities). |
† Amount represents less than 0.1% |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
BIOTECHNOLOGY - 93.7% |
Biotechnology - 93.7% |
ACADIA Pharmaceuticals, Inc. (a)(d) | 419,186 | | $ 12,755,830 |
Acceleron Pharma, Inc. (a) | 509,544 | | 20,111,702 |
Achillion Pharmaceuticals, Inc. (a)(d) | 1,230,172 | | 18,268,054 |
Acorda Therapeutics, Inc. (a) | 665,453 | | 27,649,572 |
Actelion Ltd. | 75,331 | | 8,368,288 |
Adamas Pharmaceuticals, Inc. | 291,247 | | 4,901,687 |
ADMA Biologics, Inc. (a) | 50,300 | | 543,240 |
Aegerion Pharmaceuticals, Inc. (a)(d) | 516,697 | | 11,997,704 |
Agenus, Inc. (a) | 9,425 | | 47,408 |
Agenus, Inc. warrants 1/9/18 (a) | 452,000 | | 18,523 |
Agios Pharmaceuticals, Inc. (a) | 19,487 | | 2,258,933 |
Akebia Therapeutics, Inc. (a) | 98,877 | | 1,015,467 |
Alder Biopharmaceuticals, Inc. | 60,509 | | 1,638,584 |
Aldeyra Therapeutics, Inc. (h) | 278,295 | | 3,367,370 |
Alexion Pharmaceuticals, Inc. (a) | 659,824 | | 120,906,150 |
Alkermes PLC (a) | 327,741 | | 23,679,287 |
Alnylam Pharmaceuticals, Inc. (a) | 198,961 | | 18,668,511 |
AMAG Pharmaceuticals, Inc. (a) | 118,935 | | 5,255,738 |
Amgen, Inc. | 387,830 | | 59,050,996 |
Anacor Pharmaceuticals, Inc. (a)(d) | 281,313 | | 10,577,369 |
Applied Genetic Technologies Corp. | 208,796 | | 5,215,724 |
Ardelyx, Inc. | 528,366 | | 14,271,166 |
ARIAD Pharmaceuticals, Inc. (a)(d) | 815,995 | | 5,263,168 |
Array BioPharma, Inc. (a) | 378,104 | | 2,707,225 |
Arrowhead Research Corp. (a)(d) | 209,517 | | 1,322,052 |
Asterias Biotherapeutics, Inc. (a)(d) | 115,938 | | 467,114 |
Atara Biotherapeutics, Inc. | 191,800 | | 4,672,248 |
Auspex Pharmaceuticals, Inc. | 290,317 | | 17,839,980 |
Avalanche Biotechnologies, Inc. (a) | 35,297 | | 1,400,585 |
Avalanche Biotechnologies, Inc. (e) | 89,832 | | 3,564,534 |
BioCryst Pharmaceuticals, Inc. (a) | 168,200 | | 1,712,276 |
Biogen Idec, Inc. (a) | 465,199 | | 181,036,843 |
BioMarin Pharmaceutical, Inc. (a) | 705,538 | | 68,550,072 |
Bionovo, Inc. warrants 2/2/16 (a) | 56,850 | | 1 |
bluebird bio, Inc. (a) | 26,449 | | 2,457,377 |
Calithera Biosciences, Inc. (d) | 353,800 | | 7,037,082 |
Cara Therapeutics, Inc. | 106,388 | | 1,147,927 |
Catalyst Pharmaceutical Partners, Inc.: | | | |
warrants 5/2/17 (a) | 8,557 | | 20,784 |
warrants 5/30/17 (a) | 17,900 | | 47,553 |
Celgene Corp. (a) | 1,570,303 | | 187,117,305 |
Cell Therapeutics, Inc. warrants 7/6/16 (a) | 46,404 | | 29 |
Celladon Corp. (a) | 4,066 | | 69,244 |
Celldex Therapeutics, Inc. (a)(d) | 415,302 | | 8,895,769 |
Cepheid, Inc. (a) | 51,400 | | 2,904,614 |
Cerulean Pharma, Inc. | 530,000 | | 4,107,500 |
Chimerix, Inc. (a) | 239,005 | | 9,586,491 |
Clovis Oncology, Inc. (a) | 81,334 | | 5,302,163 |
Coherus BioSciences, Inc. | 74,000 | | 1,660,560 |
CTI BioPharma Corp. (a) | 464,007 | | 1,020,815 |
|
| Shares | | Value |
Cytokinetics, Inc. (a) | 67,916 | | $ 481,524 |
Cytokinetics, Inc. warrants 6/25/17 (a) | 244,500 | | 72,066 |
Dicerna Pharmaceuticals, Inc. | 45,606 | | 972,320 |
Dyax Corp. (a) | 1,237,034 | | 18,691,584 |
Eleven Biotherapeutics, Inc. | 123,940 | | 1,437,704 |
Emergent BioSolutions, Inc. (a) | 146,555 | | 4,107,937 |
Enanta Pharmaceuticals, Inc. (a) | 140,822 | | 6,117,308 |
Epirus Biopharmaceuticals, Inc. (a) | 254,100 | | 1,257,795 |
Epizyme, Inc. (a)(d) | 1,033,471 | | 19,780,635 |
Esperion Therapeutics, Inc. (a) | 237,134 | | 10,884,451 |
Exact Sciences Corp. (a)(d) | 364,159 | | 9,908,766 |
Exelixis, Inc. (a)(d) | 263,845 | | 493,390 |
Fate Therapeutics, Inc. (a) | 145,502 | | 742,060 |
Fibrocell Science, Inc. (a) | 279,800 | | 1,158,372 |
FibroGen, Inc. | 59,400 | | 1,754,082 |
Forward Pharma A/S sponsored ADR (d) | 23,100 | | 569,877 |
Foundation Medicine, Inc. (a)(d) | 159,200 | | 7,587,472 |
Genmab A/S (a) | 358,717 | | 24,122,021 |
Genocea Biosciences, Inc. | 97,479 | | 836,370 |
Genomic Health, Inc. (a)(d) | 54,120 | | 1,746,994 |
Geron Corp. (a)(d) | 2,782,517 | | 8,848,404 |
Gilead Sciences, Inc. (a) | 2,767,007 | | 290,065,334 |
Halozyme Therapeutics, Inc. (a)(d) | 484,507 | | 6,918,760 |
Histogenics Corp. (h) | 672,534 | | 5,729,990 |
Hyperion Therapeutics, Inc. (a) | 291,271 | | 7,369,156 |
Ignyta, Inc. (a) | 237,700 | | 1,616,360 |
Immune Design Corp. (a) | 131,100 | | 3,289,299 |
ImmunoGen, Inc. (a)(d) | 184,438 | | 1,407,262 |
Immunomedics, Inc. (a)(d) | 616,759 | | 3,299,661 |
Incyte Corp. (a) | 575,009 | | 45,833,967 |
Infinity Pharmaceuticals, Inc. (a) | 287,434 | | 4,437,981 |
Insys Therapeutics, Inc. (a)(d) | 245,684 | | 11,738,782 |
Intercept Pharmaceuticals, Inc. (a)(d) | 168,060 | | 33,785,102 |
Intrexon Corp. (a)(d) | 182,908 | | 5,251,289 |
Ironwood Pharmaceuticals, Inc.
Class A (a) | 670,651 | | 10,448,743 |
Isis Pharmaceuticals, Inc. (a)(d) | 355,594 | | 24,361,745 |
Juno Therapeutics, Inc. | 214,673 | | 8,259,544 |
Juno Therapeutics, Inc. | 66,400 | | 2,838,600 |
Karyopharm Therapeutics, Inc. (a)(d) | 561,974 | | 14,909,170 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 638,024 | | 7,758,372 |
Kite Pharma, Inc. (d) | 212,437 | | 14,265,145 |
KYTHERA Biopharmaceuticals, Inc. (a)(d) | 219,330 | | 8,159,076 |
La Jolla Pharmaceutical Co. (a) | 196,861 | | 4,299,444 |
Lexicon Pharmaceuticals, Inc. (a)(d) | 5,501,792 | | 5,006,631 |
Ligand Pharmaceuticals, Inc. Class B (a) | 96,025 | | 5,465,743 |
Lion Biotechnologies, Inc. (a) | 272,346 | | 2,137,916 |
Macrogenics, Inc. (a) | 461,857 | | 14,603,918 |
MannKind Corp. (a)(d) | 1,151,662 | | 7,313,054 |
Medivation, Inc. (a) | 431,077 | | 46,909,799 |
MEI Pharma, Inc. (a) | 119,900 | | 472,406 |
Merrimack Pharmaceuticals, Inc. (a) | 60,200 | | 567,686 |
MiMedx Group, Inc. (a)(d) | 250,413 | | 2,042,118 |
Common Stocks - continued |
| Shares | | Value |
BIOTECHNOLOGY - CONTINUED |
Biotechnology - continued |
Minerva Neurosciences, Inc. | 228,600 | | $ 1,001,268 |
Momenta Pharmaceuticals, Inc. (a) | 121,037 | | 1,303,568 |
Myriad Genetics, Inc. (a)(d) | 195,057 | | 7,299,033 |
Neurocrine Biosciences, Inc. (a) | 624,728 | | 21,028,344 |
NewLink Genetics Corp. (a)(d) | 252,479 | | 9,238,207 |
Novavax, Inc. (a)(d) | 2,301,331 | | 17,973,395 |
Novelos Therapeutics, Inc. warrants 12/6/16 (a) | 137,600 | | 74 |
OncoMed Pharmaceuticals, Inc. (a)(d) | 120,434 | | 2,753,121 |
Ophthotech Corp. (a)(d) | 660,937 | | 37,177,706 |
Opko Health, Inc. (a)(d) | 586,151 | | 7,110,012 |
Oragenics, Inc. (a) | 250,308 | | 195,290 |
Orexigen Therapeutics, Inc. (a)(d) | 1,621,438 | | 8,512,550 |
Organovo Holdings, Inc. (a)(d) | 194,083 | | 1,247,954 |
Osiris Therapeutics, Inc. (a)(d) | 203,971 | | 3,290,052 |
OvaScience, Inc. (a)(d) | 193,445 | | 8,407,120 |
Paratek Pharmaceuticals, Inc. (a) | 100 | | 2,470 |
Paratek Pharmaceuticals, Inc. (e) | 399,100 | | 9,857,770 |
Pharmacyclics, Inc. (a)(d) | 277,679 | | 46,858,331 |
PolyMedix, Inc. warrants 4/10/16 (a) | 163,833 | | 2 |
Portola Pharmaceuticals, Inc. (a) | 418,182 | | 11,888,914 |
Progenics Pharmaceuticals, Inc. (a) | 793,543 | | 4,745,387 |
ProQR Therapeutics BV (a) | 11,500 | | 230,920 |
ProQR Therapeutics BV | 237,916 | | 4,299,618 |
Proteon Therapeutics, Inc. | 137,500 | | 1,450,625 |
Prothena Corp. PLC (a) | 98,834 | | 2,236,613 |
PTC Therapeutics, Inc. (a) | 338,966 | | 18,612,623 |
Puma Biotechnology, Inc. (a) | 216,958 | | 45,795,495 |
Radius Health, Inc. (a)(d) | 589,151 | | 28,391,187 |
Raptor Pharmaceutical Corp. (a)(d) | 460,173 | | 4,159,964 |
Receptos, Inc. (a) | 450,142 | | 49,592,144 |
Regeneron Pharmaceuticals, Inc. (a) | 252,661 | | 105,273,732 |
Regulus Therapeutics, Inc. (a)(d) | 254,763 | | 4,878,711 |
Repligen Corp. (a) | 361,227 | | 8,774,204 |
Rigel Pharmaceuticals, Inc. (a) | 643,465 | | 1,331,973 |
Sage Therapeutics, Inc. (d) | 230,161 | | 9,296,203 |
Sage Therapeutics, Inc. (e) | 25,896 | | 1,045,939 |
Sangamo Biosciences, Inc. (a)(d) | 657,868 | | 8,414,132 |
Sarepta Therapeutics, Inc. (a)(d) | 160,901 | | 1,930,812 |
Seattle Genetics, Inc. (a)(d) | 196,850 | | 6,133,846 |
Sophiris Bio, Inc. (a) | 141,653 | | 67,993 |
Spark Therapeutics, Inc. | 154,856 | | 7,742,800 |
Spectrum Pharmaceuticals, Inc. (a) | 338,247 | | 2,367,729 |
Stemline Therapeutics, Inc. (a)(d) | 348,093 | | 5,388,480 |
Sunesis Pharmaceuticals, Inc. (a)(d) | 830,240 | | 1,959,366 |
Synageva BioPharma Corp. (a)(d) | 226,192 | | 26,061,842 |
Synergy Pharmaceuticals, Inc. (a)(d) | 165,484 | | 481,558 |
Synta Pharmaceuticals Corp. (a)(d) | 471,286 | | 1,121,661 |
TESARO, Inc. (a)(d) | 153,779 | | 6,186,529 |
TG Therapeutics, Inc. (a)(d) | 473,786 | | 6,746,713 |
|
| Shares | | Value |
Threshold Pharmaceuticals, Inc. (a) | 26,804 | | $ 99,711 |
Threshold Pharmaceuticals, Inc. warrants 3/16/16 (a) | 35,146 | | 51,457 |
Tokai Pharmaceuticals, Inc. (d) | 91,000 | | 1,115,660 |
Ultragenyx Pharmaceutical, Inc. | 327,960 | | 19,054,476 |
uniQure B.V. | 108,149 | | 2,271,129 |
United Therapeutics Corp. (a) | 142,294 | | 20,081,952 |
Verastem, Inc. (a) | 331,008 | | 2,416,358 |
Versartis, Inc. (a)(d) | 331,876 | | 5,884,161 |
Vertex Pharmaceuticals, Inc. (a) | 916,326 | | 100,924,146 |
Vical, Inc. (a) | 659,862 | | 686,256 |
Vitae Pharmaceuticals, Inc. | 544,397 | | 7,931,864 |
Vital Therapies, Inc. | 260,400 | | 5,140,296 |
Xencor, Inc. (a) | 187,673 | | 2,843,246 |
Xenon Pharmaceuticals, Inc. | 102,215 | | 1,818,405 |
XOMA Corp. (a)(d) | 1,024,434 | | 3,646,985 |
Zafgen, Inc. (d) | 1,306,751 | | 49,669,606 |
| | 2,396,111,487 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.1% |
Health Care Equipment - 0.1% |
Alsius Corp. (a) | 14,200 | | 0 |
Ocular Therapeutix, Inc. | 35,071 | | 1,068,964 |
Zosano Pharma Corp. | 172,100 | | 1,908,589 |
| | 2,977,553 |
LIFE SCIENCES TOOLS & SERVICES - 0.0% |
Life Sciences Tools & Services - 0.0% |
Transgenomic, Inc. (a) | 13,500 | | 50,490 |
Transgenomic, Inc. warrants 2/3/17 (a) | 81,000 | | 714 |
| | 51,204 |
PERSONAL PRODUCTS - 0.0% |
Personal Products - 0.0% |
MYOS Corp. (a) | 6,666 | | 39,329 |
PHARMACEUTICALS - 4.9% |
Pharmaceuticals - 4.9% |
AcelRx Pharmaceuticals, Inc. (a)(d) | 52,410 | | 351,147 |
Achaogen, Inc. (a) | 141,215 | | 1,652,216 |
Adimab LLC unit (f)(g) | 225,035 | | 3,199,998 |
Aradigm Corp. (a) | 8,786 | | 65,483 |
Auris Medical Holding AG (a) | 261,667 | | 1,036,201 |
Dermira, Inc. | 336,700 | | 5,673,395 |
Dermira, Inc. | 162,931 | | 2,470,849 |
Egalet Corp. (d) | 329,668 | | 2,884,595 |
Flex Pharma, Inc. | 22,600 | | 333,124 |
GW Pharmaceuticals PLC ADR (a) | 25,500 | | 1,860,735 |
Horizon Pharma PLC (a)(d) | 811,450 | | 13,332,124 |
Horizon Pharma PLC warrants 9/25/17 (a) | 55,250 | | 669,369 |
Intra-Cellular Therapies, Inc. (a) | 225,154 | | 4,372,491 |
Jazz Pharmaceuticals PLC (a) | 196,031 | | 33,195,890 |
Common Stocks - continued |
| Shares | | Value |
PHARMACEUTICALS - CONTINUED |
Pharmaceuticals - continued |
Nektar Therapeutics (a) | 277,332 | | $ 4,060,140 |
NeurogesX, Inc. (a) | 150,000 | | 540 |
Pacira Pharmaceuticals, Inc. (a) | 152,160 | | 16,334,376 |
Parnell Pharmaceuticals Holdings Ltd. | 123,569 | | 543,704 |
Relypsa, Inc. (a)(d) | 18,527 | | 650,854 |
Repros Therapeutics, Inc. (a)(d) | 721,683 | | 6,206,474 |
Tetraphase Pharmaceuticals, Inc. (a) | 267,931 | | 9,741,971 |
TherapeuticsMD, Inc. (a)(d) | 696,212 | | 2,826,621 |
Theravance, Inc. (d) | 249,076 | | 2,807,087 |
Zogenix, Inc. (a)(d) | 1,284,991 | | 1,734,738 |
Zogenix, Inc. warrants 7/27/17 (a) | 32,985 | | 2,650 |
ZS Pharma, Inc. (d) | 216,586 | | 9,731,209 |
| | 125,737,981 |
TOTAL COMMON STOCKS (Cost $1,731,138,089) |
2,524,917,554
|
Preferred Stocks - 0.8% |
| | | |
Convertible Preferred Stocks - 0.8% |
BIOTECHNOLOGY - 0.5% |
Biotechnology - 0.5% |
Aduro Biotech, Inc. Series D (g) | 480,225 | | 1,298,000 |
Moderna LLC Series E (g) | 54,410 | | 3,355,465 |
Pronutria Biosciences, Inc. Series C (g) | 341,857 | | 3,445,919 |
Seres Health, Inc. 8.00% (g) | 352,270 | | 4,284,730 |
| | 12,384,114 |
PHARMACEUTICALS - 0.3% |
Pharmaceuticals - 0.3% |
aTyr Pharma, Inc. 8.00% (a)(g) | 282,494 | | 714,427 |
Global Blood Therapeutics, Inc.
Series B (a)(g) | 1,814,085 | | 4,535,213 |
Kolltan Pharmaceuticals, Inc.
Series D (g) | 1,610,391 | | 1,610,391 |
Syros Pharmaceuticals, Inc. Series B, 6.00% (g) | 163,994 | | 515,942 |
| | 7,375,973 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 19,760,087 |
Nonconvertible Preferred Stocks - 0.0% |
BIOTECHNOLOGY - 0.0% |
Biotechnology - 0.0% |
Moderna LLC Series D, 8.00% (a)(g) | 26,918 | | 1,660,033 |
TOTAL PREFERRED STOCKS (Cost $20,334,248) |
21,420,120
|
Money Market Funds - 8.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 24,979,751 | | $ 24,979,751 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 189,117,680 | | 189,117,680 |
TOTAL MONEY MARKET FUNDS (Cost $214,097,431) |
214,097,431
|
TOTAL INVESTMENT PORTFOLIO - 107.9% (Cost $1,965,569,768) | | 2,760,435,105 |
NET OTHER ASSETS (LIABILITIES) - (7.9)% | | (202,363,990) |
NET ASSETS - 100% | $ 2,558,071,115 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 $14,468,243 or 0.6% of net assets. |
(f) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $24,620,117 or 1.0% of net assets. |
(h) Affiliated company |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Adimab LLC unit | 9/17/14 | $ 3,199,998 |
Aduro Biotech, Inc. Series D | 12/19/14 | $ 1,298,000 |
aTyr Pharma, Inc. 8.00% | 4/8/13 - 5/17/13 | $ 714,427 |
Global Blood Therapeutics, Inc. Series B | 12/22/14 | $ 4,535,213 |
Kolltan Pharmaceuticals, Inc. Series D | 3/13/14 | $ 1,610,391 |
Moderna LLC Series D, 8.00% | 11/6/13 | $ 574,161 |
Moderna LLC Series E | 12/18/14 | $ 3,355,465 |
Pronutria Biosciences, Inc. Series C | 1/30/15 | $ 3,445,919 |
Seres Health, Inc. 8.00% | 11/24/14 | $ 4,284,730 |
Syros Pharmaceuticals, Inc. Series B, 6.00% | 10/9/14 | $ 515,942 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 7,294 |
Fidelity Securities Lending Cash Central Fund | 2,027,020 |
Total | $ 2,034,314 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Aldeyra Therapeutics, Inc. | $ 993,513 | $ - | $ - | $ - | $ 3,367,370 |
Histogenics Corp. | - | 7,408,337 | - | - | 5,729,990 |
Total | $ 993,513 | $ 7,408,337 | $ - | $ - | $ 9,097,360 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 2,524,917,554 | $ 2,505,804,323 | $ 15,913,233 | $ 3,199,998 |
Preferred Stocks | 21,420,120 | - | - | 21,420,120 |
Money Market Funds | 214,097,431 | 214,097,431 | - | - |
Total Investments in Securities: | $ 2,760,435,105 | $ 2,719,901,754 | $ 15,913,233 | $ 24,620,118 |
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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $181,562,173) - See accompanying schedule: Unaffiliated issuers (cost $1,741,844,659) | $ 2,537,240,314 | |
Fidelity Central Funds (cost $214,097,431) | 214,097,431 | |
Other affiliated issuers (cost $9,627,678) | 9,097,360 | |
Total Investments (cost $1,965,569,768) | | $ 2,760,435,105 |
Cash | | 94,085 |
Receivable for investments sold | | 2,775,603 |
Receivable for fund shares sold | | 21,183,472 |
Distributions receivable from Fidelity Central Funds | | 368,085 |
Prepaid expenses | | 7,000 |
Other receivables | | 7,286 |
Total assets | | 2,784,870,636 |
| | |
Liabilities | | |
Payable for investments purchased | $ 33,002,843 | |
Payable for fund shares redeemed | 2,338,706 | |
Accrued management fee | 1,100,328 | |
Distribution and service plan fees payable | 716,593 | |
Other affiliated payables | 404,671 | |
Other payables and accrued expenses | 118,700 | |
Collateral on securities loaned, at value | 189,117,680 | |
Total liabilities | | 226,799,521 |
| | |
Net Assets | | $ 2,558,071,115 |
Net Assets consist of: | | |
Paid in capital | | $ 1,726,481,626 |
Accumulated net investment loss | | (15,273,795) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 51,997,794 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 794,865,490 |
Net Assets | | $ 2,558,071,115 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($966,468,621 ÷ 36,782,345 shares) | | $ 26.28 |
| | |
Maximum offering price per share (100/94.25 of $26.23) | | $ 27.88 |
Class T:
Net Asset Value and redemption price per share ($142,282,219 ÷ 5,652,263 shares) | | $ 25.17 |
| | |
Maximum offering price per share (100/96.50 of $25.13) | | $ 26.08 |
Class B:
Net Asset Value and offering price per share ($7,477,457 ÷ 321,301 shares)A | | $ 23.27 |
| | |
Class C:
Net Asset Value and offering price per share ($591,265,520 ÷ 25,356,678 shares)A | | $ 23.32 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($850,577,298 ÷ 30,911,171 shares) | | $ 27.52 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 925,881 |
Income from Fidelity Central Funds (including $2,027,020 from security lending) | | 2,034,314 |
Total income | | 2,960,195 |
| | |
Expenses | | |
Management fee | $ 5,348,844 | |
Transfer agent fees | 1,877,212 | |
Distribution and service plan fees | 3,532,304 | |
Accounting and security lending fees | 311,239 | |
Custodian fees and expenses | 37,799 | |
Independent trustees' compensation | 16,484 | |
Registration fees | 197,824 | |
Audit | 22,381 | |
Legal | 9,037 | |
Miscellaneous | 8,170 | |
Total expenses before reductions | 11,361,294 | |
Expense reductions | (13,352) | 11,347,942 |
Net investment income (loss) | | (8,387,747) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 95,106,083 | |
Foreign currency transactions | 463 | |
Total net realized gain (loss) | | 95,106,546 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 463,590,104 | |
Assets and liabilities in foreign currencies | 153 | |
Total change in net unrealized appreciation (depreciation) | | 463,590,257 |
Net gain (loss) | | 558,696,803 |
Net increase (decrease) in net assets resulting from operations | | $ 550,309,056 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (8,387,747) | $ (9,882,130) |
Net realized gain (loss) | 95,106,546 | 15,835,693 |
Change in net unrealized appreciation (depreciation) | 463,590,257 | 126,643,560 |
Net increase (decrease) in net assets resulting from operations | 550,309,056 | 132,597,123 |
Distributions to shareholders from net investment income | (69,565) | - |
Distributions to shareholders from net realized gain | (51,361,891) | (3,083,051) |
Total distributions | (51,431,456) | (3,083,051) |
Share transactions - net increase (decrease) | 528,636,294 | 713,552,409 |
Redemption fees | 30,654 | 133,198 |
Total increase (decrease) in net assets | 1,027,544,548 | 843,199,679 |
| | |
Net Assets | | |
Beginning of period | 1,530,526,567 | 687,326,888 |
End of period (including accumulated net investment loss of $15,273,795 and accumulated net investment loss of $6,816,483, respectively) | $ 2,558,071,115 | $ 1,530,526,567 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.19 | $ 17.25 | $ 11.79 | $ 8.81 | $ 6.67 | $ 6.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.09) | (.13) | (.09) | (.07) | (.07) H | (.08) I |
Net realized and unrealized gain (loss) | 6.78 | 3.12 | 6.24 | 3.05 | 2.21 | (.19) |
Total from investment operations | 6.69 | 2.99 | 6.15 | 2.98 | 2.14 | (.27) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 26.28 | $ 20.19 | $ 17.25 | $ 11.79 | $ 8.81 | $ 6.67 |
Total ReturnB, C, D | 33.50% | 17.38% | 54.94% | 33.83% | 32.08% | (3.89)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.06%A | 1.08% | 1.15% | 1.27% | 1.35% | 1.39% |
Expenses net of fee waivers, if any | 1.06%A | 1.08% | 1.15% | 1.27% | 1.35% | 1.39% |
Expenses net of all reductions | 1.06%A | 1.08% | 1.14% | 1.27% | 1.34% | 1.38% |
Net investment income (loss) | (.75)%A | (.68)% | (.63)% | (.73)% | (.91)% H | (1.15)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 966,469 | $ 602,625 | $ 286,695 | $ 68,993 | $ 30,639 | $ 20,154 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.39 | $ 16.63 | $ 11.42 | $ 8.56 | $ 6.50 | $ 6.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.19) | (.12) | (.10) | (.09) H | (.09) I |
Net realized and unrealized gain (loss) | 6.50 | 3.00 | 6.02 | 2.96 | 2.15 | (.19) |
Total from investment operations | 6.38 | 2.81 | 5.90 | 2.86 | 2.06 | (.28) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 25.17 | $ 19.39 | $ 16.63 | $ 11.42 | $ 8.56 | $ 6.50 |
Total ReturnB, C, D | 33.28% | 16.95% | 54.50% | 33.41% | 31.69% | (4.13)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.37%A | 1.41% | 1.46% | 1.56% | 1.64% | 1.69% |
Expenses net of fee waivers, if any | 1.37%A | 1.41% | 1.46% | 1.56% | 1.64% | 1.65% |
Expenses net of all reductions | 1.37%A | 1.40% | 1.46% | 1.56% | 1.64% | 1.64% |
Net investment income (loss) | (1.07)%A | (1.01)% | (.94)% | (1.02)% | (1.21)% H | (1.41)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 142,282 | $ 95,945 | $ 67,887 | $ 28,154 | $ 16,454 | $ 11,684 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.01 | $ 15.52 | $ 10.75 | $ 8.09 | $ 6.17 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.16) | (.26) | (.17) | (.13) | (.12) H | (.12) I |
Net realized and unrealized gain (loss) | 6.02 | 2.80 | 5.63 | 2.79 | 2.04 | (.18) |
Total from investment operations | 5.86 | 2.54 | 5.46 | 2.66 | 1.92 | (.30) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 23.27 | $ 18.01 | $ 15.52 | $ 10.75 | $ 8.09 | $ 6.17 |
Total ReturnB, C, D | 32.94% | 16.42% | 53.76% | 32.88% | 31.12% | (4.64)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.85%A | 1.89% | 1.94% | 2.03% | 2.10% | 2.14% |
Expenses net of fee waivers, if any | 1.85%A | 1.89% | 1.94% | 2.03% | 2.10% | 2.14% |
Expenses net of all reductions | 1.85%A | 1.88% | 1.94% | 2.02% | 2.09% | 2.13% |
Net investment income (loss) | (1.55)%A | (1.49)% | (1.42)% | (1.49)% | (1.66)% H | (1.90)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,477 | $ 6,101 | $ 8,136 | $ 6,349 | $ 5,849 | $ 6,297 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.04 | $ 15.53 | $ 10.76 | $ 8.10 | $ 6.18 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.16) | (.25) | (.17) | (.13) | (.12) H | (.12) I |
Net realized and unrealized gain (loss) | 6.04 | 2.81 | 5.63 | 2.79 | 2.04 | (.17) |
Total from investment operations | 5.88 | 2.56 | 5.46 | 2.66 | 1.92 | (.29) |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 23.32 | $ 18.04 | $ 15.53 | $ 10.76 | $ 8.10 | $ 6.18 |
Total ReturnB, C, D | 33.00% | 16.54% | 53.71% | 32.84% | 31.07% | (4.48)% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.81%A | 1.83% | 1.88% | 2.01% | 2.10% | 2.14% |
Expenses net of fee waivers, if any | 1.81%A | 1.83% | 1.88% | 2.01% | 2.10% | 2.14% |
Expenses net of all reductions | 1.81%A | 1.83% | 1.87% | 2.01% | 2.09% | 2.13% |
Net investment income (loss) | (1.50)%A | (1.43)% | (1.36)% | (1.47)% | (1.66)% H | (1.90)% I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 591,266 | $ 359,967 | $ 146,684 | $ 31,710 | $ 15,787 | $ 11,421 |
Portfolio turnover rateG | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.10 | $ 17.97 | $ 12.22 | $ 9.10 | $ 6.87 | $ 7.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.06) | (.08) | (.05) | (.04) | (.05) G | (.06) H |
Net realized and unrealized gain (loss) | 7.09 | 3.26 | 6.49 | 3.16 | 2.28 | (.19) |
Total from investment operations | 7.03 | 3.18 | 6.44 | 3.12 | 2.23 | (.25) |
Distributions from net investment income | - J | - | - | - | - | - |
Distributions from net realized gain | (.60) | (.05) | (.69) | - | - | - |
Total distributions | (.61) K | (.05) | (.69) | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 27.52 | $ 21.10 | $ 17.97 | $ 12.22 | $ 9.10 | $ 6.87 |
Total ReturnB, C | 33.64% | 17.74% | 55.39% | 34.29% | 32.46% | (3.51)% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | .79%A | .81% | .85% | .95% | 1.04% | 1.07% |
Expenses net of fee waivers, if any | .79%A | .81% | .85% | .95% | 1.04% | 1.07% |
Expenses net of all reductions | .79%A | .80% | .84% | .94% | 1.03% | 1.06% |
Net investment income (loss) | (.49)%A | (.41)% | (.32)% | (.40)% | (.60)% G | (.83)% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 850,577 | $ 465,889 | $ 177,926 | $ 26,772 | $ 5,903 | $ 3,008 |
Portfolio turnover rateF | 37% A | 50% | 22% | 82% | 99% | 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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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. K Total distributions of $.61 per share is comprised of distributions from net investment income of $.604 and distributions from net realized gain of $.003 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. During the period, the dividend income has been increased $415,705 with a corresponding decrease to unrealized appreciation (depreciation) as a result of a change in the prior period estimate, which had no impact on the total net assets or the total return of the Fund. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 881,589,325 |
Gross unrealized depreciation | (93,202,470) |
Net unrealized appreciation (depreciation) on securities | $ 788,386,855 |
| |
Tax cost | $ 1,972,048,250 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $818,445,558 and $360,337,192, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 927,482 | $ 17,418 |
Class T | .25% | .25% | 291,402 | - |
Class B | .75% | .25% | 33,592 | 25,194 |
Class C | .75% | .25% | 2,279,828 | 1,099,094 |
| | | $ 3,532,304 | $ 1,141,706 |
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 shares, 1.00% for Class C shares, 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 | $ 653,053 |
Class T | 38,213 |
Class B* | 1,888 |
Class C* | 67,270 |
| $ 760,424 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 718,187 | .19 |
Class T | 150,902 | .26 |
Class B | 8,048 | .24 |
Class C | 442,079 | .19 |
Institutional Class | 557,996 | .18 |
| $ 1,877,212 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $26,355 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,229 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $13,352 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Institutional Class | $ 69,565 | $ - |
Total | $ 69,565 | $ - |
From net realized gain | | |
Class A | $ 19,162,661 | $ 1,291,021 |
Class T | 3,137,056 | 234,772 |
Class B | 191,809 | 24,488 |
Class C | 13,249,585 | 722,216 |
Institutional Class | 15,620,780 | 810,554 |
Total | $ 51,361,891 | $ 3,083,051 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 10,821,266 | 26,291,422 | $ 259,320,079 | $ 513,888,215 |
Reinvestment of distributions | 750,773 | 64,680 | 17,834,338 | 1,162,299 |
Shares redeemed | (4,636,336) | (13,129,582) | (105,417,399) | (254,303,314) |
Net increase (decrease) | 6,935,703 | 13,226,520 | $ 171,737,018 | $ 260,747,200 |
Class T | | | | |
Shares sold | 1,107,249 | 2,490,442 | $ 25,483,097 | $ 47,007,190 |
Reinvestment of distributions | 134,415 | 13,197 | 3,058,637 | 228,306 |
Shares redeemed | (536,346) | (1,639,876) | (11,876,240) | (30,470,117) |
Net increase (decrease) | 705,318 | 863,763 | $ 16,665,494 | $ 16,765,379 |
Class B | | | | |
Shares sold | 37,870 | 92,681 | $ 799,199 | $ 1,623,597 |
Reinvestment of distributions | 8,590 | 1,384 | 180,710 | 22,292 |
Shares redeemed | (63,887) | (279,647) | (1,312,401) | (4,810,522) |
Net increase (decrease) | (17,427) | (185,582) | $ (332,492) | $ (3,164,633) |
Class C | | | | |
Shares sold | 6,566,024 | 14,509,075 | $ 140,481,223 | $ 256,484,365 |
Reinvestment of distributions | 528,129 | 36,658 | 11,164,209 | 591,299 |
Shares redeemed | (1,689,529) | (4,036,055) | (34,628,762) | (69,713,827) |
Net increase (decrease) | 5,404,624 | 10,509,678 | $ 117,016,670 | $ 187,361,837 |
Institutional Class | | | | |
Shares sold | 12,345,244 | 21,677,297 | $ 307,095,004 | $ 442,824,898 |
Reinvestment of distributions | 532,595 | 35,974 | 13,257,162 | 674,146 |
Shares redeemed | (4,051,025) | (9,529,193) | (96,802,562) | (191,656,418) |
Net increase (decrease) | 8,826,814 | 12,184,078 | $ 223,549,604 | $ 251,842,626 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,004.20 | $ 7.07 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,002.20 | $ 8.33 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,000.00 | $ 10.84 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,000.00 | $ 10.84 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,005.40 | $ 5.81 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 17.8 | 17.6 |
QUALCOMM, Inc. | 17.1 | 14.8 |
Nokia Corp. sponsored ADR | 5.5 | 5.5 |
Juniper Networks, Inc. | 5.4 | 4.7 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 4.8 | 4.6 |
Alcatel-Lucent SA sponsored ADR | 3.9 | 3.5 |
Motorola Solutions, Inc. | 2.9 | 2.3 |
Riverbed Technology, Inc. | 2.8 | 3.3 |
F5 Networks, Inc. | 2.6 | 3.3 |
BlackBerry Ltd. | 2.0 | 2.1 |
| 64.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Communications Equipment | 84.3% | |
| Internet Software & Services | 3.4% | |
| Semiconductors & Semiconductor
Equipment | 3.2% | |
| Technology Hardware, Storage & Peripherals | 2.6% | |
| Software | 2.4% | |
| All Others* | 4.1% | |
As of July 31, 2014 |
| Communications Equipment | 73.4% | |
| Technology Hardware, Storage & Peripherals | 8.9% | |
 | Software | 3.6% | |
| Semiconductors & Semiconductor
Equipment | 2.7% | |
| Internet Software & Services | 2.5% | |
| All Others* | 8.9% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 84.3% |
Communications Equipment - 84.3% |
ADTRAN, Inc. | 8,600 | | $ 190,146 |
ADVA Optical Networking SE (a) | 16,128 | | 53,398 |
Alcatel-Lucent SA sponsored ADR (a) | 159,357 | | 549,782 |
Arista Networks, Inc. | 100 | | 6,312 |
Aruba Networks, Inc. (a) | 11,940 | | 197,965 |
Ciena Corp. (a)(d) | 9,900 | | 183,348 |
Cisco Systems, Inc. | 96,424 | | 2,542,220 |
CommScope Holding Co., Inc. (a) | 9,500 | | 266,998 |
F5 Networks, Inc. (a) | 3,265 | | 364,439 |
Finisar Corp. (a) | 12,600 | | 228,564 |
InterDigital, Inc. | 2,800 | | 139,944 |
Ixia (a) | 14,400 | | 146,016 |
JDS Uniphase Corp. (a) | 16,100 | | 195,615 |
Juniper Networks, Inc. | 34,188 | | 777,093 |
Motorola Solutions, Inc. | 6,647 | | 414,839 |
NETGEAR, Inc. (a) | 2,900 | | 97,933 |
Nokia Corp. sponsored ADR | 103,620 | | 787,512 |
Plantronics, Inc. | 5,300 | | 242,899 |
Polycom, Inc. (a) | 12,299 | | 163,577 |
Procera Networks, Inc. (a)(d) | 2,200 | | 19,316 |
QUALCOMM, Inc. | 39,081 | | 2,440,999 |
Radware Ltd. (a) | 5,600 | | 107,744 |
Riverbed Technology, Inc. (a) | 19,458 | | 400,446 |
Ruckus Wireless, Inc. (a) | 25,800 | | 273,222 |
ShoreTel, Inc. (a) | 10,900 | | 77,172 |
Sonus Networks, Inc. (a) | 8,240 | | 157,219 |
Spirent Communications PLC | 84,600 | | 113,726 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 56,120 | | 680,736 |
Transmode AB | 4,800 | | 41,623 |
ViaSat, Inc. (a) | 2,400 | | 134,928 |
Wi-Lan, Inc. | 15,100 | | 40,522 |
| | 12,036,253 |
ELECTRICAL EQUIPMENT - 0.4% |
Electrical Components & Equipment - 0.4% |
General Cable Corp. | 4,700 | | 53,768 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.3% |
Electronic Components - 0.3% |
II-VI, Inc. (a) | 2,700 | | 46,413 |
HEALTH CARE TECHNOLOGY - 0.4% |
Health Care Technology - 0.4% |
Vocera Communications, Inc. (a) | 7,200 | | 64,512 |
INTERNET SOFTWARE & SERVICES - 3.4% |
Internet Software & Services - 3.4% |
Google, Inc.: | | | |
Class A (a) | 399 | | 214,482 |
Class C (a) | 409 | | 218,619 |
|
| Shares | | Value |
Rackspace Hosting, Inc. (a) | 600 | | $ 26,976 |
Web.com Group, Inc. (a) | 1,600 | | 24,176 |
| | 484,253 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.2% |
Semiconductors - 3.2% |
Altera Corp. | 6,800 | | 223,890 |
GSI Technology, Inc. (a) | 7,700 | | 38,962 |
Semtech Corp. (a) | 3,900 | | 99,294 |
Xilinx, Inc. | 2,400 | | 92,580 |
| | 454,726 |
SOFTWARE - 2.4% |
Application Software - 0.6% |
BroadSoft, Inc. (a) | 1,500 | | 40,335 |
Comverse, Inc. (a) | 3,000 | | 51,690 |
| | 92,025 |
Systems Software - 1.8% |
Infoblox, Inc. (a) | 2,400 | | 44,808 |
Oracle Corp. | 3,100 | | 129,859 |
Rovi Corp. (a) | 3,300 | | 76,263 |
| | 250,930 |
TOTAL SOFTWARE | | 342,955 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 2.6% |
Technology Hardware, Storage & Peripherals - 2.6% |
BlackBerry Ltd. (a) | 27,600 | | 280,140 |
Samsung Electronics Co. Ltd. | 70 | | 86,204 |
| | 366,344 |
TOTAL COMMON STOCKS (Cost $11,967,350) |
13,849,224
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 449,642 | | 449,642 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 195,200 | | 195,200 |
TOTAL MONEY MARKET FUNDS (Cost $644,842) |
644,842
|
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $12,612,192) | | 14,494,066 |
NET OTHER ASSETS (LIABILITIES) - (1.5)% | | (219,306) |
NET ASSETS - 100% | $ 14,274,760 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 495 |
Fidelity Securities Lending Cash Central Fund | 986 |
Total | $ 1,481 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 13,849,224 | $ 13,763,020 | $ 86,204 | $ - |
Money Market Funds | 644,842 | 644,842 | - | - |
Total Investments in Securities: | $ 14,494,066 | $ 14,407,862 | $ 86,204 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 80.6% |
Finland | 5.5% |
Sweden | 5.1% |
France | 3.9% |
Canada | 2.3% |
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 Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $180,728) - See accompanying schedule: Unaffiliated issuers (cost $11,967,350) | $ 13,849,224 | |
Fidelity Central Funds (cost $644,842) | 644,842 | |
Total Investments (cost $12,612,192) | | $ 14,494,066 |
Cash | | 1,871 |
Receivable for investments sold | | 52,666 |
Receivable for fund shares sold | | 11,218 |
Dividends receivable | | 1,034 |
Distributions receivable from Fidelity Central Funds | | 192 |
Prepaid expenses | | 67 |
Receivable from investment adviser for expense reductions | | 2,107 |
Other receivables | | 17 |
Total assets | | 14,563,238 |
| | |
Liabilities | | |
Payable for investments purchased | $ 14,108 | |
Payable for fund shares redeemed | 36,073 | |
Accrued management fee | 6,890 | |
Distribution and service plan fees payable | 5,429 | |
Other affiliated payables | 3,978 | |
Other payables and accrued expenses | 26,800 | |
Collateral on securities loaned, at value | 195,200 | |
Total liabilities | | 288,478 |
| | |
Net Assets | | $ 14,274,760 |
Net Assets consist of: | | |
Paid in capital | | $ 12,640,272 |
Accumulated net investment loss | | (26,709) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (220,676) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,881,873 |
Net Assets | | $ 14,274,760 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($4,677,987 ÷ 391,136 shares) | | $ 11.96 |
| | |
Maximum offering price per share (100/94.25 of $11.96) | | $ 12.69 |
Class T:
Net Asset Value and redemption price per share ($3,998,479 ÷ 345,495 shares) | | $ 11.57 |
| | |
Maximum offering price per share (100/96.50 of $11.57) | | $ 11.99 |
Class B:
Net Asset Value and offering price per share ($353,372 ÷ 32,815 shares)A | | $ 10.77 |
| | |
Class C:
Net Asset Value and offering price per share ($2,684,830 ÷ 249,444 shares)A | | $ 10.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,560,092 ÷ 207,171 shares) | | $ 12.36 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 88,308 |
Income from Fidelity Central Funds | | 1,481 |
Total income | | 89,789 |
| | |
Expenses | | |
Management fee | $ 40,148 | |
Transfer agent fees | 21,710 | |
Distribution and service plan fees | 31,946 | |
Accounting and security lending fees | 2,935 | |
Custodian fees and expenses | 2,698 | |
Independent trustees' compensation | 133 | |
Registration fees | 48,492 | |
Audit | 21,964 | |
Legal | 113 | |
Miscellaneous | 44 | |
Total expenses before reductions | 170,183 | |
Expense reductions | (55,392) | 114,791 |
Net investment income (loss) | | (25,002) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 513,790 | |
Foreign currency transactions | (488) | |
Total net realized gain (loss) | | 513,302 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (459,943) | |
Assets and liabilities in foreign currencies | (3) | |
Total change in net unrealized appreciation (depreciation) | | (459,946) |
Net gain (loss) | | 53,356 |
Net increase (decrease) in net assets resulting from operations | | $ 28,354 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (25,002) | $ 32,595 |
Net realized gain (loss) | 513,302 | 685,793 |
Change in net unrealized appreciation (depreciation) | (459,946) | 1,223,850 |
Net increase (decrease) in net assets resulting from operations | 28,354 | 1,942,238 |
Distributions to shareholders from net investment income | (25,322) | - |
Share transactions - net increase (decrease) | (182,489) | 1,539,076 |
Redemption fees | 76 | 568 |
Total increase (decrease) in net assets | (179,381) | 3,481,882 |
| | |
Net Assets | | |
Beginning of period | 14,454,141 | 10,972,259 |
End of period (including accumulated net investment loss of $26,709 and undistributed net investment income of $23,615, respectively) | $ 14,274,760 | $ 14,454,141 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.94 | $ 10.22 | $ 7.71 | $ 9.73 | $ 8.67 | $ 7.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .04 H | .02 | (.01) | (.06) | (.11) |
Net realized and unrealized gain (loss) | .06 | 1.68 | 2.50 | (1.81) | 1.12 | 1.50 |
Total from investment operations | .05 | 1.72 | 2.52 | (1.82) | 1.06 | 1.39 |
Distributions from net investment income | (.03) | - | (.01) | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.03) | - | (.01) | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.96 | $ 11.94 | $ 10.22 | $ 7.71 | $ 9.73 | $ 8.67 |
Total ReturnB, C, D | .42% | 16.83% | 32.65% | (18.88)% | 12.23% | 19.09% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.15%A | 1.96% | 2.22% | 1.96% | 1.64% | 1.90% |
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% | 1.37% | 1.39% | 1.39% | 1.38% |
Net investment income (loss) | (.16)%A | .40% H | .18% | (.16)% | (.60)% | (1.32)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,678 | $ 4,725 | $ 3,962 | $ 3,568 | $ 8,787 | $ 4,860 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .14%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.55 | $ 9.91 | $ 7.49 | $ 9.48 | $ 8.46 | $ 7.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .02 H | (.01) | (.03) | (.09) | (.13) |
Net realized and unrealized gain (loss) | .05 | 1.62 | 2.43 | (1.76) | 1.11 | 1.46 |
Total from investment operations | .03 | 1.64 | 2.42 | (1.79) | 1.02 | 1.33 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.01) | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.57 | $ 11.55 | $ 9.91 | $ 7.49 | $ 9.48 | $ 8.46 |
Total ReturnB, C, D | .22% | 16.55% | 32.31% | (19.06)% | 12.06% | 18.65% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.44%A | 2.25% | 2.52% | 2.27% | 1.97% | 2.20% |
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% | 1.62% | 1.64% | 1.64% | 1.63% |
Net investment income (loss) | (.41)%A | .14% H | (.07)% | (.41)% | (.85)% | (1.57)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,998 | $ 3,995 | $ 3,342 | $ 2,843 | $ 4,607 | $ 3,273 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.77 | $ 9.28 | $ 7.05 | $ 8.99 | $ 8.06 | $ 6.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.04) H | (.05) | (.07) | (.13) | (.16) |
Net realized and unrealized gain (loss) | .05 | 1.53 | 2.28 | (1.67) | 1.06 | 1.39 |
Total from investment operations | - | 1.49 | 2.23 | (1.74) | .93 | 1.23 |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.77 | $ 10.77 | $ 9.28 | $ 7.05 | $ 8.99 | $ 8.06 |
Total ReturnB, C, D | 0.00% | 16.06% | 31.63% | (19.56)% | 11.54% | 18.01% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.92%A | 2.74% | 3.00% | 2.71% | 2.47% | 2.68% |
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% | 2.13% | 2.14% | 2.13% |
Net investment income (loss) | (.91)%A | (.36)% H | (.57)% | (.91)% | (1.35)% | (2.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 353 | $ 399 | $ 480 | $ 570 | $ 1,316 | $ 1,408 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.76 | $ 9.28 | $ 7.05 | $ 8.98 | $ 8.06 | $ 6.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.04) H | (.05) | (.07) | (.13) | (.16) |
Net realized and unrealized gain (loss) | .05 | 1.52 | 2.28 | (1.66) | 1.05 | 1.40 |
Total from investment operations | - | 1.48 | 2.23 | (1.73) | .92 | 1.24 |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.76 | $ 10.76 | $ 9.28 | $ 7.05 | $ 8.98 | $ 8.06 |
Total ReturnB, C, D | 0.00% | 15.95% | 31.63% | (19.47)% | 11.41% | 18.18% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.91%A | 2.73% | 2.98% | 2.71% | 2.40% | 2.67% |
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% | 2.12% | 2.14% | 2.14% | 2.13% |
Net investment income (loss) | (.91)%A | (.35)% H | (.57)% | (.91)% | (1.35)% | (2.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,685 | $ 2,744 | $ 2,334 | $ 2,142 | $ 5,866 | $ 3,029 |
Portfolio turnover rateG | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.35 | $ 10.55 | $ 7.95 | $ 10.00 | $ 8.88 | $ 7.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .08 G | .04 | .01 | (.04) | (.09) |
Net realized and unrealized gain (loss) | .06 | 1.72 | 2.58 | (1.86) | 1.16 | 1.52 |
Total from investment operations | .07 | 1.80 | 2.62 | (1.85) | 1.12 | 1.43 |
Distributions from net investment income | (.06) | - | (.02) | - | - | - |
Distributions from net realized gain | - | - | - | (.20) | - | - |
Total distributions | (.06) | - | (.02) | (.20) | - | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.36 | $ 12.35 | $ 10.55 | $ 7.95 | $ 10.00 | $ 8.88 |
Total ReturnB, C | .54% | 17.06% | 32.92% | (18.66)% | 12.61% | 19.19% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | 1.79%A | 1.45% | 1.93% | 1.66% | 1.22% | 1.54% |
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% | 1.12% | 1.13% | 1.14% | 1.13% |
Net investment income (loss) | .10%A | .65% G | .43% | .10% | (.35)% | (1.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,560 | $ 2,592 | $ 855 | $ 721 | $ 2,855 | $ 1,717 |
Portfolio turnover rateF | 42% A | 160% | 33% | 79% | 101% | 106% |
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 $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .39%. 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 2,272,207 |
Gross unrealized depreciation | (506,714) |
Net unrealized appreciation (depreciation) on securities | $ 1,765,493 |
| |
Tax cost | $ 12,728,573 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $ (575,460) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,453,656 and $2,942,337, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 5,946 | $ 210 |
Class T | .25% | .25% | 10,380 | - |
Class B | .75% | .25% | 1,927 | 1,445 |
Class C | .75% | .25% | 13,693 | 1,430 |
| | | $ 31,946 | $ 3,085 |
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 shares, 1.00% for Class C shares, 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 | $ 1,966 |
Class T | 689 |
Class B* | 40 |
Class C* | 179 |
| $ 2,874 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 7,346 | .31 |
Class T | 7,030 | .34 |
Class B | 599 | .31 |
Class C | 4,256 | .31 |
Institutional Class | 2,479 | .19 |
| $ 21,710 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $222 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $986.
8. Expense Reductions.
The investment adviser 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 |
Class A | 1.40% | $ 17,823 |
Class T | 1.65% | 16,350 |
Class B | 2.15% | 1,479 |
Class C | 2.15% | 10,426 |
Institutional Class | 1.15% | 8,248 |
| | $ 54,326 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,063 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.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 11,846 | $ - |
Class T | 1,754 | - |
Institutional Class | 11,722 | - |
Total | $ 25,322 | $ - |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 52,859 | 118,184 | $ 655,663 | $ 1,378,044 |
Reinvestment of distributions | 914 | - | 11,238 | - |
Shares redeemed | (58,288) | (110,145) | (706,938) | (1,218,133) |
Net increase (decrease) | (4,515) | 8,039 | $ (40,037) | $ 159,911 |
Class T | | | | |
Shares sold | 26,028 | 51,248 | $ 307,291 | $ 564,493 |
Reinvestment of distributions | 146 | - | 1,738 | - |
Shares redeemed | (26,674) | (42,610) | (316,476) | (470,057) |
Net increase (decrease) | (500) | 8,638 | $ (7,447) | $ 94,436 |
Class B | | | | |
Shares sold | - | 64 | $ - | $ 624 |
Shares redeemed | (4,203) | (14,700) | (45,127) | (144,244) |
Net increase (decrease) | (4,203) | (14,636) | $ (45,127) | $ (143,620) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class C | | | | |
Shares sold | 21,203 | 74,081 | $ 235,520 | $ 769,830 |
Shares redeemed | (26,777) | (70,636) | (294,101) | (715,373) |
Net increase (decrease) | (5,574) | 3,445 | $ (58,581) | $ 54,457 |
Institutional Class | | | | |
Shares sold | 12,678 | 1,448,765 | $ 157,973 | $ 17,115,064 |
Reinvestment of distributions | 868 | - | 11,030 | - |
Shares redeemed | (16,251) | (1,319,932) | (200,300) | (15,741,172) |
Net increase (decrease) | (2,705) | 128,833 | $ (31,297) | $ 1,373,892 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,088.40 | $ 6.32 |
HypotheticalA | | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,087.40 | $ 7.89 |
HypotheticalA | | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.04% | | | |
Actual | | $ 1,000.00 | $ 1,084.90 | $ 10.72 |
HypotheticalA | | $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 1,085.10 | $ 10.35 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .92% | | | |
Actual | | $ 1,000.00 | $ 1,090.50 | $ 4.85 |
HypotheticalA | | $ 1,000.00 | $ 1,020.57 | $ 4.69 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
The Walt Disney Co. | 7.6 | 6.6 |
Comcast Corp. Class A | 5.8 | 2.8 |
Home Depot, Inc. | 5.5 | 5.5 |
L Brands, Inc. | 4.1 | 2.7 |
Starbucks Corp. | 3.9 | 2.9 |
NIKE, Inc. Class B | 3.3 | 3.2 |
Priceline Group, Inc. | 2.9 | 3.8 |
Wyndham Worldwide Corp. | 2.8 | 2.5 |
Naspers Ltd. Class N | 2.3 | 0.0 |
TJX Companies, Inc. | 2.2 | 3.5 |
| 40.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Media | 22.5% | |
| Hotels, Restaurants & Leisure | 21.1% | |
| Specialty Retail | 19.9% | |
| Textiles, Apparel & Luxury Goods | 11.7% | |
| Internet & Catalog Retail | 5.1% | |
| All Others* | 19.7% | |
As of July 31, 2014 |
| Media | 33.0% | |
| Specialty Retail | 19.1% | |
| Hotels, Restaurants & Leisure | 14.8% | |
| Textiles, Apparel & Luxury Goods | 11.1% | |
| Internet & Catalog Retail | 5.6% | |
| All Others* | 16.4% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% |
| Shares | | Value |
AUTO COMPONENTS - 3.1% |
Auto Parts & Equipment - 3.1% |
Delphi Automotive PLC | 41,284 | | $ 2,837,449 |
Tenneco, Inc. (a) | 29,500 | | 1,516,890 |
| | 4,354,339 |
AUTOMOBILES - 2.6% |
Automobile Manufacturers - 1.1% |
Tata Motors Ltd. (a) | 93,448 | | 880,059 |
Tesla Motors, Inc. (a) | 3,600 | | 732,960 |
| | 1,613,019 |
Motorcycle Manufacturers - 1.5% |
Harley-Davidson, Inc. | 34,700 | | 2,140,990 |
TOTAL AUTOMOBILES | | 3,754,009 |
BEVERAGES - 2.0% |
Distillers & Vintners - 0.9% |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 12,124 | | 1,339,096 |
Soft Drinks - 1.1% |
Monster Beverage Corp. (a) | 13,300 | | 1,555,435 |
TOTAL BEVERAGES | | 2,894,531 |
FOOD & STAPLES RETAILING - 0.7% |
Food Retail - 0.7% |
Sprouts Farmers Market LLC (a) | 25,700 | | 935,737 |
FOOD PRODUCTS - 1.7% |
Packaged Foods & Meats - 1.7% |
Associated British Foods PLC | 21,800 | | 1,018,875 |
Keurig Green Mountain, Inc. | 11,820 | | 1,448,659 |
| | 2,467,534 |
HOTELS, RESTAURANTS & LEISURE - 21.1% |
Casinos & Gaming - 3.1% |
Las Vegas Sands Corp. | 44,840 | | 2,437,951 |
Wynn Resorts Ltd. | 12,980 | | 1,920,391 |
| | 4,358,342 |
Hotels, Resorts & Cruise Lines - 5.9% |
China Lodging Group Ltd. ADR (a) | 18,950 | | 411,215 |
Hilton Worldwide Holdings, Inc. (a) | 73,400 | | 1,906,198 |
Marriott International, Inc. Class A | 27,230 | | 2,028,635 |
Wyndham Worldwide Corp. | 47,786 | | 4,003,989 |
| | 8,350,037 |
Leisure Facilities - 1.1% |
Vail Resorts, Inc. | 17,320 | | 1,520,003 |
Restaurants - 11.0% |
Buffalo Wild Wings, Inc. (a) | 7,700 | | 1,373,064 |
DineEquity, Inc. | 12,900 | | 1,377,075 |
Domino's Pizza, Inc. | 13,889 | | 1,375,705 |
Fiesta Restaurant Group, Inc. (a) | 28,400 | | 1,677,588 |
Jubilant Foodworks Ltd. (a) | 32,997 | | 737,661 |
|
| Shares | | Value |
Papa John's International, Inc. | 2,332 | | $ 147,989 |
Ruth's Hospitality Group, Inc. | 117,600 | | 1,707,552 |
Starbucks Corp. | 63,400 | | 5,549,402 |
Texas Roadhouse, Inc. Class A | 50,041 | | 1,680,877 |
| | 15,626,913 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 29,855,295 |
HOUSEHOLD DURABLES - 2.0% |
Homebuilding - 2.0% |
D.R. Horton, Inc. | 38,900 | | 953,828 |
Lennar Corp. Class A | 21,200 | | 952,092 |
PulteGroup, Inc. | 42,900 | | 883,311 |
| | 2,789,231 |
INTERNET & CATALOG RETAIL - 5.1% |
Internet Retail - 5.1% |
Amazon.com, Inc. (a) | 5,660 | | 2,006,640 |
Ocado Group PLC (a)(d) | 191,200 | | 1,183,620 |
Priceline Group, Inc. (a) | 4,046 | | 4,084,356 |
| | 7,274,616 |
INTERNET SOFTWARE & SERVICES - 0.8% |
Internet Software & Services - 0.8% |
Alibaba Group Holding Ltd. sponsored ADR | 6,400 | | 570,112 |
HomeAway, Inc. (a) | 24,400 | | 621,956 |
| | 1,192,068 |
LEISURE PRODUCTS - 2.3% |
Leisure Products - 2.3% |
Brunswick Corp. | 30,900 | | 1,677,252 |
Polaris Industries, Inc. | 10,900 | | 1,576,031 |
| | 3,253,283 |
MEDIA - 22.5% |
Advertising - 0.1% |
MDC Partners, Inc. Class A (sub. vtg.) | 4,300 | | 102,770 |
Broadcasting - 2.2% |
ITV PLC | 933,729 | | 3,094,042 |
Cable & Satellite - 10.0% |
Comcast Corp. Class A | 154,900 | | 8,232,161 |
DIRECTV (a) | 23,352 | | 1,991,459 |
Naspers Ltd. Class N | 22,740 | | 3,280,516 |
Time Warner Cable, Inc. | 5,320 | | 724,212 |
| | 14,228,348 |
Movies & Entertainment - 9.9% |
CTS Eventim AG | 14,870 | | 426,799 |
The Walt Disney Co. | 118,606 | | 10,788,402 |
Time Warner, Inc. | 27,600 | | 2,150,868 |
Twenty-First Century Fox, Inc. Class A | 18,933 | | 627,818 |
| | 13,993,887 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - CONTINUED |
Publishing - 0.3% |
Rightmove PLC | 11,900 | | $ 416,907 |
TOTAL MEDIA | | 31,835,954 |
MULTILINE RETAIL - 0.5% |
General Merchandise Stores - 0.5% |
B&M European Value Retail S.A. | 132,912 | | 632,106 |
Don Quijote Holdings Co. Ltd. | 1,700 | | 123,773 |
| | 755,879 |
PERSONAL PRODUCTS - 0.7% |
Personal Products - 0.7% |
Estee Lauder Companies, Inc. Class A | 13,720 | | 968,495 |
SPECIALTY RETAIL - 19.9% |
Apparel Retail - 8.1% |
L Brands, Inc. | 68,100 | | 5,763,303 |
Ross Stores, Inc. | 25,260 | | 2,316,595 |
TJX Companies, Inc. | 48,208 | | 3,178,836 |
United Arrows Ltd. | 10,600 | | 301,286 |
| | 11,560,020 |
Automotive Retail - 3.9% |
AutoZone, Inc. (a) | 4,500 | | 2,686,320 |
O'Reilly Automotive, Inc. (a) | 15,100 | | 2,829,136 |
| | 5,515,456 |
Home Improvement Retail - 5.9% |
Home Depot, Inc. | 74,560 | | 7,785,555 |
Lumber Liquidators Holdings, Inc. (a)(d) | 8,500 | | 536,775 |
| | 8,322,330 |
Specialty Stores - 2.0% |
Tiffany & Co., Inc. | 22,155 | | 1,919,509 |
World Duty Free SpA (a)(d) | 87,693 | | 968,139 |
| | 2,887,648 |
TOTAL SPECIALTY RETAIL | | 28,285,454 |
TEXTILES, APPAREL & LUXURY GOODS - 11.7% |
Apparel, Accessories & Luxury Goods - 8.4% |
Compagnie Financiere Richemont SA Series A | 7,733 | | 642,443 |
|
| Shares | | Value |
G-III Apparel Group Ltd. (a) | 23,540 | | $ 2,288,088 |
Kate Spade & Co. (a) | 56,500 | | 1,781,445 |
lululemon athletica, Inc. (a) | 2,800 | | 185,472 |
PVH Corp. | 28,623 | | 3,155,972 |
Ralph Lauren Corp. | 8,945 | | 1,492,831 |
VF Corp. | 32,904 | | 2,282,550 |
| | 11,828,801 |
Footwear - 3.3% |
NIKE, Inc. Class B | 51,317 | | 4,733,993 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 16,562,794 |
TOTAL COMMON STOCKS (Cost $121,603,237) |
137,179,219
|
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 4,692,926 | | 4,692,926 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,658,252 | | 1,658,252 |
TOTAL MONEY MARKET FUNDS (Cost $6,351,178) |
6,351,178
|
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $127,954,415) | | 143,530,397 |
NET OTHER ASSETS (LIABILITIES) - (1.2)% | | (1,769,284) |
NET ASSETS - 100% | $ 141,761,113 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 1,590 |
Fidelity Securities Lending Cash Central Fund | 2,034 |
Total | $ 3,624 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 137,179,219 | $ 131,213,481 | $ 5,965,738 | $ - |
Money Market Funds | 6,351,178 | 6,351,178 | - | - |
Total Investments in Securities: | $ 143,530,397 | $ 137,564,659 | $ 5,965,738 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.6% |
United Kingdom | 4.4% |
South Africa | 2.3% |
Bailiwick of Jersey | 2.0% |
India | 1.1% |
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 Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,585,759) - See accompanying schedule: Unaffiliated issuers (cost $121,603,237) | $ 137,179,219 | |
Fidelity Central Funds (cost $6,351,178) | 6,351,178 | |
Total Investments (cost $127,954,415) | | $ 143,530,397 |
Receivable for investments sold | | 4,999 |
Receivable for fund shares sold | | 1,645,872 |
Dividends receivable | | 14,711 |
Distributions receivable from Fidelity Central Funds | | 1,038 |
Prepaid expenses | | 577 |
Other receivables | | 3,195 |
Total assets | | 145,200,789 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,284,171 | |
Payable for fund shares redeemed | 301,595 | |
Accrued management fee | 60,653 | |
Distribution and service plan fees payable | 42,047 | |
Other affiliated payables | 26,331 | |
Other payables and accrued expenses | 66,627 | |
Collateral on securities loaned, at value | 1,658,252 | |
Total liabilities | | 3,439,676 |
| | |
Net Assets | | $ 141,761,113 |
Net Assets consist of: | | |
Paid in capital | | $ 123,872,208 |
Accumulated net investment loss | | (54,730) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,401,493 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 15,542,142 |
Net Assets | | $ 141,761,113 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($66,232,579 ÷ 3,458,242 shares) | | $ 19.15 |
| | |
Maximum offering price per share (100/94.25 of $19.15) | | $ 20.32 |
Class T:
Net Asset Value and redemption price per share ($20,725,637 ÷ 1,146,946 shares) | | $ 18.07 |
| | |
Maximum offering price per share (100/96.50 of $18.07) | | $ 18.73 |
Class B:
Net Asset Value and offering price per share ($1,388,014 ÷ 87,104 shares)A | | $ 15.94 |
| | |
Class C:
Net Asset Value and offering price per share ($24,464,688 ÷ 1,534,299 shares)A | | $ 15.95 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($28,950,195 ÷ 1,411,733 shares) | | $ 20.51 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 742,120 |
Income from Fidelity Central Funds | | 3,624 |
Total income | | 745,744 |
| | |
Expenses | | |
Management fee | $ 327,400 | |
Transfer agent fees | 133,111 | |
Distribution and service plan fees | 234,616 | |
Accounting and security lending fees | 23,379 | |
Custodian fees and expenses | 13,316 | |
Independent trustees' compensation | 1,096 | |
Registration fees | 48,474 | |
Audit | 22,759 | |
Legal | 684 | |
Miscellaneous | 624 | |
Total expenses before reductions | 805,459 | |
Expense reductions | (4,985) | 800,474 |
Net investment income (loss) | | (54,730) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $64) | 4,253,107 | |
Foreign currency transactions | (4,828) | |
Total net realized gain (loss) | | 4,248,279 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $33,768) | 5,167,502 | |
Assets and liabilities in foreign currencies | (907) | |
Total change in net unrealized appreciation (depreciation) | | 5,166,595 |
Net gain (loss) | | 9,414,874 |
Net increase (decrease) in net assets resulting from operations | | $ 9,360,144 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (54,730) | $ (430,703) |
Net realized gain (loss) | 4,248,279 | 17,599,668 |
Change in net unrealized appreciation (depreciation) | 5,166,595 | (7,703,576) |
Net increase (decrease) in net assets resulting from operations | 9,360,144 | 9,465,389 |
Distributions to shareholders from net realized gain | (13,923,456) | (8,442,076) |
Share transactions - net increase (decrease) | 24,193,313 | 27,584,653 |
Redemption fees | 5,699 | 3,923 |
Total increase (decrease) in net assets | 19,635,700 | 28,611,889 |
| | |
Net Assets | | |
Beginning of period | 122,125,413 | 93,513,524 |
End of period (including accumulated net investment loss of $54,730 and $0, respectively) | $ 141,761,113 | $ 122,125,413 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.75 | $ 19.59 | $ 16.22 | $ 16.00 | $ 12.75 | $ 10.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.04) | (.02) | .01 | (.02) | (.02) |
Net realized and unrealized gain (loss) | 1.67 | 1.75 | 5.04 | 1.07 | 3.27 | 2.51 |
Total from investment operations | 1.68 | 1.71 | 5.02 | 1.08 | 3.25 | 2.49 |
Distributions from net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | (2.28) | (1.55) | (1.65) | (.83) | - | - |
Total distributions | (2.28) | (1.55) | (1.65) | (.86) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.15 | $ 19.75 | $ 19.59 | $ 16.22 | $ 16.00 | $ 12.75 |
Total ReturnB, C, D | 8.84% | 9.28% | 33.65% | 7.96% | 25.49% | 24.27% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.20%A | 1.20% | 1.31% | 1.38% | 1.39% | 1.44% |
Expenses net of fee waivers, if any | 1.20%A | 1.20% | 1.31% | 1.38% | 1.39% | 1.40% |
Expenses net of all reductions | 1.20%A | 1.19% | 1.29% | 1.37% | 1.38% | 1.39% |
Net investment income (loss) | .06%A | (.21)% | (.10)% | .04% | (.15)% | (.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 66,233 | $ 59,089 | $ 45,292 | $ 26,547 | $ 23,447 | $ 19,423 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.75 | $ 18.68 | $ 15.57 | $ 15.43 | $ 12.32 | $ 9.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.10) | (.06) | (.03) | (.06) | (.05) |
Net realized and unrealized gain (loss) | 1.59 | 1.67 | 4.81 | 1.02 | 3.17 | 2.43 |
Total from investment operations | 1.57 | 1.57 | 4.75 | .99 | 3.11 | 2.38 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (2.25) | (1.50) | (1.64) | (.83) | - | - |
Total distributions | (2.25) | (1.50) | (1.64) | (.85) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 18.07 | $ 18.75 | $ 18.68 | $ 15.57 | $ 15.43 | $ 12.32 |
Total ReturnB, C, D | 8.74% | 8.94% | 33.25% | 7.62% | 25.24% | 23.94% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.50%A | 1.50% | 1.60% | 1.64% | 1.66% | 1.71% |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.60% | 1.64% | 1.65% | 1.65% |
Expenses net of all reductions | 1.49%A | 1.49% | 1.58% | 1.63% | 1.64% | 1.64% |
Net investment income (loss) | (.24)%A | (.51)% | (.39)% | (.23)% | (.40)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,726 | $ 18,779 | $ 15,613 | $ 10,447 | $ 9,897 | $ 8,018 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.76 | $ 16.85 | $ 14.23 | $ 14.23 | $ 11.42 | $ 9.26 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.17) | (.13) | (.10) | (.12) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | 1.49 | 4.36 | .93 | 2.93 | 2.26 |
Total from investment operations | 1.36 | 1.32 | 4.23 | .83 | 2.81 | 2.16 |
Distributions from net realized gain | (2.18) | (1.41) | (1.61) | (.83) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.94 | $ 16.76 | $ 16.85 | $ 14.23 | $ 14.23 | $ 11.42 |
Total ReturnB, C, D | 8.49% | 8.36% | 32.61% | 7.11% | 24.61% | 23.33% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.04%A | 2.01% | 2.09% | 2.13% | 2.15% | 2.21% |
Expenses net of fee waivers, if any | 2.04%A | 2.01% | 2.09% | 2.13% | 2.15% | 2.15% |
Expenses net of all reductions | 2.03%A | 2.01% | 2.07% | 2.12% | 2.13% | 2.14% |
Net investment income (loss) | (.78)%A | (1.02)% | (.88)% | (.72)% | (.90)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,388 | $ 1,824 | $ 2,389 | $ 2,577 | $ 3,170 | $ 3,643 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.79 | $ 16.90 | $ 14.27 | $ 14.26 | $ 11.44 | $ 9.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.16) | (.12) | (.09) | (.12) | (.10) |
Net realized and unrealized gain (loss) | 1.43 | 1.49 | 4.37 | .93 | 2.94 | 2.27 |
Total from investment operations | 1.37 | 1.33 | 4.25 | .84 | 2.82 | 2.17 |
Distributions from net realized gain | (2.21) | (1.44) | (1.62) | (.83) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.95 | $ 16.79 | $ 16.90 | $ 14.27 | $ 14.26 | $ 11.44 |
Total ReturnB, C, D | 8.51% | 8.44% | 32.68% | 7.17% | 24.65% | 23.41% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97%A | 1.97% | 2.04% | 2.09% | 2.11% | 2.12% |
Expenses net of fee waivers, if any | 1.97%A | 1.97% | 2.04% | 2.09% | 2.11% | 2.12% |
Expenses net of all reductions | 1.96%A | 1.96% | 2.02% | 2.08% | 2.09% | 2.11% |
Net investment income (loss) | (.71)%A | (.97)% | (.83)% | (.68)% | (.86)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,465 | $ 20,726 | $ 17,176 | $ 13,507 | $ 7,341 | $ 9,288 |
Portfolio turnover rateG | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.00 | $ 20.72 | $ 17.04 | $ 16.72 | $ 13.27 | $ 10.66 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .02 | .04 | .07 | .03 | .02 |
Net realized and unrealized gain (loss) | 1.79 | 1.85 | 5.32 | 1.13 | 3.42 | 2.60 |
Total from investment operations | 1.83 | 1.87 | 5.36 | 1.20 | 3.45 | 2.62 |
Distributions from net investment income | - | - | - | (.05) | - | (.01) |
Distributions from net realized gain | (2.32) | (1.59) | (1.68) | (.83) | - | - |
Total distributions | (2.32) | (1.59) | (1.68) | (.88) | - | (.01) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 20.51 | $ 21.00 | $ 20.72 | $ 17.04 | $ 16.72 | $ 13.27 |
Total ReturnB, C | 9.05% | 9.61% | 34.06% | 8.33% | 26.00% | 24.62% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .92%A | .91% | .97% | 1.00% | 1.03% | 1.09% |
Expenses net of fee waivers, if any | .92%A | .91% | .97% | 1.00% | 1.03% | 1.09% |
Expenses net of all reductions | .91%A | .91% | .96% | .99% | 1.01% | 1.08% |
Net investment income (loss) | .35%A | .08% | .24% | .41% | .22% | .16% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 28,950 | $ 21,708 | $ 13,044 | $ 9,984 | $ 9,406 | $ 9,013 |
Portfolio turnover rateF | 93%A | 171% | 146% | 217% | 179% | 163% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount 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, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses 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 | $ 19,473,386 |
Gross unrealized depreciation | (4,218,094) |
Net unrealized appreciation (depreciation) on securities | $ 15,255,292 |
| |
Tax cost | $ 128,275,105 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $64,514,636 and $55,592,523, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,939 | $ 1,373 |
Class T | .25% | .25% | 49,030 | - |
Class B | .75% | .25% | 8,051 | 6,038 |
Class C | .75% | .25% | 107,596 | 22,467 |
| | | $ 234,616 | $ 29,878 |
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 shares, 1.00% for Class C shares, 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 | $ 33,435 |
Class T | 2,371 |
Class B* | 1,032 |
Class C* | 2,450 |
| $ 39,288 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 61,205 | .22 |
Class T | 26,176 | .27 |
Class B | 2,427 | .30 |
Class C | 24,935 | .23 |
Institutional Class | 18,368 | .18 |
| $ 133,111 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,227 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $81 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $2,034.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,985 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
Class A | $ 6,488,273 | $ 4,039,405 |
Class T | 2,268,637 | 1,360,265 |
Class B | 224,707 | 196,098 |
Class C | 2,737,034 | 1,615,723 |
Institutional Class | 2,204,805 | 1,230,585 |
Total | $ 13,923,456 | $ 8,442,076 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,163,190 | 1,790,947 | $ 22,340,131 | $ 35,353,582 |
Reinvestment of distributions | 314,662 | 185,416 | 5,921,151 | 3,485,073 |
Shares redeemed | (1,011,988) | (1,296,503) | (18,977,442) | (25,801,801) |
Net increase (decrease) | 465,864 | 679,860 | $ 9,283,840 | $ 13,036,854 |
Class T | | | | |
Shares sold | 124,624 | 282,329 | $ 2,265,404 | $ 5,295,701 |
Reinvestment of distributions | 122,984 | 73,668 | 2,187,662 | 1,316,540 |
Shares redeemed | (101,966) | (190,454) | (1,835,001) | (3,590,224) |
Net increase (decrease) | 145,642 | 165,543 | $ 2,618,065 | $ 3,022,017 |
Class B | | | | |
Shares sold | 1,159 | 14,978 | $ 18,503 | $ 248,602 |
Reinvestment of distributions | 10,956 | 9,369 | 172,497 | 150,012 |
Shares redeemed | (33,811) | (57,312) | (537,045) | (968,609) |
Net increase (decrease) | (21,696) | (32,965) | $ (346,045) | $ (569,995) |
Class C | | | | |
Shares sold | 356,518 | 472,482 | $ 5,712,660 | $ 7,968,901 |
Reinvestment of distributions | 157,518 | 89,038 | 2,481,906 | 1,432,315 |
Shares redeemed | (213,958) | (343,513) | (3,393,677) | (5,820,370) |
Net increase (decrease) | 300,078 | 218,007 | $ 4,800,889 | $ 3,580,846 |
Institutional Class | | | | |
Shares sold | 710,119 | 777,526 | $ 14,646,045 | $ 16,341,397 |
Reinvestment of distributions | 93,807 | 51,438 | 1,886,667 | 1,028,758 |
Shares redeemed | (425,942) | (424,690) | (8,696,148) | (8,855,224) |
Net increase (decrease) | 377,984 | 404,274 | $ 7,836,564 | $ 8,514,931 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 1,119.40 | $ 7.48 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 1,118.20 | $ 8.81 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,115.50 | $ 11.46 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,115.50 | $ 11.46 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,121.50 | $ 5.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Broadcom Corp. Class A | 8.1 | 7.8 |
Intel Corp. | 7.6 | 16.9 |
QUALCOMM, Inc. | 5.5 | 2.9 |
Texas Instruments, Inc. | 4.9 | 6.7 |
Samsung Electronics Co. Ltd. | 4.8 | 4.1 |
Marvell Technology Group Ltd. | 4.2 | 2.0 |
Maxim Integrated Products, Inc. | 4.1 | 1.9 |
Micron Technology, Inc. | 3.8 | 4.8 |
Altera Corp. | 3.4 | 5.3 |
Microchip Technology, Inc. | 3.3 | 0.0 |
| 49.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Semiconductors & Semiconductor Equipment | 75.9% | |
| Communications Equipment | 6.5% | |
| Electronic Equipment & Components | 6.2% | |
| Technology Hardware, Storage & Peripherals | 4.8% | |
| Internet Software & Services | 3.5% | |
| All Others* | 3.1% | |
As of July 31, 2014 |
| Semiconductors & Semiconductor Equipment | 82.4% | |
| Communications Equipment | 4.5% | |
| Electronic Equipment & Components | 3.7% | |
| Internet Software & Services | 1.9% | |
| Software | 1.3% | |
| All Others* | 6.2% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
BIOTECHNOLOGY - 0.0% |
Biotechnology - 0.0% |
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | | $ 0 |
COMMUNICATIONS EQUIPMENT - 6.5% |
Communications Equipment - 6.5% |
Aruba Networks, Inc. (a) | 24,700 | | 409,527 |
Ciena Corp. (a) | 16,400 | | 303,728 |
Finisar Corp. (a) | 19,700 | | 357,358 |
QUALCOMM, Inc. | 94,626 | | 5,910,340 |
| | 6,980,953 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.9% |
Electronic Components - 0.1% |
Corning, Inc. | 1,057 | | 25,125 |
Vishay Intertechnology, Inc. | 7,800 | | 106,236 |
| | 131,361 |
Electronic Manufacturing Services - 4.6% |
Jabil Circuit, Inc. | 89,876 | | 1,852,344 |
Neonode, Inc. (a)(d) | 25,800 | | 66,822 |
Plexus Corp. (a) | 23,800 | | 901,782 |
TTM Technologies, Inc. (a) | 272,992 | | 1,897,294 |
Viasystems Group, Inc. (a) | 8,411 | | 134,660 |
| | 4,852,902 |
Technology Distributors - 1.2% |
Avnet, Inc. | 22,200 | | 923,964 |
Ingram Micro, Inc. Class A (a) | 14,400 | | 362,592 |
| | 1,286,556 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 6,270,819 |
INTERNET SOFTWARE & SERVICES - 3.5% |
Internet Software & Services - 3.5% |
Cornerstone OnDemand, Inc. (a) | 6,338 | | 208,837 |
Google, Inc.: | | | |
Class A (a) | 6,390 | | 3,434,945 |
Class C (a) | 5 | | 2,673 |
Web.com Group, Inc. (a) | 7,650 | | 115,592 |
| | 3,762,047 |
IT SERVICES - 0.5% |
Data Processing & Outsourced Services - 0.5% |
EVERTEC, Inc. | 23,600 | | 473,416 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 75.6% |
Semiconductor Equipment - 5.4% |
Advanced Energy Industries, Inc. (a) | 15,988 | | 383,712 |
Amkor Technology, Inc. (a) | 88,700 | | 563,245 |
Entegris, Inc. (a) | 62,700 | | 815,100 |
KLA-Tencor Corp. | 8,400 | | 516,348 |
Lam Research Corp. | 36,781 | | 2,811,540 |
PDF Solutions, Inc. (a) | 12,253 | | 203,645 |
|
| Shares | | Value |
Ultratech, Inc. (a) | 25,700 | | $ 409,658 |
Xcerra Corp. (a) | 5,400 | | 41,472 |
| | 5,744,720 |
Semiconductors - 70.2% |
Advanced Micro Devices, Inc. (a)(d) | 173,900 | | 446,923 |
Altera Corp. | 110,849 | | 3,649,703 |
Analog Devices, Inc. | 42,826 | | 2,231,449 |
Applied Micro Circuits Corp. (a) | 10,038 | | 52,700 |
Atmel Corp. | 299,479 | | 2,494,660 |
Audience, Inc. (a) | 31,525 | | 127,361 |
Avago Technologies Ltd. | 2,500 | | 257,200 |
Broadcom Corp. Class A | 204,801 | | 8,690,727 |
Cirrus Logic, Inc. (a) | 45,300 | | 1,200,450 |
Cree, Inc. (a)(d) | 25,980 | | 918,653 |
Cypress Semiconductor Corp. (d) | 94,546 | | 1,392,663 |
Exar Corp. (a) | 22,200 | | 200,244 |
EZchip Semiconductor Ltd. (a) | 13,000 | | 247,650 |
Fairchild Semiconductor International, Inc. (a) | 14,977 | | 229,897 |
Freescale Semiconductor, Inc. (a)(d) | 78,314 | | 2,513,096 |
Himax Technologies, Inc. sponsored ADR | 35,400 | | 303,732 |
Hua Hong Semiconductor Ltd. (a) | 119,000 | | 138,371 |
Infineon Technologies AG | 52,300 | | 589,631 |
Inphi Corp. (a) | 20,486 | | 401,526 |
Integrated Silicon Solution, Inc. | 8,600 | | 138,288 |
Intel Corp. | 245,578 | | 8,113,897 |
Intersil Corp. Class A | 212,037 | | 3,034,249 |
MagnaChip Semiconductor Corp. (a) | 38,036 | | 546,958 |
Marvell Technology Group Ltd. | 289,900 | | 4,490,551 |
Maxim Integrated Products, Inc. | 133,922 | | 4,431,479 |
MaxLinear, Inc. Class A (a) | 90,258 | | 726,577 |
MediaTek, Inc. | 13,000 | | 196,245 |
Micrel, Inc. | 26,600 | | 374,262 |
Microchip Technology, Inc. (d) | 77,200 | | 3,481,720 |
Micron Technology, Inc. (a) | 139,112 | | 4,071,113 |
Motech Industries, Inc. | 1 | | 1 |
NVIDIA Corp. | 61,123 | | 1,173,867 |
NXP Semiconductors NV (a) | 16,179 | | 1,283,642 |
O2Micro International Ltd. sponsored ADR (a) | 61,401 | | 144,906 |
Omnivision Technologies, Inc. (a) | 26,900 | | 727,376 |
ON Semiconductor Corp. (a) | 282,999 | | 2,832,820 |
PMC-Sierra, Inc. (a) | 180,947 | | 1,599,571 |
Semiconductor Manufacturing International Corp. (a) | 2,064,000 | | 178,905 |
Semtech Corp. (a) | 82,219 | | 2,093,296 |
Silicon Laboratories, Inc. (a) | 7,500 | | 328,200 |
Skyworks Solutions, Inc. | 26 | | 2,159 |
STMicroelectronics NV (NY Shares) unit | 19,600 | | 162,680 |
SunEdison Semiconductor Ltd. | 14,800 | | 289,488 |
Texas Instruments, Inc. | 98,518 | | 5,265,787 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Trident Microsystems, Inc. (a) | 19 | | $ 0 |
Xilinx, Inc. | 83,336 | | 3,214,686 |
| | 74,989,359 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 80,734,079 |
SOFTWARE - 0.7% |
Application Software - 0.5% |
Comverse, Inc. (a) | 10,224 | | 176,160 |
Nuance Communications, Inc. (a) | 24,500 | | 336,753 |
| | 512,913 |
Systems Software - 0.2% |
CommVault Systems, Inc. (a) | 5,600 | | 244,048 |
Infoblox, Inc. (a) | 1 | | 19 |
| | 244,067 |
TOTAL SOFTWARE | | 756,980 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 4.8% |
Technology Hardware, Storage & Peripherals - 4.8% |
BlackBerry Ltd. (a) | 100 | | 1,015 |
Samsung Electronics Co. Ltd. | 4,159 | | 5,121,764 |
| | 5,122,779 |
TOTAL COMMON STOCKS (Cost $101,995,544) |
104,101,073
|
Corporate Bonds - 0.6% |
| Principal Amount | | |
Convertible Bonds - 0.3% |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.3% |
Electronic Components - 0.3% |
InvenSense, Inc. 1.75% 11/1/18 | | $ 320,000 | | 305,200 |
|
| Principal Amount | | Value |
Nonconvertible Bonds - 0.3% |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.3% |
Semiconductors - 0.3% |
Advanced Micro Devices, Inc.: | | | | |
7% 7/1/24 | | $ 215,000 | | $ 187,588 |
7.75% 8/1/20 | | 165,000 | | 157,163 |
| | 344,751 |
TOTAL CORPORATE BONDS (Cost $623,641) |
649,951
|
Money Market Funds - 11.7% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 4,715,177 | | 4,715,177 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 7,813,498 | | 7,813,498 |
TOTAL MONEY MARKET FUNDS (Cost $12,528,675) |
12,528,675
|
TOTAL INVESTMENT PORTFOLIO - 109.8% (Cost $115,147,860) | | 117,279,699 |
NET OTHER ASSETS (LIABILITIES) - (9.8)% | | (10,485,649) |
NET ASSETS - 100% | $ 106,794,050 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 2,978 |
Fidelity Securities Lending Cash Central Fund | 10,631 |
Total | $ 13,609 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 104,101,073 | $ 98,465,786 | $ 5,635,287 | $ - |
Corporate Bonds | 649,951 | - | 649,951 | - |
Money Market Funds | 12,528,675 | 12,528,675 | - | - |
Total Investments in Securities: | $ 117,279,699 | $ 110,994,461 | $ 6,285,238 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 84.5% |
Bermuda | 6.6% |
Korea (South) | 4.8% |
Netherlands | 1.4% |
Others (Individually Less Than 1%) | 2.7% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $7,481,451) - See accompanying schedule: Unaffiliated issuers (cost $102,619,185) | $ 104,751,024 | |
Fidelity Central Funds (cost $12,528,675) | 12,528,675 | |
Total Investments (cost $115,147,860) | | $ 117,279,699 |
Receivable for investments sold | | 3,586,889 |
Receivable for fund shares sold | | 431,020 |
Dividends receivable | | 90,760 |
Interest receivable | | 9,048 |
Distributions receivable from Fidelity Central Funds | | 4,128 |
Prepaid expenses | | 252 |
Other receivables | | 1,446 |
Total assets | | 121,403,242 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,479,135 | |
Payable for fund shares redeemed | 1,163,305 | |
Accrued management fee | 50,611 | |
Distribution and service plan fees payable | 24,037 | |
Other affiliated payables | 19,827 | |
Other payables and accrued expenses | 58,779 | |
Collateral on securities loaned, at value | 7,813,498 | |
Total liabilities | | 14,609,192 |
| | |
Net Assets | | $ 106,794,050 |
Net Assets consist of: | | |
Paid in capital | | $ 102,448,259 |
Accumulated net investment loss | | (121,013) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,335,026 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,131,778 |
Net Assets | | $ 106,794,050 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($34,459,637 ÷ 2,231,318 shares) | | $ 15.44 |
| | |
Maximum offering price per share (100/94.25 of $15.44) | | $ 16.38 |
Class T:
Net Asset Value and redemption price per share ($10,099,712 ÷ 674,003 shares) | | $ 14.98 |
| | |
Maximum offering price per share (100/96.50 of $14.98) | | $ 15.52 |
Class B:
Net Asset Value and offering price per share ($406,426 ÷ 28,983 shares)A | | $ 14.02 |
| | |
Class C:
Net Asset Value and offering price per share ($15,991,972 ÷ 1,143,101 shares)A | | $ 13.99 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($45,836,303 ÷ 2,860,237 shares) | | $ 16.03 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 518,525 |
Interest | | 4,923 |
Income from Fidelity Central Funds | | 13,609 |
Total income | | 537,057 |
| | |
Expenses | | |
Management fee | $ 209,825 | |
Transfer agent fees | 89,043 | |
Distribution and service plan fees | 109,798 | |
Accounting and security lending fees | 15,152 | |
Custodian fees and expenses | 42,427 | |
Independent trustees' compensation | 607 | |
Registration fees | 62,626 | |
Audit | 22,817 | |
Legal | 317 | |
Miscellaneous | 266 | |
Total expenses before reductions | 552,878 | |
Expense reductions | (15,210) | 537,668 |
Net investment income (loss) | | (611) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,994,963 | |
Foreign currency transactions | (2,042) | |
Total net realized gain (loss) | | 4,992,921 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,287,027 | |
Assets and liabilities in foreign currencies | (61) | |
Total change in net unrealized appreciation (depreciation) | | 2,286,966 |
Net gain (loss) | | 7,279,887 |
Net increase (decrease) in net assets resulting from operations | | $ 7,279,276 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (611) | $ (66,312) |
Net realized gain (loss) | 4,992,921 | 5,071,173 |
Change in net unrealized appreciation (depreciation) | 2,286,966 | 1,173,624 |
Net increase (decrease) in net assets resulting from operations | 7,279,276 | 6,178,485 |
Distributions to shareholders from net investment income | (57,407) | - |
Distributions to shareholders from net realized gain | (377,501) | - |
Total distributions | (434,908) | - |
Share transactions - net increase (decrease) | 43,429,913 | 34,400,043 |
Redemption fees | 10,124 | 4,495 |
Total increase (decrease) in net assets | 50,284,405 | 40,583,023 |
| | |
Net Assets | | |
Beginning of period | 56,509,645 | 15,926,622 |
End of period (including accumulated net investment loss of $121,013 and accumulated net investment loss of $62,995, respectively) | $ 106,794,050 | $ 56,509,645 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.86 | $ 10.33 | $ 8.45 | $ 8.93 | $ 7.14 | $ 6.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | -I | (.02) | (.01) | (.05) | (.04) | (.01) |
Net realized and unrealized gain (loss) | 1.66 | 3.55 | 1.89 | (.43) | 1.83 | .59 |
Total from investment operations | 1.66 | 3.53 | 1.88 | (.48) | 1.79 | .58 |
Distributions from net investment income | (.01) | - | - | - | - | (.03) |
Distributions from net realized gain | (.07) | - | - | - | - | - |
Total distributions | (.08) | - | - | - | - | (.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 13.86 | $ 10.33 | $ 8.45 | $ 8.93 | $ 7.14 |
Total ReturnB, C, D | 11.94% | 34.17% | 22.25% | (5.38)% | 25.07% | 8.74% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.43%A | 1.84% | 2.18% | 1.88% | 1.89% | 1.97% |
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% | 1.37% | 1.39% | 1.39% | 1.39% |
Net investment income (loss) | .02%A | (.16)% | (.07)% | (.53)% | (.40)% | (.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 34,460 | $ 16,542 | $ 5,833 | $ 6,000 | $ 7,537 | $ 5,394 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 10.05 | $ 8.24 | $ 8.73 | $ 7.00 | $ 6.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.05) | (.03) | (.07) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 1.61 | 3.45 | 1.84 | (.42) | 1.79 | .58 |
Total from investment operations | 1.59 | 3.40 | 1.81 | (.49) | 1.73 | .55 |
Distributions from net investment income | - | - | - | - | - | (.01) |
Distributions from net realized gain | (.06) | - | - | - | - | - |
Total distributions | (.06) | - | - | - | - | (.01) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.98 | $ 13.45 | $ 10.05 | $ 8.24 | $ 8.73 | $ 7.00 |
Total ReturnB, C, D | 11.82% | 33.83% | 21.97% | (5.61)% | 24.71% | 8.50% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.77%A | 2.19% | 2.48% | 2.23% | 2.25% | 2.26% |
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% | 1.62% | 1.64% | 1.64% | 1.64% |
Net investment income (loss) | (.23)%A | (.42)% | (.32)% | (.78)% | (.65)% | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,100 | $ 7,144 | $ 3,756 | $ 3,909 | $ 4,476 | $ 3,862 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.59 | $ 9.46 | $ 7.79 | $ 8.29 | $ 6.69 | $ 6.19 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.10) | (.07) | (.10) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.50 | 3.23 | 1.74 | (.40) | 1.69 | .56 |
Total from investment operations | 1.45 | 3.13 | 1.67 | (.50) | 1.60 | .50 |
Distributions from net realized gain | (.02) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.02 | $ 12.59 | $ 9.46 | $ 7.79 | $ 8.29 | $ 6.69 |
Total ReturnB, C, D | 11.55% | 33.09% | 21.44% | (6.03)% | 23.92% | 8.08% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.25%A | 2.68% | 2.95% | 2.70% | 2.76% | 2.73% |
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% | 2.12% | 2.15% | 2.14% | 2.15% |
Net investment income (loss) | (.73)%A | (.92)% | (.82)% | (1.29)% | (1.15)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 406 | $ 392 | $ 306 | $ 459 | $ 691 | $ 1,073 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.58 | $ 9.44 | $ 7.78 | $ 8.29 | $ 6.68 | $ 6.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.10) | (.07) | (.10) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 1.50 | 3.24 | 1.73 | (.41) | 1.70 | .56 |
Total from investment operations | 1.45 | 3.14 | 1.66 | (.51) | 1.61 | .50 |
Distributions from net realized gain | (.04) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.99 | $ 12.58 | $ 9.44 | $ 7.78 | $ 8.29 | $ 6.68 |
Total ReturnB, C, D | 11.55% | 33.26% | 21.34% | (6.15)% | 24.10% | 8.09% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.20%A | 2.60% | 2.93% | 2.65% | 2.70% | 2.72% |
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% | 2.12% | 2.14% | 2.14% | 2.14% |
Net investment income (loss) | (.73)%A | (.91)% | (.82)% | (1.28)% | (1.15)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 15,992 | $ 7,381 | $ 3,157 | $ 3,721 | $ 3,836 | $ 3,256 |
Portfolio turnover rateG | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.37 | $ 10.68 | $ 8.72 | $ 9.19 | $ 7.33 | $ 6.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .01 | .02 | (.02) | (.01) | .01 |
Net realized and unrealized gain (loss) | 1.73 | 3.68 | 1.94 | (.45) | 1.87 | .60 |
Total from investment operations | 1.75 | 3.69 | 1.96 | (.47) | 1.86 | .61 |
Distributions from net investment income | (.02) | - | - | - | - | (.03) |
Distributions from net realized gain | (.07) | - | - | - | - | - |
Total distributions | (.09) | - | - | - | - | (.03) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 16.03 | $ 14.37 | $ 10.68 | $ 8.72 | $ 9.19 | $ 7.33 |
Total ReturnB, C | 12.15% | 34.55% | 22.48% | (5.11)% | 25.38% | 9.10% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | 1.12%A | 1.34% | 1.86% | 1.55% | 1.42% | 1.64% |
Expenses net of fee waivers, if any | 1.12%A | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.11%A | 1.14% | 1.12% | 1.14% | 1.14% | 1.14% |
Net investment income (loss) | .30%A | .08% | .18% | (.28)% | (.15)% | .11% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 45,836 | $ 25,050 | $ 2,874 | $ 3,271 | $ 1,765 | $ 645 |
Portfolio turnover rateF | 131%A | 156% | 179% | 140% | 166% | 87% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount 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, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, 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 | $ 6,167,950 |
Gross unrealized depreciation | (4,467,112) |
Net unrealized appreciation (depreciation) on securities | $ 1,700,838 |
| |
Tax cost | $ 115,578,861 |
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ 2,041,577 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $92,094,400 and $48,402,103, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 29,588 | $ 1,649 |
Class T | .25% | .25% | 19,698 | - |
Class B | .75% | .25% | 1,880 | 1,411 |
Class C | .75% | .25% | 58,632 | 27,957 |
| | | $ 109,798 | $ 31,017 |
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 shares, 1.00% for Class C shares, 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 | $ 32,444 |
Class T | 3,099 |
Class B* | 180 |
Class C* | 1,229 |
| $ 36,952 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 29,002 | .25 |
Class T | 12,978 | .33 |
Class B | 561 | .30 |
Class C | 15,533 | .27 |
Institutional Class | 30,969 | .19 |
| $ 89,043 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,553 for the period.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,754.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $47 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $10,631.
8. Expense Reductions.
The investment adviser 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 |
Class A | 1.40% | $ 3,595 |
Class T | 1.65% | 4,756 |
Class B | 2.15% | 184 |
Class C | 2.15% | 3,420 |
| | $ 11,955 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,255 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 13,078 | $ - |
Institutional Class | 44,329 | - |
Total | $ 57,407 | $ - |
From net realized gain | | |
Class A | $ 128,913 | $ - |
Class T | 34,793 | - |
Class B | 598 | - |
Class C | 43,270 | - |
Institutional Class | 169,927 | - |
Total | $ 377,501 | $ - |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,338,209 | 772,579 | $ 19,979,580 | $ 10,230,441 |
Reinvestment of distributions | 7,643 | - | 119,544 | - |
Shares redeemed | (308,402) | (143,457) | (4,489,051) | (1,810,191) |
Net increase (decrease) | 1,037,450 | 629,122 | $ 15,610,073 | $ 8,420,250 |
Class T | | | | |
Shares sold | 232,956 | 230,216 | $ 3,403,578 | $ 2,844,843 |
Reinvestment of distributions | 2,215 | - | 33,618 | - |
Shares redeemed | (92,351) | (72,780) | (1,266,555) | (817,318) |
Net increase (decrease) | 142,820 | 157,436 | $ 2,170,641 | $ 2,027,525 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class B | | | | |
Shares sold | 7,254 | 7,793 | $ 99,818 | $ 94,749 |
Reinvestment of distributions | 39 | - | 551 | - |
Shares redeemed | (9,452) | (9,002) | (125,902) | (95,467) |
Net increase (decrease) | (2,159) | (1,209) | $ (25,533) | $ (718) |
Class C | | | | |
Shares sold | 641,744 | 357,228 | $ 8,540,835 | $ 4,283,093 |
Reinvestment of distributions | 2,732 | - | 38,744 | - |
Shares redeemed | (88,304) | (104,588) | (1,169,470) | (1,156,253) |
Net increase (decrease) | 556,172 | 252,640 | $ 7,410,109 | $ 3,126,840 |
Institutional Class | | | | |
Shares sold | 1,924,626 | 1,892,867 | $ 29,991,968 | $ 26,288,223 |
Reinvestment of distributions | 10,497 | - | 170,367 | - |
Shares redeemed | (818,586) | (418,217) | (11,897,712) | (5,462,077) |
Net increase (decrease) | 1,116,537 | 1,474,650 | $ 18,264,623 | $ 20,826,146 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.12% | | | |
Actual | | $ 1,000.00 | $ 770.00 | $ 5.00 |
HypotheticalA | | $ 1,000.00 | $ 1,019.56 | $ 5.70 |
Class T | 1.35% | | | |
Actual | | $ 1,000.00 | $ 769.20 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class B | 1.92% | | | |
Actual | | $ 1,000.00 | $ 767.10 | $ 8.55 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Class C | 1.86% | | | |
Actual | | $ 1,000.00 | $ 767.40 | $ 8.29 |
HypotheticalA | | $ 1,000.00 | $ 1,015.83 | $ 9.45 |
Institutional Class | .85% | | | |
Actual | | $ 1,000.00 | $ 771.10 | $ 3.79 |
HypotheticalA | | $ 1,000.00 | $ 1,020.92 | $ 4.33 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 14.1 | 16.3 |
Schlumberger Ltd. | 8.8 | 9.1 |
Chevron Corp. | 6.9 | 11.8 |
EOG Resources, Inc. | 6.6 | 5.7 |
Anadarko Petroleum Corp. | 5.1 | 4.0 |
Cimarex Energy Co. | 4.0 | 3.7 |
Baker Hughes, Inc. | 3.5 | 0.0 |
Noble Energy, Inc. | 3.2 | 2.8 |
Kinder Morgan Holding Co. LLC | 3.1 | 0.0 |
Concho Resources, Inc. | 2.5 | 2.7 |
| 57.8 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Oil, Gas & Consumable Fuels | 76.3% | |
| Energy Equipment & Services | 18.4% | |
| Independent Power Producers & Renewable Electricity Producers | 0.7% | |
| Independent Power and Renewable Electricity Producers | 0.5% | |
| Multi-Utilities | 0.1% | |
| All Others* | 4.0% | |
As of July 31, 2014 |
| Oil, Gas & Consumable Fuels | 75.2% | |
| Energy Equipment & Services | 22.8% | |
| Independent Power Producers & Energy Traders | 0.5% | |
| Independent Power and Renewable Electricity Producers | 0.1% | |
| Trading Companies & Distributors | 0.1% | |
| All Others* | 1.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% |
| Shares | | Value |
ENERGY EQUIPMENT & SERVICES - 18.4% |
Oil & Gas Drilling - 1.0% |
Ocean Rig UDW, Inc. (United States) | 108,900 | | $ 889,713 |
Odfjell Drilling A/S | 567,856 | | 660,033 |
Unit Corp. (a) | 122,150 | | 3,637,627 |
Vantage Drilling Co. (a) | 1,887,530 | | 736,137 |
Xtreme Drilling & Coil Services Corp. (a) | 813,202 | | 1,055,940 |
| | 6,979,450 |
Oil & Gas Equipment & Services - 17.4% |
Baker Hughes, Inc. | 433,500 | | 25,138,665 |
C&J Energy Services, Inc. (a) | 37,300 | | 384,190 |
Dril-Quip, Inc. (a) | 61,791 | | 4,586,746 |
FMC Technologies, Inc. (a) | 285,206 | | 10,689,521 |
Halliburton Co. | 128,814 | | 5,151,272 |
Oceaneering International, Inc. | 242,773 | | 12,711,594 |
Schlumberger Ltd. | 763,209 | | 62,880,790 |
Total Energy Services, Inc. | 53,200 | | 546,360 |
Weatherford International Ltd. (a) | 294,700 | | 3,044,251 |
| | 125,133,389 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 132,112,839 |
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 0.5% |
Renewable Electricity - 0.5% |
NextEra Energy Partners LP | 84,900 | | 3,403,641 |
INDEPENDENT POWER PRODUCERS & RENEWABLE ELECTRICITY PRODUCERS - 0.7% |
Independent Power Producers & Energy Traders - 0.7% |
Calpine Corp. (a) | 32,700 | | 682,776 |
Dynegy, Inc. (a) | 140,422 | | 3,836,329 |
| | 4,519,105 |
MULTI-UTILITIES - 0.1% |
Multi-Utilities - 0.1% |
NiSource, Inc. | 16,400 | | 709,464 |
OIL, GAS & CONSUMABLE FUELS - 76.3% |
Coal & Consumable Fuels - 0.1% |
Peabody Energy Corp. (d) | 118,018 | | 735,252 |
Integrated Oil & Gas - 22.5% |
BG Group PLC | 637,500 | | 8,502,890 |
Chevron Corp. | 484,609 | | 49,686,961 |
Exxon Mobil Corp. | 1,153,861 | | 100,870,528 |
Imperial Oil Ltd. | 51,500 | | 1,914,583 |
| | 160,974,962 |
Oil & Gas Exploration & Production - 34.8% |
Anadarko Petroleum Corp. | 451,083 | | 36,876,035 |
Bankers Petroleum Ltd. (a) | 549,000 | | 1,261,572 |
Bonanza Creek Energy, Inc. (a) | 143,125 | | 3,732,700 |
Canadian Natural Resources Ltd. | 77,000 | | 2,232,376 |
Chesapeake Energy Corp. | 280,200 | | 5,374,236 |
Cimarex Energy Co. | 274,847 | | 28,364,210 |
Concho Resources, Inc. (a) | 163,800 | | 18,157,230 |
|
| Shares | | Value |
ConocoPhillips Co. | 269,036 | | $ 16,943,887 |
Continental Resources, Inc. (a)(d) | 136,930 | | 6,216,622 |
Diamondback Energy, Inc. (a) | 63,300 | | 4,367,067 |
Energen Corp. | 115,713 | | 7,338,518 |
Energy XXI (Bermuda) Ltd. (d) | 225,900 | | 664,146 |
EOG Resources, Inc. | 534,186 | | 47,558,580 |
Evolution Petroleum Corp. | 60,495 | | 444,638 |
Gulfport Energy Corp. (a) | 56,100 | | 2,159,289 |
Kosmos Energy Ltd. (a) | 195,100 | | 1,711,027 |
Laredo Petroleum Holdings, Inc. (a) | 38,500 | | 377,685 |
Marathon Oil Corp. | 34,400 | | 915,040 |
Memorial Resource Development Corp. | 452,100 | | 8,657,715 |
Newfield Exploration Co. (a) | 64,000 | | 1,905,920 |
Noble Energy, Inc. | 477,708 | | 22,805,780 |
Northern Oil & Gas, Inc. (a) | 203,193 | | 1,276,052 |
Paramount Resources Ltd. Class A (a) | 32,500 | | 729,185 |
PDC Energy, Inc. (a) | 126,688 | | 5,820,047 |
Peyto Exploration & Development Corp. (d) | 39,500 | | 997,836 |
Pioneer Natural Resources Co. | 48,216 | | 7,257,954 |
RSP Permian, Inc. (a) | 15,400 | | 412,720 |
SM Energy Co. | 230,600 | | 8,721,292 |
Synergy Resources Corp. (a) | 185,615 | | 2,270,071 |
TAG Oil Ltd. (a) | 446,700 | | 506,215 |
Whiting Petroleum Corp. (a) | 125,713 | | 3,773,904 |
| | 249,829,549 |
Oil & Gas Refining & Marketing - 6.5% |
Alon U.S.A. Energy, Inc. | 50,100 | | 605,208 |
CVR Refining, LP | 33,873 | | 567,373 |
Delek U.S. Holdings, Inc. | 21,600 | | 666,360 |
Marathon Petroleum Corp. | 34,052 | | 3,152,875 |
Phillips 66 Co. | 183,123 | | 12,877,209 |
Tesoro Corp. | 215,000 | | 17,571,950 |
Valero Energy Corp. | 169,726 | | 8,975,111 |
World Fuel Services Corp. | 40,833 | | 1,999,592 |
| | 46,415,678 |
Oil & Gas Storage & Transport - 12.4% |
Cheniere Energy, Inc. (a) | 106,300 | | 7,587,694 |
Dominion Midstream Partners LP | 25,801 | | 899,165 |
Enable Midstream Partners LP | 42,900 | | 762,762 |
EQT Midstream Partners LP | 31,500 | | 2,672,775 |
Golar LNG Ltd. | 175,900 | | 4,988,524 |
Kinder Morgan Holding Co. LLC | 538,100 | | 22,089,005 |
Magellan Midstream Partners LP | 32,034 | | 2,483,276 |
MPLX LP | 83,894 | | 6,672,929 |
ONEOK, Inc. | 34,200 | | 1,505,826 |
Phillips 66 Partners LP | 92,469 | | 6,696,605 |
Plains GP Holdings LP Class A | 362,400 | | 9,451,392 |
SemGroup Corp. Class A | 23,600 | | 1,588,988 |
Targa Resources Corp. | 68,232 | | 5,924,585 |
Common Stocks - continued |
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - CONTINUED |
Oil & Gas Storage & Transport - continued |
The Williams Companies, Inc. | 191,200 | | $ 8,386,032 |
Valero Energy Partners LP | 151,243 | | 7,554,588 |
| | 89,264,146 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 547,219,587 |
REAL ESTATE INVESTMENT TRUSTS - 0.0% |
Specialized REITs - 0.0% |
InfraReit, Inc. | 7,200 | | 191,520 |
TOTAL COMMON STOCKS (Cost $713,580,596) |
688,156,156
|
Money Market Funds - 7.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 47,766,968 | | 47,766,968 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 3,118,338 | | 3,118,338 |
TOTAL MONEY MARKET FUNDS (Cost $50,885,306) |
50,885,306
|
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $764,465,902) | | 739,041,462 |
NET OTHER ASSETS (LIABILITIES) - (3.1)% | | (21,958,114) |
NET ASSETS - 100% | $ 717,083,348 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 10,878 |
Fidelity Securities Lending Cash Central Fund | 42,649 |
Total | $ 53,527 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 688,156,156 | $ 679,653,266 | $ 8,502,890 | $ - |
Money Market Funds | 50,885,306 | 50,885,306 | - | - |
Total Investments in Securities: | $ 739,041,462 | $ 730,538,572 | $ 8,502,890 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 86.9% |
Curacao | 8.8% |
Canada | 1.4% |
United Kingdom | 1.2% |
Bermuda | 1.1% |
Others (Individually Less Than 1%) | 0.6% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,075,774) - See accompanying schedule: Unaffiliated issuers (cost $713,580,596) | $ 688,156,156 | |
Fidelity Central Funds (cost $50,885,306) | 50,885,306 | |
Total Investments (cost $764,465,902) | | $ 739,041,462 |
Receivable for investments sold | | 5,521,811 |
Receivable for fund shares sold | | 5,834,744 |
Dividends receivable | | 456,621 |
Distributions receivable from Fidelity Central Funds | | 9,431 |
Prepaid expenses | | 4,101 |
Other receivables | | 24,182 |
Total assets | | 750,892,352 |
| | |
Liabilities | | |
Payable to custodian bank | $ 3,797 | |
Payable for investments purchased | 28,317,909 | |
Payable for fund shares redeemed | 1,602,937 | |
Accrued management fee | 313,081 | |
Distribution and service plan fees payable | 240,134 | |
Other affiliated payables | 162,171 | |
Other payables and accrued expenses | 50,637 | |
Collateral on securities loaned, at value | 3,118,338 | |
Total liabilities | | 33,809,004 |
| | |
Net Assets | | $ 717,083,348 |
Net Assets consist of: | | |
Paid in capital | | $ 769,959,275 |
Undistributed net investment income | | (48,189) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (27,403,234) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (25,424,504) |
Net Assets | | $ 717,083,348 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($281,042,153 ÷ 8,379,612 shares) | | $ 33.54 |
| | |
Maximum offering price per share (100/94.25 of $33.54) | | $ 35.59 |
Class T:
Net Asset Value and redemption price per share ($181,001,855 ÷ 5,275,975 shares) | | $ 34.31 |
| | |
Maximum offering price per share (100/96.50 of $34.31) | | $ 35.55 |
Class B:
Net Asset Value and offering price per share ($11,430,961 ÷ 369,953 shares)A | | $ 30.90 |
| | |
Class C:
Net Asset Value and offering price per share ($130,428,812 ÷ 4,196,992 shares)A | | $ 31.08 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($113,179,567 ÷ 3,207,398 shares) | | $ 35.29 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,632,972 |
Income from Fidelity Central Funds | | 53,527 |
Total income | | 6,686,499 |
| | |
Expenses | | |
Management fee | $ 2,066,939 | |
Transfer agent fees | 926,454 | |
Distribution and service plan fees | 1,591,878 | |
Accounting and security lending fees | 134,230 | |
Custodian fees and expenses | 6,580 | |
Independent trustees' compensation | 7,198 | |
Registration fees | 72,794 | |
Audit | 23,200 | |
Legal | 4,666 | |
Interest | 408 | |
Miscellaneous | 4,621 | |
Total expenses before reductions | 4,838,968 | |
Expense reductions | (3,090) | 4,835,878 |
Net investment income (loss) | | 1,850,621 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (26,466,355) | |
Foreign currency transactions | (4,925) | |
Total net realized gain (loss) | | (26,451,280) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (171,075,344) | |
Assets and liabilities in foreign currencies | 16 | |
Total change in net unrealized appreciation (depreciation) | | (171,075,328) |
Net gain (loss) | | (197,526,608) |
Net increase (decrease) in net assets resulting from operations | | $ (195,675,987) |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,850,621 | $ 1,451,099 |
Net realized gain (loss) | (26,451,280) | 63,966,553 |
Change in net unrealized appreciation (depreciation) | (171,075,328) | 60,343,712 |
Net increase (decrease) in net assets resulting from operations | (195,675,987) | 125,761,364 |
Distributions to shareholders from net investment income | (1,943,586) | (2,028,433) |
Distributions to shareholders from net realized gain | (36,840,330) | (32,993,983) |
Total distributions | (38,783,916) | (35,022,416) |
Share transactions - net increase (decrease) | 77,178,549 | 95,115,595 |
Redemption fees | 28,840 | 17,148 |
Total increase (decrease) in net assets | (157,252,514) | 185,871,691 |
| | |
Net Assets | | |
Beginning of period | 874,335,862 | 688,464,171 |
End of period (including undistributed net investment income of $48,189 and undistributed net investment income of $44,776, respectively) | $ 717,083,348 | $ 874,335,862 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 45.71 | $ 40.59 | $ 33.71 | $ 40.17 | $ 27.70 | $ 25.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .15 | .23 | .25 | .11 | (.05) |
Net realized and unrealized gain (loss) | (10.16) | 7.06 | 6.81 | (6.50) | 12.47 | 1.93 |
Total from investment operations | (10.03) | 7.21 | 7.04 | (6.25) | 12.58 | 1.88 |
Distributions from net investment income | (.12) | (.17) | (.16) | (.21) | (.11) | - |
Distributions from net realized gain | (2.02) | (1.93) | - | - | - | - |
Total distributions | (2.14) | (2.09) J | (.16) | (.21) | (.11) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.54 | $ 45.71 | $ 40.59 | $ 33.71 | $ 40.17 | $ 27.70 |
Total ReturnB, C, D | (23.00)% | 18.46% | 20.94% | (15.58)% | 45.46% | 7.28% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.12%A | 1.12% | 1.16% | 1.17% | 1.16% | 1.20% |
Expenses net of fee waivers, if any | 1.12%A | 1.12% | 1.16% | 1.17% | 1.16% | 1.20% |
Expenses net of all reductions | 1.12%A | 1.12% | 1.15% | 1.17% | 1.16% | 1.19% |
Net investment income (loss) | .66%A | .36% | .61% | .72% | .30% | (.16)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 281,042 | $ 369,400 | $ 279,798 | $ 253,332 | $ 331,120 | $ 214,407 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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 $2.09 per share is comprised of distributions from net investment income of $.165 and distributions from net realized gain of $1.929 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 46.64 | $ 41.38 | $ 34.40 | $ 41.04 | $ 28.33 | $ 26.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .06 | .15 | .18 | .03 | (.11) |
Net realized and unrealized gain (loss) | (10.38) | 7.21 | 6.95 | (6.65) | 12.75 | 1.97 |
Total from investment operations | (10.30) | 7.27 | 7.10 | (6.47) | 12.78 | 1.86 |
Distributions from net investment income | (.08) | (.08) | (.12) | (.17) | (.07) | - |
Distributions from net realized gain | (1.95) | (1.93) | - | - | - | - |
Total distributions | (2.03) | (2.01) | (.12) | (.17) | (.07) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 34.31 | $ 46.64 | $ 41.38 | $ 34.40 | $ 41.04 | $ 28.33 |
Total ReturnB, C, D | (23.08)% | 18.19% | 20.70% | (15.77)% | 45.16% | 7.03% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.35%A | 1.34% | 1.36% | 1.38% | 1.37% | 1.41% |
Expenses net of fee waivers, if any | 1.35%A | 1.34% | 1.36% | 1.38% | 1.37% | 1.41% |
Expenses net of all reductions | 1.35%A | 1.34% | 1.35% | 1.38% | 1.37% | 1.41% |
Net investment income (loss) | .43%A | .14% | .40% | .50% | .09% | (.37)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 181,002 | $ 245,828 | $ 223,248 | $ 215,488 | $ 290,512 | $ 219,051 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 42.08 | $ 37.65 | $ 31.41 | $ 37.61 | $ 26.06 | $ 24.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.17) | (.05) | (.01) | (.15) | (.25) |
Net realized and unrealized gain (loss) | (9.34) | 6.52 | 6.34 | (6.09) | 11.71 | 1.83 |
Total from investment operations | (9.37) | 6.35 | 6.29 | (6.10) | 11.56 | 1.58 |
Distributions from net investment income | - | - | (.05) | (.10) | (.01) | - |
Distributions from net realized gain | (1.81) | (1.92) | - | - | - | - |
Total distributions | (1.81) | (1.92) | (.05) | (.10) | (.01) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 30.90 | $ 42.08 | $ 37.65 | $ 31.41 | $ 37.61 | $ 26.06 |
Total ReturnB, C, D | (23.29)% | 17.50% | 20.04% | (16.22)% | 44.38% | 6.45% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.92%A | 1.91% | 1.92% | 1.92% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.92%A | 1.91% | 1.92% | 1.92% | 1.93% | 1.96% |
Expenses net of all reductions | 1.92%A | 1.91% | 1.91% | 1.92% | 1.92% | 1.95% |
Net investment income (loss) | (.14)%A | (.44)% | (.15)% | (.03)% | (.46)% | (.92)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,431 | $ 17,432 | $ 20,551 | $ 28,558 | $ 49,793 | $ 44,330 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 42.40 | $ 37.92 | $ 31.63 | $ 37.88 | $ 26.25 | $ 24.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.15) | (.04) | (.01) | (.15) | (.25) |
Net realized and unrealized gain (loss) | (9.41) | 6.57 | 6.38 | (6.13) | 11.80 | 1.85 |
Total from investment operations | (9.42) | 6.42 | 6.34 | (6.14) | 11.65 | 1.60 |
Distributions from net investment income | (.03) | (.01) | (.05) | (.11) | (.02) | - |
Distributions from net realized gain | (1.88) | (1.93) | - | - | - | - |
Total distributions | (1.90) J | (1.94) | (.05) | (.11) | (.02) | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 31.08 | $ 42.40 | $ 37.92 | $ 31.63 | $ 37.88 | $ 26.25 |
Total ReturnB, C, D | (23.26)% | 17.57% | 20.08% | (16.22)% | 44.38% | 6.49% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.86%A | 1.86% | 1.90% | 1.92% | 1.90% | 1.94% |
Expenses net of fee waivers, if any | 1.86%A | 1.86% | 1.90% | 1.92% | 1.90% | 1.94% |
Expenses net of all reductions | 1.86%A | 1.86% | 1.88% | 1.91% | 1.89% | 1.93% |
Net investment income (loss) | (.08)%A | (.38)% | (.13)% | (.03)% | (.43)% | (.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 130,429 | $ 130,881 | $ 99,833 | $ 93,504 | $ 133,476 | $ 90,596 |
Portfolio turnover rateG | 60% A | 112% | 68% | 88% | 91% | 103% |
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 $1.90 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $1.87 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.05 | $ 42.55 | $ 35.28 | $ 41.95 | $ 28.87 | $ 26.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .19 | .28 | .35 | .37 | .23 | .04 |
Net realized and unrealized gain (loss) | (10.69) | 7.42 | 7.12 | (6.79) | 12.99 | 2.00 |
Total from investment operations | (10.50) | 7.70 | 7.47 | (6.42) | 13.22 | 2.04 |
Distributions from net investment income | (.19) | (.27) | (.20) | (.25) | (.14) | - |
Distributions from net realized gain | (2.07) | (1.93) | - | - | - | - |
Total distributions | (2.26) | (2.20) | (.20) | (.25) | (.14) | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 35.29 | $ 48.05 | $ 42.55 | $ 35.28 | $ 41.95 | $ 28.87 |
Total ReturnB, C | (22.89)% | 18.80% | 21.26% | (15.31)% | 45.87% | 7.60% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .85%A | .85% | .88% | .86% | .86% | .90% |
Expenses net of fee waivers, if any | .85%A | .85% | .88% | .86% | .86% | .90% |
Expenses net of all reductions | .85%A | .85% | .86% | .85% | .85% | .90% |
Net investment income (loss) | .92%A | .63% | .89% | 1.03% | .60% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 113,180 | $ 110,795 | $ 65,034 | $ 56,692 | $ 54,024 | $ 27,338 |
Portfolio turnover rateF | 60% A | 112% | 68% | 88% | 91% | 103% |
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, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation 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 | $ 61,683,145 |
Gross unrealized depreciation | (90,032,792) |
Net unrealized appreciation (depreciation) on securities | $ (28,349,647) |
| |
Tax cost | $ 767,391,109 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $249,482,448 and $226,637,601, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 378,615 | $ 3,342 |
Class T | .25% | .25% | 526,142 | - |
Class B | .75% | .25% | 71,052 | 53,289 |
Class C | .75% | .25% | 616,069 | 137,748 |
| | | $ 1,591,878 | $ 194,379 |
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 shares, 1.00% for Class C shares, 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 | $ 131,488 |
Class T | 18,172 |
Class B* | 5,322 |
Class C* | 10,036 |
| $ 165,018 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 386,547 | .26 |
Class T | 248,662 | .24 |
Class B | 21,475 | .30 |
Class C | 149,515 | .24 |
Institutional Class | 120,255 | .24 |
| $ 926,454 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,224 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 or other affiliated entities of 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 | $ 15,226,000 | .32% | $ 408 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $539 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $42,649.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,081 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $8.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 932,668 | $ 1,151,717 |
Class T | 410,584 | 407,949 |
Class C | 97,073 | 21,755 |
Institutional Class | 503,261 | 447,012 |
Total | $ 1,943,586 | $ 2,028,433 |
From net realized gain | | |
Class A | $ 15,270,711 | $ 13,468,952 |
Class T | 10,226,679 | 10,162,438 |
Class B | 735,565 | 951,726 |
Class C | 5,982,436 | 5,213,518 |
Institutional Class | 4,624,939 | 3,197,349 |
Total | $ 36,840,330 | $ 32,993,983 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 2,155,170 | 2,566,576 | $ 78,335,897 | $ 110,639,298 |
Reinvestment of distributions | 346,427 | 321,215 | 15,023,137 | 13,089,815 |
Shares redeemed | (2,203,798) | (1,699,770) | (86,327,968) | (72,383,987) |
Net increase (decrease) | 297,799 | 1,188,021 | $ 7,031,066 | $ 51,345,126 |
Class T | | | | |
Shares sold | 407,234 | 572,893 | $ 15,305,220 | $ 25,352,574 |
Reinvestment of distributions | 229,125 | 243,465 | 10,214,221 | 10,134,909 |
Shares redeemed | (630,980) | (940,893) | (24,522,881) | (41,085,209) |
Net increase (decrease) | 5,379 | (124,535) | $ 996,560 | $ (5,597,726) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class B | | | | |
Shares sold | 24,515 | 26,300 | $ 837,106 | $ 1,074,846 |
Reinvestment of distributions | 16,323 | 22,691 | 661,892 | 856,078 |
Shares redeemed | (85,105) | (180,679) | (2,990,614) | (7,111,293) |
Net increase (decrease) | (44,267) | (131,688) | $ (1,491,616) | $ (5,180,369) |
Class C | | | | |
Shares sold | 1,503,702 | 779,598 | $ 50,462,889 | $ 31,528,558 |
Reinvestment of distributions | 130,140 | 118,310 | 5,288,656 | 4,495,184 |
Shares redeemed | (523,316) | (444,228) | (18,155,288) | (17,602,373) |
Net increase (decrease) | 1,110,526 | 453,680 | $ 37,596,257 | $ 18,421,369 |
Institutional Class | | | | |
Shares sold | 1,670,182 | 1,344,490 | $ 63,484,338 | $ 61,641,683 |
Reinvestment of distributions | 99,377 | 75,999 | 4,498,001 | 3,249,427 |
Shares redeemed | (868,145) | (642,747) | (34,936,057) | (28,763,915) |
Net increase (decrease) | 901,414 | 777,742 | $ 33,046,282 | $ 36,127,195 |
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 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 1,021.30 | $ 6.16 |
HypotheticalA | | $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 1,019.90 | $ 7.54 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,016.80 | $ 10.12 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 1,017.10 | $ 9.86 |
HypotheticalA | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,022.50 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
JPMorgan Chase & Co. | 4.9 | 5.4 |
Bank of America Corp. | 4.9 | 5.1 |
Berkshire Hathaway, Inc. Class B | 4.9 | 4.2 |
Citigroup, Inc. | 4.8 | 4.8 |
U.S. Bancorp | 4.3 | 4.6 |
American Tower Corp. | 3.8 | 3.8 |
Capital One Financial Corp. | 3.6 | 4.1 |
Wells Fargo & Co. | 3.3 | 3.8 |
McGraw Hill Financial, Inc. | 2.6 | 2.0 |
Allstate Corp. | 2.4 | 2.0 |
| 39.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Banks | 27.9% | |
| Real Estate Investment Trusts | 13.5% | |
| Capital Markets | 12.2% | |
| Insurance | 12.0% | |
| Diversified Financial Services | 9.7% | |
| All Others* | 24.7% | |
As of July 31, 2014 |
| Banks | 29.4% | |
| Capital Markets | 14.5% | |
| Insurance | 13.4% | |
| Real Estate Investment Trusts | 10.6% | |
| Diversified Financial Services | 8.8% | |
| All Others* | 23.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% |
| Shares | | Value |
BANKS - 27.9% |
Diversified Banks - 23.0% |
Bank of America Corp. | 608,656 | | $ 9,221,138 |
Citigroup, Inc. | 194,365 | | 9,125,437 |
Comerica, Inc. | 39,619 | | 1,644,189 |
JPMorgan Chase & Co. | 170,131 | | 9,251,721 |
U.S. Bancorp | 194,408 | | 8,147,639 |
Wells Fargo & Co. | 119,848 | | 6,222,508 |
| | 43,612,632 |
Regional Banks - 4.9% |
CoBiz, Inc. | 62,491 | | 681,152 |
Fifth Third Bancorp | 162,040 | | 2,803,292 |
Popular, Inc. (a) | 34,800 | | 1,072,884 |
Prosperity Bancshares, Inc. | 37,800 | | 1,730,862 |
SunTrust Banks, Inc. | 81,000 | | 3,112,020 |
| | 9,400,210 |
TOTAL BANKS | | 53,012,842 |
CAPITAL MARKETS - 12.2% |
Asset Management & Custody Banks - 9.4% |
Affiliated Managers Group, Inc. (a) | 8,954 | | 1,840,226 |
Ameriprise Financial, Inc. | 26,100 | | 3,260,934 |
Artisan Partners Asset Management, Inc. | 46,200 | | 2,230,074 |
Invesco Ltd. | 119,938 | | 4,405,323 |
Oaktree Capital Group LLC Class A | 37,000 | | 2,049,800 |
The Blackstone Group LP | 109,365 | | 4,083,689 |
| | 17,870,046 |
Diversified Capital Markets - 0.5% |
Close Brothers Group PLC | 43,300 | | 991,973 |
Investment Banking & Brokerage - 2.3% |
E*TRADE Financial Corp. (a) | 94,900 | | 2,187,445 |
Raymond James Financial, Inc. | 40,000 | | 2,104,800 |
| | 4,292,245 |
TOTAL CAPITAL MARKETS | | 23,154,264 |
CONSUMER FINANCE - 6.0% |
Consumer Finance - 6.0% |
Capital One Financial Corp. | 93,138 | | 6,818,633 |
Navient Corp. | 141,715 | | 2,797,454 |
Springleaf Holdings, Inc. (a) | 57,900 | | 1,829,640 |
| | 11,445,727 |
DIVERSIFIED CONSUMER SERVICES - 1.2% |
Specialized Consumer Services - 1.2% |
H&R Block, Inc. | 64,500 | | 2,211,060 |
DIVERSIFIED FINANCIAL SERVICES - 9.7% |
Multi-Sector Holdings - 4.9% |
Berkshire Hathaway, Inc. Class B (a) | 64,019 | | 9,212,974 |
|
| Shares | | Value |
Specialized Finance - 4.8% |
IntercontinentalExchange Group, Inc. | 20,214 | | $ 4,158,626 |
McGraw Hill Financial, Inc. | 56,300 | | 5,035,472 |
| | 9,194,098 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 18,407,072 |
HEALTH CARE PROVIDERS & SERVICES - 1.2% |
Health Care Facilities - 1.2% |
Brookdale Senior Living, Inc. (a) | 67,800 | | 2,288,250 |
INSURANCE - 12.0% |
Insurance Brokers - 2.9% |
Arthur J. Gallagher & Co. | 32,400 | | 1,439,532 |
Brown & Brown, Inc. | 48,000 | | 1,480,800 |
Marsh & McLennan Companies, Inc. | 48,000 | | 2,580,960 |
| | 5,501,292 |
Life & Health Insurance - 3.2% |
MetLife, Inc. | 32,026 | | 1,489,209 |
Prudential PLC | 59,144 | | 1,437,814 |
Torchmark Corp. | 62,280 | | 3,118,360 |
| | 6,045,383 |
Property & Casualty Insurance - 5.9% |
Allstate Corp. | 64,290 | | 4,486,799 |
FNF Group | 72,300 | | 2,537,730 |
The Travelers Companies, Inc. | 40,192 | | 4,132,541 |
| | 11,157,070 |
TOTAL INSURANCE | | 22,703,745 |
INTERNET SOFTWARE & SERVICES - 1.1% |
Internet Software & Services - 1.1% |
eBay, Inc. (a) | 40,200 | | 2,130,600 |
IT SERVICES - 5.0% |
Data Processing & Outsourced Services - 5.0% |
EVERTEC, Inc. | 92,400 | | 1,853,544 |
Fiserv, Inc. (a) | 40,166 | | 2,913,240 |
The Western Union Co. | 103,900 | | 1,766,300 |
Visa, Inc. Class A | 11,230 | | 2,862,639 |
| | 9,395,723 |
REAL ESTATE INVESTMENT TRUSTS - 13.5% |
Mortgage REITs - 4.3% |
Altisource Residential Corp. Class B | 103,850 | | 1,870,339 |
Blackstone Mortgage Trust, Inc. | 60,800 | | 1,775,360 |
NorthStar Realty Finance Corp. | 140,650 | | 2,659,692 |
Redwood Trust, Inc. (d) | 98,900 | | 1,971,077 |
| | 8,276,468 |
Office REITs - 1.5% |
Boston Properties, Inc. | 20,100 | | 2,789,880 |
Residential REITs - 1.4% |
Essex Property Trust, Inc. | 12,000 | | 2,712,600 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
Retail REITs - 1.2% |
WP Glimcher, Inc. | 128,569 | | $ 2,273,100 |
Specialized REITs - 5.1% |
American Tower Corp. | 74,950 | | 7,266,403 |
Outfront Media, Inc. | 83,430 | | 2,365,241 |
| | 9,631,644 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 25,683,692 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.9% |
Real Estate Services - 3.9% |
CBRE Group, Inc. (a) | 136,687 | | 4,420,458 |
Realogy Holdings Corp. (a) | 64,100 | | 2,980,650 |
| | 7,401,108 |
THRIFTS & MORTGAGE FINANCE - 0.8% |
Thrifts & Mortgage Finance - 0.8% |
MGIC Investment Corp. (a) | 50,000 | | 426,000 |
Ocwen Financial Corp. (a)(d) | 111,650 | | 683,298 |
Radian Group, Inc. | 19,600 | | 308,896 |
| | 1,418,194 |
TRADING COMPANIES & DISTRIBUTORS - 0.8% |
Trading Companies & Distributors - 0.8% |
AerCap Holdings NV (a) | 39,500 | | 1,561,435 |
TOTAL COMMON STOCKS (Cost $164,601,000) |
180,813,712
|
Money Market Funds - 5.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 8,948,492 | | $ 8,948,492 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 1,747,550 | | 1,747,550 |
TOTAL MONEY MARKET FUNDS (Cost $10,696,042) |
10,696,042
|
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $175,297,042) | | 191,509,754 |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | | (1,678,045) |
NET ASSETS - 100% | $ 189,831,709 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,028 |
Fidelity Securities Lending Cash Central Fund | 4,760 |
Total | $ 8,788 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 180,813,712 | $ 179,375,898 | $ 1,437,814 | $ - |
Money Market Funds | 10,696,042 | 10,696,042 | - | - |
Total Investments in Securities: | $ 191,509,754 | $ 190,071,940 | $ 1,437,814 | $ - |
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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,720,859) - See accompanying schedule: Unaffiliated issuers (cost $164,601,000) | $ 180,813,712 | |
Fidelity Central Funds (cost $10,696,042) | 10,696,042 | |
Total Investments (cost $175,297,042) | | $ 191,509,754 |
Receivable for investments sold | | 757,134 |
Receivable for fund shares sold | | 717,251 |
Dividends receivable | | 90,209 |
Distributions receivable from Fidelity Central Funds | | 1,872 |
Prepaid expenses | | 783 |
Other receivables | | 2,026 |
Total assets | | 193,079,029 |
| | |
Liabilities | | |
Payable for investments purchased | $ 710,183 | |
Payable for fund shares redeemed | 555,259 | |
Accrued management fee | 88,599 | |
Distribution and service plan fees payable | 68,955 | |
Other affiliated payables | 45,629 | |
Other payables and accrued expenses | 31,145 | |
Collateral on securities loaned, at value | 1,747,550 | |
Total liabilities | | 3,247,320 |
| | |
Net Assets | | $ 189,831,709 |
Net Assets consist of: | | |
Paid in capital | | $ 229,839,787 |
Distributions in excess of net investment income | | (631,046) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (55,589,390) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 16,212,358 |
Net Assets | | $ 189,831,709 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,288,851 ÷ 5,688,433 shares) | | $ 15.17 |
| | |
Maximum offering price per share (100/94.25 of $15.17) | | $ 16.10 |
Class T:
Net Asset Value and redemption price per share ($30,961,542 ÷ 2,053,251 shares) | | $ 15.08 |
| | |
Maximum offering price per share (100/96.50 of $15.08) | | $ 15.63 |
Class B:
Net Asset Value and offering price per share ($4,620,269 ÷ 317,013 shares)A | | $ 14.57 |
| | |
Class C:
Net Asset Value and offering price per share ($38,481,244 ÷ 2,666,906 shares)A | | $ 14.43 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,479,803 ÷ 1,899,450 shares) | | $ 15.52 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,463,121 |
Income from Fidelity Central Funds | | 8,788 |
Total income | | 1,471,909 |
| | |
Expenses | | |
Management fee | $ 495,173 | |
Transfer agent fees | 232,017 | |
Distribution and service plan fees | 405,931 | |
Accounting and security lending fees | 35,449 | |
Custodian fees and expenses | 6,751 | |
Independent trustees' compensation | 1,648 | |
Registration fees | 52,070 | |
Audit | 27,536 | |
Legal | 1,414 | |
Miscellaneous | 871 | |
Total expenses before reductions | 1,258,860 | |
Expense reductions | (3,283) | 1,255,577 |
Net investment income (loss) | | 216,332 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,021,518 | |
Foreign currency transactions | 771 | |
Total net realized gain (loss) | | 4,022,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,077,311) | |
Assets and liabilities in foreign currencies | (656) | |
Total change in net unrealized appreciation (depreciation) | | (2,077,967) |
Net gain (loss) | | 1,944,322 |
Net increase (decrease) in net assets resulting from operations | | $ 2,160,654 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 216,332 | $ 764,187 |
Net realized gain (loss) | 4,022,289 | 7,593,535 |
Change in net unrealized appreciation (depreciation) | (2,077,967) | 9,238,319 |
Net increase (decrease) in net assets resulting from operations | 2,160,654 | 17,596,041 |
Distributions to shareholders from net investment income | (1,174,436) | (647,193) |
Distributions to shareholders from net realized gain | - | (72,538) |
Total distributions | (1,174,436) | (719,731) |
Share transactions - net increase (decrease) | 21,128,750 | 10,142,137 |
Redemption fees | 3,337 | 8,658 |
Total increase (decrease) in net assets | 22,118,305 | 27,027,105 |
| | |
Net Assets | | |
Beginning of period | 167,713,404 | 140,686,299 |
End of period (including distributions in excess of net investment income of $631,046 and undistributed net investment income of $327,058, respectively) | $ 189,831,709 | $ 167,713,404 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.97 | $ 13.41 | $ 10.18 | $ 10.06 | $ 10.35 | $ 9.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .10 | .15 | .07 | (.02) | (.01) |
Net realized and unrealized gain (loss) | .30J | 1.55 | 3.18 | .06 | (.27) | .93 |
Total from investment operations | .33 | 1.65 | 3.33 | .13 | (.29) | .92 |
Distributions from net investment income | (.13) | (.08) | (.10) | (.01) | - | (.10) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.13) | (.09) | (.10) | (.01) | - | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.17 | $ 14.97 | $ 13.41 | $ 10.18 | $ 10.06 | $ 10.35 |
Total ReturnB, C, D | 2.13%J | 12.39% | 32.99% | 1.34% | (2.80)% | 9.61% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.21%A | 1.22% | 1.29% | 1.28% | 1.26% | 1.27% |
Expenses net of fee waivers, if any | 1.21%A | 1.22% | 1.29% | 1.28% | 1.26% | 1.27% |
Expenses net of all reductions | 1.20%A | 1.22% | 1.21% | 1.20% | 1.21% | 1.22% |
Net investment income (loss) | .43%A | .68% | 1.31% | .72% | (.24)% | (.09)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,289 | $ 77,674 | $ 64,428 | $ 47,055 | $ 63,937 | $ 69,723 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been 1.90%. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.86 | $ 13.31 | $ 10.11 | $ 10.01 | $ 10.32 | $ 9.52 |
Income from Investment Operations | | | | | | �� |
Net investment income (loss) E | .01 | .06 | .12 | .04 | (.05) | (.04) |
Net realized and unrealized gain (loss) | .29J | 1.55 | 3.16 | .06 | (.26) | .92 |
Total from investment operations | .30 | 1.61 | 3.28 | .10 | (.31) | .88 |
Distributions from net investment income | (.08) | (.05) | (.08) | - I | - | (.08) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.08) | (.06) | (.08) | - I | - | (.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.08 | $ 14.86 | $ 13.31 | $ 10.11 | $ 10.01 | $ 10.32 |
Total ReturnB, C, D | 1.99%J | 12.10% | 32.66% | 1.03% | (3.00)% | 9.26% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.48%A | 1.48% | 1.55% | 1.54% | 1.52% | 1.53% |
Expenses net of fee waivers, if any | 1.48%A | 1.48% | 1.55% | 1.54% | 1.52% | 1.53% |
Expenses net of all reductions | 1.48%A | 1.48% | 1.47% | 1.45% | 1.47% | 1.47% |
Net investment income (loss) | .16%A | .42% | 1.06% | .46% | (.49)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 30,962 | $ 31,596 | $ 30,576 | $ 24,367 | $ 27,037 | $ 33,310 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been 1.76%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.35 | $ 12.87 | $ 9.79 | $ 9.73 | $ 10.09 | $ 9.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.01) | .06 | - I | (.10) | (.09) |
Net realized and unrealized gain (loss) | .27J | 1.49 | 3.06 | .06 | (.26) | .91 |
Total from investment operations | .24 | 1.48 | 3.12 | .06 | (.36) | .82 |
Distributions from net investment income | (.02) | - | (.04) | - | - | (.06) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.57 | $ 14.35 | $ 12.87 | $ 9.79 | $ 9.73 | $ 10.09 |
Total ReturnB, C, D | 1.68%J | 11.50% | 32.00% | .62% | (3.57)% | 8.78% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.99%A | 1.98% | 2.04% | 2.03% | 2.01% | 2.02% |
Expenses net of fee waivers, if any | 1.99%A | 1.98% | 2.04% | 2.03% | 2.01% | 2.02% |
Expenses net of all reductions | 1.99%A | 1.98% | 1.97% | 1.94% | 1.96% | 1.97% |
Net investment income (loss) | (.35)%A | (.08)% | .56% | (.03)% | (.98)% | (.85)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,620 | $ 5,540 | $ 6,511 | $ 5,745 | $ 7,480 | $ 10,992 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been 1.45%. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.22 | $ 12.75 | $ 9.70 | $ 9.65 | $ 10.00 | $ 9.25 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | - I | .06 | - I | (.10) | (.09) |
Net realized and unrealized gain (loss) | .27J | 1.48 | 3.03 | .05 | (.25) | .90 |
Total from investment operations | .25 | 1.48 | 3.09 | .05 | (.35) | .81 |
Distributions from net investment income | (.04) | (.01) | (.04) | - | - | (.06) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.43 | $ 14.22 | $ 12.75 | $ 9.70 | $ 9.65 | $ 10.00 |
Total ReturnB, C, D | 1.71%J | 11.65% | 31.98% | .52% | (3.50)% | 8.79% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.94%A | 1.94% | 2.03% | 2.03% | 2.01% | 2.02% |
Expenses net of fee waivers, if any | 1.94%A | 1.94% | 2.03% | 2.03% | 2.01% | 2.02% |
Expenses net of all reductions | 1.94%A | 1.93% | 1.96% | 1.94% | 1.96% | 1.96% |
Net investment income (loss) | (.30)%A | (.03)% | .57% | (.03)% | (.99)% | (.84)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,481 | $ 36,740 | $ 29,897 | $ 20,875 | $ 23,196 | $ 30,804 |
Portfolio turnover rateG | 42% A | 49% | 288% | 441% | 260% | 254% |
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. JNet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been 1.48%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.34 | $ 13.73 | $ 10.42 | $ 10.28 | $ 10.55 | $ 9.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .15 | .20 | .10 | .01 | .02 |
Net realized and unrealized gain (loss) | .29I | 1.60 | 3.25 | .06 | (.28) | .95 |
Total from investment operations | .35 | 1.75 | 3.45 | .16 | (.27) | .97 |
Distributions from net investment income | (.17) | (.13) | (.14) | (.02) | - | (.11) |
Distributions from net realized gain | - | (.01) | - | - | - | - |
Total distributions | (.17) | (.14) | (.14) | (.02) | - | (.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.52 | $ 15.34 | $ 13.73 | $ 10.42 | $ 10.28 | $ 10.55 |
Total ReturnB, C | 2.25%I | 12.85% | 33.45% | 1.61% | (2.56)% | 9.99% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .86%A | .87% | .96% | .98% | .96% | .99% |
Expenses net of fee waivers, if any | .86%A | .87% | .96% | .98% | .96% | .99% |
Expenses net of all reductions | .86%A | .86% | .88% | .89% | .91% | .94% |
Net investment income (loss) | .78%A | 1.04% | 1.65% | 1.02% | .07% | .19% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,480 | $ 16,164 | $ 9,275 | $ 5,596 | $ 8,162 | $ 5,158 |
Portfolio turnover rateF | 42% A | 49% | 288% | 441% | 260% | 254% |
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. INet realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.04 per share. Excluding these litigation proceeds, the total return would have been .63%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services Fund (the Fund) is a fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, 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 | $ 21,982,460 |
Gross unrealized depreciation | (6,592,609) |
Net unrealized appreciation (depreciation) on securities | $ 15,389,851 |
| |
Tax cost | $ 176,119,903 |
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (35,189,589) |
2018 | (23,251,884) |
2019 | (450,657) |
Total capital loss carryforward | $ (58,892,130) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $52,414,330 and $36,447,119, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 103,337 | $ 1,366 |
Class T | .25% | .25% | 80,850 | - |
Class B | .75% | .25% | 26,535 | 19,901 |
Class C | .75% | .25% | 195,209 | 41,829 |
| | | $ 405,931 | $ 63,096 |
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 shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 23,947 |
Class T | 2,144 |
Class B* | 1,732 |
Class C* | 3,300 |
| $ 31,123 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 110,559 | .27 |
Class T | 47,249 | .29 |
Class B | 8,085 | .30 |
Class C | 48,370 | .25 |
Institutional Class | 17,754 | .17 |
| $ 232,017 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,053 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $121 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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
Semiannual Report
7. Security Lending - continued
lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,760.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,279 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 $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 677,086 | $ 405,756 |
Class T | 166,609 | 104,978 |
Class B | 7,587 | - |
Class C | 95,653 | 31,349 |
Institutional Class | 227,501 | 105,110 |
Total | $ 1,174,436 | $ 647,193 |
From net realized gain | | |
Class A | $ - | $ 43,910 |
Class T | - | 20,144 |
Institutional Class | - | 8,484 |
Total | $ - | $ 72,538 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,248,058 | 1,697,938 | $ 19,768,874 | $ 24,378,496 |
Reinvestment of distributions | 37,600 | 28,780 | 601,602 | 390,562 |
Shares redeemed | (784,908) | (1,342,224) | (12,212,188) | (19,118,798) |
Net increase (decrease) | 500,750 | 384,494 | $ 8,158,288 | $ 5,650,260 |
Class T | | | | |
Shares sold | 98,895 | 306,863 | $ 1,537,479 | $ 4,347,352 |
Reinvestment of distributions | 9,927 | 8,794 | 158,623 | 118,136 |
Shares redeemed | (181,402) | (486,368) | (2,791,224) | (6,897,348) |
Net increase (decrease) | (72,580) | (170,711) | $ (1,095,122) | $ (2,431,860) |
Class B | | | | |
Shares sold | 2,469 | 29,215 | $ 36,438 | $ 390,860 |
Reinvestment of distributions | 462 | - | 7,229 | - |
Shares redeemed | (71,941) | (149,230) | (1,087,741) | (2,060,292) |
Net increase (decrease) | (69,010) | (120,015) | $ (1,044,074) | $ (1,669,432) |
Class C | | | | |
Shares sold | 429,363 | 859,537 | $ 6,386,218 | $ 11,703,173 |
Reinvestment of distributions | 5,490 | 2,148 | 84,931 | 26,657 |
Shares redeemed | (352,282) | (621,486) | (5,176,463) | (8,469,563) |
Net increase (decrease) | 82,571 | 240,199 | $ 1,294,686 | $ 3,260,267 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Institutional Class | | | | |
Shares sold | 1,483,302 | 823,593 | $ 23,992,193 | $ 12,007,905 |
Reinvestment of distributions | 9,845 | 5,144 | 161,164 | 71,934 |
Shares redeemed | (647,709) | (450,058) | (10,338,385) | (6,746,937) |
Net increase (decrease) | 845,438 | 378,679 | $ 13,814,972 | $ 5,332,902 |
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.06% | | | |
Actual | | $ 1,000.00 | $ 1,168.80 | $ 5.79 |
HypotheticalA | | $ 1,000.00 | $ 1,019.86 | $ 5.40 |
Class T | 1.32% | | | |
Actual | | $ 1,000.00 | $ 1,167.10 | $ 7.21 |
HypotheticalA | | $ 1,000.00 | $ 1,018.55 | $ 6.72 |
Class B | 1.87% | | | |
Actual | | $ 1,000.00 | $ 1,164.20 | $ 10.20 |
HypotheticalA | | $ 1,000.00 | $ 1,015.78 | $ 9.50 |
Class C | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,164.10 | $ 9.87 |
HypotheticalA | | $ 1,000.00 | $ 1,016.08 | $ 9.20 |
Institutional Class | .80% | | | |
Actual | | $ 1,000.00 | $ 1,170.10 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,021.17 | $ 4.08 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Actavis PLC | 7.5 | 6.9 |
Medtronic PLC | 5.7 | 5.6 |
Amgen, Inc. | 4.7 | 2.1 |
McKesson Corp. | 4.3 | 5.3 |
Boston Scientific Corp. | 3.7 | 3.1 |
Celgene Corp. | 3.3 | 1.3 |
Mallinckrodt PLC | 3.1 | 0.0 |
Shire PLC sponsored ADR | 3.0 | 4.9 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 2.7 | 2.4 |
Alexion Pharmaceuticals, Inc. | 2.6 | 3.3 |
| 40.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Pharmaceuticals | 29.4% | |
| Biotechnology | 27.4% | |
| Health Care Equipment & Supplies | 19.0% | |
| Health Care Providers & Services | 12.2% | |
| Health Care Technology | 4.4% | |
| All Others* | 7.6% | |
As of July 31, 2014 |
| Pharmaceuticals | 30.4% | |
| Biotechnology | 24.2% | |
| Health Care Equipment & Supplies | 16.8% | |
| Health Care Providers & Services | 14.3% | |
| Life Sciences Tools & Services | 6.0% | |
| All Others* | 8.3% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% |
| Shares | | Value |
BIOTECHNOLOGY - 27.4% |
Biotechnology - 27.4% |
Acceleron Pharma, Inc. (a) | 68,738 | | $ 2,713,089 |
Achillion Pharmaceuticals, Inc. (a) | 350,644 | | 5,207,063 |
Acorda Therapeutics, Inc. (a) | 137,247 | | 5,702,613 |
Actelion Ltd. | 65,456 | | 7,271,305 |
Advaxis, Inc. (a) | 320,100 | | 3,152,985 |
Alexion Pharmaceuticals, Inc. (a) | 302,214 | | 55,377,693 |
Alnylam Pharmaceuticals, Inc. (a) | 86,000 | | 8,069,380 |
Amgen, Inc. | 660,996 | | 100,643,251 |
Array BioPharma, Inc. (a)(d) | 800,000 | | 5,728,000 |
Ascendis Pharma A/S | 103,900 | | 2,060,337 |
Auspex Pharmaceuticals, Inc. | 135,100 | | 8,301,895 |
Avalanche Biotechnologies, Inc. (a) | 37,152 | | 1,474,191 |
BioCryst Pharmaceuticals, Inc. (a) | 323,700 | | 3,295,266 |
Biogen Idec, Inc. (a) | 61,684 | | 24,004,945 |
BioMarin Pharmaceutical, Inc. (a) | 233,800 | | 22,716,008 |
Celgene Corp. (a) | 603,300 | | 71,889,228 |
Celldex Therapeutics, Inc. (a) | 82,500 | | 1,767,150 |
Clovis Oncology, Inc. (a) | 91,890 | | 5,990,309 |
Discovery Laboratories, Inc. (a) | 1,296,633 | | 1,802,320 |
Dyax Corp. (a) | 363,300 | | 5,489,463 |
Flexion Therapeutics, Inc. | 196,500 | | 4,045,935 |
Gilead Sciences, Inc. (a) | 476,086 | | 49,908,095 |
Innate Pharma SA (a)(d) | 299,200 | | 3,117,245 |
Insmed, Inc. (a) | 302,519 | | 4,676,944 |
Intercept Pharmaceuticals, Inc. (a) | 45,121 | | 9,070,675 |
Mirati Therapeutics, Inc. (a) | 28,228 | | 585,731 |
Neurocrine Biosciences, Inc. (a) | 560,000 | | 18,849,600 |
Pharmacyclics, Inc. (a) | 104,200 | | 17,583,750 |
PTC Therapeutics, Inc. (a) | 137,000 | | 7,522,670 |
Puma Biotechnology, Inc. (a) | 229,358 | | 48,412,887 |
Spark Therapeutics, Inc. | 2,100 | | 48,300 |
Synageva BioPharma Corp. (a) | 21,900 | | 2,523,318 |
T2 Biosystems, Inc. (d) | 83,700 | | 1,810,431 |
Tekmira Pharmaceuticals Corp. (a) | 84,400 | | 2,161,484 |
Ultragenyx Pharmaceutical, Inc. | 162,677 | | 9,451,534 |
United Therapeutics Corp. (a) | 65,300 | | 9,215,789 |
Vanda Pharmaceuticals, Inc. (a) | 572,729 | | 6,374,474 |
Vertex Pharmaceuticals, Inc. (a) | 499,900 | | 55,058,986 |
| | 593,074,339 |
DIVERSIFIED CONSUMER SERVICES - 0.2% |
Specialized Consumer Services - 0.2% |
Carriage Services, Inc. | 188,335 | | 4,105,703 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Equipment & Instruments - 0.6% |
Keysight Technologies, Inc. (a) | 398,750 | | 13,314,263 |
HEALTH CARE EQUIPMENT & SUPPLIES - 19.0% |
Health Care Equipment - 17.0% |
Atricure, Inc. (a) | 280,000 | | 5,555,200 |
Boston Scientific Corp. (a) | 5,400,000 | | 79,974,000 |
|
| Shares | | Value |
CONMED Corp. | 240,000 | | $ 11,433,600 |
Edwards Lifesciences Corp. (a) | 163,653 | | 20,513,904 |
HeartWare International, Inc. (a) | 171,671 | | 14,339,679 |
Lumenis Ltd. Class B | 266,766 | | 2,739,687 |
Medtronic PLC | 1,712,432 | | 122,267,645 |
Neovasc, Inc. (a) | 1,000,000 | | 9,350,000 |
Nevro Corp. | 101,400 | | 4,619,784 |
NxStage Medical, Inc. (a) | 508,700 | | 9,100,643 |
PW Medtech Group Ltd. (a) | 4,226,000 | | 1,846,223 |
ResMed, Inc. (d) | 272,600 | | 17,029,322 |
Roka Bioscience, Inc. (e) | 124,300 | | 500,929 |
Smith & Nephew PLC sponsored ADR | 160,000 | | 5,728,000 |
Steris Corp. | 128,584 | | 8,386,248 |
Tornier NV (a) | 443,100 | | 10,709,727 |
Zeltiq Aesthetics, Inc. (a) | 247,318 | | 7,966,113 |
Zimmer Holdings, Inc. | 313,300 | | 35,120,930 |
| | 367,181,634 |
Health Care Supplies - 2.0% |
DENTSPLY International, Inc. | 170,000 | | 8,504,250 |
Derma Sciences, Inc. (a) | 224,595 | | 1,931,517 |
Endologix, Inc. (a) | 400,000 | | 5,572,000 |
The Cooper Companies, Inc. | 176,400 | | 27,809,460 |
| | 43,817,227 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 410,998,861 |
HEALTH CARE PROVIDERS & SERVICES - 12.1% |
Health Care Distributors & Services - 5.8% |
Amplifon SpA | 693,695 | | 4,154,539 |
Cardinal Health, Inc. | 215,000 | | 17,885,850 |
EBOS Group Ltd. | 864,595 | | 5,944,391 |
McKesson Corp. | 439,409 | | 93,440,324 |
United Drug PLC (United Kingdom) | 519,800 | | 3,060,445 |
| | 124,485,549 |
Health Care Facilities - 2.6% |
Brookdale Senior Living, Inc. (a) | 373,170 | | 12,594,488 |
HCA Holdings, Inc. (a) | 237,500 | | 16,815,000 |
Surgical Care Affiliates, Inc. (a) | 308,500 | | 9,949,125 |
Universal Health Services, Inc. Class B | 163,627 | | 16,776,676 |
| | 56,135,289 |
Health Care Services - 0.6% |
Air Methods Corp. (a) | 310,285 | | 12,892,342 |
Managed Health Care - 3.1% |
Cigna Corp. | 210,412 | | 22,478,314 |
Humana, Inc. | 144,837 | | 21,209,930 |
UnitedHealth Group, Inc. | 161,524 | | 17,161,925 |
Wellcare Health Plans, Inc. (a) | 94,900 | | 6,913,465 |
| | 67,763,634 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 261,276,814 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE TECHNOLOGY - 4.4% |
Health Care Technology - 4.4% |
athenahealth, Inc. (a)(d) | 140,800 | | $ 19,671,168 |
Castlight Health, Inc. | 336,800 | | 2,990,784 |
Castlight Health, Inc. Class B (a) | 15,400 | | 136,752 |
Cerner Corp. (a) | 619,996 | | 41,136,735 |
Connecture, Inc. | 500,000 | | 4,750,000 |
HealthStream, Inc. (a) | 304,612 | | 8,608,335 |
Medidata Solutions, Inc. (a) | 294,074 | | 12,642,241 |
Veeva Systems, Inc. Class A (a) | 192,000 | | 5,521,920 |
| | 95,457,935 |
INDUSTRIAL CONGLOMERATES - 1.1% |
Industrial Conglomerates - 1.1% |
Danaher Corp. | 284,123 | | 23,406,053 |
LIFE SCIENCES TOOLS & SERVICES - 3.3% |
Life Sciences Tools & Services - 3.3% |
Agilent Technologies, Inc. | 746,400 | | 28,191,528 |
Bruker Corp. (a) | 532,953 | | 10,051,494 |
Illumina, Inc. (a) | 39,689 | | 7,746,896 |
PRA Health Sciences, Inc. | 341,743 | | 8,929,745 |
Thermo Fisher Scientific, Inc. | 138,192 | | 17,303,020 |
| | 72,222,683 |
PHARMACEUTICALS - 29.4% |
Pharmaceuticals - 29.4% |
AbbVie, Inc. | 214,853 | | 12,966,379 |
Actavis PLC (a) | 610,755 | | 162,790,636 |
Bristol-Myers Squibb Co. | 299,203 | | 18,032,965 |
Dechra Pharmaceuticals PLC | 430,000 | | 5,602,311 |
Eisai Co. Ltd. | 131,700 | | 6,566,345 |
Endo Health Solutions, Inc. (a) | 187,800 | | 14,950,758 |
Jazz Pharmaceuticals PLC (a) | 150,626 | | 25,507,007 |
Jiangsu Hengrui Medicine Co. Ltd. | 999,943 | | 6,467,636 |
Mallinckrodt PLC (a) | 626,700 | | 66,423,933 |
Meda AB (A Shares) | 318,030 | | 4,485,521 |
Merck & Co., Inc. | 327,233 | | 19,725,605 |
Mylan, Inc. (a) | 572,057 | | 30,404,830 |
Omeros Corp. (a) | 298,200 | | 6,631,968 |
Pacira Pharmaceuticals, Inc. (a) | 101,400 | | 10,885,290 |
Perrigo Co. PLC | 299,256 | | 45,409,105 |
Prestige Brands Holdings, Inc. (a) | 454,700 | | 15,578,022 |
Relypsa, Inc. (a)(d) | 126,103 | | 4,429,998 |
Sanofi SA sponsored ADR | 469,400 | | 21,634,646 |
Shire PLC sponsored ADR | 299,200 | | 65,602,592 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,022,383 | | 58,132,697 |
TherapeuticsMD, Inc. (a) | 1,017,320 | | 4,130,319 |
UCB SA | 84,200 | | 6,562,220 |
Valeant Pharmaceuticals International (Canada) (a) | 81,100 | | 12,966,937 |
ZS Pharma, Inc. | 190,000 | | 8,536,700 |
| | 634,424,420 |
|
| Shares | | Value |
PROFESSIONAL SERVICES - 0.5% |
Human Resource & Employment Services - 0.5% |
WageWorks, Inc. (a) | 186,495 | | $ 10,264,685 |
TOTAL COMMON STOCKS (Cost $1,684,895,774) |
2,118,545,756
|
Convertible Preferred Stocks - 0.1% |
| | | |
HEALTH CARE PROVIDERS & SERVICES - 0.1% |
Health Care Services - 0.1% |
1Life Healthcare, Inc. Series G (f)
(Cost $2,121,583) | 322,145 | |
2,432,195
|
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 75,550,167 | | 75,550,167 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 16,770,523 | | 16,770,523 |
TOTAL MONEY MARKET FUNDS (Cost $92,320,690) |
92,320,690
|
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $1,779,338,047) | | 2,213,298,641 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | | (50,995,582) |
NET ASSETS - 100% | $ 2,162,303,059 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 $500,929 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 $2,432,195 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
1Life Healthcare, Inc. Series G | 4/10/14 | $ 2,121,583 |
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 | $ 25,681 |
Fidelity Securities Lending Cash Central Fund | 88,292 |
Total | $ 113,973 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 2,118,545,756 | $ 2,103,665,552 | $ 14,880,204 | $ - |
Convertible Preferred Stocks | 2,432,195 | - | - | 2,432,195 |
Money Market Funds | 92,320,690 | 92,320,690 | - | - |
Total Investments in Securities: | $ 2,213,298,641 | $ 2,195,986,242 | $ 14,880,204 | $ 2,432,195 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 68.3% |
Ireland | 20.5% |
Bailiwick of Jersey | 3.0% |
Israel | 2.8% |
France | 1.1% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 3.2% |
| 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $16,137,487) - See accompanying schedule: Unaffiliated issuers (cost $1,687,017,357) | $ 2,120,977,951 | |
Fidelity Central Funds (cost $92,320,690) | 92,320,690 | |
Total Investments (cost $1,779,338,047) | | $ 2,213,298,641 |
Receivable for investments sold | | 27,579,646 |
Receivable for fund shares sold | | 13,958,431 |
Dividends receivable | | 310,778 |
Distributions receivable from Fidelity Central Funds | | 26,614 |
Prepaid expenses | | 6,259 |
Other receivables | | 20,153 |
Total assets | | 2,255,200,522 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1,994 | |
Payable for investments purchased | 71,640,220 | |
Payable for fund shares redeemed | 2,433,265 | |
Accrued management fee | 958,325 | |
Distribution and service plan fees payable | 651,941 | |
Other affiliated payables | 370,195 | |
Other payables and accrued expenses | 71,000 | |
Collateral on securities loaned, at value | 16,770,523 | |
Total liabilities | | 92,897,463 |
| | |
Net Assets | | $ 2,162,303,059 |
Net Assets consist of: | | |
Paid in capital | | $ 1,649,201,731 |
Accumulated net investment loss | | (10,196,183) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 89,340,130 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 433,957,381 |
Net Assets | | $ 2,162,303,059 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($905,382,916 ÷ 22,991,586 shares) | | $ 39.38 |
| | |
Maximum offering price per share (100/94.25 of $39.38) | | $ 41.78 |
Class T:
Net Asset Value and redemption price per share ($273,504,624 ÷ 7,340,586 shares) | | $ 37.26 |
| | |
Maximum offering price per share (100/96.50 of $37.26) | | $ 38.61 |
Class B:
Net Asset Value and offering price per share ($13,339,811 ÷ 403,527 shares)A | | $ 33.06 |
| | |
Class C:
Net Asset Value and offering price per share ($431,922,722 ÷ 13,180,008 shares)A | | $ 32.77 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($538,152,986 ÷ 12,737,535 shares) | | $ 42.25 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,449,883 |
Income from Fidelity Central Funds | | 113,973 |
Total income | | 4,563,856 |
| | |
Expenses | | |
Management fee | $ 4,809,765 | |
Transfer agent fees | 1,739,718 | |
Distribution and service plan fees | 3,276,255 | |
Accounting and security lending fees | 270,607 | |
Custodian fees and expenses | 30,336 | |
Independent trustees' compensation | 14,836 | |
Registration fees | 141,947 | |
Audit | 25,627 | |
Legal | 8,106 | |
Miscellaneous | 7,158 | |
Total expenses before reductions | 10,324,355 | |
Expense reductions | (28,346) | 10,296,009 |
Net investment income (loss) | | (5,732,153) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 159,269,917 | |
Foreign currency transactions | (11,314) | |
Total net realized gain (loss) | | 159,258,603 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 109,639,294 | |
Assets and liabilities in foreign currencies | (3,121) | |
Total change in net unrealized appreciation (depreciation) | | 109,636,173 |
Net gain (loss) | | 268,894,776 |
Net increase (decrease) in net assets resulting from operations | | $ 263,162,623 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (5,732,153) | $ (7,157,995) |
Net realized gain (loss) | 159,258,603 | 181,443,195 |
Change in net unrealized appreciation (depreciation) | 109,636,173 | 110,916,113 |
Net increase (decrease) in net assets resulting from operations | 263,162,623 | 285,201,313 |
Distributions to shareholders from net realized gain | (188,666,047) | (91,415,211) |
Share transactions - net increase (decrease) | 692,888,117 | 462,114,251 |
Redemption fees | 32,821 | 59,322 |
Total increase (decrease) in net assets | 767,417,514 | 655,959,675 |
| | |
Net Assets | | |
Beginning of period | 1,394,885,545 | 738,925,870 |
End of period (including accumulated net investment loss of $10,196,183 and accumulated net investment loss of $4,464,030, respectively) | $ 2,162,303,059 | $ 1,394,885,545 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.72 | $ 31.29 | $ 24.35 | $ 25.60 | $ 19.01 | $ 17.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | (.18) | - I | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 6.15 | 10.13 | 9.53 | 1.43 | 6.69 | 1.93 |
Total from investment operations | 6.05 | 9.95 | 9.53 | 1.39 | 6.59 | 1.86 |
Distributions from net realized gain | (4.39) | (3.52) | (2.59) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 39.38 | $ 37.72 | $ 31.29 | $ 24.35 | $ 25.60 | $ 19.01 |
Total ReturnB, C, D | 16.88% | 34.79% | 42.77% | 7.58% | 34.67% | 10.85% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.06%A | 1.08% | 1.14% | 1.19% | 1.19% | 1.22% |
Expenses net of fee waivers, if any | 1.06%A | 1.08% | 1.14% | 1.19% | 1.19% | 1.22% |
Expenses net of all reductions | 1.05%A | 1.07% | 1.13% | 1.18% | 1.18% | 1.21% |
Net investment income (loss) | (.53)%A | (.54)% | (.01)% | (.18)% | (.43)% | (.36)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 905,383 | $ 613,995 | $ 365,416 | $ 233,188 | $ 224,704 | $ 179,586 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.87 | $ 29.91 | $ 23.42 | $ 24.80 | $ 18.46 | $ 16.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.26) | (.07) | (.09) | (.16) | (.12) |
Net realized and unrealized gain (loss) | 5.83 | 9.67 | 9.13 | 1.35 | 6.50 | 1.89 |
Total from investment operations | 5.69 | 9.41 | 9.06 | 1.26 | 6.34 | 1.77 |
Distributions from net realized gain | (4.30) | (3.45) | (2.57) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 37.26 | $ 35.87 | $ 29.91 | $ 23.42 | $ 24.80 | $ 18.46 |
Total ReturnB, C, D | 16.71% | 34.49% | 42.39% | 7.27% | 34.34% | 10.61% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.32%A | 1.34% | 1.39% | 1.43% | 1.44% | 1.47% |
Expenses net of fee waivers, if any | 1.32%A | 1.34% | 1.39% | 1.43% | 1.44% | 1.47% |
Expenses net of all reductions | 1.32%A | 1.34% | 1.38% | 1.43% | 1.43% | 1.46% |
Net investment income (loss) | (.79)%A | (.80)% | (.26)% | (.42)% | (.69)% | (.62)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 273,505 | $ 216,973 | $ 158,611 | $ 117,969 | $ 123,606 | $ 100,883 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.17 | $ 27.16 | $ 21.55 | $ 23.15 | $ 17.32 | $ 15.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.22) | (.40) | (.18) | (.19) | (.25) | (.20) |
Net realized and unrealized gain (loss) | 5.21 | 8.71 | 8.31 | 1.23 | 6.08 | 1.78 |
Total from investment operations | 4.99 | 8.31 | 8.13 | 1.04 | 5.83 | 1.58 |
Distributions from net realized gain | (4.10) | (3.30) | (2.52) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.06 | $ 32.17 | $ 27.16 | $ 21.55 | $ 23.15 | $ 17.32 |
Total ReturnB, C, D | 16.42% | 33.72% | 41.61% | 6.78% | 33.66% | 10.04% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.87%A | 1.91% | 1.93% | 1.94% | 1.94% | 1.97% |
Expenses net of fee waivers, if any | 1.87%A | 1.91% | 1.93% | 1.94% | 1.94% | 1.97% |
Expenses net of all reductions | 1.86%A | 1.90% | 1.91% | 1.93% | 1.93% | 1.96% |
Net investment income (loss) | (1.34)%A | (1.37)% | (.80)% | (.93)% | (1.19)% | (1.11)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,340 | $ 13,405 | $ 14,517 | $ 15,403 | $ 20,365 | $ 23,543 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 32.03 | $ 27.11 | $ 21.51 | $ 23.11 | $ 17.29 | $ 15.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.21) | (.38) | (.17) | (.18) | (.24) | (.19) |
Net realized and unrealized gain (loss) | 5.17 | 8.68 | 8.31 | 1.22 | 6.06 | 1.78 |
Total from investment operations | 4.96 | 8.30 | 8.14 | 1.04 | 5.82 | 1.59 |
Distributions from net realized gain | (4.22) | (3.38) | (2.54) | (2.64) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 32.77 | $ 32.03 | $ 27.11 | $ 21.51 | $ 23.11 | $ 17.29 |
Total ReturnB, C, D | 16.41% | 33.83% | 41.74% | 6.80% | 33.66% | 10.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.81%A | 1.83% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of fee waivers, if any | 1.81%A | 1.83% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of all reductions | 1.81%A | 1.82% | 1.85% | 1.89% | 1.89% | 1.93% |
Net investment income (loss) | (1.29)%A | (1.29)% | (.74)% | (.89)% | (1.15)% | (1.08)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 431,923 | $ 257,859 | $ 125,965 | $ 78,763 | $ 77,749 | $ 60,861 |
Portfolio turnover rateG | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 40.22 | $ 33.12 | $ 25.60 | $ 26.69 | $ 19.77 | $ 17.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.06) | (.10) | .07 | .03 | (.03) | (.02) |
Net realized and unrealized gain (loss) | 6.57 | 10.80 | 10.07 | 1.52 | 6.95 | 2.01 |
Total from investment operations | 6.51 | 10.70 | 10.14 | 1.55 | 6.92 | 1.99 |
Distributions from net realized gain | (4.48) | (3.60) | (2.62) | (2.64) | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 42.25 | $ 40.22 | $ 33.12 | $ 25.60 | $ 26.69 | $ 19.77 |
Total ReturnB, C | 17.01% | 35.21% | 43.12% | 7.91% | 35.00% | 11.19% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .80%A | .81% | .87% | .89% | .89% | .96% |
Expenses net of fee waivers, if any | .80%A | .81% | .87% | .89% | .89% | .96% |
Expenses net of all reductions | .79%A | .81% | .85% | .88% | .88% | .95% |
Net investment income (loss) | (.27)%A | (.27)% | .26% | .12% | (.13)% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 538,153 | $ 292,654 | $ 74,417 | $ 40,737 | $ 45,243 | $ 14,172 |
Portfolio turnover rateF | 96% A | 111% | 92% | 124% | 125% | 103% |
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, 2015 (Unaudited)
1. Organization.
Fidelity Advisor Health Care Fund (the Fund) is a fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, net operating losses 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 | $ 464,003,715 |
Gross unrealized depreciation | (32,248,388) |
Net unrealized appreciation (depreciation) on securities | $ 431,755,327 |
| |
Tax cost | $ 1,781,543,314 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,315,436,051 and $831,453,923, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 931,787 | $ 7,837 |
Class T | .25% | .25% | 611,490 | - |
Class B | .75% | .25% | 67,261 | 50,446 |
Class C | .75% | .25% | 1,665,717 | 608,564 |
| | | $ 3,276,255 | $ 666,847 |
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 shares, 1.00% for Class C shares, 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 | $ 498,580 |
Class T | 49,783 |
Class B* | 719 |
Class C* | 29,444 |
| $ 578,526 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 737,419 | .20 |
Class T | 259,101 | .21 |
Class B | 17,452 | .26 |
Class C | 334,902 | .20 |
Institutional Class | 390,844 | .19 |
| $ 1,739,718 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $21,640 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,112 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $88,292.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $28,333 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 $13.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
Class A | $ 79,205,725 | $ 43,930,276 |
Class T | 27,287,168 | 18,842,643 |
Class B | 1,660,970 | 1,694,148 |
Class C | 39,450,704 | 17,484,352 |
Institutional Class | 41,061,480 | 9,463,792 |
Total | $ 188,666,047 | $ 91,415,211 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 6,936,609 | 7,083,573 | $ 266,444,360 | $ 246,500,176 |
Reinvestment of distributions | 1,907,449 | 1,286,052 | 71,990,364 | 39,516,716 |
Shares redeemed | (2,128,436) | (3,773,574) | (80,576,239) | (131,027,775) |
Net increase (decrease) | 6,715,622 | 4,596,051 | $ 257,858,485 | $ 154,989,117 |
Class T | | | | |
Shares sold | 1,003,136 | 1,019,177 | $ 36,649,544 | $ 33,380,934 |
Reinvestment of distributions | 737,477 | 618,886 | 26,318,924 | 18,107,896 |
Shares redeemed | (449,085) | (891,508) | (16,334,945) | (29,012,294) |
Net increase (decrease) | 1,291,528 | 746,555 | $ 46,633,523 | $ 22,476,536 |
Class B | | | | |
Shares sold | 24,635 | 52,714 | $ 790,758 | $ 1,492,321 |
Reinvestment of distributions | 47,751 | 57,285 | 1,514,650 | 1,511,205 |
Shares redeemed | (85,492) | (227,802) | (2,764,012) | (6,589,471) |
Net increase (decrease) | (13,106) | (117,803) | $ (458,604) | $ (3,585,945) |
Class C | | | | |
Shares sold | 4,661,873 | 3,765,135 | $ 150,473,590 | $ 111,711,536 |
Reinvestment of distributions | 1,088,198 | 567,385 | 34,382,822 | 14,940,641 |
Shares redeemed | (621,249) | (928,018) | (20,040,369) | (27,242,442) |
Net increase (decrease) | 5,128,822 | 3,404,502 | $ 164,816,043 | $ 99,409,735 |
Institutional Class | | | | |
Shares sold | 6,351,359 | 6,450,084 | $ 260,365,044 | $ 241,929,933 |
Reinvestment of distributions | 926,189 | 259,255 | 37,490,066 | 8,481,841 |
Shares redeemed | (1,817,114) | (1,678,853) | (73,816,440) | (61,586,966) |
Net increase (decrease) | 5,460,434 | 5,030,486 | $ 224,038,670 | $ 188,824,808 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity Advisor Industrials Fund
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.07% | | | |
Actual | | $ 1,000.00 | $ 1,051.90 | $ 5.53 |
HypotheticalA | | $ 1,000.00 | $ 1,019.81 | $ 5.45 |
Class T | 1.33% | | | |
Actual | | $ 1,000.00 | $ 1,050.60 | $ 6.87 |
HypotheticalA | | $ 1,000.00 | $ 1,018.50 | $ 6.77 |
Class B | 1.87% | | | |
Actual | | $ 1,000.00 | $ 1,047.80 | $ 9.65 |
HypotheticalA | | $ 1,000.00 | $ 1,015.78 | $ 9.50 |
Class C | 1.83% | | | |
Actual | | $ 1,000.00 | $ 1,048.00 | $ 9.45 |
HypotheticalA | | $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Institutional Class | .81% | | | |
Actual | | $ 1,000.00 | $ 1,053.40 | $ 4.19 |
HypotheticalA | | $ 1,000.00 | $ 1,021.12 | $ 4.13 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Technologies Corp. | 8.1 | 6.2 |
Danaher Corp. | 6.8 | 5.8 |
The Boeing Co. | 5.5 | 5.0 |
Union Pacific Corp. | 5.4 | 4.9 |
FedEx Corp. | 5.3 | 4.2 |
Honeywell International, Inc. | 4.8 | 4.0 |
J.B. Hunt Transport Services, Inc. | 3.2 | 2.3 |
Delta Air Lines, Inc. | 2.8 | 2.2 |
American Airlines Group, Inc. | 2.5 | 1.7 |
A.O. Smith Corp. | 2.3 | 1.7 |
| 46.7 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Aerospace & Defense | 29.3% | |
| Machinery | 12.7% | |
| Road & Rail | 11.6% | |
| Professional Services | 9.5% | |
| Industrial Conglomerates | 8.7% | |
| All Others* | 28.2% | |
As of July 31, 2014 |
| Aerospace & Defense | 22.3% | |
| Machinery | 17.2% | |
| Electrical Equipment | 9.7% | |
| Industrial Conglomerates | 9.6% | |
| Professional Services | 9.2% | |
| All Others* | 32.0% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
AEROSPACE & DEFENSE - 29.3% |
Aerospace & Defense - 29.3% |
General Dynamics Corp. | 145,662 | | $ 19,403,635 |
Honeywell International, Inc. | 408,433 | | 39,928,410 |
L-3 Communications Holdings, Inc. | 81,600 | | 10,046,592 |
Northrop Grumman Corp. | 112,200 | | 17,609,790 |
Orbital Sciences Corp. (a) | 107,600 | | 3,022,484 |
Raytheon Co. | 166,900 | | 16,698,345 |
Teledyne Technologies, Inc. (a) | 98,065 | | 9,320,098 |
Textron, Inc. | 355,678 | | 15,137,656 |
The Boeing Co. | 313,329 | | 45,548,637 |
United Technologies Corp. | 591,651 | | 67,909,702 |
| | 244,625,349 |
AIR FREIGHT & LOGISTICS - 5.3% |
Air Freight & Logistics - 5.3% |
FedEx Corp. | 260,188 | | 44,000,393 |
AIRLINES - 6.6% |
Airlines - 6.6% |
American Airlines Group, Inc. | 421,932 | | 20,708,423 |
Delta Air Lines, Inc. | 491,200 | | 23,238,672 |
United Continental Holdings, Inc. (a) | 159,900 | | 11,092,263 |
| | 55,039,358 |
BUILDING PRODUCTS - 4.1% |
Building Products - 4.1% |
A.O. Smith Corp. | 329,142 | | 19,554,326 |
Lennox International, Inc. | 151,904 | | 14,933,682 |
| | 34,488,008 |
COMMERCIAL SERVICES & SUPPLIES - 4.4% |
Diversified Support Services - 1.5% |
KAR Auction Services, Inc. | 360,400 | | 12,293,244 |
Environmental & Facility Services - 0.9% |
Waste Connections, Inc. | 179,600 | | 7,762,312 |
Office Services & Supplies - 1.0% |
West Corp. | 259,632 | | 8,489,966 |
Security & Alarm Services - 1.0% |
Tyco International Ltd. | 202,600 | | 8,268,106 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 36,813,628 |
CONSTRUCTION & ENGINEERING - 2.4% |
Construction & Engineering - 2.4% |
AECOM Technology Corp. (a) | 208,521 | | 5,300,604 |
EMCOR Group, Inc. | 218,741 | | 8,828,387 |
Jacobs Engineering Group, Inc. (a) | 149,500 | | 5,695,950 |
| | 19,824,941 |
CONSTRUCTION MATERIALS - 0.4% |
Construction Materials - 0.4% |
Caesarstone Sdot-Yam Ltd. | 48,492 | | 3,011,353 |
|
| Shares | | Value |
DIVERSIFIED CONSUMER SERVICES - 0.5% |
Specialized Consumer Services - 0.5% |
ServiceMaster Global Holdings, Inc. | 154,300 | | $ 4,360,518 |
ELECTRICAL EQUIPMENT - 2.5% |
Electrical Components & Equipment - 1.4% |
EnerSys | 89,023 | | 5,197,163 |
Hubbell, Inc. Class B | 62,326 | | 6,609,049 |
| | 11,806,212 |
Heavy Electrical Equipment - 1.1% |
Babcock & Wilcox Co. | 349,200 | | 9,508,716 |
TOTAL ELECTRICAL EQUIPMENT | | 21,314,928 |
ENERGY EQUIPMENT & SERVICES - 0.4% |
Oil & Gas Equipment & Services - 0.4% |
Aspen Aerogels, Inc. | 388,696 | | 2,977,411 |
INDUSTRIAL CONGLOMERATES - 8.7% |
Industrial Conglomerates - 8.7% |
Danaher Corp. | 692,632 | | 57,059,024 |
General Electric Co. | 655,048 | | 15,649,097 |
| | 72,708,121 |
MACHINERY - 12.7% |
Agricultural & Farm Machinery - 2.2% |
Deere & Co. | 215,050 | | 18,320,110 |
Construction Machinery & Heavy Trucks - 3.8% |
Caterpillar, Inc. | 219,753 | | 17,573,647 |
Manitowoc Co., Inc. | 756,856 | | 14,153,207 |
| | 31,726,854 |
Industrial Machinery - 6.7% |
Global Brass & Copper Holdings, Inc. | 106,540 | | 1,398,870 |
Hyster-Yale Materials Handling Class A | 15,540 | | 973,581 |
IDEX Corp. | 145,429 | | 10,521,788 |
Ingersoll-Rand PLC | 229,800 | | 15,258,720 |
Pall Corp. | 171,416 | | 16,586,212 |
Valmont Industries, Inc. (d) | 97,909 | | 11,760,829 |
| | 56,500,000 |
TOTAL MACHINERY | | 106,546,964 |
PROFESSIONAL SERVICES - 9.5% |
Human Resource & Employment Services - 2.2% |
Towers Watson & Co. | 155,984 | | 18,484,104 |
Research & Consulting Services - 7.3% |
Corporate Executive Board Co. | 130,400 | | 8,935,008 |
Dun & Bradstreet Corp. | 133,296 | | 15,343,703 |
Huron Consulting Group, Inc. (a) | 176,520 | | 13,277,834 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Research & Consulting Services - continued |
Nielsen Holdings B.V. | 263,312 | | $ 11,469,871 |
Verisk Analytics, Inc. (a) | 189,044 | | 12,164,981 |
| | 61,191,397 |
TOTAL PROFESSIONAL SERVICES | | 79,675,501 |
ROAD & RAIL - 11.6% |
Railroads - 7.0% |
CSX Corp. | 412,400 | | 13,732,920 |
Union Pacific Corp. | 383,928 | | 45,000,201 |
| | 58,733,121 |
Trucking - 4.6% |
Hertz Global Holdings, Inc. (a) | 154,700 | | 3,174,444 |
J.B. Hunt Transport Services, Inc. | 336,984 | | 26,827,296 |
Swift Transporation Co. (a) | 335,000 | | 8,234,300 |
| | 38,236,040 |
TOTAL ROAD & RAIL | | 96,969,161 |
TRADING COMPANIES & DISTRIBUTORS - 1.3% |
Trading Companies & Distributors - 1.3% |
HD Supply Holdings, Inc. (a) | 380,300 | | 10,964,049 |
TOTAL COMMON STOCKS (Cost $680,917,498) |
833,319,683
|
Money Market Funds - 0.7% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 308 | | $ 308 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 5,940,900 | | 5,940,900 |
TOTAL MONEY MARKET FUNDS (Cost $5,941,208) |
5,941,208
|
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $686,858,706) | | 839,260,891 |
NET OTHER ASSETS (LIABILITIES) - (0.4)% | | (3,258,936) |
NET ASSETS - 100% | $ 836,001,955 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,827 |
Fidelity Securities Lending Cash Central Fund | 103,402 |
Total | $ 108,229 |
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 Investment 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 Industrials Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $5,801,796) - See accompanying schedule: Unaffiliated issuers (cost $680,917,498) | $ 833,319,683 | |
Fidelity Central Funds (cost $5,941,208) | 5,941,208 | |
Total Investments (cost $686,858,706) | | $ 839,260,891 |
Cash | | 26,234 |
Receivable for investments sold | | 11,762,822 |
Receivable for fund shares sold | | 1,267,195 |
Dividends receivable | | 565,814 |
Distributions receivable from Fidelity Central Funds | | 6,786 |
Prepaid expenses | | 4,153 |
Other receivables | | 6,093 |
Total assets | | 852,899,988 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,880,873 | |
Payable for fund shares redeemed | 2,563,289 | |
Accrued management fee | 393,508 | |
Distribution and service plan fees payable | 248,889 | |
Notes payable to affiliates | 1,650,000 | |
Other affiliated payables | 168,791 | |
Other payables and accrued expenses | 51,783 | |
Collateral on securities loaned, at value | 5,940,900 | |
Total liabilities | | 16,898,033 |
| | |
Net Assets | | $ 836,001,955 |
Net Assets consist of: | | |
Paid in capital | | $ 677,018,695 |
Distributions in excess of net investment income | | (612,093) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 7,194,295 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 152,401,058 |
Net Assets | | $ 836,001,955 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($357,511,756 ÷ 9,919,433 shares) | | $ 36.04 |
| | |
Maximum offering price per share (100/94.25 of $36.04) | | $ 38.24 |
Class T:
Net Asset Value and redemption price per share ($90,250,244 ÷ 2,549,744 shares) | | $ 35.40 |
| | |
Maximum offering price per share (100/96.50 of $35.40) | | $ 36.68 |
Class B:
Net Asset Value and offering price per share ($9,928,948 ÷ 301,538 shares)A | | $ 32.93 |
| | |
Class C:
Net Asset Value and offering price per share ($147,968,163 ÷ 4,455,435 shares)A | | $ 33.21 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($230,342,844 ÷ 6,132,294 shares) | | $ 37.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,073,079 |
Income from Fidelity Central Funds | | 108,229 |
Total income | | 6,181,308 |
| | |
Expenses | | |
Management fee | $ 2,384,429 | |
Transfer agent fees | 872,996 | |
Distribution and service plan fees | 1,501,433 | |
Accounting and security lending fees | 150,384 | |
Custodian fees and expenses | 8,563 | |
Independent trustees' compensation | 8,056 | |
Registration fees | 94,774 | |
Audit | 22,434 | |
Legal | 4,860 | |
Interest | 77 | |
Miscellaneous | 4,721 | |
Total expenses before reductions | 5,052,727 | |
Expense reductions | (7,315) | 5,045,412 |
Net investment income (loss) | | 1,135,896 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 20,918,015 | |
Foreign currency transactions | (513) | |
Total net realized gain (loss) | | 20,917,502 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 20,711,594 | |
Assets and liabilities in foreign currencies | (1,615) | |
Total change in net unrealized appreciation (depreciation) | | 20,709,979 |
Net gain (loss) | | 41,627,481 |
Net increase (decrease) in net assets resulting from operations | | $ 42,763,377 |
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,135,896 | $ 1,948,813 |
Net realized gain (loss) | 20,917,502 | 62,719,747 |
Change in net unrealized appreciation (depreciation) | 20,709,979 | 7,086,556 |
Net increase (decrease) in net assets resulting from operations | 42,763,377 | 71,755,116 |
Distributions to shareholders from net investment income | (2,601,876) | (2,130,491) |
Distributions to shareholders from net realized gain | (62,327,925) | (26,777,623) |
Total distributions | (64,929,801) | (28,908,114) |
Share transactions - net increase (decrease) | (14,156,097) | 286,586,081 |
Redemption fees | 9,127 | 23,406 |
Total increase (decrease) in net assets | (36,313,394) | 329,456,489 |
| | |
Net Assets | | |
Beginning of period | 872,315,349 | 542,858,860 |
End of period (including distributions in excess of net investment income of $612,093 and undistributed net investment income of $853,887, respectively) | $ 836,001,955 | $ 872,315,349 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.92 | $ 34.50 | $ 26.18 | $ 25.73 | $ 21.54 | $ 16.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .13 | .23 | .20 | .09 | .06 |
Net realized and unrealized gain (loss) | 1.84 | 4.01 | 8.33 | .61 | 4.13 | 4.68 |
Total from investment operations | 1.91 | 4.14 | 8.56 | .81 | 4.22 | 4.74 |
Distributions from net investment income | (.11) | (.15) | (.24) | (.11) | (.03) | (.07) |
Distributions from net realized gain | (2.68) | (1.58) | - | (.25) | - | - |
Total distributions | (2.79) | (1.72) J | (.24) | (.36) | (.03) | (.07) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 36.04 | $ 36.92 | $ 34.50 | $ 26.18 | $ 25.73 | $ 21.54 |
Total ReturnB, C, D | 5.19% | 12.52% | 32.92% | 3.42% | 19.59% | 28.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.18% |
Expenses net of fee waivers, if any | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.18% |
Expenses net of all reductions | 1.07%A | 1.09% | 1.11% | 1.14% | 1.13% | 1.17% |
Net investment income (loss) | .36%A | .37% | .77% | .80% | .36% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 357,512 | $ 378,826 | $ 271,512 | $ 192,038 | $ 228,106 | $ 165,029 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 $1.72 per share is comprised of distributions from net investment income of $.146 and distributions from net realized gain of $1.577 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.29 | $ 33.93 | $ 25.75 | $ 25.33 | $ 21.24 | $ 16.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .04 | .15 | .13 | .03 | .01 |
Net realized and unrealized gain (loss) | 1.81 | 3.95 | 8.20 | .61 | 4.07 | 4.61 |
Total from investment operations | 1.83 | 3.99 | 8.35 | .74 | 4.10 | 4.62 |
Distributions from net investment income | (.05) | (.06) | (.17) | (.07) | (.01) | (.02) |
Distributions from net realized gain | (2.67) | (1.58) | - | (.25) | - | - |
Total distributions | (2.72) | (1.63) J | (.17) | (.32) | (.01) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 35.40 | $ 36.29 | $ 33.93 | $ 25.75 | $ 25.33 | $ 21.24 |
Total ReturnB, C, D | 5.06% | 12.27% | 32.60% | 3.15% | 19.28% | 27.80% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.33%A | 1.33% | 1.37% | 1.40% | 1.39% | 1.44% |
Expenses net of fee waivers, if any | 1.33%A | 1.33% | 1.37% | 1.40% | 1.39% | 1.44% |
Expenses net of all reductions | 1.33%A | 1.33% | 1.36% | 1.39% | 1.38% | 1.43% |
Net investment income (loss) | .09%A | .12% | .52% | .54% | .10% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 90,250 | $ 90,509 | $ 79,172 | $ 63,954 | $ 71,542 | $ 58,202 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 $1.63 per share is comprised of distributions from net investment income of $.057 and distributions from net realized gain of $1.577 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.02 | $ 31.97 | $ 24.29 | $ 23.99 | $ 20.22 | $ 15.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.14) | (.01) | - J | (.11) | (.09) |
Net realized and unrealized gain (loss) | 1.69 | 3.71 | 7.74 | .57 | 3.88 | 4.41 |
Total from investment operations | 1.62 | 3.57 | 7.73 | .57 | 3.77 | 4.32 |
Distributions from net investment income | (.03) | - | (.05) | (.02) | - | - |
Distributions from net realized gain | (2.68) | (1.52) | - | (.25) | - | - |
Total distributions | (2.71) | (1.52) | (.05) | (.27) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 32.93 | $ 34.02 | $ 31.97 | $ 24.29 | $ 23.99 | $ 20.22 |
Total ReturnB, C, D | 4.78% | 11.64% | 31.87% | 2.59% | 18.64% | 27.17% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.87%A | 1.88% | 1.92% | 1.94% | 1.93% | 1.97% |
Expenses net of fee waivers, if any | 1.87%A | 1.88% | 1.92% | 1.94% | 1.93% | 1.97% |
Expenses net of all reductions | 1.86%A | 1.87% | 1.91% | 1.94% | 1.93% | 1.97% |
Net investment income (loss) | (.44)%A | (.42)% | (.04)% | -% H | (.44)% | (.48)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,929 | $ 12,459 | $ 17,502 | $ 20,058 | $ 28,600 | $ 29,048 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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 Amount represents less than .01%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.13 | $ 32.08 | $ 24.38 | $ 24.07 | $ 20.28 | $ 15.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) | (.13) | .01 | .01 | (.09) | (.08) |
Net realized and unrealized gain (loss) | 1.70 | 3.73 | 7.75 | .58 | 3.88 | 4.42 |
Total from investment operations | 1.63 | 3.60 | 7.76 | .59 | 3.79 | 4.34 |
Distributions from net investment income | - | - | (.06) | (.03) | - | - |
Distributions from net realized gain | (2.55) | (1.55) | - | (.25) | - | - |
Total distributions | (2.55) | (1.55) | (.06) | (.28) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 33.21 | $ 34.13 | $ 32.08 | $ 24.38 | $ 24.07 | $ 20.28 |
Total ReturnB, C, D | 4.80% | 11.71% | 31.90% | 2.67% | 18.69% | 27.23% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.83%A | 1.83% | 1.87% | 1.89% | 1.89% | 1.93% |
Expenses net of fee waivers, if any | 1.83%A | 1.83% | 1.87% | 1.89% | 1.89% | 1.93% |
Expenses net of all reductions | 1.82%A | 1.83% | 1.86% | 1.88% | 1.88% | 1.92% |
Net investment income (loss) | (.40)%A | (.38)% | .02% | .05% | (.40)% | (.43)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 147,968 | $ 147,749 | $ 89,893 | $ 66,289 | $ 72,673 | $ 51,760 |
Portfolio turnover rateG | 80% A | 57% | 78% | 82% | 75% | 110% |
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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.42 | $ 35.83 | $ 27.18 | $ 26.69 | $ 22.30 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .12 | .25 | .33 | .28 | .17 | .13 |
Net realized and unrealized gain (loss) | 1.92 | 4.16 | 8.64 | .63 | 4.28 | 4.83 |
Total from investment operations | 2.04 | 4.41 | 8.97 | .91 | 4.45 | 4.96 |
Distributions from net investment income | (.22) | (.24) | (.32) | (.17) | (.06) | (.11) |
Distributions from net realized gain | (2.68) | (1.58) | - | (.25) | - | - |
Total distributions | (2.90) | (1.82) | (.32) | (.42) | (.06) | (.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 37.56 | $ 38.42 | $ 35.83 | $ 27.18 | $ 26.69 | $ 22.30 |
Total ReturnB, C | 5.34% | 12.82% | 33.28% | 3.72% | 19.95% | 28.52% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .81%A | .81% | .84% | .85% | .85% | .89% |
Expenses net of fee waivers, if any | .81%A | .81% | .84% | .85% | .85% | .89% |
Expenses net of all reductions | .80%A | .81% | .83% | .85% | .84% | .88% |
Net investment income (loss) | .62%A | .64% | 1.04% | 1.08% | .65% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 230,343 | $ 242,772 | $ 84,780 | $ 42,850 | $ 68,323 | $ 29,578 |
Portfolio turnover rateF | 80% A | 57% | 78% | 82% | 75% | 110% |
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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, original issue discount 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 | $ 164,616,798 |
Gross unrealized depreciation | (14,042,467) |
Net unrealized appreciation (depreciation) on securities | $ 150,574,331 |
| |
Tax cost | $ 688,686,560 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $346,490,555 and $419,575,919, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 459,377 | $ 1,687 |
Class T | .25% | .25% | 230,220 | - |
Class B | .75% | .25% | 55,919 | 41,939 |
Class C | .75% | .25% | 755,917 | 217,208 |
| | | $ 1,501,433 | $ 260,834 |
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 shares, 1.00% for Class C shares, 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 | $ 72,905 |
Class T | 7,980 |
Class B* | 2,198 |
Class C* | 23,634 |
| $ 106,717 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 372,401 | .20 |
Class T | 99,011 | .22 |
Class B | 13,843 | .25 |
Class C | 156,549 | .21 |
Institutional Class | 231,192 | .19 |
| $ 872,996 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,871 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. 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 | $ 2,839,667 | .32% | $ 77 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $599 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $103,402.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7,304 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 $8.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 1,073,088 | $ 1,245,229 |
Class T | 117,188 | 134,405 |
Class B | 10,986 | - |
Institutional Class | 1,400,614 | 750,857 |
Total | $ 2,601,876 | $ 2,130,491 |
From net realized gain | | |
Class A | $ 26,712,152 | $ 13,069,252 |
Class T | 6,664,310 | 3,703,526 |
Class B | 905,701 | 784,693 |
Class C | 11,132,693 | 4,700,595 |
Institutional Class | 16,913,069 | 4,519,557 |
Total | $ 62,327,925 | $ 26,777,623 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31, 2014 | Six months ended January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,188,692 | 4,772,547 | $ 43,339,285 | $ 175,272,457 |
Reinvestment of distributions | 707,344 | 371,629 | 25,707,301 | 12,577,496 |
Shares redeemed | (2,237,141) | (2,753,437) | (81,207,286) | (102,587,048) |
Net increase (decrease) | (341,105) | 2,390,739 | $ (12,160,700) | $ 85,262,905 |
Class T | | | | |
Shares sold | 130,709 | 488,031 | $ 4,670,694 | $ 17,620,607 |
Reinvestment of distributions | 183,489 | 111,368 | 6,551,657 | 3,695,039 |
Shares redeemed | (258,791) | (438,393) | (9,213,989) | (15,778,298) |
Net increase (decrease) | 55,407 | 161,006 | $ 2,008,362 | $ 5,537,348 |
Class B | | | | |
Shares sold | 5,642 | 23,437 | $ 184,865 | $ 779,028 |
Reinvestment of distributions | 23,129 | 20,842 | 769,253 | 646,413 |
Shares redeemed | (93,496) | (225,514) | (3,121,127) | (7,608,429) |
Net increase (decrease) | (64,725) | (181,235) | $ (2,167,009) | $ (6,182,988) |
Class C | | | | |
Shares sold | 622,545 | 2,035,151 | $ 20,894,321 | $ 69,252,170 |
Reinvestment of distributions | 266,313 | 122,955 | 8,933,306 | 3,851,644 |
Shares redeemed | (762,375) | (631,000) | (25,434,538) | (21,673,420) |
Net increase (decrease) | 126,483 | 1,527,106 | $ 4,393,089 | $ 51,430,394 |
Institutional Class | | | | |
Shares sold | 1,967,330 | 5,450,475 | $ 74,673,271 | $ 209,069,151 |
Reinvestment of distributions | 388,187 | 116,471 | 14,699,436 | 4,133,979 |
Shares redeemed | (2,541,535) | (1,614,908) | (95,602,546) | (62,664,708) |
Net increase (decrease) | (186,018) | 3,952,038 | $ (6,229,839) | $ 150,538,422 |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity Advisor Technology Fund
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,027.20 | $ 5.62 |
HypotheticalA | | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class T | 1.36% | | | |
Actual | | $ 1,000.00 | $ 1,026.00 | $ 6.95 |
HypotheticalA | | $ 1,000.00 | $ 1,018.35 | $ 6.92 |
Class B | 1.91% | | | |
Actual | | $ 1,000.00 | $ 1,023.00 | $ 9.74 |
HypotheticalA | | $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Class C | 1.86% | | | |
Actual | | $ 1,000.00 | $ 1,023.30 | $ 9.49 |
HypotheticalA | | $ 1,000.00 | $ 1,015.83 | $ 9.45 |
Institutional Class | .76% | | | |
Actual | | $ 1,000.00 | $ 1,028.90 | $ 3.89 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 14.1 | 13.6 |
Facebook, Inc. Class A | 6.6 | 3.7 |
Google, Inc. Class C | 4.2 | 4.9 |
Google, Inc. Class A | 4.1 | 4.4 |
Yahoo!, Inc. | 3.1 | 2.3 |
Cisco Systems, Inc. | 2.9 | 0.0 |
Adobe Systems, Inc. | 2.5 | 0.4 |
Fidelity National Information Services, Inc. | 2.4 | 2.6 |
LinkedIn Corp. | 2.4 | 0.5 |
QUALCOMM, Inc. | 2.1 | 1.0 |
| 44.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Internet Software & Services | 29.9% | |
| Technology Hardware, Storage & Peripherals | 17.9% | |
| Software | 12.8% | |
| Semiconductors & Semiconductor Equipment | 9.7% | |
| Communications Equipment | 7.2% | |
| All Others* | 22.5% | |
As of July 31, 2014 |
| Internet Software & Services | 27.7% | |
| Software | 17.2% | |
| Technology Hardware, Storage & Peripherals | 17.1% | |
| Semiconductors & Semiconductor Equipment | 9.9% | |
| IT Services | 8.9% | |
| All Others* | 19.2% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
AUTOMOBILES - 0.7% |
Automobile Manufacturers - 0.7% |
Tesla Motors, Inc. (a)(d) | 52,209 | | $ 10,629,752 |
CHEMICALS - 0.1% |
Industrial Gases - 0.1% |
Sodiff Advanced Materials Co. Ltd. | 14,901 | | 868,411 |
COMMUNICATIONS EQUIPMENT - 7.2% |
Communications Equipment - 7.2% |
BYD Electronic International Co. Ltd. | 1,615,000 | | 1,689,175 |
Ciena Corp. (a) | 186,400 | | 3,452,128 |
Cisco Systems, Inc. | 1,571,800 | | 41,440,507 |
CommScope Holding Co., Inc. (a) | 283,500 | | 7,967,768 |
Finisar Corp. (a) | 150,200 | | 2,724,628 |
Ixia (a) | 320,525 | | 3,250,124 |
Juniper Networks, Inc. | 223,966 | | 5,090,747 |
Palo Alto Networks, Inc. (a) | 100 | | 12,639 |
QUALCOMM, Inc. | 489,900 | | 30,599,154 |
Radware Ltd. (a) | 89,222 | | 1,716,631 |
Sandvine Corp. (U.K.) (a) | 1,200 | | 3,060 |
Spirent Communications PLC | 3,945,488 | | 5,303,854 |
| | 103,250,415 |
CONSTRUCTION MATERIALS - 0.0% |
Construction Materials - 0.0% |
Universal Cement Corp. | 371,280 | | 314,971 |
DIVERSIFIED CONSUMER SERVICES - 0.0% |
Specialized Consumer Services - 0.0% |
LifeLock, Inc. (a) | 867 | | 12,875 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2% |
Alternative Carriers - 0.2% |
8x8, Inc. (a) | 420,300 | | 3,240,513 |
ELECTRICAL EQUIPMENT - 0.6% |
Electrical Components & Equipment - 0.4% |
Lumenpulse, Inc. (a) | 21,700 | | 272,211 |
OSRAM Licht AG | 126,518 | | 5,844,423 |
| | 6,116,634 |
Heavy Electrical Equipment - 0.2% |
Mitsubishi Electric Corp. | 253,000 | | 2,926,131 |
TOTAL ELECTRICAL EQUIPMENT | | 9,042,765 |
ELECTRONIC EQUIPMENT & COMPONENTS - 5.6% |
Electronic Components - 2.8% |
Alps Electric Co. Ltd. | 35,800 | | 745,270 |
Delta Electronics, Inc. | 2,000 | | 12,128 |
Hoya Corp. | 181,200 | | 7,021,970 |
Largan Precision Co. Ltd. | 11,000 | | 908,148 |
Ledlink Optics, Inc. | 753,405 | | 1,204,707 |
OMRON Corp. | 152,700 | | 6,104,742 |
Samsung Electro-Mechanics Co. Ltd. | 121,574 | | 7,340,060 |
Samsung SDI Co. Ltd. | 64,935 | | 7,516,833 |
|
| Shares | | Value |
Sunny Optical Technology Group Co. Ltd. | 1,222,100 | | $ 1,853,768 |
TDK Corp. | 100 | | 6,232 |
Universal Display Corp. (a)(d) | 21,800 | | 694,548 |
Yageo Corp. | 4,022,660 | | 7,152,435 |
Yaskawa Electric Corp. | 1,100 | | 14,062 |
| | 40,574,903 |
Electronic Equipment & Instruments - 0.9% |
Chroma ATE, Inc. | 2,120,683 | | 5,247,627 |
Cognex Corp. (a) | 34,600 | | 1,271,550 |
FEI Co. | 200 | | 16,444 |
PAX Global Technology Ltd. (a) | 30,000 | | 28,090 |
Posiflex Technologies, Inc. | 3,100 | | 14,195 |
TPK Holding Co. Ltd. | 1,090,000 | | 7,010,780 |
| | 13,588,686 |
Electronic Manufacturing Services - 1.5% |
AAC Technology Holdings, Inc. | 77,500 | | 495,280 |
Merry Electronics Co. Ltd. | 686,000 | | 2,253,729 |
TE Connectivity Ltd. | 229 | | 15,203 |
Trimble Navigation Ltd. (a) | 792,996 | | 18,905,025 |
| | 21,669,237 |
Technology Distributors - 0.4% |
Digital China Holdings Ltd. (H Shares) | 5,996,000 | | 5,648,678 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 81,481,504 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% |
Health Care Equipment - 0.4% |
Intai Technology Corp. | 439,000 | | 2,301,446 |
Olympus Corp. (a) | 39,700 | | 1,372,987 |
PW Medtech Group Ltd. (a) | 4,249,000 | | 1,856,271 |
| | 5,530,704 |
HEALTH CARE PROVIDERS & SERVICES - 0.0% |
Managed Health Care - 0.0% |
HealthEquity, Inc. (a) | 600 | | 12,462 |
HEALTH CARE TECHNOLOGY - 1.3% |
Health Care Technology - 1.3% |
athenahealth, Inc. (a)(d) | 56,694 | | 7,920,719 |
M3, Inc. | 197,200 | | 3,966,823 |
Medidata Solutions, Inc. (a) | 145,367 | | 6,249,327 |
| | 18,136,869 |
INTERNET & CATALOG RETAIL - 4.2% |
Internet Retail - 4.2% |
Amazon.com, Inc. (a) | 11,600 | | 4,112,548 |
ASOS PLC (a)(d) | 3,500 | | 144,814 |
Ctrip.com International Ltd. sponsored ADR (a) | 592,862 | | 28,193,552 |
Groupon, Inc. Class A (a) | 1,989,300 | | 14,243,388 |
JD.com, Inc. sponsored ADR | 28,600 | | 710,424 |
Jumei International Holding Ltd. sponsored ADR (d) | 87,500 | | 1,134,875 |
Common Stocks - continued |
| Shares | | Value |
INTERNET & CATALOG RETAIL - CONTINUED |
Internet Retail - continued |
MySale Group PLC | 19,300 | | $ 18,532 |
Qunar Cayman Islands Ltd. sponsored ADR (a) | 290,600 | | 8,526,204 |
Travelport Worldwide Ltd. | 23,000 | | 358,570 |
Vipshop Holdings Ltd. ADR (a)(d) | 61,200 | | 1,370,268 |
zulily, Inc. Class A (a)(d) | 110,300 | | 2,040,550 |
| | 60,853,725 |
INTERNET SOFTWARE & SERVICES - 29.4% |
Internet Software & Services - 29.4% |
21Vianet Group, Inc. ADR (a)(d) | 210,500 | | 3,483,775 |
58.com, Inc. ADR (a) | 213,400 | | 8,209,498 |
Alibaba Group Holding Ltd. sponsored ADR | 22,100 | | 1,968,668 |
Amber Road, Inc. (a) | 900 | | 8,559 |
Baidu.com, Inc. sponsored ADR (a) | 39,500 | | 8,607,840 |
ChannelAdvisor Corp. (a) | 197,417 | | 1,871,513 |
Constant Contact, Inc. (a) | 400 | | 15,128 |
Cornerstone OnDemand, Inc. (a)(d) | 258,632 | | 8,521,924 |
Cvent, Inc. (a) | 51,908 | | 1,296,662 |
Demandware, Inc. (a) | 137,706 | | 7,375,533 |
E2open, Inc. (a) | 145,926 | | 859,504 |
eBay, Inc. (a) | 51,500 | | 2,729,500 |
eGain Communications Corp. (a) | 64,050 | | 321,531 |
Endurance International Group Holdings, Inc. (a) | 517,700 | | 8,702,537 |
Facebook, Inc. Class A (a) | 1,256,111 | | 95,351,386 |
Google, Inc.: | | | |
Class A (a) | 110,287 | | 59,284,777 |
Class C (a) | 113,697 | | 60,773,320 |
HomeAway, Inc. (a) | 2,990 | | 76,215 |
Hortonworks, Inc. (d) | 1,500 | | 31,785 |
Just Dial Ltd. | 4,643 | | 116,323 |
LendingClub Corp. | 700 | | 13,139 |
LinkedIn Corp. (a) | 153,000 | | 34,385,220 |
Marketo, Inc. (a) | 87,813 | | 3,023,402 |
Momo, Inc. ADR (d) | 163,752 | | 1,611,320 |
NAVER Corp. | 20,718 | | 13,321,459 |
New Relic, Inc. | 400 | | 12,424 |
NIC, Inc. | 59,508 | | 977,121 |
Opower, Inc. (d) | 142,995 | | 1,631,573 |
Q2 Holdings, Inc. (a) | 700 | | 12,516 |
Rackspace Hosting, Inc. (a) | 33,439 | | 1,503,417 |
Rocket Internet AG (a) | 19 | | 996 |
Saba Software, Inc. (a) | 433,700 | | 4,180,868 |
SciQuest, Inc. (a) | 185,354 | | 2,635,734 |
Sohu.com, Inc. (a) | 55,200 | | 3,098,928 |
SouFun Holdings Ltd. ADR (d) | 972,800 | | 5,943,808 |
Textura Corp. (a) | 243,757 | | 6,079,300 |
Trulia, Inc. (a) | 2,500 | | 106,700 |
Twitter, Inc. (a) | 316,600 | | 11,881,998 |
|
| Shares | | Value |
Web.com Group, Inc. (a) | 203,586 | | $ 3,076,184 |
Yahoo!, Inc. (a) | 1,005,600 | | 44,236,344 |
Yandex NV (a) | 600 | | 8,934 |
Yelp, Inc. (a)(d) | 292,443 | | 15,344,484 |
YY, Inc. ADR (a) | 21,000 | | 1,511,580 |
| | 424,203,427 |
IT SERVICES - 6.5% |
Data Processing & Outsourced Services - 6.0% |
Euronet Worldwide, Inc. (a) | 25,835 | | 1,172,651 |
Fidelity National Information Services, Inc. | 552,795 | | 34,510,992 |
NETELLER PLC (a) | 789,450 | | 4,096,345 |
Total System Services, Inc. | 338,653 | | 11,978,157 |
Vantiv, Inc. (a) | 291,300 | | 10,017,807 |
Visa, Inc. Class A | 96,700 | | 24,649,797 |
| | 86,425,749 |
IT Consulting & Other Services - 0.5% |
Cognizant Technology Solutions Corp. Class A (a) | 135,094 | | 7,312,638 |
EPAM Systems, Inc. (a) | 2,861 | | 139,989 |
Virtusa Corp. (a) | 400 | | 14,984 |
| | 7,467,611 |
TOTAL IT SERVICES | | 93,893,360 |
LEISURE PRODUCTS - 0.9% |
Leisure Products - 0.9% |
Sega Sammy Holdings, Inc. | 1,029,600 | | 13,407,657 |
MACHINERY - 0.1% |
Industrial Machinery - 0.1% |
Harmonic Drive Systems, Inc. | 52,100 | | 825,601 |
MEDIA - 0.2% |
Advertising - 0.0% |
iCar Asia Ltd. (a)(d) | 198,859 | | 170,702 |
Cable & Satellite - 0.2% |
Naspers Ltd. Class N | 15,445 | | 2,228,125 |
Publishing - 0.0% |
NEXT Co. Ltd. | 49,700 | | 414,708 |
TOTAL MEDIA | | 2,813,535 |
PROFESSIONAL SERVICES - 0.9% |
Human Resource & Employment Services - 0.2% |
51job, Inc. sponsored ADR (a) | 400 | | 14,084 |
Paylocity Holding Corp. | 62,700 | | 1,477,212 |
WageWorks, Inc. (a) | 37,200 | | 2,047,488 |
| | 3,538,784 |
Common Stocks - continued |
| Shares | | Value |
PROFESSIONAL SERVICES - CONTINUED |
Research & Consulting Services - 0.7% |
ICF International, Inc. (a) | 33,600 | | $ 1,255,296 |
Verisk Analytics, Inc. (a) | 137,768 | | 8,865,371 |
| | 10,120,667 |
TOTAL PROFESSIONAL SERVICES | | 13,659,451 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 9.7% |
Semiconductor Equipment - 0.7% |
Lam Research Corp. | 54,300 | | 4,150,692 |
Nanometrics, Inc. (a) | 9,409 | | 146,216 |
Rubicon Technology, Inc. (a)(d) | 681,267 | | 2,834,071 |
SMA Solar Technology AG (a)(d) | 28,350 | | 352,070 |
SunEdison, Inc. (a)(d) | 700 | | 13,111 |
Tessera Technologies, Inc. | 214 | | 7,935 |
Ultratech, Inc. (a) | 121,600 | | 1,938,304 |
| | 9,442,399 |
Semiconductors - 9.0% |
Atmel Corp. | 401,000 | | 3,340,330 |
Audience, Inc. (a) | 254,001 | | 1,026,164 |
Broadcom Corp. Class A | 315,622 | | 13,393,420 |
Cavium, Inc. (a) | 12,800 | | 752,768 |
Cirrus Logic, Inc. (a) | 59,028 | | 1,564,242 |
Cree, Inc. (a) | 47,745 | | 1,688,263 |
Duksan Hi-Metal Co. Ltd. (a) | 81,343 | | 822,727 |
EPISTAR Corp. | 1,766,000 | | 3,106,092 |
Everlight Electronics Co. Ltd. | 1,726,000 | | 4,110,424 |
Freescale Semiconductor, Inc. (a) | 162,756 | | 5,222,840 |
Genesis Photonics, Inc. (a) | 2,474,066 | | 1,218,881 |
Himax Technologies, Inc. sponsored ADR | 94,100 | | 807,378 |
Hua Hong Semiconductor Ltd. (a) | 3,895,000 | | 4,529,042 |
Infineon Technologies AG | 73,000 | | 823,003 |
Intermolecular, Inc. (a) | 429,154 | | 699,521 |
Intersil Corp. Class A | 166,394 | | 2,381,098 |
Lextar Electronics Corp. | 437,000 | | 411,937 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 35,494 | | 1,153,910 |
MagnaChip Semiconductor Corp. (a) | 114,554 | | 1,647,287 |
Marvell Technology Group Ltd. | 965,800 | | 14,960,242 |
Maxim Integrated Products, Inc. | 537,100 | | 17,772,639 |
Melexis NV | 293 | | 14,700 |
Micrel, Inc. | 261,300 | | 3,676,491 |
Micron Technology, Inc. (a) | 24,900 | | 728,699 |
Microsemi Corp. (a) | 111,700 | | 3,111,962 |
Monolithic Power Systems, Inc. | 76,801 | | 3,647,279 |
NXP Semiconductors NV (a) | 32,586 | | 2,585,373 |
ON Semiconductor Corp. (a) | 224,200 | | 2,244,242 |
PixArt Imaging, Inc. | 20,000 | | 55,584 |
PMC-Sierra, Inc. (a) | 198,000 | | 1,750,320 |
Qorvo, Inc. (a) | 153,558 | | 11,343,329 |
Radiant Opto-Electronics Corp. | 680,000 | | 2,135,699 |
|
| Shares | | Value |
Sanken Electric Co. Ltd. | 136,000 | | $ 1,112,371 |
Semiconductor Manufacturing International Corp. (a) | 54,477,000 | | 4,722,000 |
Semtech Corp. (a) | 84,400 | | 2,148,824 |
Seoul Semiconductor Co. Ltd. | 259,332 | | 4,552,791 |
Silicon Laboratories, Inc. (a) | 30,900 | | 1,352,184 |
STMicroelectronics NV | 444,030 | | 3,686,944 |
YoungTek Electronics Corp. | 341 | | 674 |
| | 130,301,674 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 139,744,073 |
SOFTWARE - 12.8% |
Application Software - 7.8% |
Adobe Systems, Inc. (a) | 504,016 | | 35,346,642 |
ANSYS, Inc. (a) | 175 | | 14,117 |
Autodesk, Inc. (a) | 186,700 | | 10,082,734 |
Blackbaud, Inc. | 17,200 | | 751,812 |
Citrix Systems, Inc. (a) | 57,915 | | 3,432,043 |
Guidewire Software, Inc. (a) | 190 | | 9,519 |
Informatica Corp. (a) | 112,252 | | 4,679,225 |
Interactive Intelligence Group, Inc. (a) | 129,460 | | 5,250,898 |
Intuit, Inc. | 187,200 | | 16,252,704 |
Kingdee International Software Group Co. Ltd. (a) | 11,039,800 | | 3,569,210 |
Linx SA | 700 | | 12,350 |
MicroStrategy, Inc. Class A (a) | 31,430 | | 5,079,088 |
Parametric Technology Corp. (a) | 43,100 | | 1,439,971 |
Paycom Software, Inc. | 900 | | 23,553 |
PROS Holdings, Inc. (a) | 17,933 | | 435,593 |
Qlik Technologies, Inc. (a) | 120,100 | | 3,410,840 |
salesforce.com, Inc. (a) | 347,719 | | 19,628,738 |
SolarWinds, Inc. (a) | 333 | | 16,034 |
Splunk, Inc. (a) | 21,696 | | 1,120,598 |
Ultimate Software Group, Inc. (a) | 76 | | 11,249 |
Workiva, Inc. | 51,400 | | 631,192 |
Yodlee, inc. | 1,300 | | 11,986 |
Zendesk, Inc. (d) | 62,500 | | 1,511,875 |
| | 112,721,971 |
Home Entertainment Software - 0.9% |
Activision Blizzard, Inc. | 233,170 | | 4,872,087 |
Nintendo Co. Ltd. | 69,800 | | 6,732,882 |
Ourgame International Holdings Ltd. | 3,041,000 | | 1,223,832 |
| | 12,828,801 |
Systems Software - 4.1% |
Allot Communications Ltd. (a) | 288,719 | | 2,601,358 |
CommVault Systems, Inc. (a) | 17,100 | | 745,218 |
Fleetmatics Group PLC (a) | 495,559 | | 17,547,744 |
Imperva, Inc. (a) | 300 | | 12,528 |
Infoblox, Inc. (a) | 900 | | 16,803 |
NetSuite, Inc. (a)(d) | 112,277 | | 11,051,425 |
Oracle Corp. | 240,300 | | 10,066,167 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Systems Software - continued |
Progress Software Corp. (a) | 82,300 | | $ 2,061,615 |
Red Hat, Inc. (a) | 127,848 | | 8,155,424 |
ServiceNow, Inc. (a) | 94,695 | | 6,903,266 |
Tableau Software, Inc. (a) | 3,300 | | 266,508 |
Varonis Systems, Inc. | 900 | | 29,673 |
| | 59,457,729 |
TOTAL SOFTWARE | | 185,008,501 |
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 17.9% |
Technology Hardware, Storage & Peripherals - 17.9% |
Apple, Inc. | 1,732,129 | | 202,936,233 |
BlackBerry Ltd. (a) | 1,486 | | 15,083 |
EMC Corp. | 500 | | 12,965 |
Hewlett-Packard Co. | 780,000 | | 28,181,400 |
NEC Corp. | 1,774,000 | | 5,010,939 |
Nimble Storage, Inc. (a) | 5,000 | | 112,150 |
Samsung Electronics Co. Ltd. | 15,772 | | 19,423,049 |
SanDisk Corp. | 11,600 | | 880,556 |
Silicon Graphics International Corp. (a) | 166,658 | | 1,571,585 |
Stratasys Ltd. (a) | 100 | | 7,949 |
| | 258,151,909 |
WIRELESS TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
RingCentral, Inc. (a) | 275,700 | | 3,721,950 |
TOTAL COMMON STOCKS (Cost $1,324,522,565) |
1,428,804,430
|
Convertible Preferred Stocks - 0.9% |
| | | |
INTERNET SOFTWARE & SERVICES - 0.5% |
Internet Software & Services - 0.5% |
Uber Technologies, Inc. Series D, 8.00% (f) | 232,064 | | 7,731,816 |
IT SERVICES - 0.1% |
Data Processing & Outsourced Services - 0.1% |
Nutanix, Inc. Series E (f) | 39,963 | | 547,893 |
PROFESSIONAL SERVICES - 0.3% |
Research & Consulting Services - 0.3% |
Meituan Corp. Series D (e)(f) | 758,456 | | 4,794,731 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $8,930,115) |
13,074,440
|
Money Market Funds - 4.4% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 12,299,051 | | $ 12,299,051 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 50,398,893 | | 50,398,893 |
TOTAL MONEY MARKET FUNDS (Cost $62,697,944) |
62,697,944
|
TOTAL INVESTMENT PORTFOLIO - 104.3% (Cost $1,396,150,624) | | 1,504,576,814 |
NET OTHER ASSETS (LIABILITIES) - (4.3)% | | (61,994,710) |
NET ASSETS - 100% | $ 1,442,582,104 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 purchased on a delayed delivery or when-issued basis. |
(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 $13,074,440 or 0.9% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Meituan Corp. Series D | 1/26/15 | $ 4,794,731 |
Nutanix, Inc. Series E | 8/26/14 | $ 535,364 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 3,600,020 |
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 | $ 18,857 |
Fidelity Securities Lending Cash Central Fund | 338,498 |
Total | $ 357,355 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Common Stocks | $ 1,428,804,430 | $ 1,256,019,828 | $ 171,961,875 | $ 822,727 |
Convertible Preferred Stocks | 13,074,440 | - | - | 13,074,440 |
Money Market Funds | 62,697,944 | 62,697,944 | - | - |
Total Investments in Securities: | $ 1,504,576,814 | $ 1,318,717,772 | $ 171,961,875 | $ 13,897,167 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 78.4% |
Cayman Islands | 6.7% |
Korea (South) | 3.7% |
Japan | 3.5% |
Taiwan | 2.1% |
Bermuda | 1.8% |
Ireland | 1.2% |
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 Technology Fund
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $47,877,175) - See accompanying schedule: Unaffiliated issuers (cost $1,333,452,680) | $ 1,441,878,870 | |
Fidelity Central Funds (cost $62,697,944) | 62,697,944 | |
Total Investments (cost $1,396,150,624) | | $ 1,504,576,814 |
Foreign currency held at value (cost $359,819) | | 359,818 |
Receivable for investments sold | | 40,707,015 |
Receivable for fund shares sold | | 1,304,892 |
Dividends receivable | | 468,421 |
Distributions receivable from Fidelity Central Funds | | 33,240 |
Prepaid expenses | | 5,418 |
Other receivables | | 48,992 |
Total assets | | 1,547,504,610 |
| | |
Liabilities | | |
Payable to custodian bank | $ 27,196 | |
Payable for investments purchased
Regular delivery | 47,275,121 | |
Delayed delivery | 5,039,318 | |
Payable for fund shares redeemed | 883,551 | |
Accrued management fee | 661,532 | |
Distribution and service plan fees payable | 271,614 | |
Other affiliated payables | 274,992 | |
Other payables and accrued expenses | 90,289 | |
Collateral on securities loaned, at value | 50,398,893 | |
Total liabilities | | 104,922,506 |
| | |
Net Assets | | $ 1,442,582,104 |
Net Assets consist of: | | |
Paid in capital | | $ 1,301,541,322 |
Accumulated net investment loss | | (992,252) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 33,623,771 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 108,409,263 |
Net Assets | | $ 1,442,582,104 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($416,627,183 ÷ 12,217,798 shares) | | $ 34.10 |
| | |
Maximum offering price per share (100/94.25 of $34.10) | | $ 36.18 |
Class T:
Net Asset Value and redemption price per share ($195,375,909 ÷ 5,975,696 shares) | | $ 32.70 |
| | |
Maximum offering price per share (100/96.50 of $32.70) | | $ 33.89 |
Class B:
Net Asset Value and offering price per share ($10,363,877 ÷ 346,722 shares)A | | $ 29.89 |
| | |
Class C:
Net Asset Value and offering price per share ($113,332,551 ÷ 3,778,003 shares)A | | $ 30.00 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($706,882,584 ÷ 19,591,093 shares) | | $ 36.08 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,674,700 |
Special dividends | | 3,045,103 |
Income from Fidelity Central Funds | | 357,355 |
Total income | | 8,077,158 |
| | |
Expenses | | |
Management fee | $ 3,935,807 | |
Transfer agent fees | 1,437,064 | |
Distribution and service plan fees | 1,618,834 | |
Accounting and security lending fees | 232,414 | |
Custodian fees and expenses | 72,104 | |
Independent trustees' compensation | 12,633 | |
Registration fees | 58,261 | |
Audit | 29,657 | |
Legal | 9,172 | |
Interest | 240 | |
Miscellaneous | 6,297 | |
Total expenses before reductions | 7,412,483 | |
Expense reductions | (47,818) | 7,364,665 |
Net investment income (loss) | | 712,493 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 51,933,858 | |
Redemption in-kind with affiliated entities | 23,460,718 | |
Foreign currency transactions | (142,325) | |
Total net realized gain (loss) | | 75,252,251 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $4,659) | (36,751,332) | |
Assets and liabilities in foreign currencies | (13,475) | |
Total change in net unrealized appreciation (depreciation) | | (36,764,807) |
Net gain (loss) | | 38,487,444 |
Net increase (decrease) in net assets resulting from operations | | $ 39,199,937 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 712,493 | $ (3,870,002) |
Net realized gain (loss) | 75,252,251 | 107,601,371 |
Change in net unrealized appreciation (depreciation) | (36,764,807) | 87,968,653 |
Net increase (decrease) in net assets resulting from operations | 39,199,937 | 191,700,022 |
Distributions to shareholders from net investment income | (1,694,665) | - |
Distributions to shareholders from net realized gain | (115,642,374) | (11,189,247) |
Total distributions | (117,337,039) | (11,189,247) |
Share transactions - net increase (decrease) | 342,795,057 | 150,832,224 |
Redemption fees | 15,135 | 21,186 |
Total increase (decrease) in net assets | 264,673,090 | 331,364,185 |
| | |
Net Assets | | |
Beginning of period | 1,177,909,014 | 846,544,829 |
End of period (including accumulated net investment loss of $992,252 and accumulated net investment loss of $10,080, respectively) | $ 1,442,582,104 | $ 1,177,909,014 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.06 | $ 29.90 | $ 25.25 | $ 25.14 | $ 19.83 | $ 16.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01H | (.12) | (.07) | (.13) | (.18) | (.16) |
Net realized and unrealized gain (loss) | .99 | 6.70 | 4.72 | .24 | 5.49 | 3.96 |
Total from investment operations | 1.00 | 6.58 | 4.65 | .11 | 5.31 | 3.80 |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | (2.94) | (.42) | - | - | - | - |
Total distributions | (2.96) | (.42) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 34.10 | $ 36.06 | $ 29.90 | $ 25.25 | $ 25.14 | $ 19.83 |
Total ReturnB, C, D | 2.72% | 22.15% | 18.42% | .44% | 26.78% | 23.71% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.10%A | 1.14% | 1.18% | 1.18% | 1.18% | 1.21% |
Expenses net of fee waivers, if any | 1.10%A | 1.14% | 1.18% | 1.18% | 1.18% | 1.21% |
Expenses net of all reductions | 1.10%A | 1.12% | 1.14% | 1.17% | 1.16% | 1.18% |
Net investment income (loss) | .03%A, H | (.35)% | (.25)% | (.55)% | (.73)% | (.83)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 416,627 | $ 408,687 | $ 355,306 | $ 336,693 | $ 375,609 | $ 312,659 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 34.66 | $ 28.79 | $ 24.38 | $ 24.33 | $ 19.24 | $ 15.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) H | (.19) | (.13) | (.19) | (.23) | (.20) |
Net realized and unrealized gain (loss) | .97 | 6.45 | 4.54 | .24 | 5.32 | 3.85 |
Total from investment operations | .93 | 6.26 | 4.41 | .05 | 5.09 | 3.65 |
Distributions from net realized gain | (2.89) | (.39) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 32.70 | $ 34.66 | $ 28.79 | $ 24.38 | $ 24.33 | $ 19.24 |
Total ReturnB, C, D | 2.60% | 21.89% | 18.09% | .21% | 26.46% | 23.41% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.36%A | 1.38% | 1.42% | 1.43% | 1.43% | 1.46% |
Expenses net of fee waivers, if any | 1.36%A | 1.38% | 1.42% | 1.43% | 1.43% | 1.46% |
Expenses net of all reductions | 1.35%A | 1.37% | 1.39% | 1.42% | 1.40% | 1.44% |
Net investment income (loss) | (.22)%A, H | (.60)% | (.50)% | (.80)% | (.98)% | (1.09)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 195,376 | $ 196,067 | $ 173,692 | $ 172,709 | $ 196,913 | $ 169,049 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.83 | $ 26.56 | $ 22.60 | $ 22.67 | $ 18.01 | $ 14.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) H | (.34) | (.24) | (.28) | (.33) | (.27) |
Net realized and unrealized gain (loss) | .88 | 5.94 | 4.20 | .21 | 4.99 | 3.61 |
Total from investment operations | .76 | 5.60 | 3.96 | (.07) | 4.66 | 3.34 |
Distributions from net realized gain | (2.70) | (.33) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 29.89 | $ 31.83 | $ 26.56 | $ 22.60 | $ 22.67 | $ 18.01 |
Total ReturnB, C, D | 2.30% | 21.21% | 17.52% | (.31)% | 25.87% | 22.77% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.91%A | 1.92% | 1.93% | 1.93% | 1.93% | 1.96% |
Expenses net of fee waivers, if any | 1.91%A | 1.92% | 1.93% | 1.93% | 1.93% | 1.96% |
Expenses net of all reductions | 1.91%A | 1.91% | 1.89% | 1.92% | 1.91% | 1.94% |
Net investment income (loss) | (.78)%A, H | (1.14)% | (1.01)% | (1.30)% | (1.49)% | (1.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,364 | $ 12,043 | $ 13,745 | $ 17,476 | $ 25,508 | $ 29,176 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.20)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 31.99 | $ 26.68 | $ 22.70 | $ 22.77 | $ 18.09 | $ 14.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) H | (.33) | (.24) | (.29) | (.33) | (.28) |
Net realized and unrealized gain (loss) | .88 | 5.98 | 4.22 | .22 | 5.01 | 3.63 |
Total from investment operations | .77 | 5.65 | 3.98 | (.07) | 4.68 | 3.35 |
Distributions from net realized gain | (2.76) | (.34) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 30.00 | $ 31.99 | $ 26.68 | $ 22.70 | $ 22.77 | $ 18.09 |
Total ReturnB, C, D | 2.33% | 21.31% | 17.53% | (.31)% | 25.87% | 22.73% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.86%A | 1.87% | 1.91% | 1.93% | 1.92% | 1.96% |
Expenses net of fee waivers, if any | 1.86%A | 1.87% | 1.91% | 1.93% | 1.92% | 1.96% |
Expenses net of all reductions | 1.85%A | 1.86% | 1.88% | 1.91% | 1.90% | 1.93% |
Net investment income (loss) | (.72)%A, H | (1.09)% | (.99)% | (1.29)% | (1.48)% | (1.58)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 113,333 | $ 105,499 | $ 84,858 | $ 88,074 | $ 89,819 | $ 70,017 |
Portfolio turnover rateG | 159%A, K | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.06 | $ 31.47 | $ 26.50 | $ 26.30 | $ 20.68 | $ 16.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07G | (.02) | .02 | (.06) | (.11) | (.11) |
Net realized and unrealized gain (loss) | 1.05 | 7.06 | 4.95 | .26 | 5.73 | 4.12 |
Total from investment operations | 1.12 | 7.04 | 4.97 | .20 | 5.62 | 4.01 |
Distributions from net investment income | (.07) | - | - | - | - | - |
Distributions from net realized gain | (3.03) | (.45) | - | - | - | - |
Total distributions | (3.10) | (.45) | - | - | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 36.08 | $ 38.06 | $ 31.47 | $ 26.50 | $ 26.30 | $ 20.68 |
Total ReturnB, C | 2.89% | 22.55% | 18.75% | .76% | 27.18% | 24.06% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .76%A | .83% | .86% | .86% | .87% | .92% |
Expenses net of fee waivers, if any | .76%A | .83% | .86% | .86% | .87% | .92% |
Expenses net of all reductions | .75%A | .82% | .83% | .85% | .85% | .90% |
Net investment income (loss) | .38%A, G | (.05)% | .06% | (.23)% | (.43)% | (.55)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 706,883 | $ 455,612 | $ 218,944 | $ 95,310 | $ 81,350 | $ 42,277 |
Portfolio turnover rateF | 159% A, J | 186% | 142% | 201% | 167% | 115% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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. Class B shares are 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. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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, 2015, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses, 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 | $ 190,387,691 |
Gross unrealized depreciation | (89,797,047) |
Net unrealized appreciation (depreciation) on securities | $ 100,590,644 |
| |
Tax cost | $ 1,403,986,170 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities and in-kind transactions, aggregated $1,157,082,881 and $1,068,043,262, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 519,507 | $ 4,315 |
Class T | .25% | .25% | 494,416 | - |
Class B | .75% | .25% | 56,587 | 42,476 |
Class C | .75% | .25% | 548,324 | 70,856 |
| | | $ 1,618,834 | $ 117,647 |
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 shares, 1.00% for Class C shares, 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 | $ 52,496 |
Class T | 7,619 |
Class B* | 1,711 |
Class C* | 5,454 |
| $ 67,280 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 510,037 | .25 |
Class T | 247,867 | .25 |
Class B | 17,153 | .30 |
Class C | 134,548 | .25 |
Institutional Class | 527,459 | .15 |
| $ 1,437,064 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $19,716 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 or other affiliated entities of 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 | $ 12,199,500 | .35% | $ 240 |
Redemptions In-Kind. During the period, 2,476,292 shares of the Fund held by affiliated entities were redeemed for investments with a value of $93,826,692. The net realized gain of $23,460,718 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Exchanges In-Kind. During the period, certain investment companies managed by the investment adviser or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered cash and investments valued at $311,440,613 in exchange for 8,219,599 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $948 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $338,498.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $47,761 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 $47.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $10.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 285,368 | $ - |
Institutional Class | 1,409,297 | - |
Total | $ 1,694,665 | $ - |
From net realized gain | | |
Class A | $ 33,752,653 | $ 4,830,573 |
Class T | 16,437,105 | 2,285,378 |
Class B | 983,656 | 152,106 |
Class C | 9,419,893 | 1,068,092 |
Institutional Class | 55,049,067 | 2,853,098 |
Total | $ 115,642,374 | $ 11,189,247 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,268,131 | 1,967,332 | $ 44,399,636 | $ 66,338,054 |
Reinvestment of distributions | 901,793 | 136,812 | 31,563,331 | 4,412,177 |
Shares redeemed | (1,285,028) | (2,655,768) | (45,036,996) | (89,258,893) |
Net increase (decrease) | 884,896 | (551,624) | $ 30,925,971 | $ (18,508,662) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class T | | | | |
Shares sold | 279,290 | 604,269 | $ 9,369,369 | $ 19,519,431 |
Reinvestment of distributions | 476,615 | 71,453 | 16,015,552 | 2,218,622 |
Shares redeemed | (437,150) | (1,051,577) | (14,672,710) | (34,073,517) |
Net increase (decrease) | 318,755 | (375,855) | $ 10,712,211 | $ (12,335,464) |
Class B | | | | |
Shares sold | 8,032 | 9,706 | $ 244,893 | $ 287,815 |
Reinvestment of distributions | 29,273 | 4,834 | 901,739 | 138,293 |
Shares redeemed | (68,899) | (153,751) | (2,120,358) | (4,566,688) |
Net increase (decrease) | (31,594) | (139,211) | $ (973,726) | $ (4,140,580) |
Class C | | | | |
Shares sold | 522,133 | 594,192 | $ 16,090,876 | $ 17,948,827 |
Reinvestment of distributions | 261,235 | 31,647 | 8,065,851 | 909,547 |
Shares redeemed | (303,523) | (507,790) | (9,274,692) | (15,090,389) |
Net increase (decrease) | 479,845 | 118,049 | $ 14,882,035 | $ 3,767,985 |
Institutional Class | | | | |
Shares sold | 22,234,239 A | 7,128,296 | $ 843,668,302 A | $ 254,841,416 |
Reinvestment of distributions | 1,510,080 | 81,545 | 55,853,504 | 2,770,913 |
Shares redeemed | (16,123,085) B | (2,196,859) | (612,273,240) B | (75,563,384) |
Net increase (decrease) | 7,621,234 | 5,012,982 | $ 287,248,566 | $ 182,048,945 |
A Amount includes in-kind exchanges (see Note 5: Exchanges In-Kind).
B Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
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.
At the end of the period, Strategic Advisers Core Fund was the owner of record of approximately 34% of the total outstanding shares of the Fund.
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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.13% | | | |
Actual | | $ 1,000.00 | $ 1,088.20 | $ 5.95 |
HypotheticalA | | $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,087.10 | $ 7.47 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 1,084.10 | $ 10.19 |
HypotheticalA | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.88% | | | |
Actual | | $ 1,000.00 | $ 1,084.40 | $ 9.88 |
HypotheticalA | | $ 1,000.00 | $ 1,015.73 | $ 9.55 |
Institutional Class | .83% | | | |
Actual | | $ 1,000.00 | $ 1,090.10 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,021.02 | $ 4.23 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
NextEra Energy, Inc. | 12.3 | 10.3 |
Exelon Corp. | 9.9 | 5.9 |
Dominion Resources, Inc. | 9.7 | 10.4 |
Sempra Energy | 9.2 | 7.7 |
PG&E Corp. | 7.9 | 2.6 |
PPL Corp. | 4.9 | 7.1 |
NiSource, Inc. | 4.5 | 4.7 |
Calpine Corp. | 4.0 | 2.2 |
Southern Co. | 3.4 | 0.0 |
Edison International | 3.4 | 6.5 |
| 69.2 | |
Top Industries (% of fund's net assets) |
As of January 31, 2015 |
| Electric Utilities | 40.4% | |
| Multi-Utilities | 31.6% | |
| Independent Power Producers & Renewable Electricity Producers | 10.0% | |
| Oil, Gas & Consumable Fuels | 6.1% | |
| Media | 2.9% | |
| All Others* | 9.0% | |
As of July 31, 2014 |
| Electric Utilities | 44.3% | |
| Multi-Utilities | 25.9% | |
| Oil, Gas & Consumable Fuels | 12.0% | |
| Independent Power Producers & Energy Traders | 8.2% | |
| Media | 3.1% | |
| All Others* | 6.5% | |
* Includes short-term investments and net other assets (liabilities). |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% |
| Shares | | Value |
CONSTRUCTION & ENGINEERING - 0.8% |
Construction & Engineering - 0.8% |
Abengoa SA Class B (d) | 928,100 | | $ 2,737,245 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.7% |
Alternative Carriers - 0.7% |
Cogent Communications Group, Inc. | 68,164 | | 2,526,158 |
ELECTRIC UTILITIES - 40.4% |
Electric Utilities - 40.4% |
Edison International | 168,002 | | 11,449,336 |
Exelon Corp. | 934,700 | | 33,686,588 |
FirstEnergy Corp. | 159,700 | | 6,440,701 |
Hawaiian Electric Industries, Inc. | 16,500 | | 565,950 |
NextEra Energy, Inc. | 385,140 | | 42,072,696 |
NRG Yield, Inc. Class A (d) | 123,910 | | 6,552,361 |
OGE Energy Corp. | 241,423 | | 8,493,261 |
PPL Corp. | 475,172 | | 16,868,606 |
Southern Co. | 230,738 | | 11,703,031 |
| | 137,832,530 |
GAS UTILITIES - 0.0% |
Gas Utilities - 0.0% |
Laclede Group, Inc. | 1,500 | | 80,640 |
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 1.0% |
Renewable Electricity - 1.0% |
Abengoa Yield PLC | 105,000 | | 3,456,600 |
INDEPENDENT POWER PRODUCERS & RENEWABLE ELECTRICITY PRODUCERS - 10.0% |
Independent Power Producers & Energy Traders - 10.0% |
Black Hills Corp. | 47,200 | | 2,367,552 |
Calpine Corp. (a) | 658,117 | | 13,741,483 |
Dynegy, Inc. (a) | 142,557 | | 3,894,657 |
NRG Energy, Inc. | 378,515 | | 9,334,180 |
The AES Corp. | 397,600 | | 4,858,672 |
| | 34,196,544 |
MEDIA - 2.9% |
Cable & Satellite - 2.9% |
DISH Network Corp. Class A (a) | 88,700 | | 6,240,045 |
Liberty Global PLC Class A (a) | 75,900 | | 3,546,048 |
| | 9,786,093 |
MULTI-UTILITIES - 31.6% |
Multi-Utilities - 31.6% |
Dominion Resources, Inc. | 430,099 | | 33,070,312 |
NiSource, Inc. | 354,463 | | 15,334,069 |
PG&E Corp. | 455,118 | | 26,765,490 |
|
| Shares | | Value |
Sempra Energy | 280,837 | | $ 31,431,277 |
TECO Energy, Inc. | 50,700 | | 1,081,431 |
| | 107,682,579 |
OIL, GAS & CONSUMABLE FUELS - 6.1% |
Oil & Gas Storage & Transport - 6.1% |
Cheniere Energy Partners LP Holdings LLC | 298,262 | | 6,833,182 |
Enbridge, Inc. | 5,600 | | 271,252 |
Energy Transfer Equity LP | 141,827 | | 8,427,360 |
Plains GP Holdings LP Class A | 199,736 | | 5,209,115 |
| | 20,740,909 |
REAL ESTATE INVESTMENT TRUSTS - 1.6% |
Specialized REITs - 1.6% |
Crown Castle International Corp. | 62,400 | | 5,398,224 |
WIRELESS TELECOMMUNICATION SERVICES - 0.2% |
Wireless Telecommunication Services - 0.2% |
Telephone & Data Systems, Inc. | 28,147 | | 654,418 |
TOTAL COMMON STOCKS (Cost $286,232,860) |
325,091,940
|
Money Market Funds - 2.9% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 5,969,590 | | 5,969,590 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 3,709,574 | | 3,709,574 |
TOTAL MONEY MARKET FUNDS (Cost $9,679,164) |
9,679,164
|
TOTAL INVESTMENT PORTFOLIO - 98.2% (Cost $295,912,024) | | 334,771,104 |
NET OTHER ASSETS (LIABILITIES) - 1.8% | | 6,224,414 |
NET ASSETS - 100% | $ 340,995,518 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 | $ 2,847 |
Fidelity Securities Lending Cash Central Fund | 22,710 |
Total | $ 25,557 |
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 Investment 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, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,412,925) - See accompanying schedule: Unaffiliated issuers (cost $286,232,860) | $ 325,091,940 | |
Fidelity Central Funds (cost $9,679,164) | 9,679,164 | |
Total Investments (cost $295,912,024) | | $ 334,771,104 |
Receivable for investments sold | | 22,805,407 |
Receivable for fund shares sold | | 991,363 |
Dividends receivable | | 177,102 |
Distributions receivable from Fidelity Central Funds | | 6,000 |
Prepaid expenses | | 1,443 |
Other receivables | | 9,764 |
Total assets | | 358,762,183 |
| | |
Liabilities | | |
Payable for investments purchased | $ 12,919,010 | |
Payable for fund shares redeemed | 768,146 | |
Accrued management fee | 153,717 | |
Distribution and service plan fees payable | 114,117 | |
Other affiliated payables | 74,051 | |
Other payables and accrued expenses | 28,050 | |
Collateral on securities loaned, at value | 3,709,574 | |
Total liabilities | | 17,766,665 |
| | |
Net Assets | | $ 340,995,518 |
Net Assets consist of: | | |
Paid in capital | | $ 301,045,427 |
Distributions in excess of net investment income | | (410,217) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 1,507,005 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 38,853,303 |
Net Assets | | $ 340,995,518 |
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($171,142,152 ÷ 6,295,812 shares) | | $ 27.18 |
| | |
Maximum offering price per share (100/94.25 of $27.18) | | $ 28.84 |
Class T:
Net Asset Value and redemption price per share ($55,032,975 ÷ 2,020,523 shares) | | $ 27.24 |
| | |
Maximum offering price per share (100/96.50 of $27.24) | | $ 28.23 |
Class B:
Net Asset Value and offering price per share ($4,224,306 ÷ 156,211 shares)A | | $ 27.04 |
| | |
Class C:
Net Asset Value and offering price per share ($64,347,231 ÷ 2,412,572 shares)A | | $ 26.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($46,248,854 ÷ 1,671,937 shares) | | $ 27.66 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,001,548 |
Income from Fidelity Central Funds | | 25,557 |
Total income | | 4,027,105 |
| | |
Expenses | | |
Management fee | $ 874,839 | |
Transfer agent fees | 378,653 | |
Distribution and service plan fees | 642,396 | |
Accounting and security lending fees | 62,391 | |
Custodian fees and expenses | 5,077 | |
Independent trustees' compensation | 2,883 | |
Registration fees | 50,172 | |
Audit | 21,504 | |
Legal | 1,773 | |
Interest | 319 | |
Miscellaneous | 1,629 | |
Total expenses before reductions | 2,041,636 | |
Expense reductions | (17,169) | 2,024,467 |
Net investment income (loss) | | 2,002,638 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,721,823 | |
Foreign currency transactions | 6,609 | |
Total net realized gain (loss) | | 4,728,432 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 19,508,745 | |
Assets and liabilities in foreign currencies | (5,777) | |
Total change in net unrealized appreciation (depreciation) | | 19,502,968 |
Net gain (loss) | | 24,231,400 |
Net increase (decrease) in net assets resulting from operations | | $ 26,234,038 |
Statement of Changes in Net Assets
| Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,002,638 | $ 3,559,541 |
Net realized gain (loss) | 4,728,432 | 27,603,316 |
Change in net unrealized appreciation (depreciation) | 19,502,968 | 1,610,263 |
Net increase (decrease) in net assets resulting from operations | 26,234,038 | 32,773,120 |
Distributions to shareholders from net investment income | (4,008,727) | (3,729,207) |
Distributions to shareholders from net realized gain | (17,303,959) | (88,322) |
Total distributions | (21,312,686) | (3,817,529) |
Share transactions - net increase (decrease) | 27,122,903 | 71,585,618 |
Redemption fees | 2,041 | 9,809 |
Total increase (decrease) in net assets | 32,046,296 | 100,551,018 |
| | |
Net Assets | | |
Beginning of period | 308,949,222 | 208,398,204 |
End of period (including distributions in excess of net investment income of $410,217 and undistributed net investment income of $1,595,872, respectively) | $ 340,995,518 | $ 308,949,222 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.77 | $ 23.48 | $ 21.20 | $ 19.09 | $ 16.59 | $ 15.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .19 | .41 | .47 | .43 | .39 | .40 |
Net realized and unrealized gain (loss) | 2.13 | 3.35 | 2.24 | 2.07 | 2.50 | 1.32 |
Total from investment operations | 2.32 | 3.76 | 2.71 | 2.50 | 2.89 | 1.72 |
Distributions from net investment income | (.38) | (.46) | (.43) | (.39) | (.39) | (.40) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.91)J | (.47) | (.43) | (.39) | (.39) | (.40) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.18 | $ 26.77 | $ 23.48 | $ 21.20 | $ 19.09 | $ 16.59 |
Total ReturnB, C, D | 8.82% | 16.38% | 13.09% | 13.40% | 17.71% | 11.42% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.13%A | 1.16% | 1.20% | 1.23% | 1.24% | 1.26% |
Expenses net of fee waivers, if any | 1.13%A | 1.16% | 1.20% | 1.23% | 1.24% | 1.26% |
Expenses net of all reductions | 1.12%A | 1.15% | 1.16% | 1.22% | 1.20% | 1.22% |
Net investment income (loss) | 1.41%A | 1.64% | 2.16% | 2.24% | 2.18% | 2.49% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 171,142 | $ 154,134 | $ 106,851 | $ 99,813 | $ 78,312 | $ 64,890 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal distributions of $1.91 per share is comprised of distributions from net investment income of $.384 and distributions from net realized gain of $1.524 per share. |
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.78 | $ 23.50 | $ 21.21 | $ 19.09 | $ 16.59 | $ 15.27 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .34 | .41 | .38 | .35 | .35 |
Net realized and unrealized gain (loss) | 2.14 | 3.35 | 2.25 | 2.07 | 2.50 | 1.33 |
Total from investment operations | 2.29 | 3.69 | 2.66 | 2.45 | 2.85 | 1.68 |
Distributions from net investment income | (.31) | (.40) | (.37) | (.33) | (.35) | (.36) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.83) | (.41) | (.37) | (.33) | (.35) | (.36) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.24 | $ 26.78 | $ 23.50 | $ 21.21 | $ 19.09 | $ 16.59 |
Total ReturnB, C, D | 8.71% | 15.99% | 12.81% | 13.13% | 17.39% | 11.13% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.42%A | 1.45% | 1.47% | 1.49% | 1.50% | 1.52% |
Expenses net of fee waivers, if any | 1.42%A | 1.45% | 1.47% | 1.49% | 1.50% | 1.52% |
Expenses net of all reductions | 1.41%A | 1.44% | 1.43% | 1.48% | 1.46% | 1.49% |
Net investment income (loss) | 1.12%A | 1.35% | 1.89% | 1.98% | 1.92% | 2.23% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 55,033 | $ 49,272 | $ 41,239 | $ 38,276 | $ 35,701 | $ 33,651 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.51 | $ 23.24 | $ 20.96 | $ 18.86 | $ 16.38 | $ 15.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .21 | .30 | .28 | .25 | .27 |
Net realized and unrealized gain (loss) | 2.12 | 3.33 | 2.23 | 2.05 | 2.49 | 1.31 |
Total from investment operations | 2.20 | 3.54 | 2.53 | 2.33 | 2.74 | 1.58 |
Distributions from net investment income | (.14) | (.26) | (.25) | (.23) | (.26) | (.28) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.67)J | (.27) | (.25) | (.23) | (.26) | (.28) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.04 | $ 26.51 | $ 23.24 | $ 20.96 | $ 18.86 | $ 16.38 |
Total ReturnB, C, D | 8.41% | 15.41% | 12.24% | 12.54% | 16.87% | 10.56% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.94%A | 1.95% | 1.96% | 1.98% | 1.99% | 2.01% |
Expenses net of fee waivers, if any | 1.94%A | 1.95% | 1.96% | 1.98% | 1.99% | 2.01% |
Expenses net of all reductions | 1.93%A | 1.94% | 1.92% | 1.97% | 1.95% | 1.98% |
Net investment income (loss) | .60%A | .85% | 1.40% | 1.49% | 1.43% | 1.74% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,224 | $ 4,598 | $ 5,289 | $ 6,677 | $ 7,773 | $ 8,794 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share. JTotal distributions of $1.67 per share is comprised of distributions from net investment income of $.141 and distributions from net realized gain of $1.524 per share. |
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 26.23 | $ 23.03 | $ 20.80 | $ 18.75 | $ 16.30 | $ 15.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .23 | .31 | .29 | .26 | .27 |
Net realized and unrealized gain (loss) | 2.09 | 3.29 | 2.20 | 2.03 | 2.46 | 1.30 |
Total from investment operations | 2.18 | 3.52 | 2.51 | 2.32 | 2.72 | 1.57 |
Distributions from net investment income | (.22) | (.31) | (.28) | (.27) | (.27) | (.29) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.74) | (.32) | (.28) | (.27) | (.27) | (.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.67 | $ 26.23 | $ 23.03 | $ 20.80 | $ 18.75 | $ 16.30 |
Total ReturnB, C, D | 8.44% | 15.52% | 12.27% | 12.56% | 16.85% | 10.54% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.88%A | 1.89% | 1.93% | 1.95% | 1.98% | 2.01% |
Expenses net of fee waivers, if any | 1.88%A | 1.89% | 1.93% | 1.95% | 1.98% | 2.01% |
Expenses net of all reductions | 1.87%A | 1.88% | 1.89% | 1.95% | 1.94% | 1.97% |
Net investment income (loss) | .66%A | .91% | 1.43% | 1.51% | 1.43% | 1.74% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 64,347 | $ 54,810 | $ 35,457 | $ 29,942 | $ 26,915 | $ 21,415 |
Portfolio turnover rateG | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 27.24 | $ 23.87 | $ 21.56 | $ 19.40 | $ 16.85 | $ 15.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .23 | .51 | .55 | .50 | .45 | .44 |
Net realized and unrealized gain (loss) | 2.18 | 3.39 | 2.26 | 2.10 | 2.54 | 1.35 |
Total from investment operations | 2.41 | 3.90 | 2.81 | 2.60 | 2.99 | 1.79 |
Distributions from net investment income | (.46) | (.52) | (.50) | (.44) | (.44) | (.45) |
Distributions from net realized gain | (1.52) | (.01) | - | - | - | - |
Total distributions | (1.99)I | (.53) | (.50) | (.44) | (.44) | (.45) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.66 | $ 27.24 | $ 23.87 | $ 21.56 | $ 19.40 | $ 16.85 |
Total ReturnB, C | 9.01% | 16.74% | 13.40% | 13.79% | 18.05% | 11.66% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .83%A | .85% | .89% | .92% | .98% | 1.00% |
Expenses net of fee waivers, if any | .83%A | .85% | .89% | .92% | .98% | 1.00% |
Expenses net of all reductions | .82%A | .84% | .85% | .91% | .94% | .97% |
Net investment income (loss) | 1.71%A | 1.95% | 2.46% | 2.55% | 2.44% | 2.75% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 46,249 | $ 46,135 | $ 19,562 | $ 20,564 | $ 10,914 | $ 6,511 |
Portfolio turnover rateF | 128%A | 112% | 154% | 195% | 201% | 216% |
AAnnualized BTotal 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. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HAmount represents less than $.01 per share. ITotal distributions of $1.99 per share is comprised of distributions from net investment income of $.463 and distributions from net realized gain of $1.524 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, 2015 (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. Class B shares are 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, 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 | $ 42,380,602 |
Gross unrealized depreciation | (3,972,631) |
Net unrealized appreciation (depreciation) on securities | $ 38,407,971 |
| |
Tax cost | $ 296,363,133 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .75% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $202,904,200 and $210,315,178, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 198,788 | $ 4,172 |
Class T | .25% | .25% | 131,329 | - |
Class B | .75% | .25% | 22,519 | 16,889 |
Class C | .75% | .25% | 289,760 | 69,392 |
| | | $ 642,396 | $ 90,453 |
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 shares, 1.00% for Class C shares, 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 | $ 73,450 |
Class T | 8,754 |
Class B* | 783 |
Class C* | 6,206 |
| $ 89,193 |
* 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 the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Class A | $ 187,870 | .24 |
Class T | 73,849 | .28 |
Class B | 6,763 | .30 |
Class C | 68,417 | .24 |
Institutional Class | 41,754 | .19 |
| $ 378,653 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,294 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 or other affiliated entities of 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 | $ 4,247,125 | .34% | $ 319 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $215 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $22,710.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $17,166 for the period.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Institutional Class expenses during the period in the amount of $3.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
Class A | $ 2,209,427 | $ 2,098,780 |
Class T | 589,264 | 689,503 |
Class B | 23,317 | 54,086 |
Class C | 465,161 | 483,241 |
Institutional Class | 721,558 | 403,597 |
Total | $ 4,008,727 | $ 3,729,207 |
From net realized gain | | |
Class A | $ 8,639,872 | $ 45,735 |
Class T | 2,863,111 | 17,387 |
Class B | 255,750 | 2,010 |
Class C | 3,177,658 | 15,931 |
Institutional Class | 2,367,568 | 7,259 |
Total | $ 17,303,959 | $ 88,322 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 | Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
Class A | | | | |
Shares sold | 1,232,070 | 2,276,742 | $ 33,153,812 | $ 59,563,163 |
Reinvestment of distributions | 365,507 | 82,514 | 9,845,503 | 1,888,613 |
Shares redeemed | (1,060,041) | (1,151,286) | (28,299,423) | (29,069,514) |
Net increase (decrease) | 537,536 | 1,207,970 | $ 14,699,892 | $ 32,382,262 |
Class T | | | | |
Shares sold | 251,907 | 365,889 | $ 6,778,803 | $ 9,445,083 |
Reinvestment of distributions | 123,163 | 29,388 | 3,324,292 | 673,761 |
Shares redeemed | (194,314) | (310,668) | (5,228,033) | (7,776,879) |
Net increase (decrease) | 180,756 | 84,609 | $ 4,875,062 | $ 2,341,965 |
Class B | | | | |
Shares sold | 9,463 | 19,626 | $ 251,303 | $ 511,179 |
Reinvestment of distributions | 9,053 | 2,105 | 242,668 | 47,986 |
Shares redeemed | (35,716) | (75,934) | (955,802) | (1,892,640) |
Net increase (decrease) | (17,200) | (54,203) | $ (461,831) | $ (1,333,475) |
Class C | | | | |
Shares sold | 538,739 | 898,033 | $ 14,211,844 | $ 23,064,197 |
Reinvestment of distributions | 116,026 | 17,647 | 3,068,131 | 397,963 |
Shares redeemed | (331,574) | (365,639) | (8,758,933) | (9,096,804) |
Net increase (decrease) | 323,191 | 550,041 | $ 8,521,042 | $ 14,365,356 |
Institutional Class | | | | |
Shares sold | 575,685 | 1,373,720 | $ 15,757,380 | $ 36,918,565 |
Reinvestment of distributions | 90,001 | 15,288 | 2,465,972 | 354,761 |
Shares redeemed | (687,270) | (514,863) | (18,734,614) | (13,443,816) |
Net increase (decrease) | (21,584) | 874,145 | $ (511,262) | $ 23,829,510 |
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
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Focus Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2015 meeting, the Board, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale exist and would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of SelectCo and the sub-advisers (together with SelectCo, the Investment Advisers) as it relates to the funds, including the backgrounds of investment personnel of SelectCo, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the investment staff of the Investment Advisers, including its size, education, experience, and resources, as well as the Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers, and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing SelectCo to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for Advisor Communications Equipment and Advisor Consumer Discretionary in September 2014 and June 2014, respectively.
The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund, for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance. Advisor Consumer Discretionary underperformed its benchmark for the one-, three-, and five-year periods ended May 31, 2014, and as a result, the Board will continue to discuss with SelectCo the steps it has taken and is taking to address the fund's performance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; tactical opportunities for investment; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for each fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2014.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and making the competitive group more inclusive.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the charts and considered by the Board.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Fidelity Advisor Communications Equipment Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Advisor Consumer Discretionary Fund
Fidelity Advisor Electronics Fund
Semiannual Report
Fidelity Advisor Energy Fund
Fidelity Advisor Financial Services Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Fidelity Advisor Health Care Fund
Fidelity Advisor Industrials Fund
Semiannual Report
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Fund
The Board noted that each fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for the 12-month period ended June 30, 2014.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that each fund receives and the other factors considered.
Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the funds. As part of its review, the Board also considered the current and historical total expense ratios of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
For Advisor Energy, Advisor Health Care, Advisor Industrials, and Advisor Technology, the Board noted that the total expense ratio of each class ranked below its competitive median for the 12-month period ended June 30, 2014.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
For Advisor Biotechnology, the Board noted that the total expense ratio of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of Class T ranked equal to its competitive median for the 12-month period ended June 30, 2014.
For Advisor Consumer Discretionary, Advisor Financial Services, and Advisor Utilities, the Board noted that the total expense ratio of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of Class T ranked above its competitive median for the 12-month period ended June 30, 2014.
For Advisor Communications Equipment and Advisor Electronics, the Board noted that the total expense ratio of Class A ranked below its competitive median for the 12-month period ended June 30, 2014 and the total expense ratio of each of Class T, Class B, Class C, and Institutional Class ranked above its competitive median for the 12-month period ended June 30, 2014. The Board noted that total expenses ratios for these classes were above the median as a result of higher transfer agent fees to due to small average account sizes as compared to other Fidelity funds.
The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Class T of certain funds was above the competitive median primarily because of higher 12b-1 fees on Class T as compared to most competitor funds. Class T has a higher 12b-1 fee, but a lower front-end sales charge, than traditionally priced front-end sales charge classes. The Board considered that Class T is primarily sold load-waived in the retirement plan market where its 0.50% 12b-1 fee is comparable to competing no-load, higher 12b-1 fee classes designed specifically for retirement plans. The Board noted that each fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes of each fund vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that each fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the profitability analysis used by Fidelity. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Semiannual Report
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under SelectCo's management plus assets under FMR's management). SelectCo calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total group assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (viii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Semiannual Report
Investments
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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-0315
1.789280.112
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/Adrien E. Deberghes |
| Adrien E. Deberghes |
| President and Treasurer |
| |
Date: | March 27, 2015 |
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/Adrien E. Deberghes |
| Adrien E. Deberghes |
| President and Treasurer |
| |
Date: | March 27, 2015 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
| |
Date: | March 27, 2015 |
