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, MA 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, 2017 |
Item 1.
Reports to Stockholders
Fidelity Advisor Focus Funds® Fidelity Advisor® Biotechnology Fund Fidelity Advisor® Communications Equipment Fund Fidelity Advisor® Consumer Discretionary Fund Fidelity Advisor® Energy Fund Fidelity Advisor® Financial Services Fund Fidelity Advisor® Health Care Fund Fidelity Advisor® Industrials Fund Fidelity Advisor® Semiconductors Fund (formerly Fidelity Advisor® Electronics Fund) Fidelity Advisor® Technology Fund Fidelity Advisor® Utilities Fund Semi-Annual Report January 31, 2017 |
![]() |
Contents
Fidelity Advisor® Biotechnology Fund | |
Fidelity Advisor® Communications Equipment Fund | |
Fidelity Advisor® Consumer Discretionary Fund | |
Fidelity Advisor® Energy Fund | |
Fidelity Advisor® Financial Services Fund | |
Fidelity Advisor® Health Care Fund | |
Fidelity Advisor® Industrials Fund | |
Fidelity Advisor® Semiconductors Fund | |
Fidelity Advisor® Technology Fund | |
Fidelity Advisor® Utilities Fund | |
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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.institutional.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.
Note to Shareholders
Fidelity Advisor® Communications Equipment Fund:
On April 1, 2017, the fund’s industry benchmark will change from the S&P Custom Communications Equipment Index to the MSCI North America IMI + ADR Custom Communications Equipment 25/50 Index. Due to new international benchmark guidelines, S&P Dow Jones Indices has decided to stop offering its brand on custom benchmarks, effective March 31, 2017. Fidelity believes that the new MSCI index will continue to provide shareholders with meaningful performance comparisons.
Fidelity Advisor® Biotechnology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amgen, Inc. | 10.7 | 0.2 |
Celgene Corp. | 8.2 | 7.0 |
Alexion Pharmaceuticals, Inc. | 7.2 | 5.9 |
Biogen, Inc. | 7.0 | 7.0 |
Regeneron Pharmaceuticals, Inc. | 4.6 | 7.7 |
BioMarin Pharmaceutical, Inc. | 2.7 | 3.5 |
TESARO, Inc. | 2.6 | 1.3 |
Incyte Corp. | 2.6 | 2.7 |
Vertex Pharmaceuticals, Inc. | 2.4 | 4.5 |
Seattle Genetics, Inc. | 1.8 | 1.7 |
49.8 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Biotechnology | 88.8% | |
Pharmaceuticals | 10.0% | |
Health Care Equipment & Supplies | 0.2% | |
Health Care Technology | 0.1% | |
Health Care Providers & Services | 0.1% | |
All Others* | 0.8% |
As of July 31, 2016 | ||
Biotechnology | 88.3% | |
Pharmaceuticals | 10.2% | |
Health Care Equipment & Supplies | 0.2% | |
Health Care Technology | 0.2% | |
Health Care Providers & Services | 0.1% | |
All Others* | 1.0% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Biotechnology Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.7% | |||
Shares | Value | ||
Biotechnology - 87.5% | |||
Biotechnology - 87.5% | |||
AbbVie, Inc. (a) | 64,935 | $3,968,178 | |
AC Immune SA (b) | 180,038 | 2,164,057 | |
AC Immune SA | 101,250 | 1,156,174 | |
ACADIA Pharmaceuticals, Inc. (b)(c) | 499,986 | 17,294,516 | |
Acceleron Pharma, Inc. (c) | 662,346 | 16,081,761 | |
Achillion Pharmaceuticals, Inc. (c) | 211,384 | 881,471 | |
Acorda Therapeutics, Inc. (c) | 316,553 | 6,489,337 | |
Adamas Pharmaceuticals, Inc. (b)(c) | 910,248 | 14,445,636 | |
Adaptimmune Therapeutics PLC sponsored ADR (c) | 823,742 | 3,550,328 | |
ADMA Biologics, Inc. (c) | 48,000 | 245,280 | |
Aduro Biotech, Inc. (b)(c) | 138,318 | 1,639,068 | |
Aduro Biotech, Inc. (a)(c) | 345,762 | 4,097,280 | |
Advanced Accelerator Applications SA sponsored ADR (c) | 80,100 | 2,592,837 | |
Advaxis, Inc. (b)(c) | 161,728 | 1,449,083 | |
Adverum Biotechnologies, Inc. (c) | 125,129 | 362,874 | |
Agenus, Inc. (b)(c) | 291,960 | 1,167,840 | |
Agenus, Inc. warrants 1/9/18 (c) | 452,000 | 86 | |
Agios Pharmaceuticals, Inc. (c) | 47,971 | 2,064,192 | |
Aimmune Therapeutics, Inc. (b)(c) | 156,031 | 2,852,247 | |
Aimmune Therapeutics, Inc. (a) | 460,107 | 8,410,756 | |
Akebia Therapeutics, Inc. (c) | 152,477 | 1,529,344 | |
Alder Biopharmaceuticals, Inc. (b)(c) | 693,513 | 14,251,692 | |
Aldeyra Therapeutics, Inc. (c) | 561,259 | 3,058,862 | |
Alexion Pharmaceuticals, Inc. (c) | 1,327,276 | 173,448,428 | |
Alkermes PLC (c) | 393,503 | 21,292,447 | |
Alnylam Pharmaceuticals, Inc. (c) | 236,835 | 9,471,032 | |
AMAG Pharmaceuticals, Inc. (b)(c) | 632,677 | 15,247,516 | |
Amarin Corp. PLC ADR (b)(c) | 381,894 | 1,134,225 | |
Amgen, Inc. | 1,637,213 | 256,518,517 | |
Amicus Therapeutics, Inc. (b)(c) | 892,770 | 4,910,235 | |
Applied Genetic Technologies Corp. (c) | 143,136 | 1,037,736 | |
Aptevo Therapeutics, Inc. (c) | 38,827 | 77,266 | |
AquaBounty Technologies, Inc. (b)(c) | 1,394 | 19,237 | |
Ardelyx, Inc. (c) | 728,401 | 8,740,812 | |
Array BioPharma, Inc. (c) | 1,624,863 | 17,662,261 | |
Ascendis Pharma A/S sponsored ADR (c) | 35,700 | 765,408 | |
Asterias Biotherapeutics, Inc. (b) | 115,938 | 492,737 | |
Asterias Biotherapeutics, Inc. warrants 2/15/17 (b)(c) | 23,187 | 3,246 | |
Atara Biotherapeutics, Inc. (c) | 452,385 | 6,084,578 | |
aTyr Pharma, Inc. (c) | 45,620 | 150,546 | |
aTyr Pharma, Inc. (a)(c) | 55,238 | 182,285 | |
Audentes Therapeutics, Inc. | 69,300 | 1,130,976 | |
Axovant Sciences Ltd. (c) | 129,161 | 1,582,222 | |
Bellicum Pharmaceuticals, Inc. (b)(c) | 264,791 | 3,542,904 | |
BioCryst Pharmaceuticals, Inc. (b)(c) | 257,352 | 1,621,318 | |
Biogen, Inc. (c)(d) | 612,341 | 169,765,419 | |
BioMarin Pharmaceutical, Inc. (c) | 740,890 | 64,924,191 | |
BioTime, Inc. warrants 10/1/18 (c) | 2 | 1 | |
bluebird bio, Inc. (c) | 47,549 | 3,542,401 | |
Blueprint Medicines Corp. (c) | 399,000 | 13,597,920 | |
Calithera Biosciences, Inc. (b)(c) | 79,158 | 554,106 | |
Cara Therapeutics, Inc. (b)(c) | 63,139 | 967,289 | |
Catabasis Pharmaceuticals, Inc. (b)(c) | 138,100 | 556,543 | |
Catalyst Pharmaceutical Partners, Inc.: | |||
warrants 5/2/17 (c) | 8,557 | 432 | |
warrants 5/30/17 (c) | 17,900 | 3,018 | |
Celgene Corp. (c) | 1,695,294 | 196,908,398 | |
Celldex Therapeutics, Inc. (b)(c) | 1,189,736 | 3,878,539 | |
Chiasma, Inc. (b)(c) | 28,500 | 57,000 | |
Chiasma, Inc. (a) | 325,192 | 650,384 | |
Chiasma, Inc. warrants (c) | 81,298 | 34,726 | |
Chimerix, Inc. (c) | 281,786 | 1,532,916 | |
Cidara Therapeutics, Inc. (c) | 34,800 | 344,520 | |
Cidara Therapeutics, Inc. (a)(c) | 223,967 | 2,217,273 | |
Clovis Oncology, Inc. (b)(c) | 147,937 | 9,586,318 | |
Corbus Pharmaceuticals Holdings, Inc. (b)(c) | 200,300 | 1,342,010 | |
Corvus Pharmaceuticals, Inc. | 205,363 | 2,899,726 | |
Cytokinetics, Inc. (c) | 420,327 | 4,392,417 | |
Cytokinetics, Inc. warrants 6/25/17 (c) | 244,500 | 212,040 | |
CytomX Therapeutics, Inc. (a) | 64,961 | 754,847 | |
DBV Technologies SA sponsored ADR (c) | 258,000 | 8,906,160 | |
Dicerna Pharmaceuticals, Inc. (b)(c) | 129,106 | 321,474 | |
Dynavax Technologies Corp. (b)(c) | 222,919 | 913,968 | |
Eagle Pharmaceuticals, Inc. (b)(c) | 67,784 | 4,691,331 | |
Edge Therapeutics, Inc. (c) | 39,035 | 375,907 | |
Editas Medicine, Inc. (b) | 212,057 | 3,694,033 | |
Emergent BioSolutions, Inc. (c) | 47,755 | 1,445,544 | |
Enanta Pharmaceuticals, Inc. (c) | 43,787 | 1,450,444 | |
Epizyme, Inc. (c) | 2,443,973 | 25,661,717 | |
Esperion Therapeutics, Inc. (b)(c) | 151,103 | 1,831,368 | |
Exact Sciences Corp. (b)(c) | 234,107 | 4,436,328 | |
Exelixis, Inc. (c) | 1,515,149 | 27,454,500 | |
Fate Therapeutics, Inc. (b)(c) | 234,604 | 640,469 | |
Fibrocell Science, Inc. (c) | 174,200 | 134,657 | |
FibroGen, Inc. (c) | 361,122 | 8,179,413 | |
Five Prime Therapeutics, Inc. (c) | 115,900 | 5,309,379 | |
Foundation Medicine, Inc. (b)(c) | 12,112 | 236,790 | |
Galapagos Genomics NV sponsored ADR (b)(c) | 253,629 | 16,511,248 | |
Genmab A/S (c) | 178,793 | 34,468,872 | |
Genomic Health, Inc. (c) | 25,920 | 712,282 | |
GenSight Biologics SA | 105,964 | 913,961 | |
Geron Corp. (b)(c) | 4,760,774 | 9,902,410 | |
Gilead Sciences, Inc. | 91,201 | 6,607,512 | |
Global Blood Therapeutics, Inc. (b)(c) | 576,467 | 9,309,942 | |
Halozyme Therapeutics, Inc. (b)(c) | 1,247,231 | 14,405,518 | |
Heron Therapeutics, Inc. (b)(c) | 475,742 | 6,184,646 | |
Histogenics Corp. (c) | 597,234 | 949,602 | |
Idera Pharmaceuticals, Inc. (b)(c) | 524,800 | 734,720 | |
Ignyta, Inc. (c) | 157,472 | 771,613 | |
Immune Design Corp. (c) | 68,300 | 385,895 | |
ImmunoGen, Inc. (b)(c) | 161,351 | 377,561 | |
Immunomedics, Inc. (c) | 224,184 | 1,008,828 | |
Incyte Corp. (c) | 510,479 | 61,875,160 | |
Insys Therapeutics, Inc. (b)(c) | 59,194 | 606,147 | |
Intellia Therapeutics, Inc. (b)(c) | 226,137 | 2,921,690 | |
Intercept Pharmaceuticals, Inc. (b)(c) | 175,060 | 19,212,835 | |
Intrexon Corp. (b)(c) | 90,708 | 1,919,381 | |
Ionis Pharmaceuticals, Inc. (c) | 403,938 | 17,975,241 | |
Ironwood Pharmaceuticals, Inc. Class A (c) | 811,421 | 11,668,234 | |
Juno Therapeutics, Inc. (b)(c) | 464,265 | 9,907,415 | |
Karyopharm Therapeutics, Inc. (c) | 1,159,016 | 11,995,816 | |
Keryx Biopharmaceuticals, Inc. (b)(c) | 396,439 | 1,978,231 | |
Kite Pharma, Inc. (b)(c) | 196,252 | 10,002,964 | |
Kura Oncology, Inc. (c) | 921,702 | 5,760,638 | |
La Jolla Pharmaceutical Co. (c) | 290,700 | 5,654,115 | |
Lexicon Pharmaceuticals, Inc. (b)(c) | 747,366 | 10,709,755 | |
Ligand Pharmaceuticals, Inc. Class B (b)(c) | 54,712 | 5,800,019 | |
Lion Biotechnologies, Inc. (c) | 255,946 | 1,855,609 | |
Loxo Oncology, Inc. (c) | 491,681 | 19,288,646 | |
Macrogenics, Inc. (c) | 566,002 | 10,454,057 | |
MediciNova, Inc. (b)(c) | 388,780 | 2,161,617 | |
Merrimack Pharmaceuticals, Inc. (b)(c) | 642,119 | 1,996,990 | |
MiMedx Group, Inc. (b)(c) | 12,313 | 99,489 | |
Minerva Neurosciences, Inc. (b)(c) | 1,660,580 | 17,602,148 | |
Mirna Therapeutics, Inc. (b)(c) | 28,200 | 60,912 | |
Momenta Pharmaceuticals, Inc. (c) | 140,425 | 2,654,033 | |
NantKwest, Inc. (b)(c) | 102,878 | 551,426 | |
Neurocrine Biosciences, Inc. (c) | 669,028 | 28,707,991 | |
NewLink Genetics Corp. (c) | 157,192 | 1,913,027 | |
Novavax, Inc. (b)(c) | 2,050,216 | 2,685,783 | |
Novelion Therapeutics, Inc. (c) | 195,070 | 1,845,362 | |
OncoMed Pharmaceuticals, Inc. (b)(c) | 148,170 | 1,223,884 | |
Opko Health, Inc. (b)(c) | 243,812 | 2,118,726 | |
Oragenics, Inc. (c) | 108,608 | 76,026 | |
Osiris Therapeutics, Inc. (b)(c) | 8,014 | 45,039 | |
OvaScience, Inc. (b)(c) | 119,045 | 188,091 | |
Portola Pharmaceuticals, Inc. (c) | 697,858 | 19,016,631 | |
Progenics Pharmaceuticals, Inc. (b)(c) | 533,608 | 4,759,783 | |
ProQR Therapeutics BV (c) | 237,916 | 921,925 | |
Protagonist Therapeutics, Inc. | 155,823 | 2,811,047 | |
Proteostasis Therapeutics, Inc. | 2,300 | 33,925 | |
Prothena Corp. PLC (c) | 128,634 | 6,297,921 | |
PTC Therapeutics, Inc. (c) | 205,857 | 2,696,727 | |
Puma Biotechnology, Inc. (b)(c) | 306,694 | 9,936,886 | |
Radius Health, Inc. (b)(c) | 926,101 | 40,303,916 | |
Regeneron Pharmaceuticals, Inc. (c) | 311,396 | 111,881,469 | |
REGENXBIO, Inc. (c) | 333,286 | 6,165,791 | |
Regulus Therapeutics, Inc. (c) | 265,221 | 318,265 | |
Repligen Corp. (c) | 160,227 | 4,813,219 | |
Retrophin, Inc. (b)(c) | 389,310 | 7,638,262 | |
Sage Therapeutics, Inc. (c) | 278,968 | 13,384,885 | |
Sangamo Therapeutics, Inc. (c) | 237,552 | 831,432 | |
Sarepta Therapeutics, Inc. (b)(c) | 237,311 | 7,370,880 | |
Seattle Genetics, Inc. (c) | 722,220 | 43,506,533 | |
Selecta Biosciences, Inc. | 58,800 | 823,200 | |
Seres Therapeutics, Inc. (b)(c) | 237,191 | 2,345,819 | |
Seres Therapeutics, Inc. (a)(c) | 352,270 | 3,483,950 | |
Spark Therapeutics, Inc. (b)(c) | 314,145 | 19,809,984 | |
Spectrum Pharmaceuticals, Inc. (c) | 105,647 | 492,315 | |
Stemline Therapeutics, Inc. (c) | 506,193 | 5,163,169 | |
Syndax Pharmaceuticals, Inc. | 252,699 | 1,920,512 | |
Syros Pharmaceuticals, Inc. | 61,578 | 668,121 | |
Syros Pharmaceuticals, Inc. (a) | 62,568 | 678,863 | |
TESARO, Inc. (b)(c) | 382,937 | 62,357,461 | |
TG Therapeutics, Inc. (b)(c) | 821,996 | 3,945,581 | |
Threshold Pharmaceuticals, Inc. (b)(c) | 26,804 | 13,858 | |
Trevena, Inc. (c) | 261,522 | 1,825,424 | |
Ultragenyx Pharmaceutical, Inc. (c) | 366,427 | 27,485,689 | |
United Therapeutics Corp. (c) | 56,723 | 9,281,584 | |
Vanda Pharmaceuticals, Inc. (c) | 207,779 | 2,940,073 | |
Versartis, Inc. (c) | 497,816 | 7,118,769 | |
Vertex Pharmaceuticals, Inc. (c) | 684,134 | 58,746,587 | |
Vical, Inc. (c) | 63,286 | 137,963 | |
Vital Therapies, Inc. (b)(c) | 266,087 | 1,317,131 | |
Voyager Therapeutics, Inc. (b)(c) | 1,016,525 | 12,116,978 | |
Voyager Therapeutics, Inc. (a) | 282,352 | 3,365,636 | |
Xencor, Inc. (c) | 310,108 | 7,389,874 | |
Zafgen, Inc. (c) | 1,356,174 | 5,709,493 | |
2,107,863,385 | |||
Capital Markets - 0.1% | |||
Asset Management & Custody Banks - 0.1% | |||
RPI International Holdings LP (e) | 12,210 | 1,605,310 | |
Health Care Equipment & Supplies - 0.2% | |||
Health Care Equipment - 0.2% | |||
Bellerophon Therapeutics, Inc. (b)(c) | 217,800 | 141,570 | |
Novocure Ltd. (b)(c) | 185,941 | 1,180,725 | |
Novocure Ltd. (a) | 155,553 | 987,762 | |
Vermillion, Inc. (c) | 991,800 | 1,229,832 | |
Zosano Pharma Corp. (b)(c) | 598,503 | 718,204 | |
4,258,093 | |||
Health Care Technology - 0.0% | |||
Health Care Technology - 0.0% | |||
NantHealth, Inc. (b) | 120,400 | 980,056 | |
Life Sciences Tools & Services - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
Transgenomic, Inc. (c) | 13,500 | 9,315 | |
Transgenomic, Inc. warrants 2/3/17 (c) | 81,000 | 1 | |
9,316 | |||
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
MYOS Corp. (c) | 6,666 | 18,598 | |
Pharmaceuticals - 9.9% | |||
Pharmaceuticals - 9.9% | |||
Achaogen, Inc. (b)(c) | 431,602 | 6,970,372 | |
Adimab LLC (c)(e)(f) | 398,401 | 9,848,473 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 (c) | 1,915,787 | 1,839,156 | |
Aradigm Corp. (c) | 8,786 | 17,133 | |
Avexis, Inc. (b) | 478,538 | 26,692,850 | |
Axsome Therapeutics, Inc. (b)(c) | 766,409 | 3,755,404 | |
Cempra, Inc. (b)(c) | 1,094,178 | 3,446,661 | |
Dermira, Inc. (c) | 566,145 | 16,667,309 | |
Egalet Corp. (b)(c) | 1,252,974 | 6,127,043 | |
GW Pharmaceuticals PLC ADR (b)(c) | 278,067 | 31,972,144 | |
Horizon Pharma PLC (c) | 754,256 | 12,347,171 | |
Intra-Cellular Therapies, Inc. (c) | 128,154 | 1,850,544 | |
Jazz Pharmaceuticals PLC (c) | 128,167 | 15,626,121 | |
Jounce Therapeutics, Inc. | 431,376 | 6,436,993 | |
Kolltan Pharmaceuticals, Inc. rights (c) | 1,610,391 | 289,870 | |
MyoKardia, Inc. (c) | 704,734 | 7,893,021 | |
MyoKardia, Inc. (a) | 484,646 | 5,428,035 | |
Nektar Therapeutics (c) | 153,932 | 1,864,117 | |
NeurogesX, Inc. (c) | 150,000 | 750 | |
Ocular Therapeutix, Inc. (b)(c) | 252,171 | 1,654,242 | |
Pacira Pharmaceuticals, Inc. (c) | 307,884 | 11,838,140 | |
Paratek Pharmaceuticals, Inc. (c) | 799,460 | 12,071,846 | |
Reata Pharmaceuticals, Inc. (b) | 33,969 | 845,828 | |
Repros Therapeutics, Inc. (b)(c) | 623,854 | 792,295 | |
Stemcentrx, Inc. rights 12/31/21 (c) | 208,907 | 591,207 | |
Tetraphase Pharmaceuticals, Inc. (c) | 361,931 | 1,386,196 | |
The Medicines Company (b)(c) | 565,722 | 20,394,278 | |
TherapeuticsMD, Inc. (b)(c) | 1,497,500 | 8,700,475 | |
Theravance Biopharma, Inc. (b)(c) | 274,903 | 8,236,094 | |
WAVE Life Sciences (c) | 143,544 | 4,126,890 | |
WAVE Life Sciences (a) | 230,144 | 6,616,640 | |
Zogenix, Inc. (b)(c) | 320,211 | 2,577,699 | |
Zogenix, Inc. warrants 7/27/17 (c) | 32,985 | 12 | |
238,905,009 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,229,023,514) | 2,353,639,767 | ||
Preferred Stocks - 1.6% | |||
Convertible Preferred Stocks - 1.6% | |||
Biotechnology - 1.3% | |||
Biotechnology - 1.3% | |||
23andMe, Inc. Series E (c)(e) | 341,730 | 2,921,792 | |
Axcella Health, Inc. Series C (c)(e) | 341,857 | 5,876,522 | |
Immunocore Ltd. Series A (c)(e) | 17,149 | 3,807,065 | |
Moderna Therapeutics, Inc.: | |||
Series D (e) | 269,180 | 2,363,400 | |
Series E (e) | 544,100 | 4,777,198 | |
Ovid Therapeutics, Inc. Series B (c)(e) | 246,448 | 1,663,524 | |
RaNA Therapeutics LLC: | |||
Series B (c)(e) | 1,310,353 | 2,594,499 | |
Series C (e) | 1,010,101 | 2,000,000 | |
Scholar Rock LLC Series B (c)(e) | 1,083,994 | 2,796,705 | |
Twist Bioscience Corp.: | |||
Series C (c)(e) | 1,866,791 | 2,632,175 | |
Series D (c)(e) | 453,587 | 639,558 | |
32,072,438 | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
Allena Pharmaceuticals, Inc. Series C (c)(e) | 1,505,538 | 3,251,962 | |
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (c)(e) | 213,402 | 563,381 | |
Series B (c)(e) | 693,558 | 1,830,993 | |
2,394,374 | |||
Pharmaceuticals - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Afferent Pharmaceuticals, Inc. Series C (c)(e) | 1,915,787 | 881,262 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 38,600,036 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
Biotechnology - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC Class A (e) | 151,084 | 1,166,368 | |
TOTAL PREFERRED STOCKS | |||
(Cost $34,445,416) | 39,766,404 | ||
Money Market Funds - 9.1% | |||
Fidelity Cash Central Fund, 0.62% (g) | 18,419,135 | 18,422,819 | |
Fidelity Securities Lending Cash Central Fund 0.65% (g)(h) | 200,615,365 | 200,655,488 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $219,043,424) | 219,078,307 | ||
TOTAL INVESTMENT PORTFOLIO - 108.4% | |||
(Cost $2,482,512,354) | 2,612,484,478 | ||
NET OTHER ASSETS (LIABILITIES) - (8.4)% | (203,059,605) | ||
NET ASSETS - 100% | $2,409,424,873 |
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $40,841,889 or 1.7% of net assets.
(b) Security or a portion of the security is on loan at period end.
(c) Non-income producing
(d) A portion of the security is subject to a forward commitment to sell.
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $51,220,187 or 2.1% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) 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.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
23andMe, Inc. Series E | 6/18/15 | $3,700,003 |
Adimab LLC | 9/17/14 - 6/5/15 | $6,416,091 |
Afferent Pharmaceuticals, Inc. Series C | 7/1/15 | $862,104 |
Allena Pharmaceuticals, Inc. Series C | 11/25/15 | $3,989,676 |
Axcella Health, Inc. Series C | 1/30/15 | $3,445,919 |
Codiak Biosciences, Inc. Series A | 11/12/15 | $213,402 |
Codiak Biosciences, Inc. Series B | 11/12/15 | $2,080,674 |
Immunocore Ltd. Series A | 7/27/15 | $3,227,085 |
Moderna Therapeutics, Inc. Series D | 11/6/13 | $1,300,630 |
Moderna Therapeutics, Inc. Series E | 12/18/14 | $2,628,996 |
Ovid Therapeutics, Inc. Series B | 8/10/15 | $1,535,371 |
RaNA Therapeutics LLC Series B | 7/17/15 | $1,415,181 |
RaNA Therapeutics LLC Series C | 12/22/16 | $2,000,000 |
RPI International Holdings LP | 5/21/15 | $1,439,559 |
Scholar Rock LLC Series B | 12/17/15 | $3,251,982 |
Twist Bioscience Corp. Series C | 5/29/15 | $2,800,000 |
Twist Bioscience Corp. Series D | 1/8/16 | $973,262 |
Yumanity Holdings LLC Class A | 2/8/16 | $1,021,131 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $50,246 |
Fidelity Securities Lending Cash Central Fund | 1,494,931 |
Total | $1,545,177 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $2,353,639,767 | $2,331,621,519 | $7,843,482 | $14,174,766 |
Preferred Stocks | 39,766,404 | -- | -- | 39,766,404 |
Money Market Funds | 219,078,307 | 219,078,307 | -- | -- |
Total Investments in Securities: | $2,612,484,478 | $2,550,699,826 | $7,843,482 | $53,941,170 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Common Stocks | |
Beginning Balance | $12,938,513 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 316,520 |
Cost of Purchases | 919,733 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $14,174,766 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2017 | $316,519 |
Preferred Stocks | |
Beginning Balance | $44,517,148 |
Total Realized Gain (Loss) | 845,519 |
Total Unrealized Gain (Loss) | (567,264) |
Cost of Purchases | 5,929,626 |
Proceeds of Sales | (10,958,625) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $39,766,404 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2017 | $1,871,523 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $204,087,316) — See accompanying schedule: Unaffiliated issuers (cost $2,263,468,930) | $2,393,406,171 | |
Fidelity Central Funds (cost $219,043,424) | 219,078,307 | |
Total Investments (cost $2,482,512,354) | $2,612,484,478 | |
Cash | 42,641 | |
Restricted cash | 43,038 | |
Receivable for investments sold | 7,681,320 | |
Receivable for securities sold on a when-issued basis | 12,946,613 | |
Receivable for fund shares sold | 4,810,208 | |
Dividends receivable | 41,559 | |
Distributions receivable from Fidelity Central Funds | 214,889 | |
Prepaid expenses | 11,755 | |
Other receivables | 47,698 | |
Total assets | 2,638,324,199 | |
Liabilities | ||
Payable for investments purchased | $4,016,615 | |
Commitment to sell securities on a when-issued basis | 13,206,330 | |
Payable for fund shares redeemed | 8,686,871 | |
Accrued management fee | 1,106,104 | |
Distribution and service plan fees payable | 718,813 | |
Other affiliated payables | 475,450 | |
Other payables and accrued expenses | 85,978 | |
Collateral on Securities Loaned | 200,603,165 | |
Total liabilities | 228,899,326 | |
Net Assets | $2,409,424,873 | |
Net Assets consist of: | ||
Paid in capital | $2,498,064,127 | |
Accumulated net investment loss | (20,495,584) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (197,856,077) | |
Net unrealized appreciation (depreciation) on investments | 129,712,407 | |
Net Assets | $2,409,424,873 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($909,143,036 ÷ 43,216,735 shares) | $21.04 | |
Maximum offering price per share (100/94.25 of $21.04) | $22.32 | |
Class T: | ||
Net Asset Value and redemption price per share ($114,755,526 ÷ 5,733,518 shares) | $20.01 | |
Maximum offering price per share (100/96.50 of $20.01) | $20.74 | |
Class C: | ||
Net Asset Value and offering price per share ($568,706,996 ÷ 31,020,930 shares)(a) | $18.33 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($816,819,315 ÷ 36,837,656 shares) | $22.17 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $1,391,816 | |
Income from Fidelity Central Funds (including $1,494,931 from security lending) | 1,545,177 | |
Total income | 2,936,993 | |
Expenses | ||
Management fee | $7,094,897 | |
Transfer agent fees | 2,628,770 | |
Distribution and service plan fees | 4,625,874 | |
Accounting and security lending fees | 411,256 | |
Custodian fees and expenses | 70,820 | |
Independent trustees' fees and expenses | 28,266 | |
Registration fees | 102,140 | |
Audit | 31,717 | |
Legal | 23,013 | |
Miscellaneous | 16,494 | |
Total expenses before reductions | 15,033,247 | |
Expense reductions | (85,560) | 14,947,687 |
Net investment income (loss) | (12,010,694) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 19,682,051 | |
Fidelity Central Funds | 20,987 | |
Foreign currency transactions | (2,785) | |
Total net realized gain (loss) | 19,700,253 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment Securities | (64,870,986) | |
When-issued commitments | (259,717) | |
Total change in unrealized appreciation (depreciation) | (65,130,703) | |
Net gain (loss) | (45,430,450) | |
Net increase (decrease) in net assets resulting from operations | $(57,441,144) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(12,010,694) | $(24,689,601) |
Net realized gain (loss) | 19,700,253 | (205,980,039) |
Change in net unrealized appreciation (depreciation) | (65,130,703) | (1,017,727,981) |
Net increase (decrease) in net assets resulting from operations | (57,441,144) | (1,248,397,621) |
Distributions to shareholders from net realized gain | – | (189,321,949) |
Share transactions - net increase (decrease) | (319,113,345) | 98,205,004 |
Redemption fees | 47,949 | 265,724 |
Total increase (decrease) in net assets | (376,506,540) | (1,339,248,842) |
Net Assets | ||
Beginning of period | 2,785,931,413 | 4,125,180,255 |
End of period | $2,409,424,873 | $2,785,931,413 |
Other Information | ||
Accumulated net investment loss end of period | $(20,495,584) | $(8,484,890) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013�� | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.39 | $31.43 | $20.19 | $17.25 | $11.79 | $8.81 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.09) | (.16) | (.20) | (.13) | (.09) | (.07) |
Net realized and unrealized gain (loss) | (.26) | (8.48) | 12.04 | 3.12 | 6.24 | 3.05 |
Total from investment operations | (.35) | (8.64) | 11.84 | 2.99 | 6.15 | 2.98 |
Distributions from net realized gain | – | (1.40) | (.60) | (.05) | (.69) | – |
Total distributions | – | (1.40) | (.60) | (.05) | (.69) | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $21.04 | $21.39 | $31.43 | $20.19 | $17.25 | $11.79 |
Total ReturnC,D,E | (1.64)% | (28.55)% | 59.66% | 17.38% | 54.94% | 33.83% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.05%H | 1.05% | 1.04% | 1.08% | 1.15% | 1.27% |
Expenses net of fee waivers, if any | 1.05%H | 1.05% | 1.04% | 1.08% | 1.15% | 1.27% |
Expenses net of all reductions | 1.05%H | 1.04% | 1.04% | 1.08% | 1.14% | 1.27% |
Net investment income (loss) | (.82)%H | (.69)% | (.75)% | (.68)% | (.63)% | (.73)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $909,143 | $1,080,733 | $1,560,528 | $602,625 | $286,695 | $68,993 |
Portfolio turnover rateI | 40%H | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.39 | $30.06 | $19.39 | $16.63 | $11.42 | $8.56 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.12) | (.22) | (.27) | (.19) | (.12) | (.10) |
Net realized and unrealized gain (loss) | (.26) | (8.10) | 11.54 | 3.00 | 6.02 | 2.96 |
Total from investment operations | (.38) | (8.32) | 11.27 | 2.81 | 5.90 | 2.86 |
Distributions from net realized gain | – | (1.35) | (.60) | (.05) | (.69) | – |
Total distributions | – | (1.35) | (.60) | (.05) | (.69) | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $20.01 | $20.39 | $30.06 | $19.39 | $16.63 | $11.42 |
Total ReturnC,D,E | (1.86)% | (28.75)% | 59.17% | 16.95% | 54.50% | 33.41% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.39%H | 1.37% | 1.35% | 1.41% | 1.46% | 1.56% |
Expenses net of fee waivers, if any | 1.39%H | 1.37% | 1.35% | 1.41% | 1.46% | 1.56% |
Expenses net of all reductions | 1.38%H | 1.37% | 1.34% | 1.40% | 1.46% | 1.56% |
Net investment income (loss) | (1.16)%H | (1.01)% | (1.05)% | (1.01)% | (.94)% | (1.02)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $114,756 | $131,928 | $196,393 | $95,945 | $67,887 | $28,154 |
Portfolio turnover rateI | 40%H | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.71 | $27.78 | $18.04 | $15.53 | $10.76 | $8.10 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.14) | (.29) | (.35) | (.25) | (.17) | (.13) |
Net realized and unrealized gain (loss) | (.24) | (7.46) | 10.69 | 2.81 | 5.63 | 2.79 |
Total from investment operations | (.38) | (7.75) | 10.34 | 2.56 | 5.46 | 2.66 |
Distributions from net realized gain | – | (1.32) | (.60) | (.05) | (.69) | – |
Total distributions | – | (1.32) | (.60) | (.05) | (.69) | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $18.33 | $18.71 | $27.78 | $18.04 | $15.53 | $10.76 |
Total ReturnC,D,E | (2.03)% | (29.06)% | 58.43% | 16.54% | 53.71% | 32.84% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.80%H | 1.80% | 1.79% | 1.83% | 1.88% | 2.01% |
Expenses net of fee waivers, if any | 1.80%H | 1.80% | 1.79% | 1.83% | 1.88% | 2.01% |
Expenses net of all reductions | 1.79%H | 1.79% | 1.79% | 1.83% | 1.87% | 2.01% |
Net investment income (loss) | (1.57)%H | (1.44)% | (1.49)% | (1.43)% | (1.36)% | (1.47)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $568,707 | $665,036 | $956,495 | $359,967 | $146,684 | $31,710 |
Portfolio turnover rateI | 40%H | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.52 | $32.95 | $21.10 | $17.97 | $12.22 | $9.10 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.06) | (.10) | (.14) | (.08) | (.05) | (.04) |
Net realized and unrealized gain (loss) | (.29) | (8.89) | 12.60 | 3.26 | 6.49 | 3.16 |
Total from investment operations | (.35) | (8.99) | 12.46 | 3.18 | 6.44 | 3.12 |
Distributions from net investment income | – | – | –B | – | – | – |
Distributions from net realized gain | – | (1.44) | (.60) | (.05) | (.69) | – |
Total distributions | – | (1.44) | (.61)C | (.05) | (.69) | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $22.17 | $22.52 | $32.95 | $21.10 | $17.97 | $12.22 |
Total ReturnD,E | (1.55)% | (28.32)% | 60.00% | 17.74% | 55.39% | 34.29% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .78%H | .78% | .78% | .81% | .85% | .95% |
Expenses net of fee waivers, if any | .78%H | .78% | .78% | .81% | .85% | .95% |
Expenses net of all reductions | .78%H | .78% | .77% | .80% | .84% | .94% |
Net investment income (loss) | (.55)%H | (.42)% | (.48)% | (.41)% | (.32)% | (.40)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $816,819 | $908,234 | $1,403,666 | $465,889 | $177,926 | $26,772 |
Portfolio turnover rateI | 40%H | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.61 per share is comprised of distributions from net investment income of $.003 and distributions from net realized gain of $.604 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Cisco Systems, Inc. | 22.8 | 19.8 |
Qualcomm, Inc. | 15.7 | 17.6 |
CommScope Holding Co., Inc. | 6.5 | 5.2 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 5.2 | 4.9 |
Harris Corp. | 4.9 | 4.9 |
F5 Networks, Inc. | 4.5 | 5.5 |
Nokia Corp. sponsored ADR | 4.4 | 4.6 |
Juniper Networks, Inc. | 4.3 | 4.4 |
Brocade Communications Systems, Inc. | 2.2 | 4.3 |
Finisar Corp. | 2.1 | 1.7 |
72.6 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Communications Equipment | 74.5% | |
Semiconductors & Semiconductor Equipment | 18.1% | |
Electronic Equipment & Components | 2.3% | |
Technology Hardware, Storage & Peripherals | 2.0% | |
Internet Software & Services | 1.8% | |
All Others* | 1.3% |
As of July 31, 2016 | ||
Communications Equipment | 72.5% | |
Semiconductors & Semiconductor Equipment | 18.3% | |
Technology Hardware, Storage & Peripherals | 3.8% | |
Electronic Equipment & Components | 2.1% | |
Internet Software & Services | 1.8% | |
All Others* | 1.5% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Communications Equipment Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value | ||
Communications Equipment - 74.5% | |||
Communications Equipment - 74.5% | |||
ADTRAN, Inc. | 7,840 | $171,696 | |
Arista Networks, Inc. (a)(b) | 1,280 | 120,320 | |
Arris International PLC (b) | 11,294 | 322,783 | |
Brocade Communications Systems, Inc. | 32,865 | 409,827 | |
Calix Networks, Inc. (b) | 9,620 | 69,264 | |
Cisco Systems, Inc. | 139,084 | 4,272,656 | |
CommScope Holding Co., Inc. (b) | 32,080 | 1,213,266 | |
Comtech Telecommunications Corp. | 3,430 | 36,804 | |
EchoStar Holding Corp. Class A (b) | 2,130 | 108,481 | |
EXFO, Inc. (b) | 1,300 | 7,670 | |
F5 Networks, Inc. (b) | 6,305 | 845,059 | |
Finisar Corp. (b) | 13,510 | 399,491 | |
Harris Corp. | 8,950 | 919,255 | |
Infinera Corp. (b) | 6,517 | 58,718 | |
InterDigital, Inc. | 3,100 | 289,540 | |
Ixia (b) | 10,330 | 200,919 | |
Juniper Networks, Inc. | 29,798 | 797,990 | |
Lumentum Holdings, Inc. (b) | 2,960 | 112,332 | |
Mitel Networks Corp. (b) | 7,660 | 53,160 | |
Motorola Solutions, Inc. | 3,359 | 271,105 | |
NETGEAR, Inc. (b) | 2,090 | 118,921 | |
NetScout Systems, Inc. (b) | 8,180 | 272,394 | |
Nokia Corp. | 1,300 | 5,837 | |
Nokia Corp. sponsored ADR (a) | 179,990 | 813,555 | |
Palo Alto Networks, Inc. (b) | 2,680 | 395,461 | |
Plantronics, Inc. | 1,940 | 109,765 | |
Radware Ltd. (b) | 9,190 | 135,001 | |
Sandvine Corp. (U.K.) | 29,100 | 63,064 | |
ShoreTel, Inc. (b) | 7,700 | 53,515 | |
Sonus Networks, Inc. (b) | 9,750 | 62,205 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 163,840 | 965,018 | |
ViaSat, Inc. (b) | 690 | 44,788 | |
Viavi Solutions, Inc. (b) | 25,290 | 226,346 | |
13,946,206 | |||
Electronic Equipment & Components - 2.3% | |||
Electronic Components - 0.2% | |||
II-VI, Inc. (b) | 1,190 | 43,435 | |
Electronic Manufacturing Services - 0.8% | |||
Fabrinet (b) | 1,000 | 42,130 | |
Jabil Circuit, Inc. | 3,200 | 76,736 | |
TE Connectivity Ltd. | 290 | 21,562 | |
140,428 | |||
Technology Distributors - 1.3% | |||
CDW Corp. | 2,550 | 131,351 | |
Dell Technologies, Inc. (b) | 1,734 | 109,225 | |
240,576 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 424,439 | ||
Internet Software & Services - 1.8% | |||
Internet Software & Services - 1.8% | |||
Alphabet, Inc.: | |||
Class A (b) | 189 | 155,016 | |
Class C (b) | 148 | 117,925 | |
Web.com Group, Inc. (b) | 3,680 | 69,736 | |
342,677 | |||
IT Services - 0.3% | |||
IT Consulting & Other Services - 0.3% | |||
Cognizant Technology Solutions Corp. Class A (b) | 880 | 46,279 | |
Semiconductors & Semiconductor Equipment - 18.1% | |||
Semiconductors - 18.1% | |||
Acacia Communications, Inc. | 360 | 20,941 | |
Broadcom Ltd. | 665 | 132,668 | |
GSI Technology, Inc. (b) | 2,200 | 13,442 | |
Maxim Integrated Products, Inc. | 1,450 | 64,496 | |
NXP Semiconductors NV (b) | 1,510 | 147,754 | |
ON Semiconductor Corp. (b) | 4,860 | 64,735 | |
Qorvo, Inc. (b) | 80 | 5,137 | |
Qualcomm, Inc. | 54,961 | 2,936,566 | |
3,385,739 | |||
Software - 0.8% | |||
Systems Software - 0.8% | |||
Check Point Software Technologies Ltd. (b) | 1,520 | 150,130 | |
Technology Hardware, Storage & Peripherals - 2.0% | |||
Technology Hardware, Storage & Peripherals - 2.0% | |||
Apple, Inc. | 160 | 19,416 | |
BlackBerry Ltd. (b) | 27,200 | 191,889 | |
HP, Inc. | 6,990 | 105,200 | |
Samsung Electronics Co. Ltd. | 37 | 63,389 | |
379,894 | |||
TOTAL COMMON STOCKS | |||
(Cost $16,144,636) | 18,675,364 | ||
Money Market Funds - 6.5% | |||
Fidelity Cash Central Fund, 0.62% (c) | 505,650 | 505,751 | |
Fidelity Securities Lending Cash Central Fund 0.65% (c)(d) | 714,361 | 714,504 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,220,255) | 1,220,255 | ||
TOTAL INVESTMENT PORTFOLIO - 106.3% | |||
(Cost $17,364,891) | 19,895,619 | ||
NET OTHER ASSETS (LIABILITIES) - (6.3)% | (1,173,075) | ||
NET ASSETS - 100% | $18,722,544 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) 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.
(d) Investment made with cash collateral received from securities on loan.
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 | $836 |
Fidelity Securities Lending Cash Central Fund | 1,058 |
Total | $1,894 |
Investment Valuation
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.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 83.4% |
Sweden | 5.2% |
Finland | 4.4% |
United Kingdom | 1.7% |
Canada | 1.6% |
Israel | 1.5% |
Others (Individually Less Than 1%) | 2.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $681,876) — See accompanying schedule: Unaffiliated issuers (cost $16,144,636) | $18,675,364 | |
Fidelity Central Funds (cost $1,220,255) | 1,220,255 | |
Total Investments (cost $17,364,891) | $19,895,619 | |
Receivable for investments sold | 47,154 | |
Receivable for fund shares sold | 36,921 | |
Dividends receivable | 2,107 | |
Distributions receivable from Fidelity Central Funds | 316 | |
Prepaid expenses | 51 | |
Receivable from investment adviser for expense reductions | 1,003 | |
Other receivables | 54 | |
Total assets | 19,983,225 | |
Liabilities | ||
Payable to custodian bank | $61 | |
Payable for investments purchased | 278,717 | |
Payable for fund shares redeemed | 219,084 | |
Accrued management fee | 8,869 | |
Distribution and service plan fees payable | 5,565 | |
Other affiliated payables | 4,837 | |
Other payables and accrued expenses | 29,098 | |
Collateral on Securities Loaned | 714,450 | |
Total liabilities | 1,260,681 | |
Net Assets | $18,722,544 | |
Net Assets consist of: | ||
Paid in capital | $16,243,259 | |
Undistributed net investment income | 11,234 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (62,703) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,530,754 | |
Net Assets | $18,722,544 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($6,203,927 ÷ 491,720 shares) | $12.62 | |
Maximum offering price per share (100/94.25 of $12.62) | $13.39 | |
Class T: | ||
Net Asset Value and redemption price per share ($4,029,607 ÷ 331,184 shares) | $12.17 | |
Maximum offering price per share (100/96.50 of $12.17) | $12.61 | |
Class C: | ||
Net Asset Value and offering price per share ($3,054,259 ÷ 272,853 shares)(a) | $11.19 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($5,434,751 ÷ 415,151 shares) | $13.09 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $141,839 | |
Income from Fidelity Central Funds (including $1,058 from security lending) | 1,894 | |
Total income | 143,733 | |
Expenses | ||
Management fee | $46,794 | |
Transfer agent fees | 24,151 | |
Distribution and service plan fees | 30,291 | |
Accounting and security lending fees | 3,386 | |
Custodian fees and expenses | 9,567 | |
Independent trustees' fees and expenses | 172 | |
Registration fees | 47,440 | |
Audit | 24,363 | |
Legal | 2,598 | |
Miscellaneous | 221 | |
Total expenses before reductions | 188,983 | |
Expense reductions | (61,192) | 127,791 |
Net investment income (loss) | 15,942 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 90,594 | |
Fidelity Central Funds | 633 | |
Foreign currency transactions | 51 | |
Total net realized gain (loss) | 91,278 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 857,497 | |
Assets and liabilities in foreign currencies | 26 | |
Total change in net unrealized appreciation (depreciation) | 857,523 | |
Net gain (loss) | 948,801 | |
Net increase (decrease) in net assets resulting from operations | $964,743 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,942 | $65,928 |
Net realized gain (loss) | 91,278 | 270,090 |
Change in net unrealized appreciation (depreciation) | 857,523 | (534,618) |
Net increase (decrease) in net assets resulting from operations | 964,743 | (198,600) |
Distributions to shareholders from net investment income | (70,635) | – |
Distributions to shareholders from net realized gain | (269,853) | (387,325) |
Total distributions | (340,488) | (387,325) |
Share transactions - net increase (decrease) | 6,199,411 | (628,642) |
Redemption fees | 370 | 148 |
Total increase (decrease) in net assets | 6,824,036 | (1,214,419) |
Net Assets | ||
Beginning of period | 11,898,508 | 13,112,927 |
End of period | $18,722,544 | $11,898,508 |
Other Information | ||
Undistributed net investment income end of period | $11,234 | $65,927 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.09 | $12.57 | $11.94 | $10.22 | $7.71 | $9.73 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .09 | .02 | .04B | .02 | (.01) |
Net realized and unrealized gain (loss) | .74 | (.20) | .64 | 1.68 | 2.50 | (1.81) |
Total from investment operations | .76 | (.11) | .66 | 1.72 | 2.52 | (1.82) |
Distributions from net investment income | (.05) | – | (.03) | – | (.01) | – |
Distributions from net realized gain | (.18) | (.37) | – | – | – | (.20) |
Total distributions | (.23) | (.37) | (.03) | – | (.01) | (.20) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $12.62 | $12.09 | $12.57 | $11.94 | $10.22 | $7.71 |
Total ReturnD,E,F | 6.23% | (.53)% | 5.54% | 16.83% | 32.65% | (18.88)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.11%I | 2.10% | 1.90% | 1.96% | 2.22% | 1.96% |
Expenses net of fee waivers, if any | 1.40%I | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.40%I | 1.40% | 1.39% | 1.39% | 1.37% | 1.39% |
Net investment income (loss) | .29%I | .81% | .16% | .40%B | .18% | (.16)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $6,204 | $4,536 | $4,806 | $4,725 | $3,962 | $3,568 |
Portfolio turnover rateJ | 54%I | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net 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%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.65 | $12.15 | $11.55 | $9.91 | $7.49 | $9.48 |
Income from Investment Operations | ||||||
Net investment income (loss)A | – | .06 | (.01) | .02B | (.01) | (.03) |
Net realized and unrealized gain (loss) | .72 | (.20) | .62 | 1.62 | 2.43 | (1.76) |
Total from investment operations | .72 | (.14) | .61 | 1.64 | 2.42 | (1.79) |
Distributions from net investment income | (.02) | – | (.01) | – | – | – |
Distributions from net realized gain | (.18) | (.36) | – | – | – | (.20) |
Total distributions | (.20) | (.36) | (.01) | – | – | (.20) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $12.17 | $11.65 | $12.15 | $11.55 | $9.91 | $7.49 |
Total ReturnD,E,F | 6.13% | (.83)% | 5.24% | 16.55% | 32.31% | (19.06)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.43%I | 2.41% | 2.19% | 2.25% | 2.52% | 2.27% |
Expenses net of fee waivers, if any | 1.65%I | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.65%I | 1.65% | 1.64% | 1.64% | 1.62% | 1.64% |
Net investment income (loss) | .04%I | .56% | (.09)% | .14%B | (.07)% | (.41)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,030 | $3,674 | $4,029 | $3,995 | $3,342 | $2,843 |
Portfolio turnover rateJ | 54%I | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net 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) %.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $10.74 | $11.27 | $10.76 | $9.28 | $7.05 | $8.98 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | .01 | (.07) | (.04)B | (.05) | (.07) |
Net realized and unrealized gain (loss) | .66 | (.19) | .58 | 1.52 | 2.28 | (1.66) |
Total from investment operations | .63 | (.18) | .51 | 1.48 | 2.23 | (1.73) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.18) | (.35) | – | – | – | (.20) |
Total distributions | (.18) | (.35) | – | – | – | (.20) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $11.19 | $10.74 | $11.27 | $10.76 | $9.28 | $7.05 |
Total ReturnD,E,F | 5.79% | (1.29)% | 4.74% | 15.95% | 31.63% | (19.47)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.87%I | 2.86% | 2.65% | 2.73% | 2.98% | 2.71% |
Expenses net of fee waivers, if any | 2.15%I | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15%I | 2.15% | 2.14% | 2.14% | 2.12% | 2.14% |
Net investment income (loss) | (.46)%I | .06% | (.59)% | (.35)%B | (.57)% | (.91)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $3,054 | $2,479 | $2,966 | $2,744 | $2,334 | $2,142 |
Portfolio turnover rateJ | 54%I | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net 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) %.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.54 | $13.01 | $12.35 | $10.55 | $7.95 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .12 | .05 | .08B | .04 | .01 |
Net realized and unrealized gain (loss) | .77 | (.20) | .67 | 1.72 | 2.58 | (1.86) |
Total from investment operations | .81 | (.08) | .72 | 1.80 | 2.62 | (1.85) |
Distributions from net investment income | (.08) | – | (.06) | – | (.02) | – |
Distributions from net realized gain | (.18) | (.39) | – | – | – | (.20) |
Total distributions | (.26) | (.39) | (.06) | – | (.02) | (.20) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $13.09 | $12.54 | $13.01 | $12.35 | $10.55 | $7.95 |
Total ReturnD,E | 6.37% | (.33)% | 5.83% | 17.06% | 32.92% | (18.66)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.83%H | 1.69% | 1.57% | 1.45% | 1.93% | 1.66% |
Expenses net of fee waivers, if any | 1.15%H | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.15%H | 1.14% | 1.14% | 1.14% | 1.12% | 1.13% |
Net investment income (loss) | .54%H | 1.06% | .41% | .65%B | .43% | .10% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $5,435 | $1,209 | $1,024 | $2,592 | $855 | $721 |
Portfolio turnover rateI | 54%H | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net 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%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amazon.com, Inc. | 14.6 | 14.3 |
The Walt Disney Co. | 10.3 | 8.1 |
Home Depot, Inc. | 9.5 | 8.5 |
Charter Communications, Inc. Class A | 7.0 | 6.6 |
NIKE, Inc. Class B | 5.8 | 4.7 |
L Brands, Inc. | 4.3 | 4.4 |
Dollar Tree, Inc. | 4.0 | 0.7 |
TJX Companies, Inc. | 3.3 | 1.5 |
Time Warner, Inc. | 2.5 | 0.8 |
Spectrum Brands Holdings, Inc. | 2.2 | 1.4 |
63.5 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Media | 24.6% | |
Specialty Retail | 20.7% | |
Internet & Direct Marketing Retail | 16.9% | |
Hotels, Restaurants & Leisure | 13.5% | |
Textiles, Apparel & Luxury Goods | 8.0% | |
All Others* | 16.3% |
As of July 31, 2016 | ||
Specialty Retail | 26.4% | |
Media | 22.1% | |
Internet & Catalog Retail | 16.2% | |
Hotels, Restaurants & Leisure | 14.6% | |
Textiles, Apparel & Luxury Goods | 8.4% | |
All Others* | 12.3% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Consumer Discretionary Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% | |||
Shares | Value | ||
Automobiles - 0.4% | |||
Automobile Manufacturers - 0.4% | |||
Ferrari NV | 16,700 | $1,037,571 | |
Beverages - 1.2% | |||
Soft Drinks - 1.2% | |||
Monster Beverage Corp. (a) | 77,847 | 3,316,282 | |
Distributors - 1.3% | |||
Distributors - 1.3% | |||
LKQ Corp. (a) | 120,200 | 3,835,582 | |
Food & Staples Retailing - 0.1% | |||
Food Retail - 0.1% | |||
Zhou Hei Ya International Holdings Co. Ltd. | 326,000 | 287,429 | |
Hotels, Restaurants & Leisure - 13.5% | |||
Casinos & Gaming - 1.2% | |||
Churchill Downs, Inc. | 300 | 43,005 | |
Las Vegas Sands Corp. | 66,480 | 3,495,518 | |
3,538,523 | |||
Hotels, Resorts & Cruise Lines - 3.5% | |||
Hilton Grand Vacations, Inc. (a) | 45,300 | 1,328,649 | |
Hilton Worldwide Holdings, Inc. | 107,207 | 6,172,979 | |
Park Hotels & Resorts, Inc. | 90,600 | 2,458,884 | |
9,960,512 | |||
Leisure Facilities - 1.5% | |||
International Speedway Corp. Class A | 21,800 | 798,970 | |
Vail Resorts, Inc. | 20,240 | 3,471,970 | |
4,270,940 | |||
Restaurants - 7.3% | |||
Buffalo Wild Wings, Inc. (a) | 24,700 | 3,729,700 | |
Darden Restaurants, Inc. | 47,725 | 3,497,288 | |
Del Frisco's Restaurant Group, Inc. (a) | 41,395 | 724,413 | |
Domino's Pizza, Inc. | 26,640 | 4,649,746 | |
Jack in the Box, Inc. | 19,200 | 2,072,064 | |
McDonald's Corp. | 1,680 | 205,918 | |
Starbucks Corp. | 93,176 | 5,145,179 | |
U.S. Foods Holding Corp. | 28,600 | 777,920 | |
20,802,228 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 38,572,203 | ||
Household Durables - 1.2% | |||
Household Appliances - 1.2% | |||
Techtronic Industries Co. Ltd. | 971,000 | 3,358,310 | |
Household Products - 2.2% | |||
Household Products - 2.2% | |||
Spectrum Brands Holdings, Inc. | 47,658 | 6,357,101 | |
Internet & Direct Marketing Retail - 16.9% | |||
Internet& Direct Marketing Retail - 16.9% | |||
Amazon.com, Inc. (a) | 50,480 | 41,569,267 | |
Liberty Interactive Corp. QVC Group Series A (a) | 210,869 | 4,044,467 | |
Ocado Group PLC (a)(b) | 861,337 | 2,702,403 | |
48,316,137 | |||
Leisure Products - 1.1% | |||
Leisure Products - 1.1% | |||
Mattel, Inc. | 125,200 | 3,281,492 | |
Media - 24.3% | |||
Advertising - 1.8% | |||
Interpublic Group of Companies, Inc. | 213,676 | 5,027,796 | |
Cable & Satellite - 9.7% | |||
Charter Communications, Inc. Class A (a) | 61,594 | 19,953,376 | |
Comcast Corp. Class A | 83,300 | 6,282,486 | |
Sirius XM Holdings, Inc. (b) | 303,300 | 1,431,576 | |
27,667,438 | |||
Movies & Entertainment - 12.8% | |||
The Walt Disney Co. | 266,206 | 29,455,694 | |
Time Warner, Inc. | 73,716 | 7,139,395 | |
36,595,089 | |||
TOTAL MEDIA | 69,290,323 | ||
Multiline Retail - 4.5% | |||
General Merchandise Stores - 4.5% | |||
B&M European Value Retail S.A. | 362,862 | 1,370,811 | |
Dollar Tree, Inc. (a) | 148,100 | 11,431,839 | |
12,802,650 | |||
Personal Products - 0.2% | |||
Personal Products - 0.2% | |||
Herbalife Ltd. (a) | 12,700 | 713,740 | |
Software - 0.5% | |||
Application Software - 0.5% | |||
Mobileye NV (a) | 34,100 | 1,464,936 | |
Specialty Retail - 20.7% | |||
Apparel Retail - 9.7% | |||
L Brands, Inc. | 204,600 | 12,318,966 | |
Ross Stores, Inc. | 84,669 | 5,597,468 | |
TJX Companies, Inc. | 125,011 | 9,365,824 | |
Zumiez, Inc. (a) | 25,534 | 511,957 | |
27,794,215 | |||
Automotive Retail - 1.5% | |||
Advance Auto Parts, Inc. | 8,355 | 1,372,225 | |
O'Reilly Automotive, Inc. (a) | 10,736 | 2,815,731 | |
4,187,956 | |||
Home Improvement Retail - 9.5% | |||
Home Depot, Inc. | 196,520 | 27,037,222 | |
TOTAL SPECIALTY RETAIL | 59,019,393 | ||
Textiles, Apparel & Luxury Goods - 8.0% | |||
Apparel, Accessories & Luxury Goods - 2.2% | |||
Regina Miracle International Holdings Ltd. (b) | 481,635 | 379,531 | |
VF Corp. | 114,183 | 5,878,141 | |
6,257,672 | |||
Footwear - 5.8% | |||
NIKE, Inc. Class B | 314,134 | 16,617,689 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 22,875,361 | ||
TOTAL COMMON STOCKS | |||
(Cost $231,489,013) | 274,528,510 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.3% | |||
Media - 0.3% | |||
Cable & Satellite - 0.3% | |||
DISH Network Corp. 3.375% 8/15/26(c) | |||
(Cost $810,000) | 810,000 | 946,181 | |
Shares | Value | ||
Money Market Funds - 5.0% | |||
Fidelity Cash Central Fund, 0.62% (d) | 9,586,025 | 9,587,942 | |
Fidelity Securities Lending Cash Central Fund 0.65% (d)(e) | 4,651,558 | 4,652,488 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,239,602) | 14,240,430 | ||
TOTAL INVESTMENT PORTFOLIO - 101.4% | |||
(Cost $246,538,615) | 289,715,121 | ||
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (4,131,909) | ||
NET ASSETS - 100% | $285,583,212 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $946,181 or 0.3% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
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 | $14,749 |
Fidelity Securities Lending Cash Central Fund | 103,249 |
Total | $117,998 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $274,528,510 | $270,503,240 | $4,025,270 | $-- |
Convertible Bonds | 946,181 | -- | 946,181 | -- |
Money Market Funds | 14,240,430 | 14,240,430 | -- | -- |
Total Investments in Securities: | $289,715,121 | $284,743,670 | $4,971,451 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2017. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $5,819,309 |
Level 2 to Level 1 | $0 |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,449,882) — See accompanying schedule: Unaffiliated issuers (cost $232,299,013) | $275,474,691 | |
Fidelity Central Funds (cost $14,239,602) | 14,240,430 | |
Total Investments (cost $246,538,615) | $289,715,121 | |
Receivable for investments sold | 3,910,479 | |
Receivable for fund shares sold | 419,366 | |
Dividends receivable | 288,913 | |
Interest receivable | 13,137 | |
Distributions receivable from Fidelity Central Funds | 13,012 | |
Prepaid expenses | 1,379 | |
Other receivables | 4,074 | |
Total assets | 294,365,481 | |
Liabilities | ||
Payable for investments purchased | $2,875,767 | |
Payable for fund shares redeemed | 943,565 | |
Accrued management fee | 127,751 | |
Distribution and service plan fees payable | 90,144 | |
Other affiliated payables | 59,110 | |
Other payables and accrued expenses | 35,087 | |
Collateral on Securities Loaned | 4,650,845 | |
Total liabilities | 8,782,269 | |
Net Assets | $285,583,212 | |
Net Assets consist of: | ||
Paid in capital | $249,344,157 | |
Distributions in excess of net investment income | (158,778) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,777,676) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 43,175,509 | |
Net Assets | $285,583,212 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($129,588,860 ÷ 6,035,470 shares) | $21.47 | |
Maximum offering price per share (100/94.25 of $21.47) | $22.78 | |
Class T: | ||
Net Asset Value and redemption price per share ($26,288,467 ÷ 1,305,117 shares) | $20.14 | |
Maximum offering price per share (100/96.50 of $20.14) | $20.87 | |
Class C: | ||
Net Asset Value and offering price per share ($62,395,314 ÷ 3,540,798 shares)(a) | $17.62 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($67,310,571 ÷ 2,920,494 shares) | $23.05 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $1,843,983 | |
Interest | 13,137 | |
Income from Fidelity Central Funds (including $103,249 from security lending) | 117,998 | |
Total income | 1,975,118 | |
Expenses | ||
Management fee | $802,272 | |
Transfer agent fees | 305,935 | |
Distribution and service plan fees | 556,974 | |
Accounting and security lending fees | 57,871 | |
Custodian fees and expenses | 14,266 | |
Independent trustees' fees and expenses | 3,218 | |
Registration fees | 56,758 | |
Audit | 25,477 | |
Legal | 3,061 | |
Miscellaneous | 13,554 | |
Total expenses before reductions | 1,839,386 | |
Expense reductions | (1,439) | 1,837,947 |
Net investment income (loss) | 137,171 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,956,938 | |
Fidelity Central Funds | 2,227 | |
Foreign currency transactions | (12,250) | |
Total net realized gain (loss) | 7,946,915 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (809,519) | |
Assets and liabilities in foreign currencies | 4,549 | |
Total change in net unrealized appreciation (depreciation) | (804,970) | |
Net gain (loss) | 7,141,945 | |
Net increase (decrease) in net assets resulting from operations | $7,279,116 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $137,171 | $1,178,511 |
Net realized gain (loss) | 7,946,915 | (14,404,874) |
Change in net unrealized appreciation (depreciation) | (804,970) | 12,404,189 |
Net increase (decrease) in net assets resulting from operations | 7,279,116 | (822,174) |
Distributions to shareholders from net investment income | (1,067,067) | (425,920) |
Distributions to shareholders from net realized gain | – | (5,484,780) |
Total distributions | (1,067,067) | (5,910,700) |
Share transactions - net increase (decrease) | (36,519,851) | 87,843,131 |
Redemption fees | 5,190 | 35,244 |
Total increase (decrease) in net assets | (30,302,612) | 81,145,501 |
Net Assets | ||
Beginning of period | 315,885,824 | 234,740,323 |
End of period | $285,583,212 | $315,885,824 |
Other Information | ||
Undistributed net investment income end of period | $– | $771,118 |
Distributions in excess of net investment income end of period | $(158,778) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.94 | $21.51 | $19.75 | $19.59 | $16.22 | $16.00 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .10B | .05 | (.04) | (.02) | .01 |
Net realized and unrealized gain (loss) | .60 | (.21) | 3.99 | 1.75 | 5.04 | 1.07 |
Total from investment operations | .62 | (.11) | 4.04 | 1.71 | 5.02 | 1.08 |
Distributions from net investment income | (.09) | (.02) | – | – | – | (.03) |
Distributions from net realized gain | – | (.44) | (2.28) | (1.55) | (1.65) | (.83) |
Total distributions | (.09) | (.46) | (2.28) | (1.55) | (1.65) | (.86) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $21.47 | $20.94 | $21.51 | $19.75 | $19.59 | $16.22 |
Total ReturnD,E,F | 2.97% | (.38)% | 22.26% | 9.28% | 33.65% | 7.96% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.12%I | 1.10% | 1.15% | 1.20% | 1.31% | 1.38% |
Expenses net of fee waivers, if any | 1.12%I | 1.10% | 1.15% | 1.20% | 1.31% | 1.38% |
Expenses net of all reductions | 1.12%I | 1.09% | 1.14% | 1.19% | 1.29% | 1.37% |
Net investment income (loss) | .22%I | .49%B | .27% | (.21)% | (.10)% | .04% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $129,589 | $144,578 | $115,027 | $59,089 | $45,292 | $26,547 |
Portfolio turnover rateJ | 43%I | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net 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 .33%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.66 | $20.26 | $18.75 | $18.68 | $15.57 | $15.43 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .03B | (.01) | (.10) | (.06) | (.03) |
Net realized and unrealized gain (loss) | .57 | (.19) | 3.77 | 1.67 | 4.81 | 1.02 |
Total from investment operations | .56 | (.16) | 3.76 | 1.57 | 4.75 | .99 |
Distributions from net investment income | (.08) | – | – | – | – | (.02) |
Distributions from net realized gain | – | (.44) | (2.25) | (1.50) | (1.64) | (.83) |
Total distributions | (.08) | (.44) | (2.25) | (1.50) | (1.64) | (.85) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $20.14 | $19.66 | $20.26 | $18.75 | $18.68 | $15.57 |
Total ReturnD,E,F | 2.83% | (.68)% | 21.92% | 8.94% | 33.25% | 7.62% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.42%I | 1.40% | 1.46% | 1.50% | 1.60% | 1.64% |
Expenses net of fee waivers, if any | 1.42%I | 1.40% | 1.45% | 1.50% | 1.60% | 1.64% |
Expenses net of all reductions | 1.42%I | 1.39% | 1.45% | 1.49% | 1.58% | 1.63% |
Net investment income (loss) | (.07)%I | .19%B | (.03)% | (.51)% | (.39)% | (.23)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $26,288 | $28,259 | $25,948 | $18,779 | $15,613 | $10,447 |
Portfolio turnover rateJ | 43%I | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net 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 .03%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.18 | $17.84 | $16.79 | $16.90 | $14.27 | $14.26 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.05) | (.04)B | (.08) | (.16) | (.12) | (.09) |
Net realized and unrealized gain (loss) | .49 | (.18) | 3.34 | 1.49 | 4.37 | .93 |
Total from investment operations | .44 | (.22) | 3.26 | 1.33 | 4.25 | .84 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | – | (.44) | (2.21) | (1.44) | (1.62) | (.83) |
Total distributions | – | (.44) | (2.21) | (1.44) | (1.62) | (.83) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $17.62 | $17.18 | $17.84 | $16.79 | $16.90 | $14.27 |
Total ReturnD,E,F | 2.56% | (1.11)% | 21.37% | 8.44% | 32.68% | 7.17% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.88%I | 1.86% | 1.91% | 1.97% | 2.04% | 2.09% |
Expenses net of fee waivers, if any | 1.87%I | 1.86% | 1.91% | 1.97% | 2.04% | 2.09% |
Expenses net of all reductions | 1.87%I | 1.85% | 1.90% | 1.96% | 2.02% | 2.08% |
Net investment income (loss) | (.53)%I | (.27)%B | (.49)% | (.97)% | (.83)% | (.68)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $62,395 | $67,306 | $43,999 | $20,726 | $17,176 | $13,507 |
Portfolio turnover rateJ | 43%I | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net 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 (.42)%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.48 | $23.06 | $21.00 | $20.72 | $17.04 | $16.72 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .16B | .12 | .02 | .04 | .07 |
Net realized and unrealized gain (loss) | .65 | (.22) | 4.26 | 1.85 | 5.32 | 1.13 |
Total from investment operations | .71 | (.06) | 4.38 | 1.87 | 5.36 | 1.20 |
Distributions from net investment income | (.14) | (.08) | – | – | – | (.05) |
Distributions from net realized gain | – | (.44) | (2.32) | (1.59) | (1.68) | (.83) |
Total distributions | (.14) | (.52) | (2.32) | (1.59) | (1.68) | (.88) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $23.05 | $22.48 | $23.06 | $21.00 | $20.72 | $17.04 |
Total ReturnD,E | 3.15% | (.13)% | 22.60% | 9.61% | 34.06% | 8.33% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .85%H | .84% | .87% | .91% | .97% | 1.00% |
Expenses net of fee waivers, if any | .85%H | .84% | .87% | .91% | .97% | 1.00% |
Expenses net of all reductions | .85%H | .83% | .87% | .91% | .96% | .99% |
Net investment income (loss) | .50%H | .75%B | .55% | .08% | .24% | .41% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $67,311 | $75,742 | $48,329 | $21,708 | $13,044 | $9,984 |
Portfolio turnover rateI | 43%H | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net 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 .60%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Chevron Corp. | 5.9 | 3.4 |
EOG Resources, Inc. | 5.8 | 6.1 |
Baker Hughes, Inc. | 5.4 | 4.7 |
Anadarko Petroleum Corp. | 4.9 | 4.3 |
Halliburton Co. | 4.4 | 1.7 |
Pioneer Natural Resources Co. | 4.1 | 2.9 |
Diamondback Energy, Inc. | 3.4 | 3.2 |
Schlumberger Ltd. | 3.2 | 6.8 |
Cimarex Energy Co. | 2.5 | 3.0 |
Exxon Mobil Corp. | 2.4 | 2.4 |
42.0 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Oil, Gas & Consumable Fuels | 76.9% | |
Energy Equipment & Services | 17.8% | |
Electric Utilities | 1.0% | |
Independent Power and Renewable Electricity Producers | 0.7% | |
Chemicals | 0.7% | |
All Others* | 2.9% |
As of July 31, 2016 | ||
Oil, Gas & Consumable Fuels | 78.9% | |
Energy Equipment & Services | 17.8% | |
Independent Power and Renewable Electricity Producers | 0.8% | |
Chemicals | 0.7% | |
Metals & Mining | 0.4% | |
All Others* | 1.4% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Energy Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
Chemicals - 0.7% | |||
Commodity Chemicals - 0.7% | |||
LyondellBasell Industries NV Class A | 81,100 | $7,564,197 | |
Construction & Engineering - 0.2% | |||
Construction & Engineering - 0.2% | |||
C&J Energy Services, Inc. (a) | 57,600 | 2,543,040 | |
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
Smart Sand, Inc. | 165,400 | 2,877,960 | |
Electric Utilities - 1.0% | |||
Electric Utilities - 1.0% | |||
DONG Energy A/S | 298,900 | 11,312,157 | |
Energy Equipment & Services - 17.8% | |||
Oil & Gas Drilling - 0.6% | |||
Nabors Industries Ltd. | 124,400 | 2,021,500 | |
Odfjell Drilling A/S (a) | 564,256 | 1,074,050 | |
Trinidad Drilling Ltd. (b) | 1,047,300 | 2,342,089 | |
Xtreme Drilling & Coil Services Corp. (a) | 1,059,502 | 2,206,533 | |
7,644,172 | |||
Oil & Gas Equipment & Services - 17.2% | |||
Baker Hughes, Inc. | 1,005,600 | 63,433,248 | |
Dril-Quip, Inc. (a) | 162,000 | 10,076,400 | |
Exterran Corp. (a) | 61,200 | 1,898,424 | |
Frank's International NV (c) | 528,745 | 6,260,341 | |
Halliburton Co. | 902,000 | 51,026,140 | |
Newpark Resources, Inc. (a) | 1,009,600 | 7,622,480 | |
Oceaneering International, Inc. | 216,273 | 6,023,203 | |
RigNet, Inc. (a) | 164,000 | 3,239,000 | |
Schlumberger Ltd. | 445,218 | 37,269,199 | |
Superior Energy Services, Inc. | 143,700 | 2,539,179 | |
Tesco Corp. (a) | 296,000 | 2,545,600 | |
TETRA Technologies, Inc. (a) | 442,134 | 2,192,985 | |
Total Energy Services, Inc. | 38,900 | 441,838 | |
Weatherford International PLC (a) | 1,056,300 | 5,503,323 | |
200,071,360 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 207,715,532 | ||
Gas Utilities - 0.2% | |||
Gas Utilities - 0.2% | |||
Indraprastha Gas Ltd. | 205,802 | 2,863,823 | |
Independent Power and Renewable Electricity Producers - 0.7% | |||
Renewable Electricity - 0.7% | |||
NextEra Energy Partners LP | 249,200 | 7,857,276 | |
Metals & Mining - 0.5% | |||
Diversified Metals & Mining - 0.5% | |||
Hi-Crush Partners LP (a) | 273,203 | 5,395,759 | |
Oil, Gas & Consumable Fuels - 76.9% | |||
Coal & Consumable Fuels - 0.3% | |||
CONSOL Energy, Inc. | 205,800 | 3,486,252 | |
Integrated Oil & Gas - 8.6% | |||
Chevron Corp. | 622,309 | 69,294,107 | |
Exxon Mobil Corp. | 328,361 | 27,546,204 | |
Suncor Energy, Inc. | 101,500 | 3,148,158 | |
99,988,469 | |||
Oil & Gas Exploration & Production - 53.9% | |||
Anadarko Petroleum Corp. | 820,383 | 57,041,230 | |
ARC Resources Ltd. | 70,300 | 1,094,006 | |
California Resources Corp. (a) | 1 | 21 | |
Callon Petroleum Co. (a) | 1,355,200 | 20,707,456 | |
Canadian Natural Resources Ltd. | 66,200 | 2,001,389 | |
Carrizo Oil & Gas, Inc. (a) | 333,400 | 11,789,024 | |
Centennial Resource Development, Inc. Class A (d) | 45,200 | 825,804 | |
Chesapeake Energy Corp. (a)(c) | 166,700 | 1,075,215 | |
Cimarex Energy Co. | 217,347 | 29,387,488 | |
Clayton Williams Energy, Inc. (a) | 1,773 | 257,883 | |
Concho Resources, Inc. (a) | 77,300 | 10,778,712 | |
ConocoPhillips Co. | 350,800 | 17,105,008 | |
Continental Resources, Inc. (a) | 287,300 | 13,951,288 | |
Devon Energy Corp. | 325,300 | 14,814,162 | |
Diamondback Energy, Inc. (a) | 377,500 | 39,701,675 | |
Encana Corp. | 1,423,400 | 18,169,202 | |
EOG Resources, Inc. | 667,386 | 67,793,070 | |
Extraction Oil & Gas, Inc. | 641,550 | 11,496,576 | |
Gran Tierra Energy, Inc. (Canada) (a) | 504,200 | 1,294,162 | |
Hess Corp. | 209,500 | 11,350,710 | |
Jones Energy, Inc. (a)(c) | 375,600 | 1,671,420 | |
Marathon Oil Corp. | 1,004,500 | 16,825,375 | |
Matador Resources Co. (a)(c) | 22,700 | 597,691 | |
Newfield Exploration Co. (a) | 595,500 | 23,867,640 | |
Noble Energy, Inc. | 596,408 | 23,713,182 | |
Oasis Petroleum, Inc. (a) | 459,900 | 6,502,986 | |
Parsley Energy, Inc. Class A (a) | 598,200 | 21,068,604 | |
PDC Energy, Inc. (a) | 328,688 | 24,303,191 | |
Peyto Exploration & Development Corp. | 13,600 | 295,986 | |
Pioneer Natural Resources Co. | 262,816 | 47,367,328 | |
QEP Resources, Inc. (a) | 568,900 | 9,921,616 | |
Resolute Energy Corp. (a)(c) | 143,677 | 6,607,705 | |
Rice Energy, Inc. (a) | 1,246,887 | 24,725,769 | |
Ring Energy, Inc. (a) | 381,232 | 5,032,262 | |
RSP Permian, Inc. (a) | 543,700 | 23,139,872 | |
Sanchez Energy Corp. (a)(c) | 261,900 | 3,472,794 | |
Seven Generations Energy Ltd. (a) | 644,700 | 12,886,568 | |
SM Energy Co. | 555,600 | 16,951,356 | |
Southwestern Energy Co. (a) | 74,500 | 671,245 | |
TAG Oil Ltd. (a) | 342,200 | 207,753 | |
Trilogy Energy Corp. (a) | 168,200 | 878,970 | |
Viper Energy Partners LP | 213,600 | 3,522,264 | |
Whiting Petroleum Corp. (a) | 942,700 | 10,454,543 | |
WPX Energy, Inc. (a) | 837,100 | 11,660,803 | |
626,981,004 | |||
Oil & Gas Refining & Marketing - 6.8% | |||
Alon U.S.A. Energy, Inc. | 268,900 | 3,027,814 | |
Delek U.S. Holdings, Inc. | 189,900 | 4,253,760 | |
HollyFrontier Corp. | 170,400 | 4,936,488 | |
Keyera Corp. (c) | 282,700 | 8,299,051 | |
Marathon Petroleum Corp. | 381,100 | 18,311,855 | |
Phillips 66 Co. | 318,100 | 25,963,322 | |
Western Refining, Inc. | 202,100 | 7,075,521 | |
World Fuel Services Corp. | 160,870 | 7,155,498 | |
79,023,309 | |||
Oil & Gas Storage & Transport - 7.3% | |||
Cheniere Energy Partners LP Holdings LLC | 210,400 | 4,807,640 | |
Delek Logistics Partners LP | 2,300 | 79,235 | |
Enable Midstream Partners LP | 119,500 | 1,935,900 | |
Enterprise Products Partners LP | 347,200 | 9,836,176 | |
GasLog Partners LP | 132,500 | 3,034,250 | |
Gener8 Maritime, Inc. (a) | 208,500 | 1,052,925 | |
Golar LNG Ltd. (c) | 199,297 | 5,153,820 | |
Magellan Midstream Partners LP | 18,934 | 1,515,288 | |
Noble Midstream Partners LP | 135,600 | 5,887,752 | |
Plains All American Pipeline LP | 465,100 | 14,599,489 | |
Rice Midstream Partners LP | 320,400 | 7,849,800 | |
Tallgrass Energy GP LP | 82,000 | 2,211,540 | |
Targa Resources Corp. | 202,100 | 11,645,002 | |
Teekay LNG Partners LP | 64,100 | 1,166,620 | |
The Williams Companies, Inc. | 508,600 | 14,668,024 | |
85,443,461 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 894,922,495 | ||
TOTAL COMMON STOCKS | |||
(Cost $950,539,886) | 1,143,052,239 | ||
Money Market Funds - 3.8% | |||
Fidelity Cash Central Fund, 0.62% (e) | 20,555,110 | 20,559,221 | |
Fidelity Securities Lending Cash Central Fund 0.65% (e)(f) | 23,799,120 | 23,803,879 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $44,359,480) | 44,363,100 | ||
TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
(Cost $994,899,366) | 1,187,415,339 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (23,496,065) | ||
NET ASSETS - 100% | $1,163,919,274 |
Legend
(a) Non-income producing
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(c) Security or a portion of the security is on loan at period end.
(d) 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 $825,804 or 0.1% of net assets.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Centennial Resource Development, Inc. Class A | 10/11/16 | $452,000 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $32,355 |
Fidelity Securities Lending Cash Central Fund | 216,620 |
Total | $248,975 |
Investment Valuation
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.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.1% |
Canada | 4.7% |
Curacao | 3.2% |
Netherlands | 1.2% |
Denmark | 1.0% |
Others (Individually Less Than 1%) | 1.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $22,680,311) — See accompanying schedule: Unaffiliated issuers (cost $950,539,886) | $1,143,052,239 | |
Fidelity Central Funds (cost $44,359,480) | 44,363,100 | |
Total Investments (cost $994,899,366) | $1,187,415,339 | |
Receivable for investments sold | 6,553,750 | |
Receivable for fund shares sold | 6,928,014 | |
Dividends receivable | 732,458 | |
Distributions receivable from Fidelity Central Funds | 52,818 | |
Prepaid expenses | 4,120 | |
Other receivables | 62,760 | |
Total assets | 1,201,749,259 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $7,849,479 | |
Delayed delivery | 1,859,378 | |
Payable for fund shares redeemed | 3,025,408 | |
Accrued management fee | 537,012 | |
Distribution and service plan fees payable | 399,451 | |
Other affiliated payables | 244,296 | |
Other payables and accrued expenses | 117,061 | |
Collateral on Securities Loaned | 23,797,900 | |
Total liabilities | 37,829,985 | |
Net Assets | $1,163,919,274 | |
Net Assets consist of: | ||
Paid in capital | $1,141,878,649 | |
Distributions in excess of net investment income | (2,010,385) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (168,394,836) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 192,445,846 | |
Net Assets | $1,163,919,274 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($408,429,219 ÷ 11,524,930 shares) | $35.44 | |
Maximum offering price per share (100/94.25 of $35.44) | $37.60 | |
Class T: | ||
Net Asset Value and redemption price per share ($162,343,755 ÷ 4,476,367 shares) | $36.27 | |
Maximum offering price per share (100/96.50 of $36.27) | $37.59 | |
Class C: | ||
Net Asset Value and offering price per share ($287,833,078 ÷ 8,822,811 shares)(a) | $32.62 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($305,313,222 ÷ 8,184,064 shares) | $37.31 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $5,295,089 | |
Income from Fidelity Central Funds (including $216,620 from security lending) | 248,975 | |
Total income | 5,544,064 | |
Expenses | ||
Management fee | $2,903,879 | |
Transfer agent fees | 1,195,366 | |
Distribution and service plan fees | 2,238,888 | |
Accounting and security lending fees | 176,730 | |
Custodian fees and expenses | 17,356 | |
Independent trustees' fees and expenses | 11,045 | |
Registration fees | 65,546 | |
Audit | 26,085 | |
Legal | 7,311 | |
Miscellaneous | 6,018 | |
Total expenses before reductions | 6,648,224 | |
Expense reductions | (40,709) | 6,607,515 |
Net investment income (loss) | (1,063,451) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $3,131) | 17,681,980 | |
Fidelity Central Funds | 3,770 | |
Foreign currency transactions | 8,264 | |
Total net realized gain (loss) | 17,694,014 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $40,530) | 114,345,969 | |
Assets and liabilities in foreign currencies | (29,616) | |
Total change in net unrealized appreciation (depreciation) | 114,316,353 | |
Net gain (loss) | 132,010,367 | |
Net increase (decrease) in net assets resulting from operations | $130,946,916 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,063,451) | $2,929,237 |
Net realized gain (loss) | 17,694,014 | (124,793,502) |
Change in net unrealized appreciation (depreciation) | 114,316,353 | 145,167,487 |
Net increase (decrease) in net assets resulting from operations | 130,946,916 | 23,303,222 |
Distributions to shareholders from net investment income | (574,320) | (3,958,354) |
Distributions to shareholders from net realized gain | (1,566,627) | – |
Total distributions | (2,140,947) | (3,958,354) |
Share transactions - net increase (decrease) | 96,717,895 | 161,035,631 |
Redemption fees | 22,377 | 63,717 |
Total increase (decrease) in net assets | 225,546,241 | 180,444,216 |
Net Assets | ||
Beginning of period | 938,373,033 | 757,928,817 |
End of period | $1,163,919,274 | $938,373,033 |
Other Information | ||
Distributions in excess of net investment income end of period | $(2,010,385) | $(372,614) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.12 | $30.96 | $45.71 | $40.59 | $33.71 | $40.17 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .16 | .28 | .15 | .23 | .25 |
Net realized and unrealized gain (loss) | 4.41 | .20 | (12.89) | 7.06 | 6.81 | (6.50) |
Total from investment operations | 4.40 | .36 | (12.61) | 7.21 | 7.04 | (6.25) |
Distributions from net investment income | – | (.20) | (.18)B | (.17) | (.16) | (.21) |
Distributions from net realized gain | (.08) | – | (1.96)B | (1.93) | – | – |
Total distributions | (.08) | (.20) | (2.14) | (2.09)C | (.16) | (.21) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
Net asset value, end of period | $35.44 | $31.12 | $30.96 | $45.71 | $40.59 | $33.71 |
Total ReturnE,F,G | 14.12% | 1.25% | (28.92)% | 18.46% | 20.94% | (15.58)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.09%J | 1.12% | 1.12% | 1.12% | 1.16% | 1.17% |
Expenses net of fee waivers, if any | 1.09%J | 1.12% | 1.12% | 1.12% | 1.16% | 1.17% |
Expenses net of all reductions | 1.08%J | 1.11% | 1.11% | 1.12% | 1.15% | 1.17% |
Net investment income (loss) | (.04)%J | .54% | .76% | .36% | .61% | .72% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $408,429 | $347,885 | $292,288 | $369,400 | $279,798 | $253,332 |
Portfolio turnover rateK | 72%J | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C 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.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.82 | $31.63 | $46.64 | $41.38 | $34.40 | $41.04 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.05) | .08 | .20 | .06 | .15 | .18 |
Net realized and unrealized gain (loss) | 4.50 | .22 | (13.18) | 7.21 | 6.95 | (6.65) |
Total from investment operations | 4.45 | .30 | (12.98) | 7.27 | 7.10 | (6.47) |
Distributions from net investment income | – | (.11) | (.08)B | (.08) | (.12) | (.17) |
Distributions from net realized gain | – | – | (1.95)B | (1.93) | – | – |
Total distributions | – | (.11) | (2.03) | (2.01) | (.12) | (.17) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $36.27 | $31.82 | $31.63 | $46.64 | $41.38 | $34.40 |
Total ReturnD,E,F | 13.98% | .98% | (29.09)% | 18.19% | 20.70% | (15.77)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.36%I | 1.38% | 1.36% | 1.34% | 1.36% | 1.38% |
Expenses net of fee waivers, if any | 1.36%I | 1.38% | 1.35% | 1.34% | 1.36% | 1.38% |
Expenses net of all reductions | 1.35%I | 1.37% | 1.35% | 1.34% | 1.35% | 1.38% |
Net investment income (loss) | (.30)%I | .28% | .52% | .14% | .40% | .50% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $162,344 | $155,856 | $164,848 | $245,828 | $223,248 | $215,488 |
Portfolio turnover rateJ | 72%I | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.69 | $28.58 | $42.40 | $37.92 | $31.63 | $37.88 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.12) | (.05) | .01 | (.15) | (.04) | (.01) |
Net realized and unrealized gain (loss) | 4.05 | .19 | (11.93) | 6.57 | 6.38 | (6.13) |
Total from investment operations | 3.93 | .14 | (11.92) | 6.42 | 6.34 | (6.14) |
Distributions from net investment income | – | (.03) | (.03)B | (.01) | (.05) | (.11) |
Distributions from net realized gain | – | – | (1.88)B | (1.93) | – | – |
Total distributions | – | (.03) | (1.90)C | (1.94) | (.05) | (.11) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
Net asset value, end of period | $32.62 | $28.69 | $28.58 | $42.40 | $37.92 | $31.63 |
Total ReturnE,F,G | 13.70% | .52% | (29.44)% | 17.57% | 20.08% | (16.22)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.82%J | 1.84% | 1.85% | 1.86% | 1.90% | 1.92% |
Expenses net of fee waivers, if any | 1.82%J | 1.84% | 1.85% | 1.86% | 1.90% | 1.92% |
Expenses net of all reductions | 1.81%J | 1.83% | 1.85% | 1.86% | 1.88% | 1.91% |
Net investment income (loss) | (.76)%J | (.18)% | .02% | (.38)% | (.13)% | (.03)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $287,833 | $240,949 | $162,322 | $130,881 | $99,833 | $93,504 |
Portfolio turnover rateK | 72%J | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $1.90 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $1.877 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.78 | $32.62 | $48.05 | $42.55 | $35.28 | $41.95 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .25 | .39 | .28 | .35 | .37 |
Net realized and unrealized gain (loss) | 4.66 | .20 | (13.56) | 7.42 | 7.12 | (6.79) |
Total from investment operations | 4.70 | .45 | (13.17) | 7.70 | 7.47 | (6.42) |
Distributions from net investment income | (.08) | (.29) | (.30)B | (.27) | (.20) | (.25) |
Distributions from net realized gain | (.09) | – | (1.96)B | (1.93) | – | – |
Total distributions | (.17) | (.29) | (2.26) | (2.20) | (.20) | (.25) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $37.31 | $32.78 | $32.62 | $48.05 | $42.55 | $35.28 |
Total ReturnD,E | 14.31% | 1.50% | (28.73)% | 18.80% | 21.26% | (15.31)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .82%H | .85% | .85% | .85% | .88% | .86% |
Expenses net of fee waivers, if any | .82%H | .85% | .85% | .85% | .88% | .86% |
Expenses net of all reductions | .81%H | .83% | .85% | .85% | .86% | .85% |
Net investment income (loss) | .24%H | .82% | 1.02% | .63% | .89% | 1.03% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $305,313 | $193,683 | $130,308 | $110,795 | $65,034 | $56,692 |
Portfolio turnover rateI | 72%H | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Berkshire Hathaway, Inc. Class B | 6.0 | 5.9 |
Capital One Financial Corp. | 5.2 | 2.7 |
Wells Fargo & Co. | 5.0 | 3.7 |
Bank of America Corp. | 4.9 | 4.2 |
Citigroup, Inc. | 4.9 | 3.9 |
Goldman Sachs Group, Inc. | 4.7 | 1.9 |
American International Group, Inc. | 4.1 | 0.0 |
U.S. Bancorp | 3.7 | 3.6 |
JPMorgan Chase & Co. | 3.4 | 3.3 |
Huntington Bancshares, Inc. | 3.2 | 1.0 |
45.1 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Banks | 38.0% | |
Insurance | 21.5% | |
Capital Markets | 17.9% | |
Consumer Finance | 10.2% | |
Diversified Financial Services | 6.6% | |
All Others* | 5.8% |
As of July 31, 2016 | ||
Banks | 24.7% | |
Real Estate Investment Trusts | 22.9% | |
Insurance | 18.6% | |
Diversified Financial Services | 9.7% | |
Capital Markets | 6.5% | |
All Others* | 17.6% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Financial Services Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
Banks - 38.0% | |||
Diversified Banks - 22.5% | |||
Bank of America Corp. | 723,856 | $16,388,100 | |
Citigroup, Inc. | 290,465 | 16,216,661 | |
Comerica, Inc. | 19,019 | 1,284,353 | |
JPMorgan Chase & Co. | 132,131 | 11,182,247 | |
The Bank of NT Butterfield & Son Ltd. | 26,800 | 881,452 | |
U.S. Bancorp | 231,308 | 12,178,366 | |
Wells Fargo & Co. | 294,248 | 16,574,990 | |
74,706,169 | |||
Regional Banks - 15.5% | |||
Bank of the Ozarks, Inc. | 78,500 | 4,307,295 | |
CIT Group, Inc. | 103,200 | 4,250,808 | |
CoBiz, Inc. | 113,491 | 1,988,362 | |
First Republic Bank | 61,100 | 5,763,563 | |
Huntington Bancshares, Inc. | 793,000 | 10,729,290 | |
M&T Bank Corp. | 36,900 | 5,998,833 | |
PNC Financial Services Group, Inc. | 86,000 | 10,359,560 | |
Popular, Inc. | 75,600 | 3,358,908 | |
Preferred Bank, Los Angeles | 13,400 | 742,494 | |
SVB Financial Group (a) | 22,100 | 3,806,283 | |
51,305,396 | |||
TOTAL BANKS | 126,011,565 | ||
Capital Markets - 17.9% | |||
Asset Management & Custody Banks - 6.5% | |||
Affiliated Managers Group, Inc. | 26,354 | 4,015,295 | |
BlackRock, Inc. Class A | 22,200 | 8,302,356 | |
Northern Trust Corp. | 78,620 | 6,522,315 | |
Oaktree Capital Group LLC Class A | 61,600 | 2,599,520 | |
21,439,486 | |||
Financial Exchanges & Data - 4.3% | |||
CBOE Holdings, Inc. | 56,900 | 4,530,378 | |
IntercontinentalExchange, Inc. | 165,220 | 9,642,239 | |
14,172,617 | |||
Investment Banking & Brokerage - 7.1% | |||
E*TRADE Financial Corp. (a) | 135,800 | 5,085,710 | |
Goldman Sachs Group, Inc. | 67,740 | 15,534,137 | |
Investment Technology Group, Inc. | 87,275 | 1,755,973 | |
TD Ameritrade Holding Corp. | 28,900 | 1,333,735 | |
23,709,555 | |||
TOTAL CAPITAL MARKETS | 59,321,658 | ||
Consumer Finance - 10.2% | |||
Consumer Finance - 10.2% | |||
Capital One Financial Corp. | 197,838 | 17,289,063 | |
Discover Financial Services | 110,400 | 7,648,512 | |
Synchrony Financial | 249,500 | 8,937,090 | |
33,874,665 | |||
Diversified Financial Services - 6.6% | |||
Multi-Sector Holdings - 6.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 122,169 | 20,052,821 | |
Specialized Finance - 0.6% | |||
Bats Global Markets, Inc. | 52,400 | 1,857,580 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 21,910,401 | ||
Insurance - 21.5% | |||
Insurance Brokers - 2.4% | |||
Brown & Brown, Inc. | 67,700 | 2,852,201 | |
Willis Group Holdings PLC | 39,600 | 4,955,148 | |
7,807,349 | |||
Life & Health Insurance - 2.0% | |||
Torchmark Corp. | 89,880 | 6,609,775 | |
Multi-Line Insurance - 5.1% | |||
American Financial Group, Inc. | 39,000 | 3,360,630 | |
American International Group, Inc. | 209,800 | 13,481,748 | |
16,842,378 | |||
Property & Casualty Insurance - 10.9% | |||
Allied World Assurance Co. Holdings AG | 34,900 | 1,854,237 | |
Allstate Corp. | 94,590 | 7,114,114 | |
AmTrust Financial Services, Inc. | 77,800 | 2,053,142 | |
Chubb Ltd. | 72,227 | 9,497,128 | |
FNF Group | 184,250 | 6,515,080 | |
The Travelers Companies, Inc. | 78,600 | 9,257,508 | |
36,291,209 | |||
Reinsurance - 1.1% | |||
Reinsurance Group of America, Inc. | 30,500 | 3,826,835 | |
TOTAL INSURANCE | 71,377,546 | ||
IT Services - 2.2% | |||
Data Processing & Outsourced Services - 2.2% | |||
Visa, Inc. Class A | 61,820 | 5,113,132 | |
WEX, Inc. (a) | 18,500 | 2,115,105 | |
7,228,237 | |||
Mortgage Real Estate Investment Trusts - 0.3% | |||
Mortgage REITs - 0.3% | |||
American Capital Mortgage Investment Corp. | 67,600 | 1,074,840 | |
Thrifts & Mortgage Finance - 0.6% | |||
Thrifts & Mortgage Finance - 0.6% | |||
MGIC Investment Corp. (a) | 96,600 | 1,028,790 | |
Radian Group, Inc. | 43,800 | 805,920 | |
1,834,710 | |||
TOTAL COMMON STOCKS | |||
(Cost $288,024,078) | 322,633,622 | ||
Money Market Funds - 3.3% | |||
Fidelity Cash Central Fund, 0.62% (b) | |||
(Cost $11,038,856) | 11,036,649 | 11,038,856 | |
TOTAL INVESTMENT PORTFOLIO - 100.6% | |||
(Cost $299,062,934) | 333,672,478 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (2,091,272) | ||
NET ASSETS - 100% | $331,581,206 |
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.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $20,340 |
Fidelity Securities Lending Cash Central Fund | 774 |
Total | $21,114 |
Investment Valuation
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.
Fidelity Advisor® Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $288,024,078) | $322,633,622 | |
Fidelity Central Funds (cost $11,038,856) | 11,038,856 | |
Total Investments (cost $299,062,934) | $333,672,478 | |
Cash | 245 | |
Receivable for investments sold | 2,951,593 | |
Receivable for fund shares sold | 2,485,914 | |
Dividends receivable | 81,097 | |
Distributions receivable from Fidelity Central Funds | 5,604 | |
Prepaid expenses | 858 | |
Other receivables | 1,161 | |
Total assets | 339,198,950 | |
Liabilities | ||
Payable for investments purchased | $6,713,629 | |
Payable for fund shares redeemed | 541,143 | |
Accrued management fee | 149,129 | |
Distribution and service plan fees payable | 106,924 | |
Other affiliated payables | 65,292 | |
Other payables and accrued expenses | 41,627 | |
Total liabilities | 7,617,744 | |
Net Assets | $331,581,206 | |
Net Assets consist of: | ||
Paid in capital | $335,668,627 | |
Distributions in excess of net investment income | (285,325) | |
Accumulated undistributed net realized gain (loss) on investments | (38,410,633) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 34,608,537 | |
Net Assets | $331,581,206 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($139,446,264 ÷ 7,629,504 shares) | $18.28 | |
Maximum offering price per share (100/94.25 of $18.28) | $19.40 | |
Class T: | ||
Net Asset Value and redemption price per share ($40,177,815 ÷ 2,219,163 shares) | $18.10 | |
Maximum offering price per share (100/96.50 of $18.10) | $18.76 | |
Class C: | ||
Net Asset Value and offering price per share ($78,408,652 ÷ 4,556,483 shares)(a) | $17.21 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($73,548,475 ÷ 3,917,147 shares)�� | $18.78 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $1,916,464 | |
Income from Fidelity Central Funds (including $774 from security lending) | 21,114 | |
Total income | 1,937,578 | |
Expenses | ||
Management fee | $664,636 | |
Transfer agent fees | 276,685 | |
Distribution and service plan fees | 500,179 | |
Accounting and security lending fees | 47,306 | |
Custodian fees and expenses | 20,694 | |
Independent trustees' fees and expenses | 2,398 | |
Registration fees | 55,659 | |
Audit | 25,283 | |
Legal | 2,659 | |
Miscellaneous | 4,630 | |
Total expenses before reductions | 1,600,129 | |
Expense reductions | (1,496) | 1,598,633 |
Net investment income (loss) | 338,945 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,437,964 | |
Fidelity Central Funds | 151 | |
Total net realized gain (loss) | 9,438,115 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 30,070,020 | |
Assets and liabilities in foreign currencies | (169) | |
Total change in net unrealized appreciation (depreciation) | 30,069,851 | |
Net gain (loss) | 39,507,966 | |
Net increase (decrease) in net assets resulting from operations | $39,846,911 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $338,945 | $1,283,134 |
Net realized gain (loss) | 9,438,115 | (1,102,596) |
Change in net unrealized appreciation (depreciation) | 30,069,851 | (19,200,638) |
Net increase (decrease) in net assets resulting from operations | 39,846,911 | (19,020,100) |
Distributions to shareholders from net investment income | (502,159) | (957,546) |
Distributions to shareholders from net realized gain | – | (189,767) |
Total distributions | (502,159) | (1,147,313) |
Share transactions - net increase (decrease) | 97,080,326 | (18,476,090) |
Redemption fees | 8,334 | 14,186 |
Total increase (decrease) in net assets | 136,433,412 | (38,629,317) |
Net Assets | ||
Beginning of period | 195,147,794 | 233,777,111 |
End of period | $331,581,206 | $195,147,794 |
Other Information | ||
Distributions in excess of net investment income end of period | $(285,325) | $(122,111) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.43 | $16.53 | $14.97 | $13.41 | $10.18 | $10.06 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .11 | .10 | .10 | .15 | .07 |
Net realized and unrealized gain (loss) | 2.85 | (1.13) | 1.59B | 1.55 | 3.18 | .06 |
Total from investment operations | 2.89 | (1.02) | 1.69 | 1.65 | 3.33 | .13 |
Distributions from net investment income | (.04) | (.07) | (.13) | (.08) | (.10) | (.01) |
Distributions from net realized gain | – | (.01) | – | (.01) | – | – |
Total distributions | (.04) | (.08) | (.13) | (.09) | (.10) | (.01) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $18.28 | $15.43 | $16.53 | $14.97 | $13.41 | $10.18 |
Total ReturnD,E,F | 18.72% | (6.15)% | 11.29%B | 12.39% | 32.99% | 1.34% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.17%I | 1.15% | 1.17% | 1.22% | 1.29% | 1.28% |
Expenses net of fee waivers, if any | 1.17%I | 1.15% | 1.17% | 1.22% | 1.29% | 1.28% |
Expenses net of all reductions | 1.17%I | 1.15% | 1.17% | 1.22% | 1.21% | 1.20% |
Net investment income (loss) | .44%I | .77% | .61% | .68% | 1.31% | .72% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $139,446 | $97,011 | $102,983 | $77,674 | $64,428 | $47,055 |
Portfolio turnover rateJ | 96%I | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.97%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.29 | $16.41 | $14.86 | $13.31 | $10.11 | $10.01 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .01 | .07 | .05 | .06 | .12 | .04 |
Net realized and unrealized gain (loss) | 2.82 | (1.13) | 1.58B | 1.55 | 3.16 | .06 |
Total from investment operations | 2.83 | (1.06) | 1.63 | 1.61 | 3.28 | .10 |
Distributions from net investment income | (.02) | (.05) | (.08) | (.05) | (.08) | –C |
Distributions from net realized gain | – | (.01) | – | (.01) | – | – |
Total distributions | (.02) | (.06) | (.08) | (.06) | (.08) | –C |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $18.10 | $15.29 | $16.41 | $14.86 | $13.31 | $10.11 |
Total ReturnD,E,F | 18.51% | (6.43)% | 10.98%B | 12.10% | 32.66% | 1.03% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.45%I | 1.45% | 1.45% | 1.48% | 1.55% | 1.54% |
Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.48% | 1.55% | 1.54% |
Expenses net of all reductions | 1.45%I | 1.44% | 1.45% | 1.48% | 1.47% | 1.45% |
Net investment income (loss) | .15%I | .47% | .33% | .42% | 1.06% | .46% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $40,178 | $30,044 | $34,314 | $31,596 | $30,576 | $24,367 |
Portfolio turnover rateJ | 96%I | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.66%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.55 | $15.67 | $14.22 | $12.75 | $9.70 | $9.65 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.02) | –B | (.02) | –B | .06 | –B |
Net realized and unrealized gain (loss) | 2.68 | (1.08) | 1.51C | 1.48 | 3.03 | .05 |
Total from investment operations | 2.66 | (1.08) | 1.49 | 1.48 | 3.09 | .05 |
Distributions from net investment income | –B | (.03) | (.04) | (.01) | (.04) | – |
Distributions from net realized gain | – | (.01) | – | – | – | – |
Total distributions | –B | (.04) | (.04) | (.01) | (.04) | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $17.21 | $14.55 | $15.67 | $14.22 | $12.75 | $9.70 |
Total ReturnD,E,F | 18.30% | (6.88)% | 10.45%C | 11.65% | 31.98% | .52% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.91%I | 1.90% | 1.90% | 1.94% | 2.03% | 2.03% |
Expenses net of fee waivers, if any | 1.91%I | 1.90% | 1.90% | 1.94% | 2.03% | 2.03% |
Expenses net of all reductions | 1.91%I | 1.89% | 1.90% | 1.93% | 1.96% | 1.94% |
Net investment income (loss) | (.31)%I | .02% | (.12)% | (.03)% | .57% | (.03)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $78,409 | $47,505 | $50,206 | $36,740 | $29,897 | $20,875 |
Portfolio turnover rateJ | 96%I | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.13%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.84 | $16.94 | $15.34 | $13.73 | $10.42 | $10.28 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .17 | .15 | .15 | .20 | .10 |
Net realized and unrealized gain (loss) | 2.94 | (1.17) | 1.62B | 1.60 | 3.25 | .06 |
Total from investment operations | 3.00 | (1.00) | 1.77 | 1.75 | 3.45 | .16 |
Distributions from net investment income | (.06) | (.09) | (.17) | (.13) | (.14) | (.02) |
Distributions from net realized gain | – | (.01) | – | (.01) | – | – |
Total distributions | (.06) | (.10) | (.17) | (.14) | (.14) | (.02) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $18.78 | $15.84 | $16.94 | $15.34 | $13.73 | $10.42 |
Total ReturnD,E | 18.94% | (5.89)% | 11.61%B | 12.85% | 33.45% | 1.61% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .87%H | .85% | .84% | .87% | .96% | .98% |
Expenses net of fee waivers, if any | .87%H | .85% | .84% | .87% | .96% | .98% |
Expenses net of all reductions | .87%H | .84% | .84% | .86% | .88% | .89% |
Net investment income (loss) | .74%H | 1.07% | .94% | 1.04% | 1.65% | 1.02% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $73,548 | $20,588 | $42,443 | $16,164 | $9,275 | $5,596 |
Portfolio turnover rateI | 96%H | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 11.29%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amgen, Inc. | 7.8 | 6.7 |
Medtronic PLC | 7.3 | 9.7 |
Allergan PLC | 6.4 | 6.0 |
Boston Scientific Corp. | 5.6 | 5.1 |
UnitedHealth Group, Inc. | 5.3 | 3.2 |
Alexion Pharmaceuticals, Inc. | 4.4 | 3.1 |
Vertex Pharmaceuticals, Inc. | 3.7 | 3.8 |
Bristol-Myers Squibb Co. | 3.5 | 2.4 |
Anthem, Inc. | 3.2 | 1.4 |
Intuitive Surgical, Inc. | 2.4 | 2.0 |
49.6 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Biotechnology | 29.0% | |
Health Care Equipment & Supplies | 26.0% | |
Health Care Providers & Services | 20.3% | |
Pharmaceuticals | 16.9% | |
Health Care Technology | 2.9% | |
All Others* | 4.9% |
As of July 31, 2016 | ||
Health Care Equipment & Supplies | 28.0% | |
Biotechnology | 27.4% | |
Pharmaceuticals | 21.3% | |
Health Care Providers & Services | 15.2% | |
Health Care Technology | 3.0% | |
All Others* | 5.1% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Health Care Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
Biotechnology - 29.0% | |||
Biotechnology - 29.0% | |||
Ablynx NV (a)(b) | 800,000 | $10,263,886 | |
AC Immune SA | 226,800 | 2,726,136 | |
ACADIA Pharmaceuticals, Inc. (b) | 30,200 | 1,044,618 | |
Acorda Therapeutics, Inc. (b) | 540,800 | 11,086,400 | |
Advanced Accelerator Applications SA sponsored ADR (b) | 196,300 | 6,354,231 | |
Advaxis, Inc. (a)(b) | 640,000 | 5,734,400 | |
Alexion Pharmaceuticals, Inc. (b) | 800,000 | 104,544,000 | |
Alnylam Pharmaceuticals, Inc. (b) | 167,744 | 6,708,083 | |
Amgen, Inc. | 1,200,000 | 188,016,000 | |
Amicus Therapeutics, Inc. (a)(b) | 1,400,000 | 7,700,000 | |
Array BioPharma, Inc. (b) | 1,000,000 | 10,870,000 | |
Ascendis Pharma A/S sponsored ADR (a)(b) | 400,000 | 8,576,000 | |
BeiGene Ltd. ADR | 104,159 | 3,628,900 | |
Biogen, Inc. (b) | 27,700 | 7,679,548 | |
BioMarin Pharmaceutical, Inc. (b) | 250,000 | 21,907,500 | |
bluebird bio, Inc. (a)(b) | 61,720 | 4,598,140 | |
Blueprint Medicines Corp. (b) | 205,000 | 6,986,400 | |
Celgene Corp. (b) | 70,000 | 8,130,500 | |
Cellectis SA sponsored ADR (b) | 221,100 | 4,032,864 | |
China Biologic Products, Inc. (b) | 48,995 | 5,582,490 | |
Curis, Inc. (b) | 1,529,100 | 4,388,517 | |
Cytokinetics, Inc. (b) | 400,000 | 4,180,000 | |
CytomX Therapeutics, Inc. (b) | 147,100 | 1,709,302 | |
Five Prime Therapeutics, Inc. (b) | 147,839 | 6,772,505 | |
Galapagos Genomics NV sponsored ADR (b) | 143,077 | 9,314,313 | |
Gilead Sciences, Inc. | 140,000 | 10,143,000 | |
Heron Therapeutics, Inc. (a)(b) | 224,815 | 2,922,595 | |
Incyte Corp. (b) | 54,500 | 6,605,945 | |
Insmed, Inc. (b) | 1,100,000 | 16,247,000 | |
Intercept Pharmaceuticals, Inc. (b) | 57,244 | 6,282,529 | |
Loxo Oncology, Inc. (b) | 63,700 | 2,498,951 | |
Neurocrine Biosciences, Inc. (b) | 280,000 | 12,014,800 | |
Proteostasis Therapeutics, Inc. | 210,200 | 3,100,450 | |
Puma Biotechnology, Inc. (b) | 285,800 | 9,259,920 | |
Regeneron Pharmaceuticals, Inc. (b) | 40,000 | 14,371,600 | |
Spark Therapeutics, Inc. (a)(b) | 146,874 | 9,261,874 | |
TESARO, Inc. (b) | 170,000 | 27,682,800 | |
Trevena, Inc. (b) | 1,000,000 | 6,980,000 | |
Ultragenyx Pharmaceutical, Inc. (a)(b) | 235,000 | 17,627,350 | |
Vertex Pharmaceuticals, Inc. (b) | 1,044,300 | 89,674,041 | |
Xencor, Inc. (b) | 360,000 | 8,578,800 | |
695,786,388 | |||
Capital Markets - 0.4% | |||
Asset Management & Custody Banks - 0.4% | |||
RPI International Holdings LP (c) | 61,683 | 8,109,772 | |
Diversified Consumer Services - 0.2% | |||
Specialized Consumer Services - 0.2% | |||
Carriage Services, Inc. | 195,635 | 5,076,728 | |
Health Care Equipment & Supplies - 25.6% | |||
Health Care Equipment - 23.8% | |||
Atricure, Inc. (b) | 680,000 | 11,063,600 | |
Boston Scientific Corp. (b) | 5,600,000 | 134,736,000 | |
DexCom, Inc. (b) | 400,000 | 31,660,000 | |
Insulet Corp. (b) | 568,855 | 23,664,368 | |
Integra LifeSciences Holdings Corp. (b) | 640,000 | 26,707,200 | |
Intuitive Surgical, Inc. (b) | 85,000 | 58,878,650 | |
Medtronic PLC | 2,300,000 | 174,846,000 | |
Nevro Corp. (a)(b) | 64,000 | 5,569,280 | |
NxStage Medical, Inc. (b) | 346,027 | 9,308,126 | |
Penumbra, Inc. (b) | 330,000 | 23,611,500 | |
Wright Medical Group NV (b) | 1,280,000 | 32,230,400 | |
Zeltiq Aesthetics, Inc. (a)(b) | 600,000 | 26,604,000 | |
Zimmer Biomet Holdings, Inc. | 120,000 | 14,199,600 | |
573,078,724 | |||
Health Care Supplies - 1.8% | |||
The Cooper Companies, Inc. | 146,000 | 26,953,060 | |
The Spectranetics Corp. (b) | 600,000 | 15,510,000 | |
42,463,060 | |||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 615,541,784 | ||
Health Care Providers & Services - 20.2% | |||
Health Care Distributors & Services - 1.5% | |||
Amplifon SpA | 760,000 | 7,679,131 | |
EBOS Group Ltd. | 1,280,000 | 15,871,398 | |
McKesson Corp. | 70,000 | 9,740,500 | |
Oriola-KD Oyj | 741,200 | 3,512,551 | |
36,803,580 | |||
Health Care Facilities - 2.9% | |||
HCA Holdings, Inc. (b) | 310,000 | 24,886,800 | |
Surgical Care Affiliates, Inc. (b) | 280,000 | 15,820,000 | |
Universal Health Services, Inc. Class B | 255,000 | 28,720,650 | |
69,427,450 | |||
Health Care Services - 3.1% | |||
American Renal Associates Holdings, Inc. | 399,549 | 7,679,332 | |
Envision Healthcare Corp. (b) | 480,957 | 32,705,076 | |
Premier, Inc. (b) | 350,000 | 11,151,000 | |
Teladoc, Inc. (b) | 700,000 | 14,000,000 | |
United Drug PLC (United Kingdom) | 1,000,000 | 8,063,780 | |
73,599,188 | |||
Managed Health Care - 12.7% | |||
Anthem, Inc. | 500,000 | 77,070,000 | |
Cigna Corp. | 336,600 | 49,217,652 | |
Humana, Inc. | 255,100 | 50,637,350 | |
UnitedHealth Group, Inc. | 783,300 | 126,972,930 | |
303,897,932 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 483,728,150 | ||
Health Care Technology - 2.9% | |||
Health Care Technology - 2.9% | |||
athenahealth, Inc. (a)(b) | 250,100 | 31,510,099 | |
Castlight Health, Inc. (b) | 336,800 | 1,044,080 | |
Evolent Health, Inc. (a)(b) | 350,000 | 6,370,000 | |
HealthStream, Inc. (b) | 507,191 | 11,645,105 | |
Medidata Solutions, Inc. (b) | 400,000 | 19,816,000 | |
70,385,284 | |||
Internet Software & Services - 0.5% | |||
Internet Software & Services - 0.5% | |||
Benefitfocus, Inc. (a)(b) | 400,000 | 12,100,000 | |
Life Sciences Tools & Services - 1.3% | |||
Life Sciences Tools & Services - 1.3% | |||
Agilent Technologies, Inc. | 654,650 | 32,058,211 | |
Pharmaceuticals - 16.9% | |||
Pharmaceuticals - 16.9% | |||
Aclaris Therapeutics, Inc. (b) | 188,600 | 5,003,558 | |
Allergan PLC | 700,000 | 153,223,000 | |
Bristol-Myers Squibb Co. | 1,700,000 | 83,572,000 | |
Catalent, Inc. (b) | 1,000,000 | 26,760,000 | |
Dechra Pharmaceuticals PLC | 720,000 | 13,187,866 | |
Eisai Co. Ltd. | 240,000 | 13,210,522 | |
GlaxoSmithKline PLC | 1,400,000 | 27,055,000 | |
Jazz Pharmaceuticals PLC (b) | 145,700 | 17,763,744 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 1,716,000 | 11,926,832 | |
Lee's Pharmaceutical Holdings Ltd. | 4,366,536 | 3,821,830 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 400,000 | 13,372,000 | |
The Medicines Company (a)(b) | 317,729 | 11,454,130 | |
TherapeuticsMD, Inc. (a)(b) | 2,085,000 | 12,113,850 | |
Theravance Biopharma, Inc. (a)(b) | 455,000 | 13,631,800 | |
406,096,132 | |||
Professional Services - 0.9% | |||
Human Resource & Employment Services - 0.9% | |||
WageWorks, Inc. (b) | 300,000 | 21,645,000 | |
TOTAL COMMON STOCKS | |||
(Cost $2,038,743,977) | 2,350,527,449 | ||
Preferred Stocks - 0.5% | |||
Convertible Preferred Stocks - 0.1% | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
1Life Healthcare, Inc. Series G (b)(c) | 322,145 | 2,084,278 | |
Nonconvertible Preferred Stocks - 0.4% | |||
Health Care Equipment & Supplies - 0.4% | |||
Health Care Equipment - 0.4% | |||
Sartorius AG (non-vtg.) | 140,000 | 9,823,450 | |
TOTAL PREFERRED STOCKS | |||
(Cost $12,477,728) | 11,907,728 | ||
Money Market Funds - 3.5% | |||
Fidelity Cash Central Fund, 0.62% (d) | 30,036,691 | 30,042,698 | |
Fidelity Securities Lending Cash Central Fund 0.65% (d)(e) | 55,016,240 | 55,027,243 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $85,060,709) | 85,069,941 | ||
TOTAL INVESTMENT PORTFOLIO - 101.9% | |||
(Cost $2,136,282,414) | 2,447,505,118 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (46,478,703) | ||
NET ASSETS - 100% | $2,401,026,415 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) 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 $10,194,050 or 0.5% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
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 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $8,207,868 |
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 | $62,231 |
Fidelity Securities Lending Cash Central Fund | 497,355 |
Total | $559,586 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $2,350,527,449 | $2,311,540,847 | $30,876,830 | $8,109,772 |
Preferred Stocks | 11,907,728 | 9,823,450 | -- | 2,084,278 |
Money Market Funds | 85,069,941 | 85,069,941 | -- | -- |
Total Investments in Securities: | $2,447,505,118 | $2,406,434,238 | $30,876,830 | $10,194,050 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 76.8% |
Ireland | 14.7% |
United Kingdom | 1.6% |
Netherlands | 1.3% |
Others (Individually Less Than 1%) | 5.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $55,035,913) — See accompanying schedule: Unaffiliated issuers (cost $2,051,221,705) | $2,362,435,177 | |
Fidelity Central Funds (cost $85,060,709) | 85,069,941 | |
Total Investments (cost $2,136,282,414) | $2,447,505,118 | |
Receivable for investments sold | 37,206,127 | |
Receivable for fund shares sold | 3,009,460 | |
Dividends receivable | 625,520 | |
Distributions receivable from Fidelity Central Funds | 86,539 | |
Prepaid expenses | 12,035 | |
Other receivables | 11,028 | |
Total assets | 2,488,455,827 | |
Liabilities | ||
Payable for investments purchased | $22,398,149 | |
Payable for fund shares redeemed | 7,618,993 | |
Accrued management fee | 1,093,260 | |
Distribution and service plan fees payable | 787,385 | |
Other affiliated payables | 460,377 | |
Other payables and accrued expenses | 54,687 | |
Collateral on Securities Loaned | 55,016,561 | |
Total liabilities | 87,429,412 | |
Net Assets | $2,401,026,415 | |
Net Assets consist of: | ||
Paid in capital | $2,266,248,095 | |
Accumulated net investment loss | (10,681,651) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (165,756,624) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 311,216,595 | |
Net Assets | $2,401,026,415 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($955,955,458 ÷ 26,368,637 shares) | $36.25 | |
Maximum offering price per share (100/94.25 of $36.25) | $38.46 | |
Class T: | ||
Net Asset Value and redemption price per share ($247,436,086 ÷ 7,268,090 shares) | $34.04 | |
Maximum offering price per share (100/96.50 of $34.04) | $35.27 | |
Class C: | ||
Net Asset Value and offering price per share ($580,029,084 ÷ 19,726,764 shares)(a) | $29.40 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($617,605,787 ÷ 15,743,636 shares) | $39.23 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $10,594,817 | |
Income from Fidelity Central Funds (including $497,355 from security lending) | 559,586 | |
Total income | 11,154,403 | |
Expenses | ||
Management fee | $6,969,688 | |
Transfer agent fees | 2,573,339 | |
Distribution and service plan fees | 5,083,141 | |
Accounting and security lending fees | 384,256 | |
Custodian fees and expenses | 43,452 | |
Independent trustees' fees and expenses | 27,971 | |
Registration fees | 95,171 | |
Audit | 29,918 | |
Legal | 26,142 | |
Interest | 659 | |
Miscellaneous | 23,691 | |
Total expenses before reductions | 15,257,428 | |
Expense reductions | (12,016) | 15,245,412 |
Net investment income (loss) | (4,091,009) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (68,008,718) | |
Fidelity Central Funds | (1,866) | |
Foreign currency transactions | (48,137) | |
Total net realized gain (loss) | (68,058,721) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (80,214,029) | |
Assets and liabilities in foreign currencies | (5,435) | |
Total change in net unrealized appreciation (depreciation) | (80,219,464) | |
Net gain (loss) | (148,278,185) | |
Net increase (decrease) in net assets resulting from operations | $(152,369,194) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(4,091,009) | $(11,497,439) |
Net realized gain (loss) | (68,058,721) | (94,928,076) |
Change in net unrealized appreciation (depreciation) | (80,219,464) | (255,190,600) |
Net increase (decrease) in net assets resulting from operations | (152,369,194) | (361,616,115) |
Distributions to shareholders from net realized gain | – | (200,296,642) |
Share transactions - net increase (decrease) | (254,018,117) | 39,266,649 |
Redemption fees | 20,683 | 89,122 |
Total increase (decrease) in net assets | (406,366,628) | (522,556,986) |
Net Assets | ||
Beginning of period | 2,807,393,043 | 3,329,950,029 |
End of period | $2,401,026,415 | $2,807,393,043 |
Other Information | ||
Accumulated net investment loss end of period | $(10,681,651) | $(6,590,642) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.23 | $45.17 | $37.72 | $31.29 | $24.35 | $25.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.09) | (.19) | (.18) | –B | (.04) |
Net realized and unrealized gain (loss) | (1.95) | (4.30) | 12.03 | 10.13 | 9.53 | 1.43 |
Total from investment operations | (1.98) | (4.39) | 11.84 | 9.95 | 9.53 | 1.39 |
Distributions from net realized gain | – | (2.55) | (4.39) | (3.52) | (2.59) | (2.64) |
Total distributions | – | (2.55) | (4.39) | (3.52) | (2.59) | (2.64) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $36.25 | $38.23 | $45.17 | $37.72 | $31.29 | $24.35 |
Total ReturnC,D,E | (5.18)% | (9.82)% | 34.07% | 34.79% | 42.77% | 7.58% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.05%H | 1.04% | 1.04% | 1.08% | 1.14% | 1.19% |
Expenses net of fee waivers, if any | 1.05%H | 1.04% | 1.04% | 1.08% | 1.14% | 1.19% |
Expenses net of all reductions | 1.05%H | 1.04% | 1.04% | 1.07% | 1.13% | 1.18% |
Net investment income (loss) | (.17)%H | (.25)% | (.45)% | (.54)% | (.01)% | (.18)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $955,955 | $1,159,614 | $1,374,654 | $613,995 | $365,416 | $233,188 |
Portfolio turnover rateI | 51%H | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.95 | $42.68 | $35.87 | $29.91 | $23.42 | $24.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.08) | (.18) | (.28) | (.26) | (.07) | (.09) |
Net realized and unrealized gain (loss) | (1.83) | (4.06) | 11.39 | 9.67 | 9.13 | 1.35 |
Total from investment operations | (1.91) | (4.24) | 11.11 | 9.41 | 9.06 | 1.26 |
Distributions from net realized gain | – | (2.49) | (4.30) | (3.45) | (2.57) | (2.64) |
Total distributions | – | (2.49) | (4.30) | (3.45) | (2.57) | (2.64) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $34.04 | $35.95 | $42.68 | $35.87 | $29.91 | $23.42 |
Total ReturnC,D,E | (5.31)% | (10.05)% | 33.69% | 34.49% | 42.39% | 7.27% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.32%H | 1.31% | 1.31% | 1.34% | 1.39% | 1.43% |
Expenses net of fee waivers, if any | 1.32%H | 1.31% | 1.31% | 1.34% | 1.39% | 1.43% |
Expenses net of all reductions | 1.32%H | 1.31% | 1.30% | 1.34% | 1.38% | 1.43% |
Net investment income (loss) | (.44)%H | (.52)% | (.72)% | (.80)% | (.26)% | (.42)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $247,436 | $293,556 | $348,886 | $216,973 | $158,611 | $117,969 |
Portfolio turnover rateI | 51%H | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.12 | $37.45 | $32.03 | $27.11 | $21.51 | $23.11 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.14) | (.30) | (.41) | (.38) | (.17) | (.18) |
Net realized and unrealized gain (loss) | (1.58) | (3.57) | 10.05 | 8.68 | 8.31 | 1.22 |
Total from investment operations | (1.72) | (3.87) | 9.64 | 8.30 | 8.14 | 1.04 |
Distributions from net realized gain | – | (2.46) | (4.22) | (3.38) | (2.54) | (2.64) |
Total distributions | – | (2.46) | (4.22) | (3.38) | (2.54) | (2.64) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $29.40 | $31.12 | $37.45 | $32.03 | $27.11 | $21.51 |
Total ReturnC,D,E | (5.53)% | (10.50)% | 33.04% | 33.83% | 41.74% | 6.80% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.80%H | 1.79% | 1.79% | 1.83% | 1.87% | 1.90% |
Expenses net of fee waivers, if any | 1.80%H | 1.79% | 1.79% | 1.83% | 1.87% | 1.90% |
Expenses net of all reductions | 1.80%H | 1.79% | 1.79% | 1.82% | 1.85% | 1.89% |
Net investment income (loss) | (.92)%H | (1.00)% | (1.20)% | (1.29)% | (.74)% | (.89)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $580,029 | $695,374 | $761,070 | $257,859 | $125,965 | $78,763 |
Portfolio turnover rateI | 51%H | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.31 | $48.53 | $40.22 | $33.12 | $25.60 | $26.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | –B | (.09) | (.10) | .07 | .03 |
Net realized and unrealized gain (loss) | (2.10) | (4.62) | 12.88 | 10.80 | 10.07 | 1.52 |
Total from investment operations | (2.08) | (4.62) | 12.79 | 10.70 | 10.14 | 1.55 |
Distributions from net realized gain | – | (2.60) | (4.48) | (3.60) | (2.62) | (2.64) |
Total distributions | – | (2.60) | (4.48) | (3.60) | (2.62) | (2.64) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $39.23 | $41.31 | $48.53 | $40.22 | $33.12 | $25.60 |
Total ReturnC,D | (5.04)% | (9.60)% | 34.40% | 35.21% | 43.12% | 7.91% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .79%G | .78% | .79% | .81% | .87% | .89% |
Expenses net of fee waivers, if any | .79%G | .78% | .79% | .81% | .87% | .89% |
Expenses net of all reductions | .79%G | .78% | .78% | .81% | .85% | .88% |
Net investment income (loss) | .09%G | .01% | (.20)% | (.27)% | .26% | .12% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $617,606 | $658,848 | $832,415 | $292,654 | $74,417 | $40,737 |
Portfolio turnover rateH | 51%G | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
General Electric Co. | 10.0 | 12.8 |
Honeywell International, Inc. | 4.7 | 6.0 |
United Technologies Corp. | 4.6 | 5.6 |
General Dynamics Corp. | 4.4 | 4.3 |
J.B. Hunt Transport Services, Inc. | 3.9 | 3.9 |
Caterpillar, Inc. | 3.7 | 3.3 |
Northrop Grumman Corp. | 3.5 | 3.7 |
AECOM | 3.0 | 4.7 |
Southwest Airlines Co. | 3.0 | 2.7 |
Norfolk Southern Corp. | 2.8 | 0.0 |
43.6 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Aerospace & Defense | 20.2% | |
Machinery | 19.1% | |
Industrial Conglomerates | 15.9% | |
Road & Rail | 10.3% | |
Electrical Equipment | 7.6% | |
All Others* | 26.9% |
As of July 31, 2016 | ||
Aerospace & Defense | 31.0% | |
Machinery | 15.0% | |
Industrial Conglomerates | 13.6% | |
Electrical Equipment | 10.3% | |
Road & Rail | 5.0% | |
All Others* | 25.1% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Industrials Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
Aerospace & Defense - 20.2% | |||
Aerospace & Defense - 20.2% | |||
Astronics Corp. (a) | 72,066 | $2,364,485 | |
Astronics Corp. Class B | 6,099 | 201,267 | |
BWX Technologies, Inc. | 67,500 | 2,800,575 | |
Elbit Systems Ltd. | 18,500 | 2,035,000 | |
General Dynamics Corp. | 190,062 | 34,416,427 | |
Hexcel Corp. | 215,200 | 11,050,520 | |
Huntington Ingalls Industries, Inc. | 34,100 | 6,614,036 | |
Northrop Grumman Corp. | 121,200 | 27,764,496 | |
Raytheon Co. | 100,700 | 14,516,912 | |
Teledyne Technologies, Inc. (a) | 111,065 | 13,646,557 | |
TransDigm Group, Inc. | 33,900 | 7,335,960 | |
United Technologies Corp. | 327,451 | 35,911,551 | |
158,657,786 | |||
Airlines - 3.6% | |||
Airlines - 3.6% | |||
Southwest Airlines Co. | 450,400 | 23,560,424 | |
Spirit Airlines, Inc. (a) | 84,800 | 4,582,592 | |
28,143,016 | |||
Building Products - 3.3% | |||
Building Products - 3.3% | |||
A.O. Smith Corp. | 185,184 | 9,027,720 | |
Fortune Brands Home & Security, Inc. | 178,200 | 9,824,166 | |
Masco Corp. | 214,300 | 7,061,185 | |
25,913,071 | |||
Commercial Services & Supplies - 5.0% | |||
Diversified Support Services - 2.2% | |||
Cintas Corp. | 65,600 | 7,616,816 | |
KAR Auction Services, Inc. | 216,300 | 9,852,465 | |
17,469,281 | |||
Environmental & Facility Services - 1.4% | |||
Stericycle, Inc. (a) | 49,300 | 3,803,002 | |
Team, Inc. (a) | 218,800 | 7,351,680 | |
11,154,682 | |||
Office Services & Supplies - 1.4% | |||
West Corp. | 449,697 | 10,914,146 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 39,538,109 | ||
Construction & Engineering - 5.5% | |||
Construction & Engineering - 5.5% | |||
AECOM (a) | 639,121 | 23,602,739 | |
Dycom Industries, Inc. (a)(b) | 106,000 | 8,549,960 | |
Fluor Corp. | 81,000 | 4,495,500 | |
KBR, Inc. | 374,700 | 6,373,647 | |
43,021,846 | |||
Diversified Financial Services - 0.0% | |||
Other Diversified Financial Services - 0.0% | |||
Jeld-Wen Holding, Inc. | 4,500 | 121,815 | |
Electrical Equipment - 7.6% | |||
Electrical Components & Equipment - 7.0% | |||
Acuity Brands, Inc. | 34,700 | 7,190,881 | |
AMETEK, Inc. | 380,026 | 19,419,329 | |
Eaton Corp. PLC | 153,300 | 10,850,574 | |
Fortive Corp. | 293,466 | 16,231,604 | |
Regal Beloit Corp. | 18,400 | 1,335,840 | |
55,028,228 | |||
Heavy Electrical Equipment - 0.6% | |||
TPI Composites, Inc. | 263,200 | 5,108,712 | |
TOTAL ELECTRICAL EQUIPMENT | 60,136,940 | ||
Industrial Conglomerates - 15.9% | |||
Industrial Conglomerates - 15.9% | |||
General Electric Co. | 2,643,748 | 78,519,315 | |
Honeywell International, Inc. | 317,433 | 37,558,673 | |
Roper Technologies, Inc. | 49,600 | 9,515,760 | |
125,593,748 | |||
Machinery - 19.1% | |||
Construction Machinery & Heavy Trucks - 8.8% | |||
Allison Transmission Holdings, Inc. | 485,700 | 16,989,786 | |
Caterpillar, Inc. | 308,300 | 29,491,978 | |
PACCAR, Inc. | 136,400 | 9,181,084 | |
Wabtec Corp. | 162,000 | 14,035,680 | |
69,698,528 | |||
Industrial Machinery - 10.3% | |||
Colfax Corp. (a) | 122,100 | 4,761,900 | |
Flowserve Corp. | 191,300 | 9,404,308 | |
IDEX Corp. | 94,629 | 8,531,751 | |
Illinois Tool Works, Inc. | 27,600 | 3,510,720 | |
Ingersoll-Rand PLC | 198,500 | 15,750,975 | |
Pentair PLC | 116,800 | 6,847,984 | |
Rexnord Corp. (a) | 508,300 | 11,228,347 | |
Snap-On, Inc. | 62,100 | 11,273,013 | |
TriMas Corp. (a) | 444,823 | 9,474,730 | |
80,783,728 | |||
TOTAL MACHINERY | 150,482,256 | ||
Professional Services - 1.9% | |||
Human Resource & Employment Services - 0.9% | |||
Recruit Holdings Co. Ltd. | 24,400 | 1,068,621 | |
Robert Half International, Inc. | 125,800 | 5,920,148 | |
6,988,769 | |||
Research & Consulting Services - 1.0% | |||
IHS Markit Ltd. (a) | 200,900 | 7,925,505 | |
TOTAL PROFESSIONAL SERVICES | 14,914,274 | ||
Road & Rail - 10.3% | |||
Railroads - 4.8% | |||
CSX Corp. | 283,000 | 13,128,370 | |
Genesee & Wyoming, Inc. Class A (a) | 2,000 | 150,720 | |
Kansas City Southern | 32,300 | 2,774,893 | |
Norfolk Southern Corp. | 186,800 | 21,941,528 | |
37,995,511 | |||
Trucking - 5.5% | |||
J.B. Hunt Transport Services, Inc. | 307,784 | 30,495,239 | |
Old Dominion Freight Lines, Inc. | 106,100 | 9,366,508 | |
YRC Worldwide, Inc. (a) | 192,600 | 2,875,518 | |
42,737,265 | |||
TOTAL ROAD & RAIL | 80,732,776 | ||
Trading Companies & Distributors - 4.9% | |||
Trading Companies & Distributors - 4.9% | |||
HD Supply Holdings, Inc. (a) | 322,206 | 13,629,314 | |
MSC Industrial Direct Co., Inc. Class A | 86,300 | 8,815,545 | |
Univar, Inc. (a) | 359,200 | 10,711,344 | |
WESCO International, Inc. (a) | 21,100 | 1,491,770 | |
Wolseley PLC | 63,574 | 3,937,156 | |
38,585,129 | |||
Water Utilities - 0.5% | |||
Water Utilities - 0.5% | |||
AquaVenture Holdings Ltd. | 203,449 | 3,922,497 | |
TOTAL COMMON STOCKS | |||
(Cost $628,259,979) | 769,763,263 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund, 0.62% (c) | 20,907,543 | 20,911,724 | |
Fidelity Securities Lending Cash Central Fund 0.65% (c)(d) | 1,745,641 | 1,745,990 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $22,657,543) | 22,657,714 | ||
TOTAL INVESTMENT PORTFOLIO - 100.7% | |||
(Cost $650,917,522) | 792,420,977 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (5,214,507) | ||
NET ASSETS - 100% | $787,206,470 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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.
(d) Investment made with cash collateral received from securities on loan.
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 | $33,945 |
Fidelity Securities Lending Cash Central Fund | 8,616 |
Total | $42,561 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $769,763,263 | $765,826,107 | $3,937,156 | $-- |
Money Market Funds | 22,657,714 | 22,657,714 | -- | -- |
Total Investments in Securities: | $792,420,977 | $788,483,821 | $3,937,156 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,718,058) — See accompanying schedule: Unaffiliated issuers (cost $628,259,979) | $769,763,262 | |
Fidelity Central Funds (cost $22,657,543) | 22,657,715 | |
Total Investments (cost $650,917,522) | $792,420,977 | |
Cash | 90,045 | |
Receivable for fund shares sold | 3,772,226 | |
Dividends receivable | 566,145 | |
Distributions receivable from Fidelity Central Funds | 11,270 | |
Prepaid expenses | 2,659 | |
Other receivables | 8,500 | |
Total assets | 796,871,822 | |
Liabilities | ||
Payable for investments purchased | $4,414,133 | |
Payable for fund shares redeemed | 2,752,508 | |
Accrued management fee | 352,975 | |
Distribution and service plan fees payable | 215,310 | |
Other affiliated payables | 144,421 | |
Other payables and accrued expenses | 39,405 | |
Collateral on Securities Loaned | 1,746,600 | |
Total liabilities | 9,665,352 | |
Net Assets | $787,206,470 | |
Net Assets consist of: | ||
Paid in capital | $636,776,205 | |
Distributions in excess of net investment income | (208,676) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 9,135,249 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 141,503,692 | |
Net Assets | $787,206,470 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($332,368,394 ÷ 9,030,547 shares) | $36.80 | |
Maximum offering price per share (100/94.25 of $36.80) | $39.05 | |
Class T: | ||
Net Asset Value and redemption price per share ($94,142,905 ÷ 2,613,635 shares) | $36.02 | |
Maximum offering price per share (100/96.50 of $36.02) | $37.33 | |
Class C: | ||
Net Asset Value and offering price per share ($131,011,598 ÷ 3,941,002 shares)(a) | $33.24 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($229,683,573 ÷ 5,948,651 shares) | $38.61 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $5,504,332 | |
Income from Fidelity Central Funds (including $8,616 from security lending) | 42,561 | |
Total income | 5,546,893 | |
Expenses | ||
Management fee | $1,777,944 | |
Transfer agent fees | 643,934 | |
Distribution and service plan fees | 1,144,888 | |
Accounting and security lending fees | 118,372 | |
Custodian fees and expenses | 19,003 | |
Independent trustees' fees and expenses | 6,717 | |
Registration fees | 68,732 | |
Audit | 24,405 | |
Legal | 4,950 | |
Miscellaneous | 3,910 | |
Total expenses before reductions | 3,812,855 | |
Expense reductions | (15,783) | 3,797,072 |
Net investment income (loss) | 1,749,821 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 22,313,259 | |
Fidelity Central Funds | 1,510 | |
Foreign currency transactions | 4,608 | |
Total net realized gain (loss) | 22,319,377 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 32,372,865 | |
Assets and liabilities in foreign currencies | 237 | |
Total change in net unrealized appreciation (depreciation) | 32,373,102 | |
Net gain (loss) | 54,692,479 | |
Net increase (decrease) in net assets resulting from operations | $56,442,300 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,749,821 | $2,171,712 |
Net realized gain (loss) | 22,319,377 | 31,562,905 |
Change in net unrealized appreciation (depreciation) | 32,373,102 | (14,538,627) |
Net increase (decrease) in net assets resulting from operations | 56,442,300 | 19,195,990 |
Distributions to shareholders from net investment income | (2,760,973) | (2,537,760) |
Distributions to shareholders from net realized gain | (36,711,196) | (58,090,566) |
Total distributions | (39,472,169) | (60,628,326) |
Share transactions - net increase (decrease) | 166,369,263 | (131,906,280) |
Redemption fees | 14,879 | 15,383 |
Total increase (decrease) in net assets | 183,354,273 | (173,323,233) |
Net Assets | ||
Beginning of period | 603,852,197 | 777,175,430 |
End of period | $787,206,470 | $603,852,197 |
Other Information | ||
Undistributed net investment income end of period | $– | $802,476 |
Distributions in excess of net investment income end of period | $(208,676) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $35.52 | $37.06 | $36.92 | $34.50 | $26.18 | $25.73 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .15 | .17 | .13 | .23 | .20 |
Net realized and unrealized gain (loss) | 3.22 | 1.34 | 2.76 | 4.01 | 8.33 | .61 |
Total from investment operations | 3.34 | 1.49 | 2.93 | 4.14 | 8.56 | .81 |
Distributions from net investment income | (.16) | (.14) | (.11) | (.15) | (.24) | (.11) |
Distributions from net realized gain | (1.90) | (2.89) | (2.68) | (1.58) | – | (.25) |
Total distributions | (2.06) | (3.03) | (2.79) | (1.72)B | (.24) | (.36) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $36.80 | $35.52 | $37.06 | $36.92 | $34.50 | $26.18 |
Total ReturnD,E,F | 9.38% | 5.04% | 8.17% | 12.52% | 32.92% | 3.42% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.08%I | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
Expenses net of fee waivers, if any | 1.07%I | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
Expenses net of all reductions | 1.07%I | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
Net investment income (loss) | .64%I | .45% | .46% | .37% | .77% | .80% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $332,368 | $279,055 | $333,405 | $378,826 | $271,512 | $192,038 |
Portfolio turnover rateJ | 52%I | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $34.77 | $36.35 | $36.29 | $33.93 | $25.75 | $25.33 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .06 | .07 | .04 | .15 | .13 |
Net realized and unrealized gain (loss) | 3.16 | 1.31 | 2.71 | 3.95 | 8.20 | .61 |
Total from investment operations | 3.23 | 1.37 | 2.78 | 3.99 | 8.35 | .74 |
Distributions from net investment income | (.08) | (.06) | (.05) | (.06) | (.17) | (.07) |
Distributions from net realized gain | (1.90) | (2.89) | (2.67) | (1.58) | – | (.25) |
Total distributions | (1.98) | (2.95) | (2.72) | (1.63)B | (.17) | (.32) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $36.02 | $34.77 | $36.35 | $36.29 | $33.93 | $25.75 |
Total ReturnD,E,F | 9.27% | 4.74% | 7.88% | 12.27% | 32.60% | 3.15% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.33%I | 1.33% | 1.33% | 1.33% | 1.37% | 1.40% |
Expenses net of fee waivers, if any | 1.33%I | 1.33% | 1.32% | 1.33% | 1.37% | 1.40% |
Expenses net of all reductions | 1.33%I | 1.32% | 1.32% | 1.33% | 1.36% | 1.39% |
Net investment income (loss) | .38%I | .19% | .20% | .12% | .52% | .54% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $94,143 | $79,196 | $88,116 | $90,509 | $79,172 | $63,954 |
Portfolio turnover rateJ | 52%I | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.24 | $34.02 | $34.13 | $32.08 | $24.38 | $24.07 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.02) | (.09) | (.10) | (.13) | .01 | .01 |
Net realized and unrealized gain (loss) | 2.92 | 1.20 | 2.54 | 3.73 | 7.75 | .58 |
Total from investment operations | 2.90 | 1.11 | 2.44 | 3.60 | 7.76 | .59 |
Distributions from net investment income | – | – | – | – | (.06) | (.03) |
Distributions from net realized gain | (1.90) | (2.89) | (2.55) | (1.55) | – | (.25) |
Total distributions | (1.90) | (2.89) | (2.55) | (1.55) | (.06) | (.28) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $33.24 | $32.24 | $34.02 | $34.13 | $32.08 | $24.38 |
Total ReturnC,D,E | 8.97% | 4.25% | 7.36% | 11.71% | 31.90% | 2.67% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.83%H | 1.82% | 1.82% | 1.83% | 1.87% | 1.89% |
Expenses net of fee waivers, if any | 1.83%H | 1.82% | 1.82% | 1.83% | 1.87% | 1.89% |
Expenses net of all reductions | 1.83%H | 1.81% | 1.81% | 1.83% | 1.86% | 1.88% |
Net investment income (loss) | (.11)%H | (.30)% | (.30)% | (.38)% | .02% | .05% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $131,012 | $112,425 | $141,494 | $147,749 | $89,893 | $66,289 |
Portfolio turnover rateI | 52%H | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.21 | $38.67 | $38.42 | $35.83 | $27.18 | $26.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17 | .25 | .28 | .25 | .33 | .28 |
Net realized and unrealized gain (loss) | 3.39 | 1.42 | 2.87 | 4.16 | 8.64 | .63 |
Total from investment operations | 3.56 | 1.67 | 3.15 | 4.41 | 8.97 | .91 |
Distributions from net investment income | (.25) | (.24) | (.22) | (.24) | (.32) | (.17) |
Distributions from net realized gain | (1.90) | (2.89) | (2.68) | (1.58) | – | (.25) |
Total distributions | (2.16)B | (3.13) | (2.90) | (1.82) | (.32) | (.42) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $38.61 | $37.21 | $38.67 | $38.42 | $35.83 | $27.18 |
Total ReturnD,E | 9.54% | 5.33% | 8.45% | 12.82% | 33.28% | 3.72% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .81%H | .80% | .80% | .81% | .84% | .85% |
Expenses net of fee waivers, if any | .81%H | .80% | .80% | .81% | .84% | .85% |
Expenses net of all reductions | .80%H | .79% | .79% | .81% | .83% | .85% |
Net investment income (loss) | .91%H | .72% | .72% | .64% | 1.04% | 1.08% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $229,684 | $133,176 | $207,462 | $242,772 | $84,780 | $42,850 |
Portfolio turnover rateI | 52%H | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.63 per share is comprised of distributions from net investment income of $.254 and distributions from net realized gain of $1.901 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Intel Corp. | 21.8 | 16.7 |
Qualcomm, Inc. | 13.8 | 12.7 |
Broadcom Ltd. | 8.0 | 8.4 |
Analog Devices, Inc. | 6.3 | 3.5 |
Applied Materials, Inc. | 4.5 | 4.5 |
Micron Technology, Inc. | 4.3 | 2.9 |
NXP Semiconductors NV | 4.2 | 3.7 |
Marvell Technology Group Ltd. | 3.5 | 1.0 |
ON Semiconductor Corp. | 3.4 | 4.7 |
Maxim Integrated Products, Inc. | 3.2 | 4.0 |
73.0 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Semiconductors & Semiconductor Equipment | 90.1% | |
Electronic Equipment & Components | 3.1% | |
Internet Software & Services | 2.1% | |
Technology Hardware, Storage & Peripherals | 0.8% | |
Commercial Services & Supplies | 0.7% | |
All Others* | 3.2% |
As of July 31, 2016 | ||
Semiconductors & Semiconductor Equipment | 75.0% | |
Diversified Financial Services | 8.4% | |
Electronic Equipment & Components | 7.6% | |
Technology Hardware, Storage & Peripherals | 2.2% | |
Commercial Services & Supplies | 0.8% | |
All Others* | 6.0% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Semiconductors Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
Biotechnology - 0.0% | |||
Biotechnology - 0.0% | |||
Arrowhead Pharmaceuticals, Inc. warrants 5/21/17 (a) | 64,879 | $1 | |
Commercial Services & Supplies - 0.7% | |||
Office Services & Supplies - 0.7% | |||
West Corp. | 47,600 | 1,155,252 | |
Communications Equipment - 0.3% | |||
Communications Equipment - 0.3% | |||
Parrot SA (a)(b) | 31,300 | 292,269 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 52,800 | 310,992 | |
603,261 | |||
Electronic Equipment & Components - 3.1% | |||
Electronic Manufacturing Services - 2.3% | |||
Jabil Circuit, Inc. | 170,476 | 4,088,014 | |
Technology Distributors - 0.8% | |||
Avnet, Inc. | 17,300 | 803,412 | |
Tech Data Corp. (a) | 6,300 | 539,028 | |
1,342,440 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 5,430,454 | ||
Internet Software & Services - 2.1% | |||
Internet Software & Services - 2.1% | |||
Alphabet, Inc. Class A (a) | 4,460 | 3,658,047 | |
IT Services - 0.0% | |||
Data Processing & Outsourced Services - 0.0% | |||
EVERTEC, Inc. | 5,700 | 97,185 | |
Semiconductors & Semiconductor Equipment - 90.1% | |||
Semiconductor Equipment - 6.7% | |||
Applied Materials, Inc. | 231,100 | 7,915,175 | |
Lam Research Corp. | 29,781 | 3,420,646 | |
PDF Solutions, Inc. (a) | 12,600 | 283,626 | |
Xcerra Corp. (a) | 21,900 | 166,002 | |
11,785,449 | |||
Semiconductors - 83.4% | |||
Acacia Communications, Inc. | 5,500 | 319,935 | |
Advanced Micro Devices, Inc. (a) | 39,000 | 404,430 | |
Ambarella, Inc. (a) | 5,700 | 282,777 | |
ams AG | 24,330 | 834,726 | |
Analog Devices, Inc. | 148,728 | 11,145,676 | |
Broadcom Ltd. | 70,200 | 14,004,900 | |
Cavium, Inc. (a) | 30,925 | 2,047,544 | |
Cree, Inc. (a)(b) | 58,800 | 1,621,704 | |
Cypress Semiconductor Corp. (b) | 64,000 | 755,200 | |
Dialog Semiconductor PLC (a) | 13,000 | 602,739 | |
Diodes, Inc. (a) | 36,300 | 903,507 | |
Himax Technologies, Inc. sponsored ADR (b) | 118,300 | 611,611 | |
Integrated Device Technology, Inc. (a) | 34,700 | 874,093 | |
Intel Corp. | 1,042,878 | 38,398,769 | |
Marvell Technology Group Ltd. | 416,700 | 6,196,329 | |
Maxim Integrated Products, Inc. | 124,922 | 5,556,531 | |
Mellanox Technologies Ltd. (a) | 43,100 | 2,040,785 | |
Microchip Technology, Inc. | 36,500 | 2,458,275 | |
Micron Technology, Inc. (a) | 311,812 | 7,517,787 | |
NVIDIA Corp. | 33,923 | 3,703,713 | |
NXP Semiconductors NV (a) | 74,791 | 7,318,299 | |
ON Semiconductor Corp. (a) | 449,500 | 5,987,340 | |
Qorvo, Inc. (a) | 48,550 | 3,117,396 | |
Qualcomm, Inc. | 452,826 | 24,194,493 | |
Semtech Corp. (a) | 98,822 | 3,256,185 | |
Skyworks Solutions, Inc. | 20,100 | 1,843,974 | |
Synaptics, Inc. (a) | 11,700 | 659,646 | |
146,658,364 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 158,443,813 | ||
Technology Hardware, Storage & Peripherals - 0.8% | |||
Technology Hardware, Storage & Peripherals - 0.8% | |||
Cray, Inc. (a) | 11,700 | 200,655 | |
Lenovo Group Ltd. | 1,336,000 | 875,104 | |
Nimble Storage, Inc. (a) | 36,700 | 314,519 | |
1,390,278 | |||
TOTAL COMMON STOCKS | |||
(Cost $144,696,583) | 170,778,291 | ||
Money Market Funds - 3.7% | |||
Fidelity Cash Central Fund, 0.62% (c) | 5,575,300 | 5,576,415 | |
Fidelity Securities Lending Cash Central Fund 0.65% (c)(d) | 883,601 | 883,778 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $6,459,616) | 6,460,193 | ||
TOTAL INVESTMENT PORTFOLIO - 100.8% | |||
(Cost $151,156,199) | 177,238,484 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (1,359,055) | ||
NET ASSETS - 100% | $175,879,429 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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.
(d) Investment made with cash collateral received from securities on loan.
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 | $17,389 |
Fidelity Securities Lending Cash Central Fund | 5,939 |
Total | $23,328 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $170,778,291 | $169,903,186 | $875,105 | $-- |
Money Market Funds | 6,460,193 | 6,460,193 | -- | -- |
Total Investments in Securities: | $177,238,484 | $176,363,379 | $875,105 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.0% |
Singapore | 8.0% |
Netherlands | 4.2% |
Bermuda | 3.5% |
Israel | 1.2% |
Others (Individually Less Than 1%) | 2.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $868,310) — See accompanying schedule: Unaffiliated issuers (cost $144,696,583) | $170,778,291 | |
Fidelity Central Funds (cost $6,459,616) | 6,460,193 | |
Total Investments (cost $151,156,199) | $177,238,484 | |
Receivable for investments sold | 1,837,421 | |
Receivable for fund shares sold | 1,329,615 | |
Dividends receivable | 5,989 | |
Distributions receivable from Fidelity Central Funds | 5,393 | |
Prepaid expenses | 373 | |
Other receivables | 2,591 | |
Total assets | 180,419,866 | |
Liabilities | ||
Payable for investments purchased | $2,396,727 | |
Payable for fund shares redeemed | 1,062,024 | |
Accrued management fee | 77,493 | |
Distribution and service plan fees payable | 46,000 | |
Other affiliated payables | 34,563 | |
Other payables and accrued expenses | 40,060 | |
Collateral on Securities Loaned | 883,570 | |
Total liabilities | 4,540,437 | |
Net Assets | $175,879,429 | |
Net Assets consist of: | ||
Paid in capital | $148,444,102 | |
Distributions in excess of net investment income | (195,977) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,549,024 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 26,082,280 | |
Net Assets | $175,879,429 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($60,135,888 ÷ 3,083,765 shares) | $19.50 | |
Maximum offering price per share (100/94.25 of $19.50) | $20.69 | |
Class T: | ||
Net Asset Value and redemption price per share ($15,704,658 ÷ 834,601 shares) | $18.82 | |
Maximum offering price per share (100/96.50 of $18.82) | $19.50 | |
Class C: | ||
Net Asset Value and offering price per share ($34,267,903 ÷ 1,976,557 shares)(a) | $17.34 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($65,770,980 ÷ 3,229,058 shares) | $20.37 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $1,003,104 | |
Income from Fidelity Central Funds (including $5,939 from security lending) | 23,328 | |
Total income | 1,026,432 | |
Expenses | ||
Management fee | $381,868 | |
Transfer agent fees | 158,031 | |
Distribution and service plan fees | 226,033 | |
Accounting and security lending fees | 27,330 | |
Custodian fees and expenses | 31,578 | |
Independent trustees' fees and expenses | 1,352 | |
Registration fees | 56,188 | |
Audit | 24,948 | |
Legal | 1,123 | |
Miscellaneous | 716 | |
Total expenses before reductions | 909,167 | |
Expense reductions | (2,553) | 906,614 |
Net investment income (loss) | 119,818 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,735,292 | |
Fidelity Central Funds | 1,447 | |
Foreign currency transactions | (1,435) | |
Total net realized gain (loss) | 7,735,304 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 14,049,540 | |
Assets and liabilities in foreign currencies | (6) | |
Total change in net unrealized appreciation (depreciation) | 14,049,534 | |
Net gain (loss) | 21,784,838 | |
Net increase (decrease) in net assets resulting from operations | $21,904,656 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $119,818 | $387,499 |
Net realized gain (loss) | 7,735,304 | (4,788,377) |
Change in net unrealized appreciation (depreciation) | 14,049,534 | 18,061,121 |
Net increase (decrease) in net assets resulting from operations | 21,904,656 | 13,660,243 |
Distributions to shareholders from net investment income | (392,429) | (300,751) |
Distributions to shareholders from net realized gain | (190,780) | (8,936,630) |
Total distributions | (583,209) | (9,237,381) |
Share transactions - net increase (decrease) | 63,800,096 | (19,868,592) |
Redemption fees | 9,827 | 3,897 |
Total increase (decrease) in net assets | 85,131,370 | (15,441,833) |
Net Assets | ||
Beginning of period | 90,748,059 | 106,189,892 |
End of period | $175,879,429 | $90,748,059 |
Other Information | ||
Undistributed net investment income end of period | $– | $76,634 |
Distributions in excess of net investment income end of period | $(195,977) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Semiconductors Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.50 | $15.29 | $13.86 | $10.33 | $8.45 | $8.93 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .09 | .03 | (.02) | (.01) | (.05) |
Net realized and unrealized gain (loss) | 3.05 | 2.67 | 1.48 | 3.55 | 1.89 | (.43) |
Total from investment operations | 3.07 | 2.76 | 1.51 | 3.53 | 1.88 | (.48) |
Distributions from net investment income | (.05) | (.05) | (.01) | – | – | – |
Distributions from net realized gain | (.02) | (1.49) | (.07) | – | – | – |
Total distributions | (.07) | (1.55)B | (.08) | – | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $19.50 | $16.50 | $15.29 | $13.86 | $10.33 | $8.45 |
Total ReturnD,E,F | 18.62% | 20.46% | 10.85% | 34.17% | 22.25% | (5.38)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.24%I | 1.31% | 1.28% | 1.84% | 2.18% | 1.88% |
Expenses net of fee waivers, if any | 1.24%I | 1.31% | 1.28% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.24%I | 1.28% | 1.27% | 1.39% | 1.37% | 1.39% |
Net investment income (loss) | .24%I | .61% | .20% | (.16)% | (.07)% | (.53)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $60,136 | $34,066 | $38,237 | $16,542 | $5,833 | $6,000 |
Portfolio turnover rateJ | 108%I | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.55 per share is comprised of distributions from net investment income of $.053 and distributions from net realized gain of $1.494 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Semiconductors Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.91 | $14.81 | $13.45 | $10.05 | $8.24 | $8.73 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .04 | (.02) | (.05) | (.03) | (.07) |
Net realized and unrealized gain (loss) | 2.94 | 2.57 | 1.44 | 3.45 | 1.84 | (.42) |
Total from investment operations | 2.93 | 2.61 | 1.42 | 3.40 | 1.81 | (.49) |
Distributions from net investment income | – | (.04) | – | – | – | – |
Distributions from net realized gain | (.02) | (1.47) | (.06) | – | – | – |
Total distributions | (.02) | (1.51) | (.06) | – | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $18.82 | $15.91 | $14.81 | $13.45 | $10.05 | $8.24 |
Total ReturnC,D,E | 18.45% | 20.01% | 10.55% | 33.83% | 21.97% | (5.61)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.59%H | 1.65% | 1.62% | 2.19% | 2.48% | 2.23% |
Expenses net of fee waivers, if any | 1.59%H | 1.65% | 1.62% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.59%H | 1.62% | 1.61% | 1.64% | 1.62% | 1.64% |
Net investment income (loss) | (.11)%H | .27% | (.14)% | (.42)% | (.32)% | (.78)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $15,705 | $9,766 | $10,826 | $7,144 | $3,756 | $3,909 |
Portfolio turnover rateI | 108%H | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Semiconductors Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.69 | $13.80 | $12.58 | $9.44 | $7.78 | $8.29 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | (.02) | (.08) | (.10) | (.07) | (.10) |
Net realized and unrealized gain (loss) | 2.71 | 2.37 | 1.34 | 3.24 | 1.73 | (.41) |
Total from investment operations | 2.67 | 2.35 | 1.26 | 3.14 | 1.66 | (.51) |
Distributions from net investment income | – | (.02) | – | – | – | – |
Distributions from net realized gain | (.02) | (1.44) | (.04) | – | – | – |
Total distributions | (.02) | (1.46) | (.04) | – | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $17.34 | $14.69 | $13.80 | $12.58 | $9.44 | $7.78 |
Total ReturnC,D,E | 18.21% | 19.48% | 10.03% | 33.26% | 21.34% | (6.15)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 2.02%H | 2.08% | 2.06% | 2.60% | 2.93% | 2.65% |
Expenses net of fee waivers, if any | 2.02%H | 2.08% | 2.06% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.02%H | 2.05% | 2.05% | 2.14% | 2.12% | 2.14% |
Net investment income (loss) | (.54)%H | (.16)% | (.58)% | (.91)% | (.82)% | (1.28)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $34,268 | $21,088 | $20,864 | $7,381 | $3,157 | $3,721 |
Portfolio turnover rateI | 108%H | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Semiconductors Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.24 | $15.89 | $14.37 | $10.68 | $8.72 | $9.19 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .14 | .08 | .01 | .02 | (.02) |
Net realized and unrealized gain (loss) | 3.19 | 2.79 | 1.53 | 3.68 | 1.94 | (.45) |
Total from investment operations | 3.24 | 2.93 | 1.61 | 3.69 | 1.96 | (.47) |
Distributions from net investment income | (.09) | (.09) | (.02) | – | – | – |
Distributions from net realized gain | (.02) | (1.49) | (.07) | – | – | – |
Total distributions | (.11) | (1.58) | (.09) | – | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $20.37 | $17.24 | $15.89 | $14.37 | $10.68 | $8.72 |
Total ReturnC,D | 18.84% | 20.85% | 11.17% | 34.55% | 22.48% | (5.11)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .94%G | .98% | .98% | 1.34% | 1.86% | 1.55% |
Expenses net of fee waivers, if any | .94%G | .98% | .98% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | .94%G | .95% | .96% | 1.14% | 1.12% | 1.14% |
Net investment income (loss) | .54%G | .94% | .51% | .08% | .18% | (.28)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $65,771 | $25,827 | $35,943 | $25,050 | $2,874 | $3,271 |
Portfolio turnover rateH | 108%G | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 9.3 | 10.5 |
Alphabet, Inc. Class C | 5.6 | 6.0 |
Alphabet, Inc. Class A | 5.5 | 5.5 |
Facebook, Inc. Class A | 4.6 | 6.5 |
Microsoft Corp. | 4.4 | 4.5 |
Tesla Motors, Inc. | 3.5 | 1.7 |
Autodesk, Inc. | 3.5 | 1.3 |
Trimble, Inc. | 2.4 | 2.0 |
Sumco Corp. | 2.1 | 0.0 |
JD.com, Inc. sponsored ADR | 2.0 | 0.2 |
42.9 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Internet Software & Services | 22.7% | |
Semiconductors & Semiconductor Equipment | 18.8% | |
Software | 17.2% | |
Technology Hardware, Storage & Peripherals | 9.8% | |
Electronic Equipment & Components | 8.9% | |
All Others* | 22.6% |
As of July 31, 2016 | ||
Internet Software & Services | 27.2% | |
Software | 17.9% | |
Semiconductors & Semiconductor Equipment | 17.7% | |
Technology Hardware, Storage & Peripherals | 10.9% | |
IT Services | 5.3% | |
All Others* | 21.0% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Technology Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value | ||
Automobiles - 3.5% | |||
Automobile Manufacturers - 3.5% | |||
Tesla Motors, Inc. (a)(b) | 159,009 | $40,059,137 | |
Biotechnology - 0.1% | |||
Biotechnology - 0.1% | |||
BeiGene Ltd. ADR (a) | 38,700 | 1,348,308 | |
Genscript Biotech Corp. (b) | 366,000 | 163,917 | |
Samsung Biologics Co. Ltd. (b) | 656 | 91,710 | |
1,603,935 | |||
Capital Markets - 0.3% | |||
Diversified Capital Markets - 0.1% | |||
Lens Technology Co. Ltd. ELS (UBS Warrant Programme) warrants 9/25/17 (b)(c) | 408,320 | 1,523,713 | |
Financial Exchanges & Data - 0.2% | |||
MSCI, Inc. | 22,100 | 1,828,775 | |
TOTAL CAPITAL MARKETS | 3,352,488 | ||
Chemicals - 1.4% | |||
Industrial Gases - 0.6% | |||
SK Materials Co., Ltd. | 34,918 | 6,045,882 | |
Wonik Materials Co. Ltd. (b) | 11,697 | 652,071 | |
6,697,953 | |||
Specialty Chemicals - 0.8% | |||
Duk San Neolux Co. Ltd. (b) | 119,849 | 2,757,817 | |
Nitto Denko Corp. | 9,500 | 752,444 | |
Shin-Etsu Chemical Co. Ltd. | 37,100 | 3,202,672 | |
Soulbrain Co. Ltd. | 67,624 | 3,170,880 | |
9,883,813 | |||
TOTAL CHEMICALS | 16,581,766 | ||
Commercial Services & Supplies - 0.6% | |||
Commercial Printing - 0.6% | |||
Nissha Printing Co. Ltd. (a) | 264,900 | 7,272,961 | |
Communications Equipment - 0.7% | |||
Communications Equipment - 0.7% | |||
Arista Networks, Inc. (b) | 62,800 | 5,903,200 | |
Ciena Corp. (b) | 500 | 12,170 | |
CommScope Holding Co., Inc. (b) | 48,600 | 1,838,052 | |
Palo Alto Networks, Inc. (b) | 100 | 14,756 | |
Radware Ltd. (b) | 410 | 6,023 | |
Wistron NeWeb Corp. | 186,610 | 534,872 | |
8,309,073 | |||
Consumer Finance - 0.0% | |||
Consumer Finance - 0.0% | |||
LendingClub Corp. (b) | 500 | 3,085 | |
Diversified Consumer Services - 1.6% | |||
Education Services - 1.6% | |||
China Online Education Group sponsored ADR (b) | 6,559 | 96,548 | |
New Oriental Education & Technology Group, Inc. sponsored ADR (b) | 224,100 | 10,655,955 | |
TAL Education Group ADR (a)(b) | 87,707 | 7,103,390 | |
17,855,893 | |||
Specialized Consumer Services - 0.0% | |||
LifeLock, Inc. (b) | 567 | 13,585 | |
ZTO Express (Cayman), Inc. sponsored ADR (a) | 8,400 | 104,748 | |
118,333 | |||
TOTAL DIVERSIFIED CONSUMER SERVICES | 17,974,226 | ||
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
GDS Holdings Ltd. ADR | 239,500 | 1,978,270 | |
Electrical Equipment - 0.8% | |||
Electrical Components & Equipment - 0.8% | |||
Acuity Brands, Inc. | 27,100 | 5,615,933 | |
Lumenpulse, Inc. (b) | 15,100 | 206,787 | |
Nidec Corp. | 100 | 9,397 | |
Rockwell Automation, Inc. | 19,900 | 2,945,001 | |
8,777,118 | |||
Electronic Equipment & Components - 8.9% | |||
Electronic Components - 3.1% | |||
Alps Electric Co. Ltd. | 325,000 | 8,678,372 | |
Chunghwa Precision Test Tech Co. Ltd. | 29,000 | 1,032,045 | |
Iriso Electronics Co. Ltd. | 46,500 | 2,602,781 | |
Knowles Corp. (b) | 64,000 | 1,153,280 | |
Largan Precision Co. Ltd. | 73,000 | 10,415,030 | |
Ledlink Optics, Inc. | 579,628 | 832,540 | |
Lens Technology Co. Ltd. Class A | 771,337 | 2,878,370 | |
Murata Manufacturing Co. Ltd. | 100 | 13,511 | |
Samsung SDI Co. Ltd. | 5,990 | 600,750 | |
Sunny Optical Technology Group Co. Ltd. | 304,100 | 1,781,877 | |
Tong Hsing Electronics Industries Ltd. | 52,000 | 197,560 | |
Universal Display Corp. (b) | 27,512 | 1,815,792 | |
Yageo Corp. | 1,368,641 | 3,334,885 | |
Yaskawa Electric Corp. | 800 | 14,461 | |
35,351,254 | |||
Electronic Equipment & Instruments - 2.2% | |||
Chroma ATE, Inc. | 2,727,173 | 7,161,010 | |
Cognex Corp. | 71,400 | 4,823,784 | |
Hexagon AB (B Shares) | 138,200 | 5,466,635 | |
National Instruments Corp. | 90,400 | 2,840,368 | |
Topcon Corp. | 327,100 | 5,029,188 | |
25,320,985 | |||
Electronic Manufacturing Services - 2.5% | |||
AAC Technology Holdings, Inc. | 110,500 | 1,134,801 | |
Trimble, Inc. (b) | 943,596 | 27,949,314 | |
29,084,115 | |||
Technology Distributors - 1.1% | |||
Dell Technologies, Inc. (b) | 192,060 | 12,097,859 | |
Digital China Holdings Ltd. (H Shares) | 16,000 | 13,978 | |
12,111,837 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 101,868,191 | ||
Health Care Equipment & Supplies - 0.1% | |||
Health Care Equipment - 0.1% | |||
Intai Technology Corp. | 254,000 | 1,233,741 | |
Olympus Corp. | 3,100 | 106,939 | |
1,340,680 | |||
Health Care Providers & Services - 0.0% | |||
Managed Health Care - 0.0% | |||
HealthEquity, Inc. (b) | 7,900 | 365,375 | |
Health Care Technology - 1.4% | |||
Health Care Technology - 1.4% | |||
athenahealth, Inc. (b) | 48,994 | 6,172,754 | |
Inovalon Holdings, Inc. Class A (a)(b) | 234,300 | 2,706,165 | |
M3, Inc. | 21,600 | 579,648 | |
Medidata Solutions, Inc. (b) | 103,800 | 5,142,252 | |
Veeva Systems, Inc. Class A (b) | 28,600 | 1,210,638 | |
15,811,457 | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Casinos & Gaming - 0.1% | |||
500.com Ltd. sponsored ADR Class A (a)(b) | 126,000 | 1,689,660 | |
Hotels, Resorts & Cruise Lines - 0.1% | |||
Tuniu Corp. Class A sponsored ADR (a)(b) | 72,008 | 652,392 | |
TOTAL HOTELS, RESTAURANTS & LEISURE | 2,342,052 | ||
Household Durables - 1.2% | |||
Consumer Electronics - 1.2% | |||
Sony Corp. | 217,700 | 6,591,466 | |
Sony Corp. sponsored ADR (a) | 234,800 | 7,107,396 | |
13,698,862 | |||
Industrial Conglomerates - 0.0% | |||
Industrial Conglomerates - 0.0% | |||
Toshiba Corp. (b) | 3,000 | 6,438 | |
Internet & Direct Marketing Retail - 3.9% | |||
Internet & Direct Marketing Retail - 3.9% | |||
Amazon.com, Inc. (b) | 21,100 | 17,375,428 | |
Ctrip.com International Ltd. ADR (b) | 2,500 | 108,025 | |
Groupon, Inc. Class A (b) | 109,500 | 377,775 | |
JD.com, Inc. sponsored ADR (b) | 798,100 | 22,666,040 | |
Jumei International Holding Ltd. sponsored ADR (b) | 231,453 | 999,877 | |
Liberty Interactive Corp. QVC Group Series A (b) | 209 | 4,009 | |
MySale Group PLC (b) | 13,500 | 20,231 | |
Netflix, Inc. (b) | 100 | 14,071 | |
Vipshop Holdings Ltd. ADR (b) | 258,200 | 2,922,824 | |
44,488,280 | |||
Internet Software & Services - 21.7% | |||
Internet Software & Services - 21.7% | |||
58.com, Inc. ADR (a)(b) | 219,100 | 6,393,338 | |
Akamai Technologies, Inc. (b) | 200 | 13,718 | |
Alarm.com Holdings, Inc. (b) | 3,700 | 100,233 | |
Alphabet, Inc.: | |||
Class A (b) | 76,987 | 63,143,968 | |
Class C (b) | 80,055 | 63,787,023 | |
Apptio, Inc. Class A | 1,700 | 23,528 | |
Benefitfocus, Inc. (b) | 32,889 | 994,892 | |
Bitauto Holdings Ltd. ADR (a)(b) | 21,200 | 413,400 | |
Box, Inc. Class A (b) | 40,800 | 696,456 | |
Cornerstone OnDemand, Inc. (b) | 2,532 | 103,027 | |
CoStar Group, Inc. (b) | 56,000 | 11,317,600 | |
DeNA Co. Ltd. | 324,320 | 7,264,239 | |
eBay, Inc. (b) | 8,500 | 270,555 | |
eGain Communications Corp. (b) | 44,650 | 102,695 | |
Endurance International Group Holdings, Inc. (a)(b) | 457,000 | 3,518,900 | |
Envestnet, Inc. (b) | 145 | 5,481 | |
Facebook, Inc. Class A (b) | 399,711 | 52,090,338 | |
Fang Holdings Ltd. ADR | 2,000 | 7,620 | |
Hortonworks, Inc. (a)(b) | 144,800 | 1,404,560 | |
LogMeIn, Inc. (a) | 11,800 | 1,275,580 | |
MINDBODY, Inc. (b) | 47,900 | 1,166,365 | |
NetEase, Inc. ADR | 47,300 | 12,009,470 | |
New Relic, Inc. (b) | 89,000 | 3,221,800 | |
Nutanix, Inc. Class B | 39,963 | 1,149,196 | |
Q2 Holdings, Inc. (b) | 525 | 16,669 | |
Renren, Inc. ADR (a)(b) | 190,200 | 317,634 | |
Shopify, Inc. (b) | 1,600 | 81,312 | |
Shopify, Inc. Class A (b) | 22,800 | 1,158,696 | |
SINA Corp. | 15,298 | 1,066,577 | |
SMS Co., Ltd. | 301,800 | 7,232,936 | |
Tencent Holdings Ltd. | 64,600 | 1,688,992 | |
The Trade Desk, Inc. (a) | 1,300 | 38,558 | |
Twilio, Inc. Class A | 4,000 | 115,320 | |
Twitter, Inc. (b) | 19,400 | 341,828 | |
Web.com Group, Inc. (b) | 40,942 | 775,851 | |
Weibo Corp. sponsored ADR (b) | 229 | 11,042 | |
Xunlei Ltd. sponsored ADR (b) | 420,444 | 1,618,709 | |
Yahoo!, Inc. (b) | 58,323 | 2,570,295 | |
Zillow Group, Inc.: | |||
Class A (b) | 510 | 18,350 | |
Class C (b) | 520 | 18,398 | |
247,545,149 | |||
IT Services - 2.2% | |||
Data Processing & Outsourced Services - 2.1% | |||
Alliance Data Systems Corp. | 6,560 | 1,498,173 | |
Fidelity National Information Services, Inc. | 18,295 | 1,452,989 | |
Fiserv, Inc. (b) | 55,100 | 5,919,393 | |
FleetCor Technologies, Inc. (b) | 700 | 103,243 | |
Global Payments, Inc. | 68,300 | 5,278,224 | |
PayPal Holdings, Inc. (b) | 2,800 | 111,384 | |
Paysafe Group PLC (b) | 984,600 | 4,730,316 | |
Total System Services, Inc. | 38,153 | 1,933,594 | |
Vantiv, Inc. (b) | 45,100 | 2,807,024 | |
Visa, Inc. Class A | 1,400 | 115,794 | |
23,950,134 | |||
IT Consulting & Other Services - 0.1% | |||
Cognizant Technology Solutions Corp. Class A (b) | 1,694 | 89,087 | |
CSRA, Inc. | 38,400 | 1,191,168 | |
EPAM Systems, Inc. (b) | 161 | 10,362 | |
Virtusa Corp. (b) | 300 | 7,644 | |
1,298,261 | |||
TOTAL IT SERVICES | 25,248,395 | ||
Leisure Products - 0.1% | |||
Leisure Products - 0.1% | |||
Bandai Namco Holdings, Inc. | 36,700 | 1,010,867 | |
Life Sciences Tools & Services - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
JHL Biotech, Inc. (b) | 387,462 | 881,123 | |
Machinery - 0.5% | |||
Industrial Machinery - 0.5% | |||
Han's Laser Technology Industry Group Co. Ltd. | 803,000 | 2,614,959 | |
Harmonic Drive Systems, Inc. (a) | 26,900 | 811,217 | |
HIWIN Technologies Corp. | 204,000 | 1,053,013 | |
King Slide Works Co. Ltd. | 20,000 | 267,069 | |
Minebea Mitsumi, Inc. | 50,700 | 505,159 | |
5,251,417 | |||
Media - 0.6% | |||
Advertising - 0.0% | |||
iCar Asia Ltd. (b) | 1,156,712 | 219,313 | |
Cable & Satellite - 0.5% | |||
Naspers Ltd. Class N | 35,445 | 5,646,813 | |
Publishing - 0.1% | |||
NEXT Co. Ltd. | 15,200 | 102,715 | |
Schibsted ASA (B Shares) | 18,279 | 455,421 | |
558,136 | |||
TOTAL MEDIA | 6,424,262 | ||
Professional Services - 0.5% | |||
Human Resource & Employment Services - 0.4% | |||
51job, Inc. sponsored ADR (b) | 300 | 10,554 | |
Recruit Holdings Co. Ltd. | 46,200 | 2,023,373 | |
WageWorks, Inc. (b) | 28,744 | 2,073,880 | |
4,107,807 | |||
Research & Consulting Services - 0.1% | |||
ICF International, Inc. (b) | 23,400 | 1,216,800 | |
Verisk Analytics, Inc. (b) | 68 | 5,620 | |
1,222,420 | |||
TOTAL PROFESSIONAL SERVICES | 5,330,227 | ||
Semiconductors & Semiconductor Equipment - 18.8% | |||
Semiconductor Equipment - 4.3% | |||
Amkor Technology, Inc. (b) | 94,346 | 887,796 | |
Applied Materials, Inc. | 600 | 20,550 | |
ASM Pacific Technology Ltd. | 333,600 | 4,055,997 | |
EO Technics Co. Ltd. | 1,741 | 128,500 | |
Lam Research Corp. | 69,000 | 7,925,340 | |
Nanometrics, Inc. (b) | 6,609 | 169,917 | |
Rubicon Technology, Inc. (a)(b) | 309,967 | 167,382 | |
Siltronic AG (b) | 126,100 | 6,740,908 | |
SolarEdge Technologies, Inc. (a)(b) | 40,000 | 518,000 | |
Sumco Corp. | 1,547,350 | 24,270,276 | |
SunEdison, Inc. (b) | 500 | 38 | |
Tessera Holding Corp. | 81,600 | 3,688,320 | |
48,573,024 | |||
Semiconductors - 14.5% | |||
Advanced Micro Devices, Inc. (b) | 329,400 | 3,415,878 | |
Advanced Semiconductor Engineering, Inc. | 8,591,670 | 9,515,166 | |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 883,726 | 5,054,913 | |
Ambarella, Inc. (a)(b) | 38,100 | 1,890,141 | |
ams AG | 192,374 | 6,600,068 | |
ASPEED Tech, Inc. | 104,282 | 1,369,118 | |
Broadcom Ltd. | 72,800 | 14,523,600 | |
Cavium, Inc. (b) | 39,600 | 2,621,916 | |
Chipbond Technology Corp. | 795,000 | 1,155,905 | |
ChipMOS TECHNOLOGIES, Inc. sponsored ADR (a) | 125,652 | 1,933,784 | |
Cirrus Logic, Inc. (b) | 15,814 | 953,900 | |
Dialog Semiconductor PLC (b) | 136,000 | 6,305,575 | |
GlobalWafers Co. Ltd. | 2,318,000 | 10,627,403 | |
Himax Technologies, Inc. sponsored ADR (a) | 513,004 | 2,652,231 | |
Hua Hong Semiconductor Ltd. | 2,282,000 | 2,540,212 | |
Infineon Technologies AG | 6,600 | 121,049 | |
Inphi Corp. (b) | 7,700 | 352,814 | |
Integrated Device Technology, Inc. (b) | 187,300 | 4,718,087 | |
LandMark Optoelectronics Corp. | 87,000 | 769,850 | |
M/A-COM Technology Solutions Holdings, Inc. (a)(b) | 39,200 | 1,863,960 | |
MagnaChip Semiconductor Corp. (b) | 79,954 | 687,604 | |
Marvell Technology Group Ltd. | 809,961 | 12,044,120 | |
Maxim Integrated Products, Inc. | 14,000 | 622,720 | |
Melexis NV | 193 | 14,484 | |
Mellanox Technologies Ltd. (b) | 127,900 | 6,056,065 | |
Micron Technology, Inc. (b) | 565,250 | 13,628,178 | |
Microsemi Corp. (b) | 39,500 | 2,099,425 | |
Monolithic Power Systems, Inc. | 59,601 | 5,199,591 | |
NVIDIA Corp. | 131,050 | 14,308,039 | |
NXP Semiconductors NV (b) | 130,780 | 12,796,823 | |
ON Semiconductor Corp. (b) | 148,600 | 1,979,352 | |
Power Integrations, Inc. | 1,600 | 113,600 | |
Qualcomm, Inc. | 41,850 | 2,236,046 | |
Sanken Electric Co. Ltd. (b) | 269,000 | 1,267,452 | |
Semiconductor Manufacturing International Corp. (b) | 9,000 | 12,341 | |
Semtech Corp. (b) | 227,698 | 7,502,649 | |
Silergy Corp. | 71,000 | 1,081,259 | |
Silicon Laboratories, Inc. (b) | 21,100 | 1,375,720 | |
Silicon Motion Technology Corp. sponsored ADR | 63,888 | 2,498,021 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 49,563 | 376,183 | |
Sitronix Technology Corp. | 164,000 | 495,305 | |
SK Hynix, Inc. | 272 | 12,683 | |
Skyworks Solutions, Inc. | 1,500 | 137,610 | |
STMicroelectronics NV | 1,130 | 14,914 | |
Vanguard International Semiconductor Corp. | 68,000 | 122,743 | |
Xilinx, Inc. | 200 | 11,640 | |
165,680,137 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 214,253,161 | ||
Software - 17.2% | |||
Application Software - 7.4% | |||
8x8, Inc. (b) | 800 | 12,680 | |
Adobe Systems, Inc. (b) | 10,316 | 1,169,628 | |
ANSYS, Inc. (b) | 11,875 | 1,107,463 | |
Aspen Technology, Inc. (b) | 21,100 | 1,120,621 | |
Autodesk, Inc. (b) | 487,000 | 39,612,580 | |
Blackbaud, Inc. | 8,100 | 531,441 | |
Callidus Software, Inc. (b) | 255,159 | 4,707,684 | |
Citrix Systems, Inc. (b) | 6,015 | 548,508 | |
Ellie Mae, Inc. (b) | 33,800 | 2,796,612 | |
Guidewire Software, Inc. (b) | 90 | 4,710 | |
HubSpot, Inc. (b) | 6,900 | 353,970 | |
iFlytek Co. Ltd. | 237,677 | 933,557 | |
Intuit, Inc. | 58,700 | 6,960,646 | |
Kingdee International Software Group Co. Ltd. (b) | 255,800 | 97,383 | |
LINE Corp. ADR (a) | 2,775 | 88,384 | |
Linx SA | 1,500 | 8,587 | |
Mobileye NV (b) | 98,300 | 4,222,968 | |
Parametric Technology Corp. (b) | 300 | 15,771 | |
Paycom Software, Inc. (b) | 600 | 27,744 | |
Paylocity Holding Corp. (b) | 32,600 | 1,006,036 | |
RealPage, Inc. (b) | 5,800 | 177,480 | |
Salesforce.com, Inc. (b) | 96,919 | 7,666,293 | |
Splunk, Inc. (b) | 2,100 | 121,506 | |
SS&C Technologies Holdings, Inc. | 49,800 | 1,600,074 | |
Ultimate Software Group, Inc. (b) | 76 | 14,718 | |
Workday, Inc. Class A (b) | 51,100 | 4,245,899 | |
Workiva, Inc. (b) | 35,900 | 452,340 | |
Zendesk, Inc. (b) | 201,400 | 4,819,502 | |
84,424,785 | |||
Home Entertainment Software - 4.6% | |||
Activision Blizzard, Inc. | 350,170 | 14,080,336 | |
Capcom Co. Ltd. | 125,900 | 2,667,193 | |
Electronic Arts, Inc. (b) | 147,300 | 12,289,239 | |
NCSOFT Corp. | 46 | 12,143 | |
Nexon Co. Ltd. | 35,900 | 547,514 | |
Nintendo Co. Ltd. | 54,300 | 11,114,224 | |
Nintendo Co. Ltd. ADR | 40,200 | 994,146 | |
Square Enix Holdings Co. Ltd. | 206,400 | 5,904,455 | |
Take-Two Interactive Software, Inc. (b) | 98,400 | 5,279,160 | |
52,888,410 | |||
Systems Software - 5.2% | |||
Allot Communications Ltd. (b) | 201,419 | 999,038 | |
CommVault Systems, Inc. (b) | 200 | 9,820 | |
CyberArk Software Ltd. (b) | 19,900 | 1,055,894 | |
Imperva, Inc. (b) | 44,800 | 1,870,400 | |
Microsoft Corp. | 773,400 | 50,000,310 | |
Oracle Corp. | 2,600 | 104,286 | |
Progress Software Corp. | 36,400 | 1,019,928 | |
Proofpoint, Inc. (b) | 28,800 | 2,308,608 | |
Rapid7, Inc. (b) | 1,700 | 21,199 | |
ServiceNow, Inc. (b) | 1,695 | 153,601 | |
Tableau Software, Inc. (b) | 44,600 | 2,133,664 | |
Varonis Systems, Inc. (b) | 600 | 17,940 | |
59,694,688 | |||
TOTAL SOFTWARE | 197,007,883 | ||
Technology Hardware, Storage & Peripherals - 9.8% | |||
Technology Hardware, Storage & Peripherals - 9.8% | |||
Apple, Inc. | 869,029 | 105,456,662 | |
BlackBerry Ltd. (b) | 1,086 | 7,661 | |
HP, Inc. | 3,900 | 58,695 | |
HTC Corp. (b) | 4,000 | 10,170 | |
Nimble Storage, Inc. (b) | 1,300 | 11,141 | |
Samsung Electronics Co. Ltd. | 3,502 | 5,999,684 | |
Stratasys Ltd. (b) | 70 | 1,380 | |
111,545,393 | |||
TOTAL COMMON STOCKS | |||
(Cost $872,382,347) | 1,100,331,271 | ||
Convertible Preferred Stocks - 2.2% | |||
Internet & Direct Marketing Retail - 1.2% | |||
Internet & Direct Marketing Retail - 1.2% | |||
China Internet Plus Holdings Ltd.: | |||
Series A-11 (b)(d) | 1,516,912 | 4,794,807 | |
Series B (b)(d) | 2,042,487 | 9,462,434 | |
14,257,241 | |||
Internet Software & Services - 1.0% | |||
Internet Software & Services - 1.0% | |||
Uber Technologies, Inc. Series D, 8.00% (b)(d) | 232,064 | 11,318,278 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $16,280,181) | 25,575,519 | ||
Money Market Funds - 4.4% | |||
Fidelity Cash Central Fund, 0.62% (e) | 14,108,161 | 14,110,983 | |
Fidelity Securities Lending Cash Central Fund 0.65% (e)(f) | 35,823,779 | 35,830,944 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $49,936,271) | 49,941,927 | ||
TOTAL INVESTMENT PORTFOLIO - 103.0% | |||
(Cost $938,598,799) | 1,175,848,717 | ||
NET OTHER ASSETS (LIABILITIES) - (3.0)% | (34,254,000) | ||
NET ASSETS - 100% | $1,141,594,717 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,523,713 or 0.1% of net assets.
(d) 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 $25,575,519 or 2.2% of net assets.
(e) 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.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $4,794,731 |
China Internet Plus Holdings Ltd. Series B | 12/11/15 | $7,885,430 |
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 | $25,860 |
Fidelity Securities Lending Cash Central Fund | 544,590 |
Total | $570,450 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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 | $1,100,331,271 | $1,053,286,281 | $47,044,990 | $-- |
Convertible Preferred Stocks | 25,575,519 | -- | -- | 25,575,519 |
Money Market Funds | 49,941,927 | 49,941,927 | -- | -- |
Total Investments in Securities: | $1,175,848,717 | $1,103,228,208 | $47,044,990 | $25,575,519 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2017. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $7,376,241 |
Level 2 to Level 1 | $23,720,964 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Convertible Preferred Stocks | |
Beginning Balance | $25,683,073 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 427,810 |
Cost of Purchases | -- |
Proceeds of Sales | (535,364) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $25,575,519 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2017 | $515,469 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 66.7% |
Japan | 9.3% |
Cayman Islands | 9.1% |
Taiwan | 4.6% |
Korea (South) | 1.6% |
Netherlands | 1.5% |
Singapore | 1.3% |
Bermuda | 1.1% |
Others (Individually Less Than 1%) | 4.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $35,072,677) — See accompanying schedule: Unaffiliated issuers (cost $888,662,528) | $1,125,906,791 | |
Fidelity Central Funds (cost $49,936,271) | 49,941,926 | |
Total Investments (cost $938,598,799) | $1,175,848,717 | |
Receivable for investments sold | 4,890,636 | |
Receivable for fund shares sold | 1,386,610 | |
Dividends receivable | 325,565 | |
Distributions receivable from Fidelity Central Funds | 56,772 | |
Prepaid expenses | 6,411 | |
Other receivables | 121,798 | |
Total assets | 1,182,636,509 | |
Liabilities | ||
Payable for investments purchased | $1,598,742 | |
Payable for fund shares redeemed | 2,419,725 | |
Accrued management fee | 508,334 | |
Distribution and service plan fees payable | 335,388 | |
Other affiliated payables | 227,597 | |
Other payables and accrued expenses | 133,611 | |
Collateral on Securities Loaned | 35,818,395 | |
Total liabilities | 41,041,792 | |
Net Assets | $1,141,594,717 | |
Net Assets consist of: | ||
Paid in capital | $761,868,893 | |
Accumulated net investment loss | (1,184,427) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 143,659,456 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 237,250,795 | |
Net Assets | $1,141,594,717 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($523,361,144 ÷ 12,590,784 shares) | $41.57 | |
Maximum offering price per share (100/94.25 of $41.57) | $44.11 | |
Class T: | ||
Net Asset Value and redemption price per share ($217,822,430 ÷ 5,495,388 shares) | $39.64 | |
Maximum offering price per share (100/96.50 of $39.64) | $41.08 | |
Class C: | ||
Net Asset Value and offering price per share ($171,921,861 ÷ 4,786,600 shares)(a) | $35.92 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($228,489,282 ÷ 5,151,174 shares) | $44.36 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $6,025,426 | |
Interest | 1,833 | |
Income from Fidelity Central Funds (including $544,590 from security lending) | 570,450 | |
Total income | 6,597,709 | |
Expenses | ||
Management fee | $3,654,295 | |
Transfer agent fees | 1,355,514 | |
Distribution and service plan fees | 1,951,576 | |
Accounting and security lending fees | 218,721 | |
Custodian fees and expenses | 76,762 | |
Independent trustees' fees and expenses | 14,942 | |
Registration fees | 67,376 | |
Audit | 27,682 | |
Legal | 12,488 | |
Interest | 2,776 | |
Miscellaneous | 23,818 | |
Total expenses before reductions | 7,405,950 | |
Expense reductions | (5,378) | 7,400,572 |
Net investment income (loss) | (802,863) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 69,844,898 | |
Redemptions in-kind with affiliated entities | 120,776,424 | |
Fidelity Central Funds | 5,705 | |
Foreign currency transactions | 59,590 | |
Total net realized gain (loss) | 190,686,617 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (61,466,299) | |
Assets and liabilities in foreign currencies | (12,684) | |
Total change in net unrealized appreciation (depreciation) | (61,478,983) | |
Net gain (loss) | 129,207,634 | |
Net increase (decrease) in net assets resulting from operations | $128,404,771 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(802,863) | $(3,450,231) |
Net realized gain (loss) | 190,686,617 | (14,245,769) |
Change in net unrealized appreciation (depreciation) | (61,478,983) | 122,753,554 |
Net increase (decrease) in net assets resulting from operations | 128,404,771 | 105,057,554 |
Distributions to shareholders from net realized gain | (16,883,268) | (70,068,821) |
Share transactions - net increase (decrease) | (475,162,219) | (137,855,039) |
Redemption fees | 16,618 | 39,457 |
Total increase (decrease) in net assets | (363,624,098) | (102,826,849) |
Net Assets | ||
Beginning of period | 1,505,218,815 | 1,608,045,664 |
End of period | $1,141,594,717 | $1,505,218,815 |
Other Information | ||
Accumulated net investment loss end of period | $(1,184,427) | $(381,564) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.86 | $36.83 | $36.06 | $29.90 | $25.25 | $25.14 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.02) | (.10) | (.02)B | (.12) | (.07) | (.13) |
Net realized and unrealized gain (loss) | 4.36 | 2.74 | 3.75 | 6.70 | 4.72 | .24 |
Total from investment operations | 4.34 | 2.64 | 3.73 | 6.58 | 4.65 | .11 |
Distributions from net investment income | – | – | (.02) | – | – | – |
Distributions from net realized gain | (.63) | (1.61) | (2.94) | (.42) | – | – |
Total distributions | (.63) | (1.61) | (2.96) | (.42) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $41.57 | $37.86 | $36.83 | $36.06 | $29.90 | $25.25 |
Total ReturnD,E,F | 11.56% | 7.86% | 10.94% | 22.15% | 18.42% | .44% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.09%I | 1.09% | 1.09% | 1.14% | 1.18% | 1.18% |
Expenses net of fee waivers, if any | 1.09%I | 1.09% | 1.09% | 1.14% | 1.18% | 1.18% |
Expenses net of all reductions | 1.09%I | 1.07% | 1.08% | 1.12% | 1.14% | 1.17% |
Net investment income (loss) | (.10)%I | (.28)% | (.05)%B | (.35)% | (.25)% | (.55)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $523,361 | $480,573 | $468,819 | $408,687 | $355,306 | $336,693 |
Portfolio turnover rateJ | 77%I,K | 102% | 142%K | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25) %.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.14 | $35.26 | $34.66 | $28.79 | $24.38 | $24.33 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | (.18) | (.11)B | (.19) | (.13) | (.19) |
Net realized and unrealized gain (loss) | 4.16 | 2.61 | 3.60 | 6.45 | 4.54 | .24 |
Total from investment operations | 4.09 | 2.43 | 3.49 | 6.26 | 4.41 | .05 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.59) | (1.55) | (2.89) | (.39) | – | – |
Total distributions | (.59) | (1.55) | (2.89) | (.39) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $39.64 | $36.14 | $35.26 | $34.66 | $28.79 | $24.38 |
Total ReturnD,E,F | 11.42% | 7.60% | 10.63% | 21.89% | 18.09% | .21% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.35%I | 1.35% | 1.35% | 1.38% | 1.42% | 1.43% |
Expenses net of fee waivers, if any | 1.35%I | 1.35% | 1.35% | 1.38% | 1.42% | 1.43% |
Expenses net of all reductions | 1.35%I | 1.34% | 1.34% | 1.37% | 1.39% | 1.42% |
Net investment income (loss) | (.36)%I | (.54)% | (.31)%B | (.60)% | (.50)% | (.80)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $217,822 | $203,727 | $208,192 | $196,067 | $173,692 | $172,709 |
Portfolio turnover rateJ | 77%I,K | 102% | 142%K | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.51) %.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.83 | $32.27 | $31.99 | $26.68 | $22.70 | $22.77 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.15) | (.31) | (.25)B | (.33) | (.24) | (.29) |
Net realized and unrealized gain (loss) | 3.78 | 2.37 | 3.29 | 5.98 | 4.22 | .22 |
Total from investment operations | 3.63 | 2.06 | 3.04 | 5.65 | 3.98 | (.07) |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.54) | (1.50) | (2.76) | (.34) | – | – |
Total distributions | (.54) | (1.50) | (2.76) | (.34) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $35.92 | $32.83 | $32.27 | $31.99 | $26.68 | $22.70 |
Total ReturnD,E,F | 11.13% | 7.08% | 10.07% | 21.31% | 17.53% | (.31)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.84%I | 1.85% | 1.84% | 1.87% | 1.91% | 1.93% |
Expenses net of fee waivers, if any | 1.84%I | 1.85% | 1.84% | 1.87% | 1.91% | 1.93% |
Expenses net of all reductions | 1.84%I | 1.83% | 1.83% | 1.86% | 1.88% | 1.91% |
Net investment income (loss) | (.86)%I | (1.04)% | (.80)%B | (1.09)% | (.99)% | (1.29)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $171,922 | $151,321 | $138,205 | $105,499 | $84,858 | $88,074 |
Portfolio turnover rateJ | 77%I,K | 102% | 142%K | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net 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 (1.00) %.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
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 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.30 | $39.03 | $38.06 | $31.47 | $26.50 | $26.30 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .02 | .11B | (.02) | .02 | (.06) |
Net realized and unrealized gain (loss) | 4.64 | 2.92 | 3.96 | 7.06 | 4.95 | .26 |
Total from investment operations | 4.69 | 2.94 | 4.07 | 7.04 | 4.97 | .20 |
Distributions from net investment income | – | – | (.07) | – | – | – |
Distributions from net realized gain | (.63) | (1.67) | (3.03) | (.45) | – | – |
Total distributions | (.63) | (1.67) | (3.10) | (.45) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $44.36 | $40.30 | $39.03 | $38.06 | $31.47 | $26.50 |
Total ReturnD,E | 11.72% | 8.24% | 11.30% | 22.55% | 18.75% | .76% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .77%H | .75% | .75% | .83% | .86% | .86% |
Expenses net of fee waivers, if any | .76%H | .75% | .75% | .83% | .86% | .86% |
Expenses net of all reductions | .76%H | .74% | .74% | .82% | .83% | .85% |
Net investment income (loss) | .22%H | .06% | .29%B | (.05)% | .06% | (.23)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $228,489 | $669,599 | $783,945 | $455,612 | $218,944 | $95,310 |
Portfolio turnover rateI | 77%H,J | 102% | 142%J | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment 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 .09%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
NextEra Energy, Inc. | 16.4 | 14.1 |
Sempra Energy | 11.9 | 11.5 |
PG&E Corp. | 8.3 | 8.1 |
Dominion Resources, Inc. | 7.0 | 9.3 |
Exelon Corp. | 4.9 | 5.0 |
DTE Energy Co. | 4.8 | 4.7 |
Avangrid, Inc. | 4.8 | 5.8 |
CenterPoint Energy, Inc. | 4.6 | 2.2 |
FirstEnergy Corp. | 4.5 | 3.8 |
Great Plains Energy, Inc. | 4.2 | 0.0 |
71.4 |
Top Industries (% of fund's net assets)
As of January 31, 2017 | ||
Electric Utilities | 47.9% | |
Multi-Utilities | 39.4% | |
Independent Power and Renewable Electricity Producers | 9.0% | |
Media | 1.3% | |
Gas Utilities | 1.2% | |
All Others* | 1.2% |
As of July 31, 2016 | ||
Electric Utilities | 48.9% | |
Multi-Utilities | 40.6% | |
Independent Power and Renewable Electricity Producers | 8.0% | |
Gas Utilities | 0.9% | |
Oil, Gas & Consumable Fuels | 0.7% | |
All Others* | 0.9% |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
* Includes short-term investments and net other assets (liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Utilities Fund
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
Electric Utilities - 47.9% | |||
Electric Utilities - 47.9% | |||
Edison International | 165,902 | $12,090,938 | |
Exelon Corp. | 392,991 | 14,100,517 | |
FirstEnergy Corp. | 433,233 | 13,135,625 | |
Great Plains Energy, Inc. | 443,800 | 12,226,690 | |
NextEra Energy, Inc. | 384,540 | 47,575,288 | |
OGE Energy Corp. | 171,123 | 5,739,465 | |
PG&E Corp. | 389,705 | 24,118,842 | |
PNM Resources, Inc. | 222,700 | 7,660,880 | |
PPL Corp. | 61,800 | 2,153,112 | |
138,801,357 | |||
Gas Utilities - 1.2% | |||
Gas Utilities - 1.2% | |||
South Jersey Industries, Inc. | 104,913 | 3,462,129 | |
Independent Power and Renewable Electricity Producers - 9.0% | |||
Independent Power Producers & Energy Traders - 4.3% | |||
Calpine Corp. (a) | 119,301 | 1,407,752 | |
Dynegy, Inc. (a) | 239,347 | 2,285,764 | |
NRG Energy, Inc. | 211,972 | 3,506,017 | |
NRG Yield, Inc. Class C | 313,002 | 5,305,384 | |
12,504,917 | |||
Renewable Electricity - 4.7% | |||
Atlantica Yield PLC | 20,100 | 430,140 | |
NextEra Energy Partners LP | 282,248 | 8,899,279 | |
Pattern Energy Group, Inc. | 208,860 | 4,122,896 | |
13,452,315 | |||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 25,957,232 | ||
Media - 1.3% | |||
Cable & Satellite - 1.3% | |||
Charter Communications, Inc. Class A (a) | 11,100 | 3,595,845 | |
Multi-Utilities - 39.4% | |||
Multi-Utilities - 39.4% | |||
Avangrid, Inc. | 360,230 | 13,976,924 | |
Black Hills Corp. | 128,803 | 8,056,628 | |
CenterPoint Energy, Inc. | 502,113 | 13,160,382 | |
Dominion Resources, Inc. | 265,694 | 20,267,138 | |
DTE Energy Co. | 142,198 | 14,026,411 | |
SCANA Corp. | 147,378 | 10,124,869 | |
Sempra Energy | 337,509 | 34,557,547 | |
114,169,899 | |||
Oil, Gas & Consumable Fuels - 0.9% | |||
Oil & Gas Storage & Transport - 0.9% | |||
Cheniere Energy Partners LP Holdings LLC | 118,462 | 2,706,857 | |
TOTAL COMMON STOCKS | |||
(Cost $248,195,508) | 288,693,319 | ||
TOTAL INVESTMENT PORTFOLIO - 99.7% | |||
(Cost $248,195,508) | 288,693,319 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 971,226 | ||
NET ASSETS - 100% | $289,664,545 |
Legend
(a) Non-income producing
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $5,475 |
Fidelity Securities Lending Cash Central Fund | 4,713 |
Total | $10,188 |
Investment Valuation
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.
Fidelity Advisor® Utilities Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $248,195,508) | $288,693,319 | |
Receivable for investments sold | 2,691,965 | |
Receivable for fund shares sold | 241,208 | |
Dividends receivable | 65,996 | |
Distributions receivable from Fidelity Central Funds | 457 | |
Prepaid expenses | 1,619 | |
Other receivables | 2,212 | |
Total assets | 291,696,776 | |
Liabilities | ||
Payable to custodian bank | $134,948 | |
Payable for investments purchased | 490,013 | |
Payable for fund shares redeemed | 1,074,824 | |
Accrued management fee | 132,278 | |
Distribution and service plan fees payable | 98,161 | |
Other affiliated payables | 68,711 | |
Other payables and accrued expenses | 33,296 | |
Total liabilities | 2,032,231 | |
Net Assets | $289,664,545 | |
Net Assets consist of: | ||
Paid in capital | $260,830,707 | |
Distributions in excess of net investment income | (463,563) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,200,090) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 40,497,491 | |
Net Assets | $289,664,545 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($151,539,626 ÷ 5,772,435 shares) | $26.25 | |
Maximum offering price per share (100/94.25 of $26.25) | $27.85 | |
Class T: | ||
Net Asset Value and redemption price per share ($46,076,322 ÷ 1,750,652 shares) | $26.32 | |
Maximum offering price per share (100/96.50 of $26.32) | $27.27 | |
Class C: | ||
Net Asset Value and offering price per share ($57,625,660 ÷ 2,236,932 shares)(a) | $25.76 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($34,422,937 ÷ 1,286,708 shares) | $26.75 |
(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.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $4,793,862 | |
Income from Fidelity Central Funds (including $4,713 from security lending) | 10,188 | |
Total income | 4,804,050 | |
Expenses | ||
Management fee | $859,465 | |
Transfer agent fees | 386,662 | |
Distribution and service plan fees | 631,963 | |
Accounting and security lending fees | 61,351 | |
Custodian fees and expenses | 11,640 | |
Independent trustees' fees and expenses | 3,523 | |
Registration fees | 51,944 | |
Audit | 23,617 | |
Legal | 2,778 | |
Interest | 252 | |
Miscellaneous | 2,321 | |
Total expenses before reductions | 2,035,516 | |
Expense reductions | (10,872) | 2,024,644 |
Net investment income (loss) | 2,779,406 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,201,092 | |
Fidelity Central Funds | 1,364 | |
Foreign currency transactions | 4,571 | |
Total net realized gain (loss) | 1,207,027 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (17,342,363) | |
Assets and liabilities in foreign currencies | (201) | |
Total change in net unrealized appreciation (depreciation) | (17,342,564) | |
Net gain (loss) | (16,135,537) | |
Net increase (decrease) in net assets resulting from operations | $(13,356,131) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,779,406 | $4,622,692 |
Net realized gain (loss) | 1,207,027 | (9,402,085) |
Change in net unrealized appreciation (depreciation) | (17,342,564) | 44,135,404 |
Net increase (decrease) in net assets resulting from operations | (13,356,131) | 39,356,011 |
Distributions to shareholders from net investment income | (5,090,781) | (4,356,273) |
Distributions to shareholders from net realized gain | – | (6,473,264) |
Total distributions | (5,090,781) | (10,829,537) |
Share transactions - net increase (decrease) | (59,975,835) | 66,440,496 |
Redemption fees | 11,601 | 31,604 |
Total increase (decrease) in net assets | (78,411,146) | 94,998,574 |
Net Assets | ||
Beginning of period | 368,075,691 | 273,077,117 |
End of period | $289,664,545 | $368,075,691 |
Other Information | ||
Undistributed net investment income end of period | $– | $1,847,812 |
Distributions in excess of net investment income end of period | $(463,563) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.59 | $25.48 | $26.77 | $23.48 | $21.20 | $19.09 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .25 | .44 | .44 | .41 | .47 | .43 |
Net realized and unrealized gain (loss) | (1.10) | 2.75 | .18 | 3.35 | 2.24 | 2.07 |
Total from investment operations | (.85) | 3.19 | .62 | 3.76 | 2.71 | 2.50 |
Distributions from net investment income | (.49) | (.46) | (.38) | (.46) | (.43) | (.39) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – | – |
Total distributions | (.49) | (1.08)B | (1.91)C | (.47) | (.43) | (.39) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
Net asset value, end of period | $26.25 | $27.59 | $25.48 | $26.77 | $23.48 | $21.20 |
Total ReturnE,F,G | (3.02)% | 13.49% | 2.01% | 16.38% | 13.09% | 13.40% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.14%J | 1.13% | 1.13% | 1.16% | 1.20% | 1.23% |
Expenses net of fee waivers, if any | 1.13%J | 1.13% | 1.13% | 1.16% | 1.20% | 1.23% |
Expenses net of all reductions | 1.13%J | 1.12% | 1.11% | 1.15% | 1.16% | 1.22% |
Net investment income (loss) | 1.92%J | 1.78% | 1.65% | 1.64% | 2.16% | 2.24% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $151,540 | $178,116 | $140,148 | $154,134 | $106,851 | $99,813 |
Portfolio turnover rateK | 35%J | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.08 per share is comprised of distributions from net investment income of $.462 and distributions from net realized gain of $.613 per share.
C Total 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.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.62 | $25.49 | $26.78 | $23.50 | $21.21 | $19.09 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .36 | .36 | .34 | .41 | .38 |
Net realized and unrealized gain (loss) | (1.10) | 2.77 | .18 | 3.35 | 2.25 | 2.07 |
Total from investment operations | (.89) | 3.13 | .54 | 3.69 | 2.66 | 2.45 |
Distributions from net investment income | (.41) | (.39) | (.31) | (.40) | (.37) | (.33) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – | – |
Total distributions | (.41) | (1.00) | (1.83) | (.41) | (.37) | (.33) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $26.32 | $27.62 | $25.49 | $26.78 | $23.50 | $21.21 |
Total ReturnC,D,E | (3.18)% | 13.19% | 1.72% | 15.99% | 12.81% | 13.13% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.43%H | 1.43% | 1.42% | 1.45% | 1.47% | 1.49% |
Expenses net of fee waivers, if any | 1.43%H | 1.43% | 1.42% | 1.45% | 1.47% | 1.49% |
Expenses net of all reductions | 1.43%H | 1.42% | 1.41% | 1.44% | 1.43% | 1.48% |
Net investment income (loss) | 1.62%H | 1.47% | 1.35% | 1.35% | 1.89% | 1.98% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $46,076 | $56,403 | $46,366 | $49,272 | $41,239 | $38,276 |
Portfolio turnover rateI | 35%H | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.98 | $24.91 | $26.23 | $23.03 | $20.80 | $18.75 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .15 | .25 | .23 | .23 | .31 | .29 |
Net realized and unrealized gain (loss) | (1.08) | 2.70 | .19 | 3.29 | 2.20 | 2.03 |
Total from investment operations | (.93) | 2.95 | .42 | 3.52 | 2.51 | 2.32 |
Distributions from net investment income | (.29) | (.27) | (.22) | (.31) | (.28) | (.27) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – | – |
Total distributions | (.29) | (.88) | (1.74) | (.32) | (.28) | (.27) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $25.76 | $26.98 | $24.91 | $26.23 | $23.03 | $20.80 |
Total ReturnC,D,E | (3.40)% | 12.64% | 1.29% | 15.52% | 12.27% | 12.56% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.89%H | 1.88% | 1.88% | 1.89% | 1.93% | 1.95% |
Expenses net of fee waivers, if any | 1.89%H | 1.88% | 1.88% | 1.89% | 1.93% | 1.95% |
Expenses net of all reductions | 1.88%H | 1.88% | 1.86% | 1.88% | 1.89% | 1.95% |
Net investment income (loss) | 1.17%H | 1.02% | .89% | .91% | 1.43% | 1.51% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $57,626 | $70,957 | $52,172 | $54,810 | $35,457 | $29,942 |
Portfolio turnover rateI | 35%H | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.14 | $25.97 | $27.24 | $23.87 | $21.56 | $19.40 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .29 | .53 | .52 | .51 | .55 | .50 |
Net realized and unrealized gain (loss) | (1.13) | 2.78 | .20 | 3.39 | 2.26 | 2.10 |
Total from investment operations | (.84) | 3.31 | .72 | 3.90 | 2.81 | 2.60 |
Distributions from net investment income | (.55) | (.53) | (.46) | (.52) | (.50) | (.44) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – | – |
Total distributions | (.55) | (1.14) | (1.99)B | (.53) | (.50) | (.44) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $26.75 | $28.14 | $25.97 | $27.24 | $23.87 | $21.56 |
Total ReturnD,E | (2.90)% | 13.81% | 2.35% | 16.74% | 13.40% | 13.79% |
Ratios to Average Net AssetsC,F | ||||||
Expenses before reductions | .87%G | .84% | .83% | .85% | .89% | .92% |
Expenses net of fee waivers, if any | .86%G | .84% | .83% | .85% | .89% | .92% |
Expenses net of all reductions | .86%G | .84% | .81% | .84% | .85% | .91% |
Net investment income (loss) | 2.19%G | 2.06% | 1.94% | 1.95% | 2.46% | 2.55% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $34,423 | $62,600 | $31,710 | $46,135 | $19,562 | $20,564 |
Portfolio turnover rateH | 35%G | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Total 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.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2017
1. Organization.
Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Semiconductors Fund (formerly Fidelity Advisor Electronics Fund), Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund (the Funds) are funds of Fidelity Advisor Series VII (the Trust) and are 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 Funds are non-diversified with the exception of Fidelity Advisor Financial Services Fund and Fidelity Advisor Health Care Fund. Each Fund offers Class A, Class T, Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period August 1, 2015 through June 24, 2016.
In April 2016, the Board of Trustees approved a change in the name of Fidelity Advisor Electronics Fund to Fidelity Advisor Semiconductors Fund effective October 1, 2016.
In March 2017, the Board of Trustees approved a change in the name of Class T to Class M effective after the close of business on March 24, 2017.
2. Investments in Fidelity Central Funds.
The Funds invest 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 Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each 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 .005%.
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 Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each 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 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 each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each 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 each 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. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
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.
The following provides information on Level 3 securities held by Fidelity Advisor Biotechnology Fund and Fidelity Advisor Technology Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Fidelity Advisor Biotechnology Fund:
Asset Type | Fair Value at 01/31/17 | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $53,941,170 | Discounted cash flow | Discount rate | 8.0% - 14.4% / 11.3% | Decrease |
Discount for lack of marketability | 10.0% | Decrease | |||
Probability rate | 6.30% | Increase | |||
Market approach | Discount rate | 16.0% | Decrease | ||
Transaction price | $0.01 - $150.00 / $23.52 | Increase | |||
Premium rate | 4.0% - 15.0% / 9.9% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Proxy discount | 12.0% - 18.5% / 15.2% | Decrease | |||
Proxy premium | 21.3% - 21.5% / 21.3% | Increase | |||
Market comparable | Enterprise value/Sales multiple (EV/S) | 2.2 - 3.0 / 2.6 | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Fidelity Advisor Technology Fund:
Asset Type | Fair Value at 01/31/17 | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $25,575,519 | Market approach | Transaction price | $3.16 - $48.77 / $23.89 | Increase |
Premium rate | 20.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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, 2017, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of each applicable Fund's Schedule of Investments.
Foreign Currency. The Funds 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 Funds' 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 Funds are 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. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 each 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 each 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) for Fidelity Advisor Energy Fund and Fidelity Advisor Technology Fund, 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, each 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. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each 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 each 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, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities | |
Fidelity Advisor Biotechnology Fund | $2,494,988,003 | $552,017,742 | $(434,521,267) | $117,496,475 |
Fidelity Advisor Communications Equipment Fund | 17,500,332 | 3,337,585 | (942,298) | 2,395,287 |
Fidelity Advisor Consumer Discretionary Fund | 246,631,455 | 54,488,386 | (11,404,720) | 43,083,666 |
Fidelity Advisor Energy Fund | 1,008,635,642 | 216,848,280 | (38,068,583) | 178,779,697 |
Fidelity Advisor Financial Services Fund | 299,210,191 | 37,127,911 | (2,665,624) | 34,462,287 |
Fidelity Advisor Health Care Fund | 2,146,979,808 | 424,155,126 | (123,629,816) | 300,525,310 |
Fidelity Advisor Industrials Fund | 652,404,098 | 147,601,666 | (7,584,787) | 140,016,879 |
Fidelity Advisor Semiconductors Fund | 153,238,446 | 28,217,768 | (4,217,730) | 24,000,038 |
Fidelity Advisor Technology Fund | 939,995,423 | 271,236,645 | (35,383,351) | 235,853,294 |
Fidelity Advisor Utilities Fund | 248,979,696 | 44,805,152 | (5,091,529) | 39,713,623 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are 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 | 2018 | 2019 | Total with expiration | |
Fidelity Advisor Financial Services Fund | $(22,767,587) | $(23,251,884) | $(450,657) | $(46,470,128) |
No expiration | ||||
Short-term | Long-term | Total no expiration | Total capital loss carryforward | |
Fidelity Advisor Biotechnology Fund | $(195,610,729) | $– | $(195,610,729) | $(195,610,729) |
Fidelity Advisor Consumer Discretionary Fund | (14,389,276) | – | (14,389,276) | (14,389,276) |
Fidelity Advisor Energy Fund | (91,847,998) | (66,220,840) | (158,068,838) | (158,068,838) |
Fidelity Advisor Financial Services Fund | (682,405) | – | (682,405) | (47,152,533) |
Fidelity Advisor Health Care Fund | (88,155,047) | – | (88,155,047) | (88,155,047) |
Fidelity Advisor Semiconductors Fund | (3,783,251) | – | (3,783,251) | (3,783,251) |
Fidelity Advisor Technology Fund | (21,683,221) | – | (21,683,221) | (21,683,221) |
Fidelity Advisor Utilities Fund | (7,270,691) | (3,513,382) | (10,784,073) | (10,784,073) |
Certain of the Funds elected to defer to the next fiscal year capital losses recognized during the period November 1, 2015 to July 31, 2016. Loss deferrals were as follows:
Capital losses | Ordinary losses | |
Fidelity Advisor Biotechnology Fund | $– | $(8,484,891) |
Fidelity Advisor Communications Equipment Fund | (83,092) | – |
Fidelity Advisor Financial Services Fund | (559,312) | (122,099) |
Fidelity Advisor Health Care Fund | – | (6,590,625) |
Fidelity Advisor Technology Fund | – | (246,129) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Funds less than 30 days may be 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 Funds and accounted for as an addition to paid in capital. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016 for Fidelity Advisor Biotechnology Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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 each applicable Fund's Schedule of Investments. With respect to purchase commitments, each applicable 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 Funds 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 each applicable Fund's Schedule of Investments.
Consolidated Subsidiary. Fidelity Advisor Biotechnology Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, Fidelity Advisor Biotechnology Fund held an investment of $9,891,511 in this Subsidiary, representing .41% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Biotechnology Fund | 501,315,564 | 822,580,229 |
Fidelity Advisor Communications Equipment Fund | 10,552,751 | 4,492,060 |
Fidelity Advisor Consumer Discretionary Fund | 61,417,503 | 102,401,431 |
Fidelity Advisor Energy Fund | 462,059,112 | 377,182,092 |
Fidelity Advisor Financial Services Fund | 209,576,915 | 114,104,803 |
Fidelity Advisor Health Care Fund | 639,895,903 | 896,702,361 |
Fidelity Advisor Industrials Fund | 286,184,830 | 167,259,764 |
Fidelity Advisor Semiconductors Fund | 134,525,971 | 71,238,126 |
Fidelity Advisor Technology Fund | 511,845,434 | 607,639,844 |
Fidelity Advisor Utilities Fund | 54,959,519 | 114,435,637 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. 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, each Fund's annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Fidelity Advisor Biotechnology Fund | .30% | .25% | .55% |
Fidelity Advisor Communications Equipment Fund | .30% | .25% | .55% |
Fidelity Advisor Consumer Discretionary Fund | .30% | .25% | .55% |
Fidelity Advisor Energy Fund | .30% | .25% | .55% |
Fidelity Advisor Financial Services Fund | .30% | .25% | .55% |
Fidelity Advisor Health Care Fund | .30% | .25% | .55% |
Fidelity Advisor Industrials Fund | .30% | .25% | .55% |
Fidelity Advisor Semiconductors Fund | .30% | .25% | .55% |
Fidelity Advisor Technology Fund | .30% | .25% | .55% |
Fidelity Advisor Utilities Fund | .30% | .25% | .55% |
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Class I. 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 each 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 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | -% | .25% | $1,236,267 | $– |
Class T | .25% | .25% | 306,842 | – |
Class C | .75% | .25% | 3,082,765 | 526,296 |
$4,625,874 | $526,296 | |||
Fidelity Advisor Communications Equipment Fund | ||||
Class A | -% | .25% | $6,705 | $– |
Class T | .25% | .25% | 9,714 | – |
Class C | .75% | .25% | 13,872 | – |
$30,291 | $– | |||
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | -% | .25% | $169,036 | $3,323 |
Class T | .25% | .25% | 69,187 | – |
Class C | .75% | .25% | 318,751 | 87,227 |
$556,974 | $90,550 | |||
Fidelity Advisor Energy Fund | ||||
Class A | -% | .25% | $482,720 | $– |
Class T | .25% | .25% | 405,240 | – |
Class C | .75% | .25% | 1,350,928 | 445,763 |
$2,238,888 | $445,763 | |||
Fidelity Advisor Financial Services Fund | ||||
Class A | -% | .25% | $139,640 | $– |
Class T | .25% | .25% | 82,872 | – |
Class C | .75% | .25% | 277,667 | 48,754 |
$500,179 | $48,754 | |||
Fidelity Advisor Health Care Fund | ||||
Class A | -% | .25% | $1,296,597 | $– |
Class T | .25% | .25% | 663,648 | – |
Class C | .75% | .25% | 3,122,896 | 430,835 |
$5,083,141 | $430,835 | |||
Fidelity Advisor Industrials Fund | ||||
Class A | -% | .25% | $363,577 | $– |
Class T | .25% | .25% | 206,102 | – |
Class C | .75% | .25% | 575,209 | 40,055 |
$1,144,888 | $40,055 | |||
Fidelity Advisor Semiconductors Fund | ||||
Class A | -% | .25% | $58,434 | $– |
Class T | .25% | .25% | 30,470 | 180 |
Class C | .75% | .25% | 137,129 | 15,607 |
$226,033 | $15,787 | |||
Fidelity Advisor Technology Fund | ||||
Class A | -% | .25% | $622,983 | $– |
Class T | .25% | .25% | 522,554 | – |
Class C | .75% | .25% | 806,039 | 107,833 |
$1,951,576 | $107,833 | |||
Fidelity Advisor Utilities Fund | ||||
Class A | -% | .25% | $196,426 | $221 |
Class T | .25% | .25% | 122,333 | – |
Class C | .75% | .25% | 313,204 | 49,407 |
$631,963 | $49,628 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of each Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges are 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 | |
Fidelity Advisor Biotechnology Fund | |
Class A | $255,574 |
Class T | 19,780 |
Class C(a) | 54,176 |
$329,530 | |
Fidelity Advisor Communications Equipment Fund | |
Class A | $2,908 |
Class T | 703 |
Class C | - |
$3,611 | |
Fidelity Advisor Consumer Discretionary Fund | |
Class A | $30,940 |
Class T | 2,418 |
Class C(a) | 8,769 |
$42,127 | |
Fidelity Advisor Energy Fund | |
Class A | $108,105 |
Class T | 14,416 |
Class C(a) | 22,680 |
$145,201 | |
Fidelity Advisor Financial Services Fund | |
Class A | $57,470 |
Class T | 7,214 |
Class C(a) | 4,057 |
$68,741 | |
Fidelity Advisor Health Care Fund | |
Class A | $209,010 |
Class T | 20,800 |
Class C(a) | 38,793 |
$268,603 | |
Fidelity Advisor Industrials Fund | |
Class A | $86,743 |
Class T | 7,199 |
Class C(a) | 3,809 |
$97,751 | |
Fidelity Advisor Semiconductors Fund | |
Class A | $51,448 |
Class T | 3,346 |
Class C(a) | 1,537 |
$56,331 | |
Fidelity Advisor Technology Fund | |
Class A | $79,773 |
Class T | 10,399 |
Class C(a) | 12,456 |
$102,628 | |
Fidelity Advisor Utilities Fund | |
Class A | $46,301 |
Class T | 5,435 |
Class C(a) | 6,337 |
$58,073 |
(a) When 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 Funds. 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 each 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(a) | |
Fidelity Advisor Biotechnology Fund | ||
Class A | $1,017,182 | .21 |
Class T | 179,267 | .29 |
Class C | 627,322 | .20 |
Class I | 804,999 | .19 |
$2,628,770 | ||
Fidelity Advisor Communications Equipment Fund | ||
Class A | $8,287 | .31 |
Class T | 7,071 | .36 |
Class C | 4,403 | .32 |
Class I | 4,390 | .18 |
$24,151 | ||
Fidelity Advisor Consumer Discretionary Fund | ||
Class A | $141,867 | .21 |
Class T | 35,343 | .26 |
Class C | 67,560 | .21 |
Class I | 61,165 | .18 |
$305,935 | ||
Fidelity Advisor Energy Fund | ||
Class A | $451,889 | .23 |
Class T | 203,658 | .25 |
Class C | 282,964 | .21 |
Class I | 256,855 | .21 |
$1,195,366 | ||
Fidelity Advisor Financial Services Fund | ||
Class A | $130,315 | .23 |
Class T | 44,623 | .27 |
Class C | 62,700 | .23 |
Class I | 39,047 | .19 |
$276,685 | ||
Fidelity Advisor Health Care Fund | ||
Class A | $1,046,126 | .20 |
Class T | $299,102 | .22 |
Class C | 634,191 | .20 |
Class I | 593,920 | .19 |
$2,573,339 | ||
Fidelity Advisor Industrials Fund | ||
Class A | $291,017 | .20 |
Class T | 86,267 | .21 |
Class C | 117,791 | .21 |
Class I | 148,859 | .19 |
$643,934 | ||
Fidelity Advisor Semiconductors Fund | ||
Class A | $53,750 | .23 |
Class T | 20,293 | .33 |
Class C | 35,616 | .26 |
Class I | 48,372 | .18 |
$158,031 | ||
Fidelity Advisor Technology Fund | ||
Class A | $559,518 | .22 |
Class T | 246,013 | .24 |
Class C | 184,939 | .23 |
Class I | 365,044 | .15 |
$1,355,514 | ||
Fidelity Advisor Utilities Fund | ||
Class A | $188,739 | .24 |
Class T | 70,717 | .29 |
Class C | 76,999 | .25 |
Class I | 50,207 | .22 |
$386,662 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains each 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. Certain Funds placed a portion of their 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 as follows:
Amount | |
Fidelity Advisor Biotechnology Fund | $34,445 |
Fidelity Advisor Communications Equipment Fund | 401 |
Fidelity Advisor Consumer Discretionary Fund | 742 |
Fidelity Advisor Energy Fund | 15,033 |
Fidelity Advisor Financial Services Fund | 3,997 |
Fidelity Advisor Health Care Fund | 27,897 |
Fidelity Advisor Industrials Fund | 7,853 |
Fidelity Advisor Semiconductors Fund | 3,548 |
Fidelity Advisor Technology Fund | 11,761 |
Fidelity Advisor Utilities Fund | 2,852 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, 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. Each applicable 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 | |
Fidelity Advisor Health Care Fund | Borrower | $6,654,500 | .59% | $659 |
Fidelity Advisor Technology Fund | Borrower | $11,656,429 | .61% | $2,776 |
Fidelity Advisor Utilities Fund | Borrower | $3,803,000 | .60% | $252 |
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Redemptions In-Kind. During the period, 10,768,828 shares of Fidelity Advisor Technology Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $442,814,201. The net realized gain of $120,776,424 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. Fidelity Advisor Technology Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Advisor Biotechnology Fund | $4,295 |
Fidelity Advisor Communications Equipment Fund | 26 |
Fidelity Advisor Consumer Discretionary Fund | 489 |
Fidelity Advisor Energy Fund | 1,672 |
Fidelity Advisor Financial Services Fund | 361 |
Fidelity Advisor Health Care Fund | 4,260 |
Fidelity Advisor Industrials Fund | 1,017 |
Fidelity Advisor Semiconductors Fund | 205 |
Fidelity Advisor Technology Fund | 2,279 |
Fidelity Advisor Utilities Fund | 535 |
During the period, the Funds did not borrow on this line of credit.
7. Security Lending.
Certain Funds lend portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, each applicable 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 Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds 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 each applicable 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 on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse funds 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 of each applicable Fund were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Fidelity Advisor Communications Equipment Fund | ||
Class A | 1.40% | $18,907 |
Class T | 1.65% | 15,207 |
Class C | 2.15% | 10,019 |
Class I | 1.15% | 61,080 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of Certain Funds include an amount in addition to trade execution, which may be rebated back to the Funds to offset certain expenses. Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service reduction | Custody expense reduction | |
Fidelity Advisor Biotechnology Fund | $73,286 | $– |
Fidelity Advisor Communications Equipment Fund | – | 12 |
Fidelity Advisor Energy Fund | 34,818 | 31 |
Fidelity Advisor Financial Services Fund | – | 28 |
Fidelity Advisor Health Care Fund | – | 203 |
Fidelity Advisor Industrials Fund | 12,051 | 38 |
Fidelity Advisor Semiconductors Fund | 1,761 | – |
Fidelity Advisor Utilities Fund | 9,405 | – |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses as follows:
Amount | |
Fidelity Advisor Biotechnology Fund | $12,274 |
Fidelity Advisor Communications Equipment Fund | 100 |
Fidelity Advisor Consumer Discretionary Fund | 1,439 |
Fidelity Advisor Energy Fund | 5,860 |
Fidelity Advisor Financial Services Fund | 1,468 |
Fidelity Advisor Health Care Fund | 11,813 |
Fidelity Advisor Industrials Fund | 3,694 |
Fidelity Advisor Semiconductors Fund | 792 |
Fidelity Advisor Technology Fund | 5,378 |
Fidelity Advisor Utilities Fund | 1,467 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2017 | Year ended July 31, 2016 | |
Fidelity Advisor Biotechnology Fund | ||
From net realized gain | ||
Class A | $– | $71,428,446 |
Class T | – | 8,780,759 |
Class B | – | 350,358 |
Class C | – | 46,525,088 |
Class I | – | 62,237,298 |
Total | $– | $189,321,949 |
Fidelity Advisor Communications Equipment Fund | ||
From net investment income | ||
Class A | $22,883 | $– |
Class T | $7,287 | $– |
Class I | 40,465 | – |
Total | $70,635 | $– |
From net realized gain | ||
Class A | $76,853 | $140,942 |
Class T | 56,397 | 120,506 |
Class B | – | 8,665 |
Class C | 45,429 | 87,907 |
Class I | 91,174 | 29,305 |
Total | $269,853 | $387,325 |
Fidelity Advisor Consumer Discretionary Fund | ||
From net investment income | ||
Class A | $574,093 | $145,315 |
Class T | 128,898 | – |
Class I | 364,076 | 280,605 |
Total | $1,067,067 | $425,920 |
From net realized gain | ||
Class A | $– | $2,490,947 |
Class T | – | 567,555 |
Class B | – | 33,959 |
Class C | – | 1,218,277 |
Class I | – | 1,174,042 |
Total | $– | $5,484,780 |
Fidelity Advisor Energy Fund | ||
From net investment income | ||
Class A | $– | $1,922,229 |
Class T | – | 528,991 |
Class B | – | 897 |
Class C | – | 204,569 |
Class I | 574,320 | 1,301,668 |
Total | $574,320 | $3,958,354 |
From net realized gain | ||
Class A | $877,443 | $– |
Class I | 689,184 | – |
Total | $1,566,627 | $– |
Fidelity Advisor Financial Services Fund | ||
From net investment income | ||
Class A | $277,513 | $487,874 |
Class T | 40,518 | 110,989 |
Class B | – | 2,181 |
Class C | 7,495 | 104,614 |
Class I | 176,633 | 251,888 |
Total | $502,159 | $957,546 |
From net realized gain | ||
Class A | $– | $83,636 |
Class T | – | 26,115 |
Class B | – | 2,379 |
Class C | – | 43,289 |
Class I | – | 34,348 |
Total | $– | $189,767 |
Fidelity Advisor Health Care Fund | ||
From net realized gain | ||
Class A | $– | $80,223,333 |
Class T | – | 20,669,994 |
Class B | – | 758,774 |
Class C | – | 52,885,499 |
Class I | $– | $45,759,042 |
Total | $– | $200,296,642 |
Fidelity Advisor Industrials Fund | ||
From net investment income | ||
Class A | $1,317,451 | $1,251,437 |
Class T | 189,933 | 142,172 |
Class I | 1,253,589 | 1,144,151 |
Total | $2,760,973 | $2,537,760 |
From net realized gain | ||
Class A | $15,952,060 | $24,885,132 |
Class T | 4,629,017 | 6,913,270 |
Class B | – | 520,980 |
Class C | 6,747,943 | 11,465,082 |
Class I | 9,382,176 | 14,306,102 |
Total | $36,711,196 | $58,090,566 |
Fidelity Advisor Semiconductors Fund | ||
From net investment income | ||
Class A | $125,590 | $113,188 |
Class T | – | 30,107 |
Class B | – | 373 |
Class C | – | 23,745 |
Class I | 266,839 | 133,338 |
Total | $392,429 | $300,751 |
From net realized gain | ||
Class A | $63,188 | $3,392,087 |
Class T | 16,965 | 1,000,803 |
Class B | – | 31,868 |
Class C | 39,994 | 2,046,878 |
Class I | 70,633 | 2,464,994 |
Total | $190,780 | $8,936,630 |
Fidelity Advisor Technology Fund | ||
From net realized gain | ||
Class A | $7,901,046 | $20,472,702 |
Class T | 3,251,719 | 9,063,088 |
Class B | – | 374,802 |
Class C | 2,523,544 | 6,550,928 |
Class I | 3,206,959 | 33,607,301 |
Total | $16,883,268 | $70,068,821 |
Fidelity Advisor Utilities Fund | ||
From net investment income | ||
Class A | $2,833,665 | $2,494,667 |
Class T | 721,535 | 696,864 |
Class B | – | 13,894 |
Class C | 680,072 | 548,207 |
Class I | 855,509 | 602,641 |
Total | $5,090,781 | $4,356,273 |
From net realized gain | ||
Class A | $– | $3,341,067 |
Class T | – | 1,100,541 |
Class B | – | 58,860 |
Class C | – | 1,254,979 |
Class I | – | 717,817 |
Total | $– | $6,473,264 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2017 | Year ended July 31, 2016 | Six months ended January 31, 2017 | Year ended July 31, 2016 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | ||||
Shares sold | 4,542,736 | 20,374,378 | $96,631,276 | $486,458,577 |
Reinvestment of distributions | – | 2,387,343 | – | 66,988,829 |
Shares redeemed | (11,840,827) | (21,904,309) | (247,742,362) | (483,498,927) |
Net increase (decrease) | (7,298,091) | 857,412 | $(151,111,086) | $69,948,479 |
Class T | ||||
Shares sold | 523,110 | 1,912,568 | $10,524,533 | $43,113,700 |
Reinvestment of distributions | – | 319,202 | – | 8,560,989 |
Shares redeemed | (1,260,056) | (2,294,307) | (24,934,325) | (48,667,903) |
Net increase (decrease) | (736,946) | (62,537) | $(14,409,792) | $3,006,786 |
Class B | ||||
Shares sold | – | 23,127 | $– | $488,892 |
Reinvestment of distributions | – | 13,390 | – | 330,876 |
Shares redeemed | – | (328,587) | – | (5,983,799) |
Net increase (decrease) | – | (292,070) | $– | $(5,164,031) |
Class C | ||||
Shares sold | 2,625,384 | 10,596,563 | $48,652,583 | $223,026,722 |
Reinvestment of distributions | – | 1,618,886 | – | 40,002,670 |
Shares redeemed | (7,140,355) | (11,105,389) | (129,829,953) | (214,386,694) |
Net increase (decrease) | (4,514,971) | 1,110,060 | $(81,177,370) | $48,642,698 |
Class I | ||||
Shares sold | 8,745,812 | 22,589,370 | $195,455,802 | $543,276,913 |
Reinvestment of distributions | – | 1,787,031 | – | 52,663,804 |
Shares redeemed | (12,238,208) | (26,641,629) | (267,870,899) | (614,169,645) |
Net increase (decrease) | (3,492,396) | (2,265,228) | $(72,415,097) | $(18,228,928) |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | ||||
Shares sold | 158,242 | 61,824 | $2,019,689 | $686,464 |
Reinvestment of distributions | 7,376 | 12,164 | 96,327 | 134,093 |
Shares redeemed | (49,099) | (81,049) | (626,464) | (893,648) |
Net increase (decrease) | 116,519 | (7,061) | $1,489,552 | $(73,091) |
Class T | ||||
Shares sold | 29,006 | 29,078 | $357,112 | $312,157 |
Reinvestment of distributions | 5,034 | 11,237 | 63,422 | 119,674 |
Shares redeemed | (18,103) | (56,633) | (221,658) | (598,222) |
Net increase (decrease) | 15,937 | (16,318) | $198,876 | $(166,391) |
Class B | ||||
Shares sold | – | 3 | $– | $35 |
Reinvestment of distributions | – | 803 | – | 7,933 |
Shares redeemed | – | (26,347) | – | (261,367) |
Net increase (decrease) | – | (25,541) | $– | $(253,399) |
Class C | ||||
Shares sold | 60,266 | 20,424 | $680,170 | $201,589 |
Reinvestment of distributions | 3,816 | 8,306 | 44,267 | 81,979 |
Shares redeemed | (22,031) | (61,023) | (251,053) | (616,761) |
Net increase (decrease) | 42,051 | (32,293) | $473,384 | $(333,193) |
Class I | ||||
Shares sold | 505,109 | 32,486 | $6,542,311 | $367,475 |
Reinvestment of distributions | 9,441 | 2,247 | 127,920 | 25,646 |
Shares redeemed | (195,834) | (16,972) | $(2,632,632) | $(195,689) |
Net increase (decrease) | 318,716 | 17,761 | $4,037,599 | $197,432 |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | ||||
Shares sold | 783,917 | 4,814,381 | $16,408,089 | $96,001,482 |
Reinvestment of distributions | 25,062 | 125,818 | 533,814 | 2,487,810 |
Shares redeemed | (1,678,086) | (3,384,129) | (34,893,983) | (65,627,046) |
Net increase (decrease) | (869,107) | 1,556,070 | $(17,952,080) | $32,862,246 |
Class T | ||||
Shares sold | 437,641 | 467,315 | $8,587,433 | $8,759,972 |
Reinvestment of distributions | 6,315 | 29,568 | 126,233 | 549,955 |
Shares redeemed | (576,087) | (340,307) | (11,276,716) | (6,370,883) |
Net increase (decrease) | (132,131) | 156,576 | $(2,563,050) | $2,939,044 |
Class B | ||||
Shares sold | – | 14,276 | $– | $237,342 |
Reinvestment of distributions | – | 1,812 | – | 29,530 |
Shares redeemed | – | (96,775) | – | (1,564,551) |
Net increase (decrease) | – | (80,687) | $– | $(1,297,679) |
Class C | ||||
Shares sold | 333,116 | 2,604,899 | $5,731,688 | $43,132,243 |
Reinvestment of distributions | – | 66,579 | – | 1,085,908 |
Shares redeemed | (710,954) | (1,219,501) | (12,141,931) | (19,584,504) |
Net increase (decrease) | (377,838) | 1,451,977 | $(6,410,243) | $24,633,647 |
Class I | ||||
Shares sold | 1,205,714 | 5,034,098 | $27,213,653 | $107,578,453 |
Reinvestment of distributions | 13,622 | 55,475 | 311,266 | 1,176,667 |
Shares redeemed | (1,667,636) | (3,816,680) | (37,119,397) | (80,049,247) |
Net increase (decrease) | (448,300) | 1,272,893 | $(9,594,478) | $28,705,873 |
Fidelity Advisor Energy Fund | ||||
Class A | ||||
Shares sold | 2,306,903 | 5,025,799 | $79,828,585 | $143,627,691 |
Reinvestment of distributions | 22,919 | 66,472 | 837,690 | 1,828,245 |
Shares redeemed | (1,984,726) | (3,353,686) | (68,393,213) | (97,107,576) |
Net increase (decrease) | 345,096 | 1,738,585 | $12,273,062 | $48,348,360 |
Class T | ||||
Shares sold | 371,324 | 872,793 | $13,173,558 | $25,702,490 |
Reinvestment of distributions | – | 18,373 | – | 511,190 |
Shares redeemed | (792,923) | (1,205,049) | (27,141,610) | (35,414,324) |
Net increase (decrease) | (421,599) | (313,883) | $(13,968,052) | $(9,200,644) |
Class B | ||||
Shares sold | – | 5,109 | $– | $134,216 |
Reinvestment of distributions | – | 35 | – | 864 |
Shares redeemed | – | (292,489) | – | (8,008,782) |
Net increase (decrease) | – | (287,345) | $– | $(7,873,702) |
Class C | ||||
Shares sold | 1,429,361 | 4,491,809 | $45,337,939 | $118,552,042 |
Reinvestment of distributions | – | 7,392 | – | 181,396 |
Shares redeemed | (1,004,902) | (1,780,198) | (31,769,919) | (47,478,698) |
Net increase (decrease) | 424,459 | 2,719,003 | $13,568,020 | $71,254,740 |
Class I | ||||
Shares sold | 3,795,988 | 4,747,633 | $139,888,431 | $143,380,782 |
Reinvestment of distributions | 27,291 | 40,692 | 1,049,878 | 1,182,189 |
Shares redeemed | (1,546,990) | (2,875,822) | $(56,093,444) | $(86,056,094) |
Net increase (decrease) | 2,276,289 | 1,912,503 | $84,844,865 | $58,506,877 |
Fidelity Advisor Financial Services Fund | ||||
Class A | ||||
Shares sold | 2,855,116 | 2,461,428 | $49,505,266 | $37,745,282 |
Reinvestment of distributions | 14,068 | 34,331 | 258,984 | 519,430 |
Shares redeemed | (1,528,555) | (2,437,261) | (26,144,998) | (35,887,745) |
Net increase (decrease) | 1,340,629 | 58,498 | $23,619,252 | $2,376,967 |
Class T | ||||
Shares sold | 425,642 | 329,948 | $7,454,657 | $5,036,365 |
Reinvestment of distributions | 2,145 | 8,782 | 39,120 | 131,908 |
Shares redeemed | (173,999) | (464,648) | (2,851,260) | (6,810,235) |
Net increase (decrease) | 253,788 | (125,918) | $4,642,517 | $(1,641,962) |
Class B | ||||
Shares sold | – | 9,988 | $– | $147,548 |
Reinvestment of distributions | – | 304 | – | 4,404 |
Shares redeemed | – | (252,485) | – | (3,578,817) |
Net increase (decrease) | – | (242,193) | $– | $(3,426,865) |
Class C | ||||
Shares sold | 1,804,595 | 1,154,577 | $30,255,414 | $16,736,102 |
Reinvestment of distributions | 381 | 9,045 | 6,602 | 129,709 |
Shares redeemed | (513,830) | (1,103,196) | (8,070,160) | (15,422,240) |
Net increase (decrease) | 1,291,146 | 60,426 | $22,191,856 | $1,443,571 |
Class I | ||||
Shares sold | 3,602,785 | 1,492,860 | $64,582,427 | $23,191,855 |
Reinvestment of distributions | 8,203 | 13,725 | 155,027 | 212,871 |
Shares redeemed | (993,644) | (2,712,520) | (18,110,753) | (40,632,527) |
Net increase (decrease) | 2,617,344 | (1,205,935) | $46,626,701 | $(17,227,801) |
Fidelity Advisor Health Care Fund | ||||
Class A | ||||
Shares sold | 2,712,406 | 9,336,496 | $97,670,000 | $350,828,959 |
Reinvestment of distributions | – | 1,936,613 | – | 75,411,722 |
Shares redeemed | (6,678,938) | (11,369,542) | (238,197,483) | (411,793,615) |
Net increase (decrease) | (3,966,532) | (96,433) | $(140,527,483) | $14,447,066 |
Class T | ||||
Shares sold | 339,699 | 1,352,279 | $11,474,141 | $47,552,154 |
Reinvestment of distributions | – | 545,495 | 4 | 20,019,680 |
Shares redeemed | (1,238,019) | (1,905,048) | (41,711,354) | (64,841,826) |
Net increase (decrease) | (898,320) | (7,274) | $(30,237,209) | $2,730,008 |
Class B | ||||
Shares sold | – | 16,220 | $– | $514,491 |
Reinvestment of distributions | – | 22,031 | – | 711,834 |
Shares redeemed | – | (380,480) | – | (11,210,414) |
Net increase (decrease) | – | (342,229) | $– | $(9,984,089) |
Class C | ||||
Shares sold | 1,691,900 | 6,641,532 | $49,532,868 | $205,634,061 |
Reinvestment of distributions | – | 1,474,771 | – | 47,059,934 |
Shares redeemed | (4,309,783) | (6,093,606) | (125,265,061) | (179,489,602) |
Net increase (decrease) | (2,617,883) | 2,022,697 | $(75,732,193) | $73,204,393 |
Class I | ||||
Shares sold | 5,236,304 | 10,191,430 | $203,194,047 | $405,731,198 |
Reinvestment of distributions | – | 979,448 | – | 41,117,225 |
Shares redeemed | (5,441,339) | (12,376,027) | $(210,715,279) | $(487,979,152) |
Net increase (decrease) | (205,035) | (1,205,149) | $(7,521,232) | $(41,130,729) |
Fidelity Advisor Industrials Fund | ||||
Class A | ||||
Shares sold | 1,936,387 | 1,099,603 | $71,955,362 | $36,767,902 |
Reinvestment of distributions | 435,668 | 771,777 | 16,089,235 | 24,606,761 |
Shares redeemed | (1,197,835) | (3,011,685) | (43,282,666) | (100,345,381) |
Net increase (decrease) | 1,174,220 | (1,140,305) | $44,761,931 | $(38,970,718) |
Class T | ||||
Shares sold | 423,867 | 146,735 | $15,480,193 | $4,821,874 |
Reinvestment of distributions | 129,732 | 219,403 | 4,689,798 | 6,858,376 |
Shares redeemed | (217,365) | (513,052) | (7,645,338) | (16,678,141) |
Net increase (decrease) | 336,234 | (146,914) | $12,524,653 | $(4,997,891) |
Class B | ||||
Shares sold | – | 8,518 | $– | $250,086 |
Reinvestment of distributions | – | 16,748 | – | 482,266 |
Shares redeemed | – | (223,888) | – | (6,773,722) |
Net increase (decrease) | – | (198,622) | $– | $(6,041,370) |
Class C | ||||
Shares sold | 766,166 | 426,741 | $25,643,797 | $12,983,156 |
Reinvestment of distributions | 173,011 | 324,873 | 5,776,837 | 9,447,456 |
Shares redeemed | (485,288) | (1,423,756) | (15,784,627) | (43,021,482) |
Net increase (decrease) | 453,889 | (672,142) | $15,636,007 | $(20,590,870) |
Class I | ||||
Shares sold | 3,239,550 | 1,450,552 | $125,754,868 | $51,166,989 |
Reinvestment of distributions | 241,469 | 386,271 | 9,349,688 | 12,880,051 |
Shares redeemed | (1,111,317) | (3,622,247) | (41,657,884) | (125,352,471) |
Net increase (decrease) | 2,369,702 | (1,785,424) | $93,446,672 | $(61,305,431) |
Fidelity Advisor Semiconductors Fund | ||||
Class A | ||||
Shares sold | 1,685,569 | 649,014 | $30,912,576 | $9,317,951 |
Reinvestment of distributions | 9,674 | 243,337 | 176,698 | 3,248,410 |
Shares redeemed | (676,160) | (1,328,391) | (12,387,883) | (18,785,248) |
Net increase (decrease) | 1,019,083 | (436,040) | $18,701,391 | $(6,218,887) |
Class T | ||||
Shares sold | 283,852 | 103,928 | $5,064,206 | $1,432,589 |
Reinvestment of distributions | 903 | 74,441 | 15,741 | 959,873 |
Shares redeemed | (63,948) | (295,752) | (1,114,237) | (3,952,788) |
Net increase (decrease) | 220,807 | (117,383) | $3,965,710 | $(1,560,326) |
Class B | ||||
Shares sold | – | 526 | $– | $6,775 |
Reinvestment of distributions | – | 2,652 | – | 31,733 |
Shares redeemed | – | (26,335) | – | (340,997) |
Net increase (decrease) | – | (23,157) | $– | $(302,489) |
Class C | ||||
Shares sold | 762,056 | 367,363 | $12,406,836 | $4,677,334 |
Reinvestment of distributions | 2,356 | 160,178 | 37,854 | 1,907,126 |
Shares redeemed | (223,139) | (604,623) | (3,593,682) | (7,649,533) |
Net increase (decrease) | 541,273 | (77,082) | $8,851,008 | $(1,065,073) |
Class I | ||||
Shares sold | 2,913,164 | 790,386 | $55,022,454 | $12,303,195 |
Reinvestment of distributions | 16,678 | 135,996 | 316,449 | 1,894,884 |
Shares redeemed | (1,198,624) | (1,690,148) | $(23,056,916) | $(24,919,896) |
Net increase (decrease) | 1,731,218 | (763,766) | $32,281,987 | $(10,721,817) |
Fidelity Advisor Technology Fund | ||||
Class A | ||||
Shares sold | 1,228,831 | 2,819,642 | $48,800,937 | $96,436,633 |
Reinvestment of distributions | 188,871 | 590,741 | 7,435,859 | 19,252,239 |
Shares redeemed | (1,521,069) | (3,447,017) | (60,007,620) | (117,531,802) |
Net increase (decrease) | (103,367) | (36,634) | $(3,770,824) | $(1,842,930) |
Class T | ||||
Shares sold | 318,367 | 654,081 | $12,068,657 | $21,462,874 |
Reinvestment of distributions | 84,423 | 284,010 | 3,170,910 | 8,858,269 |
Shares redeemed | (544,732) | (1,204,815) | (20,531,953) | (39,345,718) |
Net increase (decrease) | (141,942) | (266,724) | $(5,292,386) | $(9,024,575) |
Class B | ||||
Shares sold | – | 6,709 | $– | $200,635 |
Reinvestment of distributions | – | 12,391 | – | 352,034 |
Shares redeemed | – | (295,468) | – | (8,775,496) |
Net increase (decrease) | ��� | (276,368) | $– | $(8,222,827) |
Class C | ||||
Shares sold | 621,893 | 1,051,890 | $21,379,558 | $31,371,226 |
Reinvestment of distributions | 66,095 | 202,969 | 2,251,183 | 5,774,470 |
Shares redeemed | (511,211) | (927,337) | (17,497,635) | (27,369,639) |
Net increase (decrease) | 176,777 | 327,522 | $6,133,106 | $9,776,057 |
Class I | ||||
Shares sold | 1,485,305 | 2,328,486 | $62,661,386 | $84,913,369 |
Reinvestment of distributions | 71,165 | 955,239 | 2,988,203 | 33,041,700 |
Shares redeemed | (13,021,770)(a) | (6,751,997) | (537,881,704)(a) | (246,495,833) |
Net increase (decrease) | (11,465,300) | (3,468,272) | $(472,232,115) | $(128,540,764) |
Fidelity Advisor Utilities Fund | ||||
Class A | ||||
Shares sold | 609,443 | 2,397,271 | $15,847,027 | $60,596,711 |
Reinvestment of distributions | 105,057 | 240,305 | 2,653,800 | 5,414,225 |
Shares redeemed | (1,396,975) | (1,682,909) | (36,285,937) | (41,634,818) |
Net increase (decrease) | (682,475) | 954,667 | $(17,785,110) | $24,376,118 |
Class T | ||||
Shares sold | 113,716 | 543,660 | $2,978,180 | $14,096,302 |
Reinvestment of distributions | 26,982 | 76,233 | 683,792 | 1,721,689 |
Shares redeemed | (432,324) | (396,425) | (11,205,267) | (9,632,575) |
Net increase (decrease) | (291,626) | 223,468 | $(7,543,295) | $6,185,416 |
Class B | ||||
Shares sold | – | 6,017 | $– | $148,347 |
Reinvestment of distributions | – | 2,783 | – | 62,667 |
Shares redeemed | – | (114,968) | – | (2,921,136) |
Net increase (decrease) | – | (106,168) | $– | $(2,710,122) |
Class C | ||||
Shares sold | 269,345 | 1,063,727 | $6,879,819 | $26,276,925 |
Reinvestment of distributions | 24,717 | 71,102 | 613,397 | 1,573,006 |
Shares redeemed | (687,096) | (599,522) | (17,333,649) | (14,443,544) |
Net increase (decrease) | (393,034) | 535,307 | $(9,840,433) | $13,406,387 |
Class I | ||||
Shares sold | 372,887 | 2,301,270 | $9,898,366 | $58,694,241 |
Reinvestment of distributions | 29,368 | 49,611 | 755,627 | 1,138,487 |
Shares redeemed | (1,339,969) | (1,347,589) | $(35,460,990) | $(34,650,031) |
Net increase (decrease) | (937,714) | 1,003,292 | $(24,806,997) | $25,182,697 |
(a) Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
11. Other.
The Funds' 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 Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2016 to January 31, 2017).
Actual Expenses
The first line of the accompanying table for each class of each 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, each 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 each 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, each 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-A | Beginning Account Value August 1, 2016 | Ending Account Value January 31, 2017 | Expenses Paid During Period-B August 1, 2016 to January 31, 2017 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $983.60 | $5.25 | |
Hypothetical-C | $1,000.00 | $1,019.91 | $5.35 | |
Class T | 1.39% | |||
Actual | $1,000.00 | 981.40 | $6.94 | |
Hypothetical-C | $1,000.00 | $1,018.20 | $7.07 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $979.70 | $8.98 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Class I | .78% | |||
Actual | $1,000.00 | 984.50 | $3.90 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 | |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | 1.40% | |||
Actual | $1,000.00 | $1,062.30 | $7.28 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12 | |
Class T | 1.65% | |||
Actual | $1,000.00 | $1,061.30 | $8.62 | |
Hypothetical-C | $1,000.00 | $1,016.84 | $8.44 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,057.90 | $11.15 | |
Hypothetical-C | $1,000.00 | $1,014.37 | $10.92 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,063.70 | $5.98 | |
Hypothetical-C | $1,000.00 | $1,019.41 | $5.85 | |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | 1.12% | |||
Actual | $1,000.00 | $1,029.70 | $5.73 | |
Hypothetical-C | $1,000.00 | $1,019.56 | $5.70 | |
Class T | 1.42% | |||
Actual | $1,000.00 | $1,028.30 | $7.26 | |
Hypothetical-C | $1,000.00 | $1,018.05 | $7.22 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $1,025.60 | $9.55 | |
Hypothetical-C | $1,000.00 | $1,015.78 | $9.50 | |
Class I | .85% | |||
Actual | $1,000.00 | $1,031.50 | $4.35 | |
Hypothetical-C | $1,000.00 | $1,020.92 | $4.33 | |
Fidelity Advisor Energy Fund | ||||
Class A | 1.09% | |||
Actual | $1,000.00 | $1,141.20 | $5.88 | |
Hypothetical-C | $1,000.00 | $1,019.71 | $5.55 | |
Class T | 1.36% | |||
Actual | $1,000.00 | $1,139.80 | $7.34 | |
Hypothetical-C | $1,000.00 | $1,018.35 | $6.92 | |
Class C | 1.82% | |||
Actual | $1,000.00 | $1,137.00 | $9.80 | |
Hypothetical-C | $1,000.00 | $1,016.03 | $9.25 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,143.10 | $4.43 | |
Hypothetical-C | $1,000.00 | $1,021.07 | $4.18 | |
Fidelity Advisor Financial Services Fund | ||||
Class A | 1.17% | |||
Actual | $1,000.00 | $1,187.20 | $6.45 | |
Hypothetical-C | $1,000.00 | $1,019.31 | $5.96 | |
Class T | 1.45% | |||
Actual | $1,000.00 | $1,185.10 | $7.99 | |
Hypothetical-C | $1,000.00 | $1,017.90 | $7.38 | |
Class C | 1.91% | |||
Actual | $1,000.00 | $1,183.00 | $10.51 | |
Hypothetical-C | $1,000.00 | $1,015.58 | $9.70 | |
Class I | .87% | |||
Actual | $1,000.00 | $1,189.40 | $4.80 | |
Hypothetical-C | $1,000.00 | $1,020.82 | $4.43 | |
Fidelity Advisor Health Care Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $948.20 | $5.16 | |
Hypothetical-C | $1,000.00 | $1,019.91 | $5.35 | |
Class T | 1.32% | |||
Actual | $1,000.00 | $946.90 | $6.48 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.72 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $944.70 | $8.82 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Class I | .79% | |||
Actual | $1,000.00 | $949.60 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Fidelity Advisor Industrials Fund | ||||
Class A | 1.07% | |||
Actual | $1,000.00 | $1,093.80 | $5.65 | |
Hypothetical-C | $1,000.00 | $1,019.81 | $5.45 | |
Class T | 1.33% | |||
Actual | $1,000.00 | $1,092.70 | $7.02 | |
Hypothetical-C | $1,000.00 | $1,018.50 | $6.77 | |
Class C | 1.83% | |||
Actual | $1,000.00 | $1,089.70 | $9.64 | |
Hypothetical-C | $1,000.00 | $1,015.98 | $9.30 | |
Class I | .81% | |||
Actual | $1,000.00 | $1,095.40 | $4.28 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Fidelity Advisor Semiconductors Fund | ||||
Class A | 1.24% | |||
Actual | $1,000.00 | $1,186.20 | $6.83 | |
Hypothetical-C | $1,000.00 | $1,018.95 | $6.31 | |
Class T | 1.59% | |||
Actual | $1,000.00 | $1,184.50 | $8.75 | |
Hypothetical-C | $1,000.00 | $1,017.19 | $8.08 | |
Class C | 2.02% | |||
Actual | $1,000.00 | $1,182.10 | $11.11 | |
Hypothetical-C | $1,000.00 | $1,015.02 | $10.26 | |
Class I | .94% | |||
Actual | $1,000.00 | $1,188.40 | $5.19 | |
Hypothetical-C | $1,000.00 | $1,020.47 | $4.79 | |
Fidelity Advisor Technology Fund | ||||
Class A | 1.09% | |||
Actual | $1,000.00 | $1,115.60 | $5.81 | |
Hypothetical-C | $1,000.00 | $1,019.71 | $5.55 | |
Class T | 1.35% | |||
Actual | $1,000.00 | $1,114.20 | $7.19 | |
Hypothetical-C | $1,000.00 | $1,018.40 | $6.87 | |
Class C | 1.84% | |||
Actual | $1,000.00 | $1,111.30 | $9.79 | |
Hypothetical-C | $1,000.00 | $1,015.93 | $9.35 | |
Class I | .76% | |||
Actual | $1,000.00 | $1,117.20 | $4.06 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Fidelity Advisor Utilities Fund | ||||
Class A | 1.13% | |||
Actual | $1,000.00 | $969.80 | $5.61 | |
Hypothetical-C | $1,000.00 | $1,019.51 | $5.75 | |
Class T | 1.43% | |||
Actual | $1,000.00 | $968.20 | $7.09 | |
Hypothetical-C | $1,000.00 | $1,018.00 | $7.27 | |
Class C | 1.89% | |||
Actual | $1,000.00 | $966.00 | $9.37 | |
Hypothetical-C | $1,000.00 | $1,015.68 | $9.60 | |
Class I | .86% | |||
Actual | $1,000.00 | $971.00 | $4.27 | |
Hypothetical-C | $1,000.00 | $1,020.87 | $4.38 | |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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. SelectCo and the sub-advisers are collectively referred to herein as the Investment Advisers. 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 2017 meeting, the Board 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 relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as each fund grows, and whether any economies of scale are appropriately shared with 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 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 investment personnel 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 Advisers' investment staffs, including their size, education, experience, and resources, as well as 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 considered 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, compliance, and technology and operations 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, subcustodians, and pricing vendors; 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.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.The Board noted that in 2014 the ad hoc Committee on Transfer Agency Fees was formed by it and the boards of certain other Fidelity funds to review the variety of transfer agency services and fee structures throughout the mutual fund industry compared to Fidelity's.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; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) 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; (vii) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (viii) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (ix) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; and (x) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure.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 took into account discussions with representatives of SelectCo 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. Each of Advisor Biotechnology Portfolio, Advisor Consumer Discretionary Portfolio, Advisor Energy Portfolio, Advisor Financial Services Portfolio, Advisor Industrials Portfolio, Advisor Technology Portfolio, and Advisor Utilities Portfolio underperformed its benchmark for the one-, three-, and five-year periods ended June 30, 2016, and as a result, the Board will continue to discuss with SelectCo the steps it is taking to address each such 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 fund share 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; 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, 2016.Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to 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. For this purpose, all sector focused equity funds are grouped in the same mapped group. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in basis points (BP) 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 (i.e., sector equities), regardless of whether their management fee structures also are comparable. 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 and the number of funds in the Total Mapped Group 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.Fidelity Advisor Biotechnology Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022384.jpg)
Fidelity Advisor Communications Equipment Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022479.jpg)
Fidelity Advisor Consumer Discretionary Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022574.jpg)
Fidelity Advisor Energy Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022793.jpg)
Fidelity Advisor Financial Services Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022889.jpg)
Fidelity Advisor Health Care Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222022982.jpg)
Fidelity Advisor Industrials Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222023076.jpg)
Fidelity Advisor Semiconductors Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222023211.jpg)
Fidelity Advisor Technology Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222023342.jpg)
Fidelity Advisor Utilities Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222023435.jpg)
AFOC-SANN-0317
1.700839.120
Fidelity Advisor® Real Estate Fund Semi-Annual Report January 31, 2017 |
![]() |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Simon Property Group, Inc. | 10.2 | 11.9 |
AvalonBay Communities, Inc. | 5.6 | 5.2 |
Ventas, Inc. | 5.1 | 5.8 |
Boston Properties, Inc. | 5.0 | 5.8 |
Extra Space Storage, Inc. | 4.2 | 4.1 |
Public Storage | 3.9 | 4.3 |
Mid-America Apartment Communities, Inc. | 3.7 | 3.4 |
Urban Edge Properties | 3.3 | 3.2 |
DCT Industrial Trust, Inc. | 2.9 | 3.4 |
Essex Property Trust, Inc. | 2.8 | 3.1 |
46.7 |
Top Five REIT Sectors as of January 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
REITs - Apartments | 18.1 | 17.2 |
REITs - Office Property | 14.9 | 15.4 |
REITs - Regional Malls | 14.4 | 16.0 |
REITs - Health Care | 11.1 | 11.9 |
REITs - Storage | 8.1 | 8.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2017 | ||
Stocks | 99.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
As of July 31, 2016 | ||
Stocks | 98.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.5% |
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Equity Real Estate Investment Trusts (REITs) - 98.9% | |||
REITs - Apartments - 18.1% | |||
American Homes 4 Rent Class A | 376,900 | $8,397,332 | |
Apartment Investment & Management Co. Class A | 426,345 | 18,789,024 | |
AvalonBay Communities, Inc. | 270,640 | 46,904,618 | |
Equity Residential (SBI) | 306,609 | 18,632,629 | |
Essex Property Trust, Inc. | 105,247 | 23,606,902 | |
Mid-America Apartment Communities, Inc. | 330,649 | 31,395,123 | |
Monogram Residential Trust, Inc. | 535,700 | 5,448,069 | |
153,173,697 | |||
REITs - Diversified - 7.4% | |||
Corrections Corp. of America | 133,400 | 3,873,936 | |
Duke Realty LP | 598,600 | 14,563,938 | |
Equinix, Inc. | 40,000 | 15,399,200 | |
Liberty Property Trust (SBI) | 131,400 | 5,044,446 | |
Vornado Realty Trust | 150,583 | 16,008,479 | |
Washington REIT (SBI) | 254,100 | 7,991,445 | |
62,881,444 | |||
REITs - Health Care - 11.1% | |||
Healthcare Realty Trust, Inc. | 667,800 | 20,174,238 | |
Sabra Health Care REIT, Inc. | 417,261 | 10,598,429 | |
Ventas, Inc. | 700,305 | 43,187,809 | |
Welltower, Inc. | 298,019 | 19,758,660 | |
93,719,136 | |||
REITs - Hotels - 5.6% | |||
DiamondRock Hospitality Co. | 899,250 | 10,134,548 | |
FelCor Lodging Trust, Inc. | 1,211,589 | 9,329,235 | |
Host Hotels & Resorts, Inc. | 924,334 | 16,702,715 | |
Sunstone Hotel Investors, Inc. | 765,700 | 11,271,104 | |
47,437,602 | |||
REITs - Management/Investment - 3.9% | |||
American Assets Trust, Inc. | 229,100 | 9,835,263 | |
American Tower Corp. | 38,900 | 4,026,150 | |
CoreSite Realty Corp. | 155,700 | 13,410,441 | |
Empire State Realty Trust, Inc. | 292,000 | 5,983,080 | |
33,254,934 | |||
REITs - Manufactured Homes - 2.0% | |||
Equity Lifestyle Properties, Inc. | 227,903 | 16,851,148 | |
REITs - Office Property - 14.9% | |||
Boston Properties, Inc. | 327,447 | 42,862,812 | |
Corporate Office Properties Trust (SBI) | 152,600 | 4,855,732 | |
Douglas Emmett, Inc. | 541,800 | 20,501,712 | |
Highwoods Properties, Inc. (SBI) | 313,700 | 16,127,317 | |
Hudson Pacific Properties, Inc. | 545,400 | 19,312,614 | |
Mack-Cali Realty Corp. | 538,022 | 15,075,376 | |
New York (REIT), Inc. | 258,300 | 2,570,085 | |
VEREIT, Inc. | 565,300 | 4,822,009 | |
126,127,657 | |||
REITs - Regional Malls - 14.4% | |||
General Growth Properties, Inc. | 447,300 | 11,110,932 | |
Pennsylvania Real Estate Investment Trust (SBI) | 445,300 | 7,975,323 | |
Simon Property Group, Inc. | 470,650 | 86,491,351 | |
Taubman Centers, Inc. | 234,500 | 16,611,980 | |
122,189,586 | |||
REITs - Shopping Centers - 7.6% | |||
Brixmor Property Group, Inc. | 667,700 | 16,111,601 | |
Cedar Shopping Centers, Inc. | 1,241,470 | 7,461,235 | |
DDR Corp. | 824,200 | 12,511,356 | |
Urban Edge Properties | 996,241 | 27,864,861 | |
63,949,053 | |||
REITs - Storage - 8.1% | |||
Extra Space Storage, Inc. | 489,100 | 35,239,655 | |
Public Storage | 152,750 | 32,841,250 | |
68,080,905 | |||
REITs - Warehouse/Industrial - 5.8% | |||
DCT Industrial Trust, Inc. | 554,366 | 24,774,617 | |
Prologis, Inc. | 373,877 | 18,263,891 | |
Terreno Realty Corp. | 217,980 | 5,926,876 | |
48,965,384 | |||
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 836,630,546 | ||
Hotels, Restaurants & Leisure - 0.4% | |||
Hotels, Resorts & Cruise Lines - 0.4% | |||
Hilton Worldwide Holdings, Inc. | 57,600 | 3,316,608 | |
TOTAL COMMON STOCKS | |||
(Cost $676,300,785) | 839,947,154 | ||
Money Market Funds - 0.4% | |||
Fidelity Cash Central Fund, 0.62% (a) | |||
(Cost $3,529,163) | 3,528,458 | 3,529,163 | |
TOTAL INVESTMENT PORTFOLIO - 99.7% | |||
(Cost $679,829,948) | 843,476,317 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 2,138,062 | ||
NET ASSETS - 100% | $845,614,379 |
Legend
(a) 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.
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 | $16,343 |
Fidelity Securities Lending Cash Central Fund | 1,859 |
Total | $18,202 |
Investment Valuation
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.
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $676,300,785) | $839,947,154 | |
Fidelity Central Funds (cost $3,529,163) | 3,529,163 | |
Total Investments (cost $679,829,948) | $843,476,317 | |
Receivable for investments sold | 11,687,176 | |
Receivable for fund shares sold | 1,047,964 | |
Dividends receivable | 108,405 | |
Distributions receivable from Fidelity Central Funds | 2,959 | |
Prepaid expenses | 4,625 | |
Other receivables | 54,978 | |
Total assets | 856,382,424 | |
Liabilities | ||
Payable for investments purchased | $3,855,522 | |
Payable for fund shares redeemed | 6,033,782 | |
Accrued management fee | 400,683 | |
Distribution and service plan fees payable | 196,677 | |
Other affiliated payables | 194,161 | |
Other payables and accrued expenses | 87,220 | |
Total liabilities | 10,768,045 | |
Net Assets | $845,614,379 | |
Net Assets consist of: | ||
Paid in capital | $668,967,660 | |
Distributions in excess of net investment income | (1,343,417) | |
Accumulated undistributed net realized gain (loss) on investments | 14,343,767 | |
Net unrealized appreciation (depreciation) on investments | 163,646,369 | |
Net Assets | $845,614,379 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($300,718,810 ÷ 13,552,578 shares) | $22.19 | |
Maximum offering price per share (100/94.25 of $22.19) | $23.54 | |
Class T: | ||
Net Asset Value and redemption price per share ($167,804,899 ÷ 7,567,308 shares) | $22.17 | |
Maximum offering price per share (100/96.50 of $22.17) | $22.97 | |
Class C: | ||
Net Asset Value and offering price per share ($70,974,133 ÷ 3,262,012 shares)(a) | $21.76 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($306,116,537 ÷ 13,674,254 shares) | $22.39 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $11,542,790 | |
Income from Fidelity Central Funds | 18,202 | |
Total income | 11,560,992 | |
Expenses | ||
Management fee | $2,587,205 | |
Transfer agent fees | 1,083,253 | |
Distribution and service plan fees | 1,243,180 | |
Accounting and security lending fees | 158,702 | |
Custodian fees and expenses | 29,792 | |
Independent trustees' fees and expenses | 10,472 | |
Registration fees | 60,160 | |
Audit | 26,462 | |
Legal | 7,703 | |
Miscellaneous | 6,409 | |
Total expenses before reductions | 5,213,338 | |
Expense reductions | (32,053) | 5,181,285 |
Net investment income (loss) | 6,379,707 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 37,338,600 | |
Fidelity Central Funds | 952 | |
Total net realized gain (loss) | 37,339,552 | |
Change in net unrealized appreciation (depreciation) on investment securities | (140,430,609) | |
Net gain (loss) | (103,091,057) | |
Net increase (decrease) in net assets resulting from operations | $(96,711,350) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2017 (Unaudited) | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,379,707 | $15,064,030 |
Net realized gain (loss) | 37,339,552 | 29,473,051 |
Change in net unrealized appreciation (depreciation) | (140,430,609) | 119,116,271 |
Net increase (decrease) in net assets resulting from operations | (96,711,350) | 163,653,352 |
Distributions to shareholders from net investment income | (10,609,959) | (14,426,839) |
Distributions to shareholders from net realized gain | (47,681,813) | (23,588,298) |
Total distributions | (58,291,772) | (38,015,137) |
Share transactions - net increase (decrease) | (78,824,032) | 25,518,551 |
Total increase (decrease) in net assets | (233,827,154) | 151,156,766 |
Net Assets | ||
Beginning of period | 1,079,441,533 | 928,284,767 |
End of period | $845,614,379 | $1,079,441,533 |
Other Information | ||
Undistributed net investment income end of period | $– | $2,886,835 |
Distributions in excess of net investment income end of period | $(1,343,417) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class A
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.93 | $22.90 | $22.57 | $20.92 | $19.83 | $18.24 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .37 | .30 | .31 | .22 | .17 |
Net realized and unrealized gain (loss) | (2.46) | 3.61 | 1.82 | 2.13 | 1.27 | 2.02 |
Total from investment operations | (2.30) | 3.98 | 2.12 | 2.44 | 1.49 | 2.19 |
Distributions from net investment income | (.27) | (.36) | (.30) | (.27) | (.23) | (.13) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) | (.47) |
Total distributions | (1.44)B | (.95) | (1.79) | (.79) | (.40) | (.60) |
Net asset value, end of period | $22.19 | $25.93 | $22.90 | $22.57 | $20.92 | $19.83 |
Total ReturnC,D,E | (8.92)% | 18.33% | 9.70% | 12.34% | 7.66% | 12.81% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.09%H | 1.09% | 1.10% | 1.16% | 1.17% | 1.19% |
Expenses net of fee waivers, if any | 1.09%H | 1.09% | 1.10% | 1.16% | 1.17% | 1.19% |
Expenses net of all reductions | 1.09%H | 1.08% | 1.09% | 1.15% | 1.16% | 1.18% |
Net investment income (loss) | 1.35%H | 1.62% | 1.32% | 1.47% | 1.06% | .98% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $300,719 | $370,408 | $327,489 | $274,136 | $246,323 | $199,303 |
Portfolio turnover rateI | 68%H | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.44 per share is comprised of distributions from net investment income of $.267 and distributions from net realized gain of $1.176 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class T
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.90 | $22.88 | $22.55 | $20.91 | $19.82 | $18.24 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .13 | .32 | .25 | .26 | .17 | .13 |
Net realized and unrealized gain (loss) | (2.45) | 3.60 | 1.82 | 2.13 | 1.28 | 2.02 |
Total from investment operations | (2.32) | 3.92 | 2.07 | 2.39 | 1.45 | 2.15 |
Distributions from net investment income | (.23) | (.30) | (.25) | (.23) | (.19) | (.10) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) | (.47) |
Total distributions | (1.41) | (.90)B | (1.74) | (.75) | (.36) | (.57) |
Net asset value, end of period | $22.17 | $25.90 | $22.88 | $22.55 | $20.91 | $19.82 |
Total ReturnC,D,E | (9.03)% | 18.02% | 9.46% | 12.07% | 7.43% | 12.52% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.33%H | 1.33% | 1.34% | 1.37% | 1.38% | 1.43% |
Expenses net of fee waivers, if any | 1.33%H | 1.33% | 1.34% | 1.37% | 1.38% | 1.43% |
Expenses net of all reductions | 1.32%H | 1.32% | 1.33% | 1.36% | 1.38% | 1.43% |
Net investment income (loss) | 1.12%H | 1.38% | 1.09% | 1.26% | .85% | .73% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $167,805 | $199,431 | $168,375 | $138,783 | $114,717 | $86,987 |
Portfolio turnover rateI | 68%H | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.90 per share is comprised of distributions from net investment income of $.303 and distributions from net realized gain of $.594 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class C
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.43 | $22.49 | $22.23 | $20.61 | $19.55 | $18.03 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .19 | .13 | .15 | .07 | .04 |
Net realized and unrealized gain (loss) | (2.40) | 3.54 | 1.78 | 2.10 | 1.26 | 1.98 |
Total from investment operations | (2.33) | 3.73 | 1.91 | 2.25 | 1.33 | 2.02 |
Distributions from net investment income | (.16) | (.20) | (.16) | (.11) | (.10) | (.03) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) | (.47) |
Total distributions | (1.34) | (.79) | (1.65) | (.63) | (.27) | (.50) |
Net asset value, end of period | $21.76 | $25.43 | $22.49 | $22.23 | $20.61 | $19.55 |
Total ReturnB,C,D | (9.26)% | 17.40% | 8.85% | 11.52% | 6.89% | 11.92% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.87%G | 1.86% | 1.87% | 1.90% | 1.90% | 1.93% |
Expenses net of fee waivers, if any | 1.87%G | 1.86% | 1.87% | 1.90% | 1.90% | 1.93% |
Expenses net of all reductions | 1.86%G | 1.85% | 1.86% | 1.89% | 1.89% | 1.93% |
Net investment income (loss) | .58%G | .85% | .56% | .73% | .33% | .23% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $70,974 | $86,755 | $79,291 | $64,822 | $75,461 | $55,064 |
Portfolio turnover rateH | 68%G | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
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 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class I
Six months ended (Unaudited) January 31, | Years ended July 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.15 | $23.09 | $22.74 | $21.07 | $19.97 | $18.36 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .19 | .43 | .36 | .36 | .28 | .22 |
Net realized and unrealized gain (loss) | (2.47) | 3.64 | 1.83 | 2.15 | 1.27 | 2.03 |
Total from investment operations | (2.28) | 4.07 | 2.19 | 2.51 | 1.55 | 2.25 |
Distributions from net investment income | (.30) | (.41) | (.35) | (.32) | (.28) | (.17) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) | (.47) |
Total distributions | (1.48) | (1.01)B | (1.84) | (.84) | (.45) | (.64) |
Net asset value, end of period | $22.39 | $26.15 | $23.09 | $22.74 | $21.07 | $19.97 |
Total ReturnC,D | (8.78)% | 18.61% | 9.99% | 12.64% | 7.92% | 13.12% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .83%G | .84% | .85% | .89% | .90% | .93% |
Expenses net of fee waivers, if any | .83%G | .83% | .85% | .89% | .90% | .93% |
Expenses net of all reductions | .82%G | .83% | .84% | .88% | .89% | .93% |
Net investment income (loss) | 1.62%G | 1.87% | 1.57% | 1.74% | 1.33% | 1.23% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $306,117 | $422,848 | $349,301 | $298,932 | $305,619 | $283,054 |
Portfolio turnover rateH | 68%G | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.01 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.594 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2017
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 Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period August 1, 2015 through June 24, 2016.
In March 2017 the Board of Trustees approved a change in the name of Class T to Class M effective after the close of business on March 24, 2017.
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 .005%.
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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by 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 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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.
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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.
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.
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 | $175,004,563 |
Gross unrealized depreciation | (14,417,850) |
Net unrealized appreciation (depreciation) on securities | $160,586,713 |
Tax cost | $682,889,604 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $320,023,960 and $434,270,822, 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% | $411,412 | $852 |
Class T | .25% | .25% | 446,900 | - |
Class C | .75% | .25% | 384,868 | 41,937 |
$1,243,180 | $42,789 |
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, and Class C redemptions. The deferred sales charges are 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 | $36,185 |
Class T | 5,193 |
Class C(a) | 5,591 |
$46,969 |
(a) When 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(a) | |
Class A | $386,283 | .23 |
Class T | 196,653 | .22 |
Class C | 100,441 | .26 |
Class I | 399,876 | .22 |
$ 1,083,253 |
(a) 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 $4,758 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
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 $1,594 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. The Fund or borrower may terminate the loan at any time, and 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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,859.
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 $27,517 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $93.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4,443.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2017 | Year ended July 31, 2016 | |
From net investment income | ||
Class A | $3,712,440 | $5,067,842 |
Class T | 1,780,055 | 2,282,274 |
Class B | – | 23,309 |
Class C | 523,780 | 668,898 |
Class I | 4,593,684 | 6,384,516 |
Total | $10,609,959 | $14,426,839 |
From net realized gain | ||
Class A | $16,499,195 | $8,321,843 |
Class T | 8,976,889 | 4,346,704 |
Class B | – | 96,771 |
Class C | 3,942,806 | 2,036,085 |
Class I | 18,262,923 | 8,786,895 |
Total | $47,681,813 | $23,588,298 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2017 | Year ended July 31, 2016 | Six months ended January 31, 2017 | Year ended July 31, 2016 | |
Class A | ||||
Shares sold | 1,864,499 | 4,736,671 | $43,493,202 | $108,878,379 |
Reinvestment of distributions | 859,012 | 609,681 | 19,605,405 | 12,982,247 |
Shares redeemed | (3,458,220) | (5,361,287) | (79,086,086) | (121,804,208) |
Net increase (decrease) | (734,709) | (14,935) | $(15,987,479) | $56,418 |
Class T | ||||
Shares sold | 724,285 | 1,880,765 | $16,827,294 | $42,893,613 |
Reinvestment of distributions | 463,769 | 305,958 | 10,577,287 | 6,498,077 |
Shares redeemed | (1,319,598) | (1,847,070) | (30,257,700) | (42,128,667) |
Net increase (decrease) | (131,544) | 339,653 | $(2,853,119) | $7,263,023 |
Class B | ||||
Shares sold | – | 1,732 | $– | $39,637 |
Reinvestment of distributions | – | 5,627 | – | 116,514 |
Shares redeemed | – | (177,126) | – | (4,084,276) |
Net increase (decrease) | – | (169,767) | $– | $(3,928,125) |
Class C | ||||
Shares sold | 300,969 | 728,624 | $6,927,677 | $16,601,869 |
Reinvestment of distributions | 186,230 | 120,168 | 4,173,962 | 2,492,064 |
Shares redeemed | (636,638) | (963,362) | (14,247,921) | (21,459,688) |
Net increase (decrease) | (149,439) | (114,570) | $(3,146,282) | $(2,365,755) |
Class I | ||||
Shares sold | 2,322,752 | 6,231,007 | $55,036,946 | $143,673,256 |
Reinvestment of distributions | 829,554 | 571,386 | 19,114,838 | 12,312,697 |
Shares redeemed | (5,648,681) | (5,761,958) | (130,988,936) | (131,492,963) |
Net increase (decrease) | (2,496,375) | 1,040,435 | $(56,837,152) | $24,492,990 |
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.
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, 2016 to January 31, 2017).
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-A | Beginning Account Value August 1, 2016 | Ending Account Value January 31, 2017 | Expenses Paid During Period-B August 1, 2016 to January 31, 2017 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $910.80 | $5.25 | |
Hypothetical-C | $1,000.00 | $1,019.71 | $5.55 | |
Class T | 1.33% | |||
Actual | $1,000.00 | $909.70 | $6.40 | |
Hypothetical-C | $1,000.00 | $1,018.50 | $6.77 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $907.40 | $8.99 | |
Hypothetical-C | $1,000.00 | $1,015.78 | $9.50 | |
Class I | .83% | |||
Actual | $1,000.00 | $912.20 | $4.00 | |
Hypothetical-C | $1,000.00 | $1,021.02 | $4.23 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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. SelectCo and the sub-advisers are collectively referred to herein as the Investment Advisers. 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 2017 meeting, the Board 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 relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with 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.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of the Investment Advisers as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel 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 Advisers' investment staffs, including their size, education, experience, and resources, as well as 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 considered 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, compliance, and technology and operations 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, subcustodians, and pricing vendors; 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.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.The Board noted that in 2014 the ad hoc Committee on Transfer Agency Fees was formed by it and the boards of certain other Fidelity funds to review the variety of transfer agency services and fee structures throughout the mutual fund industry compared to Fidelity's.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; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) 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; (vii) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (viii) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (ix) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; and (x) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure.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.The Board took into account discussions with representatives of SelectCo 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. The fund underperformed its benchmark for the one-, three-, and five-year periods ended June 30, 2016, and as a result, the Board will continue to discuss with SelectCo the steps it 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 fund share 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; 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, 2016.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.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. For this purpose, all sector focused equity funds are grouped in the same mapped group. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in basis points (BP) 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 (i.e., sector equities), regardless of whether their management fee structures also are comparable. 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 the 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 the fund. The fund's actual TMG %s and the number of funds in the Total Mapped Group 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 the fund's management fee rate ranked, is also included in the chart and considered by the Board.Fidelity Advisor Real Estate Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-17-001778/img222028893.jpg)
ARE-SANN-0317
1.783109.115
Fidelity Advisor® Global Real Estate Fund Semi-Annual Report January 31, 2017 |
![]() |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2017
% of fund's net assets | |
Public Storage | 3.6 |
Sun Hung Kai Properties Ltd. | 3.4 |
Prologis, Inc. | 3.3 |
Duke Realty LP | 3.3 |
UDR, Inc. | 2.8 |
Ventas, Inc. | 2.5 |
Boston Properties, Inc. | 2.4 |
Mitsubishi Estate Co. Ltd. | 2.4 |
Simon Property Group, Inc. | 2.3 |
Sino Land Ltd. | 2.2 |
28.2 |
Top Five Countries as of January 31, 2017
(excluding cash equivalents) | % of fund's net assets |
United States of America | 54.6 |
Japan | 10.5 |
Hong Kong | 5.6 |
Australia | 4.9 |
Germany | 3.6 |
Top Five REIT Sectors as of January 31, 2017
% of fund's net assets | |
REITs - Apartments | 9.4 |
REITs - Diversified | 8.1 |
REITs - Health Care | 6.2 |
REITs - Office Property | 6.0 |
REITs - Warehouse/Industrial | 6.0 |
Asset Allocation (% of fund's net assets)
As of January 31, 2017* | ||
Stocks | 95.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.0% |
* Foreign investments - 40.4%
Investments January 31, 2017 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.0% | |||
Shares | Value | ||
Australia - 4.9% | |||
GDI Property Group unit | 2,282 | $1,722 | |
Ingenia Communities Group unit | 8,688 | 17,197 | |
National Storage (REIT) unit | 9,964 | 10,919 | |
Propertylink Group unit | 26,400 | 15,317 | |
Stockland Corp. Ltd. unit | 10,122 | 33,393 | |
The GPT Group unit | 11,456 | 40,661 | |
TOTAL AUSTRALIA | 119,209 | ||
Austria - 2.2% | |||
Buwog-Gemeinnuetzige Wohnung | 2,234 | 53,248 | |
Canada - 1.2% | |||
Smart(REIT) | 1,167 | 28,717 | |
France - 1.6% | |||
Unibail-Rodamco | 168 | 38,716 | |
Germany - 3.6% | |||
LEG Immobilien AG | 630 | 49,415 | |
Vonovia SE | 1,140 | 37,251 | |
TOTAL GERMANY | 86,666 | ||
Hong Kong - 5.6% | |||
Sino Land Ltd. | 32,300 | 53,371 | |
Sun Hung Kai Properties Ltd. | 6,120 | 84,218 | |
TOTAL HONG KONG | 137,589 | ||
Ireland - 1.9% | |||
Hibernia (REIT) PLC | 25,600 | 33,632 | |
Irish Residential Properties REIT PLC | 9,500 | 11,896 | |
TOTAL IRELAND | 45,528 | ||
Japan - 10.5% | |||
Advance Residence Investment Corp. | 7 | 18,469 | |
Ichigo, Inc. | 3,900 | 12,676 | |
Kenedix Office Investment Corp. | 5 | 29,493 | |
Kenedix Retail REIT Corp. | 14 | 33,738 | |
Mitsubishi Estate Co. Ltd. | 3,100 | 59,373 | |
Mitsui Fudosan Co. Ltd. | 2,250 | 52,140 | |
NTT Urban Development Co. | 1,400 | 12,325 | |
ORIX JREIT, Inc. | 23 | 37,624 | |
TOTAL JAPAN | 255,838 | ||
Singapore - 2.8% | |||
City Developments Ltd. | 4,000 | 26,196 | |
Mapletree Commercial Trust | 13,300 | 14,439 | |
Parkway Life REIT | 16,700 | 28,794 | |
TOTAL SINGAPORE | 69,429 | ||
Spain - 1.5% | |||
Hispania Activos Inmobiliarios SA | 2,205 | 27,135 | |
Inmobiliaria Colonial SA | 1,305 | 9,574 | |
TOTAL SPAIN | 36,709 | ||
Sweden - 2.0% | |||
Castellum AB | 3,600 | 49,594 | |
United Kingdom - 2.6% | |||
British Land Co. PLC | 4,356 | 31,948 | |
Londonmetric Properity PLC | 9,560 | 17,751 | |
U & I Group PLC | 6,256 | 12,789 | |
TOTAL UNITED KINGDOM | 62,488 | ||
United States of America - 54.6% | |||
American Campus Communities, Inc. | 223 | 10,842 | |
American Homes 4 Rent Class A | 1,011 | 22,525 | |
Apartment Investment & Management Co. Class A | 561 | 24,723 | |
AvalonBay Communities, Inc. | 79 | 13,691 | |
Boston Properties, Inc. | 456 | 59,690 | |
Brixmor Property Group, Inc. | 1,465 | 35,350 | |
Camden Property Trust (SBI) | 260 | 21,728 | |
Chambers Street Properties | 967 | 25,471 | |
Cousins Properties, Inc. | 1,728 | 14,688 | |
DCT Industrial Trust, Inc. | 938 | 41,919 | |
DDR Corp. | 2,196 | 33,335 | |
DiamondRock Hospitality Co. | 1,491 | 16,804 | |
Digital Realty Trust, Inc. | 438 | 47,142 | |
Duke Realty LP | 3,256 | 79,218 | |
Equity Lifestyle Properties, Inc. | 615 | 45,473 | |
Equity Residential (SBI) | 192 | 11,668 | |
Essex Property Trust, Inc. | 128 | 28,710 | |
Extra Space Storage, Inc. | 426 | 30,693 | |
Forest City Realty Trust, Inc. Class A | 530 | 11,999 | |
Gaming & Leisure Properties | 670 | 21,192 | |
General Growth Properties, Inc. | 1,431 | 35,546 | |
Host Hotels & Resorts, Inc. | 2,411 | 43,567 | |
Hudson Pacific Properties, Inc. | 512 | 18,130 | |
Kimco Realty Corp. | 1,122 | 27,927 | |
Kite Realty Group Trust | 807 | 19,384 | |
Medical Properties Trust, Inc. | 1,809 | 23,065 | |
Monogram Residential Trust, Inc. | 792 | 8,055 | |
New York (REIT), Inc. | 1,290 | 12,836 | |
Prologis, Inc. | 1,645 | 80,358 | |
Public Storage | 413 | 88,796 | |
RLJ Lodging Trust | 416 | 9,655 | |
Simon Property Group, Inc. | 311 | 57,152 | |
SL Green Realty Corp. | 201 | 21,903 | |
Spirit Realty Capital, Inc. | 2,641 | 27,783 | |
Sun Communities, Inc. | 403 | 31,740 | |
The Macerich Co. | 240 | 16,486 | |
UDR, Inc. | 1,929 | 67,419 | |
Urban Edge Properties | 330 | 9,230 | |
Ventas, Inc. | 996 | 61,423 | |
VEREIT, Inc. | 4,308 | 36,747 | |
Welltower, Inc. | 573 | 37,990 | |
TOTAL UNITED STATES OF AMERICA | 1,332,053 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,493,808) | 2,315,784 | ||
Money Market Funds - 2.6% | |||
Fidelity Cash Central Fund, 0.62% (a) | |||
(Cost $62,148) | 62,135 | 62,148 | |
TOTAL INVESTMENT PORTFOLIO - 97.6% | |||
(Cost $2,555,956) | 2,377,932 | ||
NET OTHER ASSETS (LIABILITIES) - 2.4% | 59,451 | ||
NET ASSETS - 100% | $2,437,383 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) 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.
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 | $159 |
Total | $159 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2017, 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 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: | ||||
Equities: | ||||
Financials | $15,317 | $15,317 | $-- | $-- |
Real Estate | 2,300,467 | 2,124,162 | 176,305 | -- |
Money Market Funds | 62,148 | 62,148 | -- | -- |
Total Investments in Securities: | $2,377,932 | $2,201,627 | $176,305 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2017 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $2,493,808) | $2,315,784 | |
Fidelity Central Funds (cost $62,148) | 62,148 | |
Total Investments (cost $2,555,956) | $2,377,932 | |
Cash | 11,404 | |
Receivable for investments sold | 7,483 | |
Receivable for fund shares sold | 17,633 | |
Dividends receivable | 4,258 | |
Distributions receivable from Fidelity Central Funds | 23 | |
Prepaid expenses | 37,382 | |
Receivable from investment adviser for expense reductions | 14,354 | |
Other receivables | 17 | |
Total assets | 2,470,486 | |
Liabilities | ||
Accrued management fee | $1,416 | |
Distribution and service plan fees payable | 842 | |
Other affiliated payables | 315 | |
Other payables and accrued expenses | 30,530 | |
Total liabilities | 33,103 | |
Net Assets | $2,437,383 | |
Net Assets consist of: | ||
Paid in capital | $2,663,832 | |
Distributions in excess of net investment income | (2,315) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (46,270) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (177,864) | |
Net Assets | $2,437,383 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($583,490 ÷ 64,330 shares) | $9.07 | |
Maximum offering price per share (100/94.25 of $9.07) | $9.62 | |
Class T: | ||
Net Asset Value and redemption price per share ($473,725 ÷ 52,236 shares) | $9.07 | |
Maximum offering price per share (100/96.50 of $9.07) | $9.40 | |
Class C: | ||
Net Asset Value and offering price per share ($631,602 ÷ 69,696 shares)(a) | $9.06 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($748,566 ÷ 82,519 shares) | $9.07 |
(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.
Statement of Operations
For the period August 11, 2016 (commencement of operations) to January 31, 2017 (Unaudited) | ||
Investment Income | ||
Dividends | $32,887 | |
Interest | 43 | |
Income from Fidelity Central Funds | 159 | |
Income before foreign taxes withheld | 33,089 | |
Less foreign taxes withheld | (847) | |
Total income | 32,242 | |
Expenses | ||
Management fee | $7,672 | |
Transfer agent fees | 1,337 | |
Distribution and service plan fees | 4,425 | |
Accounting fees and expenses | 428 | |
Custodian fees and expenses | 16,290 | |
Independent trustees' fees and expenses | 22 | |
Registration fees | 35,489 | |
Audit | 23,761 | |
Legal | 7 | |
Miscellaneous | 229 | |
Total expenses before reductions | 89,660 | |
Expense reductions | (72,759) | 16,901 |
Net investment income (loss) | 15,341 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (44,969) | |
Fidelity Central Funds | 5 | |
Foreign currency transactions | 1,022 | |
Total net realized gain (loss) | (43,942) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (178,024) | |
Assets and liabilities in foreign currencies | 160 | |
Total change in net unrealized appreciation (depreciation) | (177,864) | |
Net gain (loss) | (221,806) | |
Net increase (decrease) in net assets resulting from operations | $(206,465) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the period August 11, 2016 (commencement of operations) to January 31, 2017 (Unaudited) | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income (loss) | $15,341 |
Net realized gain (loss) | (43,942) |
Change in net unrealized appreciation (depreciation) | (177,864) |
Net increase (decrease) in net assets resulting from operations | (206,465) |
Distributions to shareholders from net investment income | (17,656) |
Distributions to shareholders from net realized gain | (2,328) |
Total distributions | (19,984) |
Share transactions - net increase (decrease) | 2,663,832 |
Total increase (decrease) in net assets | 2,437,383 |
Net Assets | |
Beginning of period | – |
End of period | $2,437,383 |
Other Information | |
Distributions in excess of net investment income end of period | $(2,315) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class A
Six months ended (Unaudited) January 31, | |
2017 A | |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .07 |
Net realized and unrealized gain (loss) | (.92) |
Total from investment operations | (.85) |
Distributions from net investment income | (.07) |
Distributions from net realized gain | (.01) |
Total distributions | (.08) |
Net asset value, end of period | $9.07 |
Total ReturnC,D,E | (8.47)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 8.09%H |
Expenses net of fee waivers, if any | 1.40%H |
Expenses net of all reductions | 1.40%H |
Net investment income (loss) | 1.56%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $583 |
Portfolio turnover rateI | 36%J |
A For the period August 11, 2016 (commencement of operations) to January 31, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class T
Six months ended (Unaudited) January 31, | |
2017 A | |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .06 |
Net realized and unrealized gain (loss) | (.92) |
Total from investment operations | (.86) |
Distributions from net investment income | (.06) |
Distributions from net realized gain | (.01) |
Total distributions | (.07) |
Net asset value, end of period | $9.07 |
Total ReturnC,D,E | (8.56)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 8.27%H |
Expenses net of fee waivers, if any | 1.65%H |
Expenses net of all reductions | 1.64%H |
Net investment income (loss) | 1.31%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $474 |
Portfolio turnover rateI | 36%J |
A For the period August 11, 2016 (commencement of operations) to January 31, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class C
Six months ended (Unaudited) January 31, | |
2017 A | |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .03 |
Net realized and unrealized gain (loss) | (.91) |
Total from investment operations | (.88) |
Distributions from net investment income | (.05) |
Distributions from net realized gain | (.01) |
Total distributions | (.06) |
Net asset value, end of period | $9.06 |
Total ReturnC,D,E | (8.81)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 8.76%H |
Expenses net of fee waivers, if any | 2.15%H |
Expenses net of all reductions | 2.14%H |
Net investment income (loss) | .81%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $632 |
Portfolio turnover rateI | 36%J |
A For the period August 11, 2016 (commencement of operations) to January 31, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class I
Six months ended (Unaudited) January 31, | |
2017 A | |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .08 |
Net realized and unrealized gain (loss) | (.92) |
Total from investment operations | (.84) |
Distributions from net investment income | (.08) |
Distributions from net realized gain | (.01) |
Total distributions | (.09) |
Net asset value, end of period | $9.07 |
Total ReturnC,D | (8.37)% |
Ratios to Average Net AssetsE,F | |
Expenses before reductions | 7.83%G |
Expenses net of fee waivers, if any | 1.15%G |
Expenses net of all reductions | 1.15%G |
Net investment income (loss) | 1.80%G |
Supplemental Data | |
Net assets, end of period (000 omitted) | $749 |
Portfolio turnover rateH | 36%I |
A For the period August 11, 2016 (commencement of operations) to January 31, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2017
1. Organization.
Fidelity Advisor Global Real Estate 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 Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
In March 2017 the Board of Trustees approved a change in the name of Class T to Class M effective after the close of business on March 24, 2017.
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 .005%.
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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by 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 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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. The aggregate value of investments by input level as of January 31, 2017 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. 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $19,584 |
Gross unrealized depreciation | (205,494) |
Net unrealized appreciation (depreciation) on securities | $(185,910) |
Tax cost | $2,563,842 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,237,030 and $685,442, 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 .45% 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 .70% 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% | $716 | $548 |
Class T | .25% | .25% | 1,112 | 1,094 |
Class C | .75% | .25% | 2,597 | 2,583 |
$4,425 | $4,225 |
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, and Class C redemptions. The deferred sales charges are 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 | $1,137 |
Class T | 60 |
Class C(a) | – |
$1,197 |
(a) When 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(a) | |
Class A | $389 | .14 |
Class T | 267 | .12 |
Class C | 306 | .12 |
Class I | 375 | .11 |
$1,337 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
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 $18 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through September 30, 2018. Some expenses, for example interest expense, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.40% | $19,025 |
Class T | 1.65% | 14,655 |
Class C | 2.15% | 17,055 |
Class I | 1.15% | 21,972 |
$72,707 |
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 $30 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $10.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $12.
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2017 (a) | |
From net investment income | |
Class A | $4,562 |
Class T | 3,316 |
Class C | 3,067 |
Class I | 6,711 |
Total | $17,656 |
From net realized gain | |
Class A | $562 |
Class T | 466 |
Class C | 563 |
Class I | 737 |
Total | $2,328 |
(a) For the period August 11, 2016 (commencement of operations) to January 31, 2017.
8. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Dollars | |
Six months ended January 31, 2017 (a) | Six months ended January 31, 2017 (a) | |
Class A | ||
Shares sold | 76,625 | $755,127 |
Reinvestment of distributions | 575 | 5,124 |
Shares redeemed | (12,870) | (117,313) |
Net increase (decrease) | 64,330 | $642,938 |
Class T | ||
Shares sold | 51,812 | $516,622 |
Reinvestment of distributions | 424 | 3,782 |
Net increase (decrease) | 52,236 | $520,404 |
Class C | ||
Shares sold | 69,361 | $681,402 |
Reinvestment of distributions | 335 | 2,984 |
Net increase (decrease) | 69,696 | $684,386 |
Class I | ||
Shares sold | 83,838 | $828,288 |
Reinvestment of distributions | 835 | 7,448 |
Shares redeemed | (2,154) | (19,632) |
Net increase (decrease) | 82,519 | $816,104 |
(a) For the period August 11, 2016 (commencement of operations) to January 31, 2017.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 75% of the total outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 11, 2016 to January 31, 2017). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2016 to January 31, 2017).
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-A | Beginning Account Value | Ending Account Value January 31, 2017 | Expenses Paid During Period | |
Class A | 1.40% | |||
Actual | $1,000.00 | $915.30 | $6.39-B | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12-D | |
Class T | 1.65% | |||
Actual | $1,000.00 | $914.40 | $7.53-B | |
Hypothetical-C | $1,000.00 | $1,016.89 | $8.39-D | |
Class C | 2.15% | |||
Actual | $1,000.00 | $911.90 | $9.80-B | |
Hypothetical-C | $1,000.00 | $1,014.37 | $10.92-D | |
Class I | 1.15% | |||
Actual | $1,000.00 | $916.30 | $5.25-B | |
Hypothetical-C | $1,000.00 | $1,019.41 | $5.85-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 174/365 (to reflect the period August 11, 2016 to January 31, 2017).
C 5% return per year before expenses
D Hypothetical 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).
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Global Real Estate Fund
On July 27, 2016, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve 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, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered SelectCo's staffing as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objective, strategies, and related investment philosophy. 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.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as 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 considered 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, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by SelectCo, the sub-advisers (together with SelectCo, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, and pricing and bookkeeping and securities lending services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.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 Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven security selection, which the Board is familiar with through its supervision of other Fidelity funds, including funds that invest primarily in domestic and international real estate securities.Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio ..The Board considered the fund's proposed management fee and the projected total expense ratio of each class of the fund in reviewing the Advisory Contracts. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected net total expense ratio of each class of the fund ranks at or above the median of those funds and classes used by the Board for management fee comparisons that have a similar sales load structure. The above median total expenses are a result of the Specialty mapped group, which combines all sector-based Lipper objectives into one mapped group that contains funds with domestic, international, and global objectives.The Board also noted that SelectCo had contractually agreed to reimburse each class of the fund through September 30, 2018 to the extent total operating expenses (excluding interest, certain taxes, certain securities lending costs, brokerage commissions, extraordinary expenses, and acquired fund fees and expenses, if any), as a percentage of its average net assets of each class exceed a certain limit.The Board considered the total expense ratio of the fund after the effect of the contractual expense cap arrangements.Based on its review, the Board concluded that the management fee and the projected total expense ratio of each class of the fund were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider 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.Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.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 approved.AGRE-SANN-0317
1.9881281.100
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, 2017 |
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, 2017 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | March 27, 2017 |