UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3010
Fidelity Advisor Series VII
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
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Date of reporting period: | July 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 Fidelity Advisor® Technology Fund Fidelity Advisor® Utilities Fund Annual Report July 31, 2017 |
Contents
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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.
Fidelity Advisor® Biotechnology Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.73% | 17.45% | 14.62% |
Class M (incl. 3.50% sales charge) | 9.89% | 17.63% | 14.54% |
Class C (incl. contingent deferred sales charge) | 12.47% | 17.96% | 14.43% |
Class I | 14.56% | 19.18% | 15.63% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Biotechnology Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$39,125 | Fidelity Advisor® Biotechnology Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Biotechnology Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Rajiv Kaul: For the year, the fund’s share classes (excluding sales charges, if applicable) generally gained about 14%, trailing the 16.25% return of the MSCI U.S. IMI Biotechnology 25/50 Index. The fund also finished behind the S&P 500®. Out-of-index exposure to the pharmaceuticals segment primarily caused the fund’s underperformance. Among individual holdings, the largest relative detractor was pharmaceuticals stock Cempra, which tumbled in November and December 2016 amid unfavorable decisions by the U.S. Food & Drug Administration about its antibiotic, solithromycin. The December collapse of biotech stock Ophthotech also hurt; I later sold this position from the fund. Shares of clinical-stage biotech firm Minerva Neurosciences, focused on diseases of the central nervous system, detracted, as well. Conversely, my picks in the fund’s core biotechnology group added value. The fund’s top relative contributor was a sizable underweighting in Gilead Sciences, a major component of the MSCI index that underperformed. I exited this position in June. Along the same lines, underweighting index heavyweights Amgen and AbbVie, each of which lagged, helped our relative cause. Overweighted exposure, on average, to rare cancer specialist Ariad Pharmaceuticals further aided relative performance. I sold this position by period end to lock in profits.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Biotechnology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amgen, Inc. | 10.3 | 10.7 |
Celgene Corp. | 8.0 | 8.2 |
Regeneron Pharmaceuticals, Inc. | 6.0 | 4.6 |
Biogen, Inc. | 5.4 | 7.0 |
Alexion Pharmaceuticals, Inc. | 5.3 | 7.2 |
Vertex Pharmaceuticals, Inc. | 4.7 | 2.4 |
Incyte Corp. | 2.4 | 2.6 |
BioMarin Pharmaceutical, Inc. | 2.4 | 2.7 |
Portola Pharmaceuticals, Inc. | 1.6 | 0.8 |
Exelixis, Inc. | 1.4 | 1.1 |
47.5 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Biotechnology | 90.9% | |
Pharmaceuticals | 7.7% | |
Health Care Equipment & Supplies | 0.4% | |
Health Care Providers & Services | 0.2% | |
Health Care Technology | 0.1% | |
All Others* | 0.7% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Biotechnology Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
Biotechnology - 89.5% | |||
Biotechnology - 89.5% | |||
AbbVie, Inc. | 64,935 | $4,539,606 | |
AC Immune SA (a) | 281,288 | 2,061,841 | |
ACADIA Pharmaceuticals, Inc. (a)(b) | 468,186 | 13,937,897 | |
Acceleron Pharma, Inc. (b) | 632,746 | 20,342,784 | |
Achaogen, Inc. (a)(b) | 431,602 | 8,204,754 | |
Achillion Pharmaceuticals, Inc. (b) | 278,861 | 1,143,330 | |
Acorda Therapeutics, Inc. (b) | 311,353 | 6,740,792 | |
Adamas Pharmaceuticals, Inc. (a)(b) | 901,381 | 15,638,960 | |
Adaptimmune Therapeutics PLC sponsored ADR (b) | 823,742 | 4,324,646 | |
ADMA Biologics, Inc. (b) | 46,300 | 159,735 | |
Aduro Biotech, Inc. (a)(b) | 467,880 | 6,012,258 | |
Advanced Accelerator Applications SA sponsored ADR (b) | 80,100 | 3,843,999 | |
Advaxis, Inc. (a)(b) | 156,228 | 1,010,795 | |
Adverum Biotechnologies, Inc. (b) | 120,929 | 308,369 | |
Agenus, Inc. (b) | 283,760 | 1,259,894 | |
Agenus, Inc. warrants 1/9/18 (b) | 452,000 | 5 | |
Agios Pharmaceuticals, Inc. (b) | 59,771 | 3,343,590 | |
Aimmune Therapeutics, Inc. (a)(b) | 453,402 | 9,757,211 | |
Akebia Therapeutics, Inc. (b) | 177,377 | 2,339,603 | |
Alder Biopharmaceuticals, Inc. (b) | 614,713 | 6,608,165 | |
Aldeyra Therapeutics, Inc. (a)(b) | 542,459 | 2,576,680 | |
Alexion Pharmaceuticals, Inc. (b) | 1,021,776 | 140,330,716 | |
Alkermes PLC (b) | 381,903 | 20,779,342 | |
Alnylam Pharmaceuticals, Inc. (b) | 238,935 | 19,769,482 | |
AMAG Pharmaceuticals, Inc. (a)(b) | 226,277 | 4,446,343 | |
Amarin Corp. PLC ADR (b) | 381,894 | 1,351,905 | |
Amgen, Inc. | 1,575,764 | 274,986,573 | |
Amicus Therapeutics, Inc. (a)(b) | 892,770 | 11,561,372 | |
Applied Genetic Technologies Corp. (b) | 91,136 | 432,896 | |
Aptevo Therapeutics, Inc. (b) | 38,827 | 71,442 | |
AquaBounty Technologies, Inc. (a)(b) | 1,394 | 9,605 | |
Ardelyx, Inc. (b) | 722,501 | 3,757,005 | |
Arena Pharmaceuticals, Inc. (b) | 578,398 | 13,742,736 | |
Argenx SE ADR | 163,500 | 3,377,910 | |
Array BioPharma, Inc. (b) | 1,471,063 | 11,047,683 | |
Ascendis Pharma A/S sponsored ADR (b) | 35,700 | 1,006,740 | |
Asterias Biotherapeutics, Inc. (a)(b) | 115,938 | 411,580 | |
Asterias Biotherapeutics, Inc. warrants 9/29/17 (b) | 23,187 | 8,811 | |
Atara Biotherapeutics, Inc. (a)(b) | 387,885 | 5,915,246 | |
aTyr Pharma, Inc. (b) | 45,620 | 157,389 | |
aTyr Pharma, Inc. (b)(c) | 55,238 | 190,571 | |
Audentes Therapeutics, Inc. | 67,300 | 1,352,057 | |
Axovant Sciences Ltd. (b) | 322,146 | 7,383,586 | |
Bellicum Pharmaceuticals, Inc. (a)(b) | 726,325 | 7,684,519 | |
BioCryst Pharmaceuticals, Inc. (a)(b) | 821,923 | 4,200,027 | |
Biogen, Inc. (b) | 497,790 | 144,155,006 | |
Biohaven Pharmaceutical Holding Co. Ltd. | 283,800 | 7,310,688 | |
BioMarin Pharmaceutical, Inc. (b) | 719,890 | 63,155,950 | |
BioTime, Inc. warrants 10/1/18 (b) | 2 | 0 | |
Bioverativ, Inc. | 282,244 | 17,490,661 | |
bluebird bio, Inc. (b) | 62,649 | 5,904,668 | |
Blueprint Medicines Corp. (b) | 616,461 | 32,259,404 | |
Calithera Biosciences, Inc. (b) | 280,329 | 4,289,034 | |
Cara Therapeutics, Inc. (a)(b) | 209,237 | 2,937,687 | |
Catalyst Pharmaceutical Partners, Inc. (b) | 17,900 | 52,626 | |
Celgene Corp. (b) | 1,580,365 | 213,997,225 | |
Celldex Therapeutics, Inc. (a)(b) | 1,149,836 | 2,633,124 | |
Chiasma, Inc. (a)(b) | 341,892 | 470,102 | |
Chiasma, Inc. warrants (b) | 81,298 | 14,710 | |
Chimerix, Inc. (b) | 387,202 | 1,924,394 | |
Cidara Therapeutics, Inc. (b) | 34,800 | 243,600 | |
Cidara Therapeutics, Inc. (b)(c) | 223,967 | 1,567,769 | |
Clovis Oncology, Inc. (b) | 296,758 | 25,168,046 | |
Corbus Pharmaceuticals Holdings, Inc. (a)(b) | 193,600 | 1,151,920 | |
Corvus Pharmaceuticals, Inc. (a)(b) | 205,363 | 2,511,589 | |
Cytokinetics, Inc. (b) | 352,477 | 4,952,302 | |
CytomX Therapeutics, Inc. (b)(c) | 64,961 | 876,324 | |
DBV Technologies SA sponsored ADR (b) | 214,800 | 9,567,192 | |
Dicerna Pharmaceuticals, Inc. (a)(b) | 129,106 | 485,439 | |
Dynavax Technologies Corp. (a)(b) | 216,519 | 3,431,826 | |
Eagle Pharmaceuticals, Inc. (a)(b) | 67,784 | 3,331,584 | |
Edge Therapeutics, Inc. (a)(b) | 9,818 | 105,740 | |
Editas Medicine, Inc. (a)(b) | 212,057 | 3,588,004 | |
Emergent BioSolutions, Inc. (b) | 46,055 | 1,675,020 | |
Enanta Pharmaceuticals, Inc. (b) | 43,787 | 1,668,723 | |
Epizyme, Inc. (a)(b) | 1,354,550 | 15,441,870 | |
Esperion Therapeutics, Inc. (a)(b) | 274,616 | 12,437,359 | |
Exact Sciences Corp. (a)(b) | 376,982 | 14,626,902 | |
Exelixis, Inc. (b) | 1,396,949 | 37,871,287 | |
Fate Therapeutics, Inc. (a)(b) | 234,604 | 678,006 | |
Fibrocell Science, Inc. (b) | 56,867 | 179,131 | |
FibroGen, Inc. (b) | 441,022 | 15,060,901 | |
Five Prime Therapeutics, Inc. (b) | 119,400 | 3,359,916 | |
Foundation Medicine, Inc. (a)(b) | 11,707 | 413,842 | |
Galapagos Genomics NV sponsored ADR (b) | 195,329 | 15,499,356 | |
Genmab A/S (b) | 89,298 | 20,312,283 | |
Genocea Biosciences, Inc. (b) | 5,600 | 31,864 | |
Genomic Health, Inc. (b) | 25,120 | 801,328 | |
GenSight Biologics SA | 105,964 | 614,657 | |
Geron Corp. (a)(b) | 4,760,774 | 12,616,051 | |
Global Blood Therapeutics, Inc. (a)(b) | 492,167 | 12,845,559 | |
Halozyme Therapeutics, Inc. (a)(b) | 1,078,831 | 13,679,577 | |
Heron Therapeutics, Inc. (a)(b) | 475,742 | 7,540,511 | |
Histogenics Corp. (b) | 597,234 | 1,104,883 | |
Idera Pharmaceuticals, Inc. (a)(b) | 691,800 | 1,272,912 | |
Ignyta, Inc. (b) | 152,172 | 1,445,634 | |
Immune Design Corp. (b) | 69,100 | 849,930 | |
ImmunoGen, Inc. (a)(b) | 2,029,138 | 12,053,080 | |
Immunomedics, Inc. (a)(b) | 1,320,254 | 11,301,374 | |
Incyte Corp. (b) | 474,479 | 63,243,306 | |
Insys Therapeutics, Inc. (a)(b) | 57,194 | 655,443 | |
Intellia Therapeutics, Inc. (a)(b) | 155,992 | 2,626,905 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 158,460 | 18,560,420 | |
Intrexon Corp. (a)(b) | 43,608 | 941,497 | |
Ionis Pharmaceuticals, Inc. (b) | 403,938 | 21,166,351 | |
Iovance Biotherapeutics, Inc. (b) | 248,746 | 1,455,164 | |
Ironwood Pharmaceuticals, Inc. Class A (b) | 1,110,821 | 19,717,073 | |
Jounce Therapeutics, Inc. | 431,376 | 5,569,064 | |
Juno Therapeutics, Inc. (a)(b) | 432,411 | 12,293,445 | |
Karyopharm Therapeutics, Inc. (b) | 1,149,216 | 9,699,383 | |
Keryx Biopharmaceuticals, Inc. (a)(b) | 397,139 | 2,783,944 | |
Kite Pharma, Inc. (a)(b) | 32,458 | 3,518,772 | |
Kura Oncology, Inc. (b) | 910,902 | 8,243,663 | |
La Jolla Pharmaceutical Co. (a)(b) | 348,100 | 10,314,203 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 574,066 | 9,357,276 | |
Ligand Pharmaceuticals, Inc. Class B (a)(b) | 51,612 | 6,240,407 | |
Loxo Oncology, Inc. (b) | 365,781 | 26,449,624 | |
Macrogenics, Inc. (b) | 566,002 | 9,350,353 | |
MediciNova, Inc. (a)(b) | 388,780 | 2,025,544 | |
Merrimack Pharmaceuticals, Inc. (a) | 682,403 | 907,596 | |
MiMedx Group, Inc. (a)(b) | 12,313 | 184,202 | |
Minerva Neurosciences, Inc. (a)(b) | 1,809,580 | 12,033,707 | |
Miragen Therapeutics, Inc. (a)(b) | 658,541 | 9,008,841 | |
Mirna Therapeutics, Inc. (a)(b) | 28,200 | 47,658 | |
Momenta Pharmaceuticals, Inc. (b) | 154,925 | 2,564,009 | |
NantKwest, Inc. (a)(b) | 79,353 | 512,620 | |
Neurocrine Biosciences, Inc. (b) | 627,228 | 30,125,761 | |
NewLink Genetics Corp. (b) | 115,992 | 837,462 | |
Novavax, Inc. (a)(b) | 1,981,516 | 2,060,777 | |
Novelion Therapeutics, Inc. (b) | 216,270 | 1,957,244 | |
Opko Health, Inc. (a)(b) | 235,712 | 1,520,342 | |
Oragenics, Inc. (b) | 108,608 | 42,368 | |
Osiris Therapeutics, Inc. (a)(b) | 7,746 | 53,447 | |
OvaScience, Inc. (b) | 119,045 | 180,948 | |
Ovid Therapeutics, Inc. | 139,500 | 1,142,505 | |
Ovid Therapeutics, Inc. | 114,626 | 844,908 | |
Portola Pharmaceuticals, Inc. (b) | 687,158 | 42,397,649 | |
Progenics Pharmaceuticals, Inc. (b) | 494,408 | 2,981,280 | |
ProQR Therapeutics BV (b) | 237,916 | 1,249,059 | |
Protagonist Therapeutics, Inc. | 156,623 | 1,909,234 | |
Proteostasis Therapeutics, Inc. (b) | 183,300 | 520,572 | |
Prothena Corp. PLC (b) | 140,434 | 8,673,204 | |
PTC Therapeutics, Inc. (b) | 235,709 | 4,860,320 | |
Puma Biotechnology, Inc. (a)(b) | 298,102 | 28,334,595 | |
Radius Health, Inc. (a)(b) | 771,729 | 33,979,228 | |
Regeneron Pharmaceuticals, Inc. (b) | 323,287 | 158,934,355 | |
REGENXBIO, Inc. (b) | 333,286 | 5,999,148 | |
Regulus Therapeutics, Inc. (a)(b) | 747,521 | 784,897 | |
Repligen Corp. (b) | 234,327 | 9,436,348 | |
Retrophin, Inc. (b) | 398,972 | 8,075,193 | |
Sage Therapeutics, Inc. (b) | 258,068 | 20,580,923 | |
Sangamo Therapeutics, Inc. (b) | 237,552 | 2,042,947 | |
Sarepta Therapeutics, Inc. (a)(b) | 229,211 | 8,842,960 | |
Seattle Genetics, Inc. (b) | 563,620 | 28,462,810 | |
Selecta Biosciences, Inc. (a)(b) | 58,800 | 1,001,952 | |
Seres Therapeutics, Inc. (a)(b) | 237,191 | 3,209,194 | |
Seres Therapeutics, Inc. (b)(c) | 352,270 | 4,766,213 | |
Sienna Biopharmaceuticals, Inc. | 44,731 | 915,196 | |
Spark Therapeutics, Inc. (b) | 314,145 | 22,304,295 | |
Spectrum Pharmaceuticals, Inc. (b) | 102,047 | 761,271 | |
Stemline Therapeutics, Inc. (b) | 506,193 | 4,656,976 | |
Syndax Pharmaceuticals, Inc. (b) | 273,399 | 3,310,862 | |
Syros Pharmaceuticals, Inc. | 152,478 | 3,479,548 | |
Syros Pharmaceuticals, Inc. (c) | 62,568 | 1,427,802 | |
TESARO, Inc. (a)(b) | 278,737 | 35,583,565 | |
TG Therapeutics, Inc. (a)(b) | 1,402,202 | 16,125,323 | |
Threshold Pharmaceuticals, Inc. (b) | 26,804 | 13,268 | |
Tocagen, Inc. (a) | 173,300 | 1,875,106 | |
Trevena, Inc. (b) | 296,455 | 773,748 | |
Ultragenyx Pharmaceutical, Inc. (b) | 404,027 | 26,795,071 | |
United Therapeutics Corp. (b) | 51,023 | 6,551,353 | |
Vanda Pharmaceuticals, Inc. (b) | 337,679 | 5,250,908 | |
Versartis, Inc. (b) | 486,316 | 8,996,846 | |
Vertex Pharmaceuticals, Inc. (b) | 827,328 | 125,604,937 | |
Vical, Inc. (b) | 61,186 | 159,695 | |
Vital Therapies, Inc. (a)(b) | 588,087 | 1,587,835 | |
Voyager Therapeutics, Inc. (a)(b) | 1,298,877 | 10,702,746 | |
Xencor, Inc. (b) | 415,926 | 9,711,872 | |
Zafgen, Inc. (b) | 1,356,174 | 4,583,868 | |
Zealand Pharma A/S (a)(b) | 112,234 | 2,233,157 | |
2,385,772,581 | |||
Capital Markets - 0.1% | |||
Asset Management & Custody Banks - 0.1% | |||
RPI International Holdings LP (b)(d) | 12,210 | 1,653,295 | |
Health Care Equipment & Supplies - 0.4% | |||
Health Care Equipment - 0.4% | |||
Bellerophon Therapeutics, Inc. (a)(b) | 210,500 | 273,650 | |
Novocure Ltd. (a)(b) | 179,741 | 3,702,665 | |
Novocure Ltd. (b)(c) | 155,553 | 3,204,392 | |
Vermillion, Inc. (b) | 991,800 | 1,487,700 | |
Zosano Pharma Corp. (a)(b) | 598,503 | 760,099 | |
9,428,506 | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
G1 Therapeutics, Inc. | 232,700 | 3,311,321 | |
Health Care Technology - 0.0% | |||
Health Care Technology - 0.0% | |||
NantHealth, Inc. (a)(b) | 49,200 | 210,576 | |
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
MYOS Corp. (b) | 6,666 | 11,066 | |
Pharmaceuticals - 7.7% | |||
Pharmaceuticals - 7.7% | |||
Adimab LLC (b)(d)(e) | 398,401 | 13,649,218 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 | 1,915,787 | 1,915,787 | |
Aradigm Corp. (b) | 545 | 774 | |
Aradigm Corp. (b) | 8,241 | 11,702 | |
Avexis, Inc. (a)(b) | 340,262 | 31,525,274 | |
Axsome Therapeutics, Inc. (a)(b) | 683,360 | 4,168,496 | |
Cempra, Inc. (a)(b) | 1,057,478 | 4,229,912 | |
Corcept Therapeutics, Inc. (b) | 168,373 | 2,099,611 | |
Dermira, Inc. (b) | 482,145 | 13,273,452 | |
Dova Pharmaceuticals, Inc. (a) | 325,116 | 6,014,646 | |
Egalet Corp. (a)(b) | 1,120,874 | 1,479,554 | |
GW Pharmaceuticals PLC ADR (a)(b) | 216,367 | 24,185,503 | |
Horizon Pharma PLC (b) | 273,056 | 3,271,211 | |
Intra-Cellular Therapies, Inc. (b) | 128,154 | 1,482,742 | |
Jazz Pharmaceuticals PLC (b) | 107,967 | 16,584,811 | |
Kala Pharmaceuticals, Inc. | 131,500 | 2,640,520 | |
Kolltan Pharmaceuticals, Inc. rights | 1,610,391 | 193,247 | |
MyoKardia, Inc. (b) | 229,392 | 3,567,046 | |
MyoKardia, Inc. (b)(c) | 484,646 | 7,536,245 | |
Nektar Therapeutics (b) | 17,232 | 376,175 | |
NeurogesX, Inc. (b) | 150,000 | 2 | |
Ocular Therapeutix, Inc. (a)(b) | 244,971 | 1,550,666 | |
Pacira Pharmaceuticals, Inc. (b) | 141,484 | 5,588,618 | |
Paratek Pharmaceuticals, Inc. (a)(b) | 433,460 | 8,430,797 | |
Reata Pharmaceuticals, Inc. (a)(b) | 169,094 | 4,951,072 | |
Repros Therapeutics, Inc. (a)(b) | 602,954 | 211,034 | |
Stemcentrx, Inc. rights 12/31/21 | 208,907 | 614,187 | |
Tetraphase Pharmaceuticals, Inc. (b) | 349,731 | 2,287,241 | |
The Medicines Company (a)(b) | 392,922 | 15,107,851 | |
TherapeuticsMD, Inc. (a)(b) | 1,199,500 | 6,777,175 | |
Theravance Biopharma, Inc. (a)(b) | 258,703 | 8,312,127 | |
UroGen Pharma Ltd. | 166,900 | 3,030,904 | |
WAVE Life Sciences (a)(b) | 338,988 | 6,728,912 | |
Zogenix, Inc. (a)(b) | 258,311 | 3,099,732 | |
204,896,244 | |||
Software - 0.0% | |||
Application Software - 0.0% | |||
Precipio, Inc. (d) | 450 | 3,690 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Textiles - 0.0% | |||
Akcea Therapeutics, Inc. | 84,900 | 1,221,711 | |
TOTAL COMMON STOCKS | |||
(Cost $2,080,667,588) | 2,606,508,990 | ||
Preferred Stocks - 1.6% | |||
Convertible Preferred Stocks - 1.5% | |||
Biotechnology - 1.3% | |||
Biotechnology - 1.3% | |||
23andMe, Inc. Series E (b)(d) | 341,730 | 4,271,625 | |
Axcella Health, Inc. Series C (b)(d) | 341,857 | 3,445,919 | |
Immunocore Ltd. Series A (b)(d) | 17,149 | 5,933,092 | |
Moderna Therapeutics, Inc.: | |||
Series D (d) | 269,180 | 1,940,788 | |
Series E (d) | 544,100 | 3,922,961 | |
Scholar Rock LLC Series B (b)(d) | 1,083,994 | 3,501,301 | |
Translate Bio: | |||
Series B (b)(d) | 1,310,353 | 3,105,537 | |
Series C (d) | 1,010,101 | 2,393,939 | |
Twist Bioscience Corp.: | |||
Series C (b)(d) | 1,866,791 | 4,005,573 | |
Series D (b)(d) | 453,587�� | 973,262 | |
33,493,997 | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
Allena Pharmaceuticals, Inc. Series C (b)(d) | 1,505,538 | 4,064,953 | |
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (b)(d) | 213,402 | 704,227 | |
Series B (b)(d) | 693,558 | 2,288,741 | |
2,992,968 | |||
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Afferent Pharmaceuticals, Inc. Series C (b)(d) | 1,915,787 | 919,578 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 41,471,496 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
Biotechnology - 0.1% | |||
Biotechnology - 0.1% | |||
Yumanity Holdings LLC Class A (b)(d) | 151,084 | 1,689,119 | |
TOTAL PREFERRED STOCKS | |||
(Cost $32,910,045) | 43,160,615 | ||
Money Market Funds - 12.1% | |||
Fidelity Cash Central Fund, 1.11% (f) | 14,718,741 | 14,721,685 | |
Fidelity Securities Lending Cash Central Fund 1.11% (f)(g) | 308,395,176 | 308,426,016 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $323,130,908) | 323,147,701 | ||
TOTAL INVESTMENT PORTFOLIO - 111.5% | |||
(Cost $2,436,708,541) | 2,972,817,306 | ||
NET OTHER ASSETS (LIABILITIES) - (11.5)% | (307,433,763) | ||
NET ASSETS - 100% | $2,665,383,543 |
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 $19,569,316 or 0.7% 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 $58,466,818 or 2.2% of net assets.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(g) 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 |
Precipio, Inc. | 2/3/12 - 7/31/17 | $161,441 |
RPI International Holdings LP | 5/21/15 | $1,439,559 |
Scholar Rock LLC Series B | 12/17/15 | $3,251,982 |
Translate Bio Series B | 7/17/15 | $1,415,181 |
Translate Bio Series C | 12/22/16 | $2,000,000 |
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 | $132,688 |
Fidelity Securities Lending Cash Central Fund | 3,032,282 |
Total | $3,164,970 |
Investment Valuation
The following is a summary of the inputs used, as of July 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 | $2,606,508,990 | $2,587,623,631 | $859,623 | $18,025,736 |
Preferred Stocks | 43,160,615 | -- | -- | 43,160,615 |
Money Market Funds | 323,147,701 | 323,147,701 | -- | -- |
Total Investments in Securities: | $2,972,817,306 | $2,910,771,332 | $859,623 | $61,186,351 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Preferred Stocks | |
Beginning Balance | $44,517,148 |
Total Realized Gain (Loss) | 845,519 |
Total Unrealized Gain (Loss) | 4,362,318 |
Cost of Purchases | 5,929,626 |
Proceeds of Sales | (12,493,996) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $43,160,615 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2017 | $6,183,012 |
Common Stocks | |
Beginning Balance | $12,938,513 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 4,188,503 |
Cost of Purchases | 898,720 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $18,025,736 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2017 | $4,188,503 |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $294,109,200) — See accompanying schedule: Unaffiliated issuers (cost $2,113,577,633) | $2,649,669,605 | |
Fidelity Central Funds (cost $323,130,908) | 323,147,701 | |
Total Investments (cost $2,436,708,541) | $2,972,817,306 | |
Receivable for investments sold | 9,155,855 | |
Receivable for fund shares sold | 2,923,291 | |
Dividends receivable | 41,559 | |
Distributions receivable from Fidelity Central Funds | 321,173 | |
Other receivables | 52,831 | |
Total assets | 2,985,312,015 | |
Liabilities | ||
Payable for investments purchased | $5,363,396 | |
Payable for fund shares redeemed | 3,674,879 | |
Accrued management fee | 1,216,893 | |
Distribution and service plan fees payable | 718,732 | |
Other affiliated payables | 480,766 | |
Other payables and accrued expenses | 73,870 | |
Collateral on securities loaned | 308,399,936 | |
Total liabilities | 319,928,472 | |
Net Assets | $2,665,383,543 | |
Net Assets consist of: | ||
Paid in capital | $2,356,413,867 | |
Accumulated net investment loss | (10,028,125) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (217,111,336) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 536,109,137 | |
Net Assets | $2,665,383,543 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($787,802,270 ÷ 32,226,195 shares) | $24.45 | |
Maximum offering price per share (100/94.25 of $24.45) | $25.94 | |
Class M: | ||
Net Asset Value and redemption price per share ($127,733,603 ÷ 5,500,929 shares) | $23.22 | |
Maximum offering price per share (100/96.50 of $23.22) | $24.06 | |
Class C: | ||
Net Asset Value and offering price per share ($593,489,438 ÷ 27,961,226 shares)(a) | $21.23 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,156,358,232 ÷ 44,816,247 shares) | $25.80 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $5,315,600 | |
Special dividends | 720,078 | |
Income from Fidelity Central Funds (including $3,032,282 from security lending) | 3,164,970 | |
Total income | 9,200,648 | |
Expenses | ||
Management fee | $14,088,930 | |
Transfer agent fees | 5,127,421 | |
Distribution and service plan fees | 8,876,143 | |
Accounting and security lending fees | 822,021 | |
Custodian fees and expenses | 139,205 | |
Independent trustees' fees and expenses | 57,367 | |
Registration fees | 124,893 | |
Audit | 75,018 | |
Legal | 39,703 | |
Miscellaneous | 35,877 | |
Total expenses before reductions | 29,386,578 | |
Expense reductions | (158,792) | 29,227,786 |
Net investment income (loss) | (20,027,138) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 492,139 | |
Fidelity Central Funds | 12,835 | |
Foreign currency transactions | 13,071 | |
Total net realized gain (loss) | 518,045 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 341,265,655 | |
Assets and liabilities in foreign currencies | 372 | |
Total change in net unrealized appreciation (depreciation) | 341,266,027 | |
Net gain (loss) | 341,784,072 | |
Net increase (decrease) in net assets resulting from operations | $321,756,934 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(20,027,138) | $(24,689,601) |
Net realized gain (loss) | 518,045 | (205,980,039) |
Change in net unrealized appreciation (depreciation) | 341,266,027 | (1,017,727,981) |
Net increase (decrease) in net assets resulting from operations | 321,756,934 | (1,248,397,621) |
Distributions to shareholders from net realized gain | – | (189,321,949) |
Share transactions - net increase (decrease) | (442,352,948) | 98,205,004 |
Redemption fees | 48,144 | 265,724 |
Total increase (decrease) in net assets | (120,547,870) | (1,339,248,842) |
Net Assets | ||
Beginning of period | 2,785,931,413 | 4,125,180,255 |
End of period | $2,665,383,543 | $2,785,931,413 |
Other Information | ||
Accumulated net investment loss end of period | $(10,028,125) | $(8,484,890) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.39 | $31.43 | $20.19 | $17.25 | $11.79 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.15)B | (.16) | (.20) | (.13) | (.09) |
Net realized and unrealized gain (loss) | 3.21 | (8.48) | 12.04 | 3.12 | 6.24 |
Total from investment operations | 3.06 | (8.64) | 11.84 | 2.99 | 6.15 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | (1.40) | (.60) | (.05) | (.69) |
Total distributions | – | (1.40) | (.60) | (.05) | (.69) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $24.45 | $21.39 | $31.43 | $20.19 | $17.25 |
Total ReturnD,E | 14.31% | (28.55)% | 59.66% | 17.38% | 54.94% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.05% | 1.05% | 1.04% | 1.08% | 1.15% |
Expenses net of fee waivers, if any | 1.05% | 1.05% | 1.04% | 1.08% | 1.15% |
Expenses net of all reductions | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Net investment income (loss) | (.69)%B | (.69)% | (.75)% | (.68)% | (.63)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $787,802 | $1,080,733 | $1,560,528 | $602,625 | $286,695 |
Portfolio turnover rateH | 30% | 29% | 26% | 50% | 22% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.71) %.
C Amount represents less than $.005 per share.
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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.39 | $30.06 | $19.39 | $16.63 | $11.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.21)B | (.22) | (.27) | (.19) | (.12) |
Net realized and unrealized gain (loss) | 3.04 | (8.10) | 11.54 | 3.00 | 6.02 |
Total from investment operations | 2.83 | (8.32) | 11.27 | 2.81 | 5.90 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | (1.35) | (.60) | (.05) | (.69) |
Total distributions | – | (1.35) | (.60) | (.05) | (.69) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $23.22 | $20.39 | $30.06 | $19.39 | $16.63 |
Total ReturnD,E | 13.88% | (28.75)% | 59.17% | 16.95% | 54.50% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.38% | 1.37% | 1.35% | 1.41% | 1.46% |
Expenses net of fee waivers, if any | 1.38% | 1.37% | 1.35% | 1.41% | 1.46% |
Expenses net of all reductions | 1.38% | 1.37% | 1.34% | 1.40% | 1.46% |
Net investment income (loss) | (1.02)%B | (1.01)% | (1.05)% | (1.01)% | (.94)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $127,734 | $131,928 | $196,393 | $95,945 | $67,887 |
Portfolio turnover rateH | 30% | 29% | 26% | 50% | 22% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.05) %.
C Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.71 | $27.78 | $18.04 | $15.53 | $10.76 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.27)B | (.29) | (.35) | (.25) | (.17) |
Net realized and unrealized gain (loss) | 2.79 | (7.46) | 10.69 | 2.81 | 5.63 |
Total from investment operations | 2.52 | (7.75) | 10.34 | 2.56 | 5.46 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | (1.32) | (.60) | (.05) | (.69) |
Total distributions | – | (1.32) | (.60) | (.05) | (.69) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $21.23 | $18.71 | $27.78 | $18.04 | $15.53 |
Total ReturnD,E | 13.47% | (29.06)% | 58.43% | 16.54% | 53.71% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.79% | 1.80% | 1.79% | 1.83% | 1.88% |
Expenses net of fee waivers, if any | 1.79% | 1.80% | 1.79% | 1.83% | 1.88% |
Expenses net of all reductions | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Net investment income (loss) | (1.43)%B | (1.44)% | (1.49)% | (1.43)% | (1.36)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $593,489 | $665,036 | $956,495 | $359,967 | $146,684 |
Portfolio turnover rateH | 30% | 29% | 26% | 50% | 22% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.46) %.
C Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.52 | $32.95 | $21.10 | $17.97 | $12.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.10)B | (.10) | (.14) | (.08) | (.05) |
Net realized and unrealized gain (loss) | 3.38 | (8.89) | 12.60 | 3.26 | 6.49 |
Total from investment operations | 3.28 | (8.99) | 12.46 | 3.18 | 6.44 |
Distributions from net investment income | – | – | –C | – | – |
Distributions from net realized gain | – | (1.44) | (.60) | (.05) | (.69) |
Total distributions | – | (1.44) | (.61)D | (.05) | (.69) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $25.80 | $22.52 | $32.95 | $21.10 | $17.97 |
Total ReturnE | 14.56% | (28.32)% | 60.00% | 17.74% | 55.39% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .78% | .78% | .78% | .81% | .85% |
Expenses net of fee waivers, if any | .78% | .78% | .78% | .81% | .85% |
Expenses net of all reductions | .77% | .78% | .77% | .80% | .84% |
Net investment income (loss) | (.42)%B | (.42)% | (.48)% | (.41)% | (.32)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,156,358 | $908,234 | $1,403,666 | $465,889 | $177,926 |
Portfolio turnover rateH | 30% | 29% | 26% | 50% | 22% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.44) %.
C Amount represents less than $.005 per share.
D 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.
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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 8.61% | 12.06% | 4.07% |
Class M (incl. 3.50% sales charge) | 10.91% | 12.29% | 4.05% |
Class C (incl. contingent deferred sales charge) | 13.39% | 12.54% | 3.91% |
Class I | 15.55% | 13.65% | 4.95% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Communications Equipment Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$14,904 | Fidelity Advisor® Communications Equipment Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Communications Equipment Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Colin Anderson: For the year, the fund’s share classes (excluding sales charges, if applicable) generally returned about 15%, slightly trailing the 15.46% return of a linked index consisting of the S&P® Custom Communications Equipment Index for the first eight months of the period and the MSCI North America IMI + ADR Custom Communications Equipment 25/50 Index for the last four months of the period. The fund also lagged the S&P 500® index. Within the MSCI index, strength in communications equipment stocks was undercut this period by weak results among shares of semiconductor companies. Versus the MSCI industry index, a sizable underweighting in the fund’s core communications equipment segment dampened fund performance, as did a modest cash position. Among individual holdings, the top three relative detractors all were strong-performing index names that the fund underweighted: cloud-computing solutions provider Arista Networks, networking software and equipment maker Extreme Networks and Motorola Solutions. Conversely, non-index exposure to systems software companies, as well as makers of technology hardware, storage & peripherals, contributed. At the stock level, Brocade Communications Systems, which gained in the autumn of 2016, after chipmaker Broadcom signaled its intention to buy the company, added value. I subsequently reduced this position to roughly a market weighting to manage risk and lock in some profit. Also lifting the fund’s relative result was CommScope Holding, our largest overweighting and third-largest holding at period end. Significantly underweighting weak-performing index name ViaSat, a provider of satellite broadband, further worked in our favor.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to shareholders: On April 1, 2017, the fund’s industry benchmark changed 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 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.The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.
Fidelity Advisor® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Cisco Systems, Inc. | 23.3 | 22.8 |
Nokia Corp. sponsored ADR | 8.5 | 4.4 |
CommScope Holding Co., Inc. | 6.9 | 6.5 |
Harris Corp. | 6.3 | 4.9 |
F5 Networks, Inc. | 5.0 | 4.5 |
Juniper Networks, Inc. | 4.8 | 4.3 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.8 | 5.2 |
Brocade Communications Systems, Inc. | 2.6 | 2.2 |
Finisar Corp. | 2.4 | 2.1 |
Palo Alto Networks, Inc. | 2.3 | 2.1 |
66.9 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Communications Equipment | 88.7% | |
Semiconductors & Semiconductor Equipment | 4.1% | |
Electronic Equipment & Components | 2.2% | |
Internet Software & Services | 1.9% | |
Technology Hardware, Storage & Peripherals | 0.9% | |
All Others* | 2.2% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Communications Equipment Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
Communications Equipment - 88.7% | |||
Communications Equipment - 88.7% | |||
ADTRAN, Inc. | 12,550 | $294,298 | |
Arista Networks, Inc. (a) | 1,450 | 216,471 | |
Arris International PLC (a) | 11,363 | 317,709 | |
Brocade Communications Systems, Inc. | 38,175 | 482,150 | |
Calix Networks, Inc. (a) | 20,680 | 141,658 | |
Ciena Corp. (a) | 1,340 | 34,505 | |
Cisco Systems, Inc. | 135,564 | 4,263,481 | |
CommScope Holding Co., Inc. (a) | 34,240 | 1,259,347 | |
Comtech Telecommunications Corp. | 2,420 | 43,560 | |
EchoStar Holding Corp. Class A (a) | 2,200 | 133,606 | |
Extreme Networks, Inc. (a) | 1,040 | 9,142 | |
F5 Networks, Inc. (a) | 7,585 | 915,889 | |
Finisar Corp. (a) | 15,840 | 431,165 | |
Harmonic, Inc. (a) | 3,500 | 14,350 | |
Harris Corp. | 9,980 | 1,142,411 | |
Infinera Corp. (a)(b) | 12,327 | 144,596 | |
InterDigital, Inc. | 3,870 | 281,930 | |
Juniper Networks, Inc. | 31,668 | 885,121 | |
Lumentum Holdings, Inc. (a) | 4,520 | 282,952 | |
Mitel Networks Corp. (a) | 17,650 | 150,378 | |
Motorola Solutions, Inc. | 3,639 | 329,985 | |
NETGEAR, Inc. (a) | 3,210 | 153,759 | |
NetScout Systems, Inc. (a) | 5,620 | 193,890 | |
Nokia Corp. sponsored ADR | 243,930 | 1,558,713 | |
Oclaro, Inc. (a)(b) | 11,710 | 114,524 | |
Palo Alto Networks, Inc. (a) | 3,150 | 415,107 | |
Plantronics, Inc. | 2,630 | 118,823 | |
Radware Ltd. (a) | 4,580 | 79,326 | |
Sandvine Corp. (U.K.) | 57,800 | 203,059 | |
ShoreTel, Inc. (a) | 26,350 | 196,308 | |
Sierra Wireless, Inc. (a) | 200 | 5,889 | |
Sonus Networks, Inc. (a) | 18,310 | 125,057 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 137,740 | 884,291 | |
ViaSat, Inc. (a) | 520 | 34,367 | |
Viavi Solutions, Inc. (a) | 32,940 | 361,352 | |
16,219,169 | |||
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
Quantenna Communications, Inc. | 2,100 | 42,441 | |
Electronic Equipment & Components - 2.2% | |||
Electronic Manufacturing Services - 1.2% | |||
Fabrinet (a) | 1,740 | 78,317 | |
Jabil, Inc. | 3,500 | 106,750 | |
TE Connectivity Ltd. | 440 | 35,372 | |
220,439 | |||
Technology Distributors - 1.0% | |||
CDW Corp. | 1,530 | 97,048 | |
Dell Technologies, Inc. (a) | 1,454 | 93,449 | |
190,497 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 410,936 | ||
Internet Software & Services - 1.9% | |||
Internet Software & Services - 1.9% | |||
Alphabet, Inc.: | |||
Class A (a) | 149 | 140,880 | |
Class C (a) | 138 | 128,409 | |
LogMeIn, Inc. | 400 | 46,580 | |
Web.com Group, Inc. (a) | 1,030 | 22,609 | |
338,478 | |||
IT Services - 0.8% | |||
IT Consulting & Other Services - 0.8% | |||
Cognizant Technology Solutions Corp. Class A | 850 | 58,922 | |
Presidio, Inc. | 6,240 | 85,051 | |
143,973 | |||
Semiconductors & Semiconductor Equipment - 4.1% | |||
Semiconductors - 4.1% | |||
Acacia Communications, Inc. (a)(b) | 2,570 | 112,489 | |
Broadcom Ltd. | 345 | 85,098 | |
Maxim Integrated Products, Inc. | 2,120 | 96,333 | |
NXP Semiconductors NV (a) | 90 | 9,930 | |
ON Semiconductor Corp. (a) | 6,570 | 98,222 | |
Qualcomm, Inc. | 6,461 | 343,661 | |
745,733 | |||
Software - 0.8% | |||
Systems Software - 0.8% | |||
Check Point Software Technologies Ltd. (a) | 1,360 | 143,861 | |
Technology Hardware, Storage & Peripherals - 0.9% | |||
Technology Hardware, Storage & Peripherals - 0.9% | |||
HP, Inc. | 3,800 | 72,580 | |
Samsung Electronics Co. Ltd. | 43 | 92,532 | |
165,112 | |||
TOTAL COMMON STOCKS | |||
(Cost $14,422,940) | 18,209,703 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund, 1.11% (c) | 184,404 | 184,441 | |
Fidelity Securities Lending Cash Central Fund 1.11% (c)(d) | 338,582 | 338,615 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $523,056) | 523,056 | ||
TOTAL INVESTMENT PORTFOLIO - 102.5% | |||
(Cost $14,945,996) | 18,732,759 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (450,583) | ||
NET ASSETS - 100% | $18,282,176 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $1,807 |
Fidelity Securities Lending Cash Central Fund | 7,290 |
Total | $9,097 |
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 | 80.2% |
Finland | 8.5% |
Sweden | 4.8% |
Canada | 1.9% |
United Kingdom | 1.7% |
Israel | 1.2% |
Others (Individually Less Than 1%) | 1.7% |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $329,539) — See accompanying schedule: Unaffiliated issuers (cost $14,422,940) | $18,209,703 | |
Fidelity Central Funds (cost $523,056) | 523,056 | |
Total Investments (cost $14,945,996) | $18,732,759 | |
Receivable for investments sold | 206,708 | |
Receivable for fund shares sold | 6,481 | |
Dividends receivable | 493 | |
Distributions receivable from Fidelity Central Funds | 952 | |
Receivable from investment adviser for expense reductions | 11 | |
Other receivables | 457 | |
Total assets | 18,947,861 | |
Liabilities | ||
Payable for investments purchased | $156,687 | |
Payable for fund shares redeemed | 110,815 | |
Accrued management fee | 8,672 | |
Distribution and service plan fees payable | 5,675 | |
Other affiliated payables | 4,880 | |
Other payables and accrued expenses | 40,341 | |
Collateral on securities loaned | 338,615 | |
Total liabilities | 665,685 | |
Net Assets | $18,282,176 | |
Net Assets consist of: | ||
Paid in capital | $14,281,655 | |
Undistributed net investment income | 71,090 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 142,667 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,786,764 | |
Net Assets | $18,282,176 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($6,247,079 ÷ 456,363 shares) | $13.69 | |
Maximum offering price per share (100/94.25 of $13.69) | $14.53 | |
Class M: | ||
Net Asset Value and redemption price per share ($4,235,648 ÷ 321,263 shares) | $13.18 | |
Maximum offering price per share (100/96.50 of $13.18) | $13.66 | |
Class C: | ||
Net Asset Value and offering price per share ($3,066,265 ÷ 253,426 shares)(a) | $12.10 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($4,733,184 ÷ 332,850 shares) | $14.22 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $344,996 | |
Income from Fidelity Central Funds (including $7,290 from security lending) | 9,097 | |
Total income | 354,093 | |
Expenses | ||
Management fee | $99,460 | |
Transfer agent fees | 51,070 | |
Distribution and service plan fees | 64,665 | |
Accounting and security lending fees | 7,231 | |
Custodian fees and expenses | 14,134 | |
Independent trustees' fees and expenses | 396 | |
Registration fees | 52,500 | |
Audit | 49,961 | |
Legal | 2,711 | |
Miscellaneous | 294 | |
Total expenses before reductions | 342,422 | |
Expense reductions | (70,107) | 272,315 |
Net investment income (loss) | 81,778 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 315,914 | |
Fidelity Central Funds | 545 | |
Foreign currency transactions | 325 | |
Total net realized gain (loss) | 316,784 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 2,113,532 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | 2,113,533 | |
Net gain (loss) | 2,430,317 | |
Net increase (decrease) in net assets resulting from operations | $2,512,095 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $81,778 | $65,928 |
Net realized gain (loss) | 316,784 | 270,090 |
Change in net unrealized appreciation (depreciation) | 2,113,533 | (534,618) |
Net increase (decrease) in net assets resulting from operations | 2,512,095 | (198,600) |
Distributions to shareholders from net investment income | (70,636) | – |
Distributions to shareholders from net realized gain | (269,855) | (387,325) |
Total distributions | (340,491) | (387,325) |
Share transactions - net increase (decrease) | 4,211,380 | (628,642) |
Redemption fees | 684 | 148 |
Total increase (decrease) in net assets | 6,383,668 | (1,214,419) |
Net Assets | ||
Beginning of period | 11,898,508 | 13,112,927 |
End of period | $18,282,176 | $11,898,508 |
Other Information | ||
Undistributed net investment income end of period | $71,090 | $65,927 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $12.09 | $12.57 | $11.94 | $10.22 | $7.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | .09 | .02 | .04B | .02 |
Net realized and unrealized gain (loss) | 1.76 | (.20) | .64 | 1.68 | 2.50 |
Total from investment operations | 1.83 | (.11) | .66 | 1.72 | 2.52 |
Distributions from net investment income | (.05) | – | (.03) | – | (.01) |
Distributions from net realized gain | (.18) | (.37) | – | – | – |
Total distributions | (.23) | (.37) | (.03) | – | (.01) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $13.69 | $12.09 | $12.57 | $11.94 | $10.22 |
Total ReturnD,E | 15.24% | (.53)% | 5.54% | 16.83% | 32.65% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.78% | 2.10% | 1.90% | 1.96% | 2.22% |
Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% | 1.40% | 1.39% | 1.39% | 1.37% |
Net investment income (loss) | .56% | .81% | .16% | .40%B | .18% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $6,247 | $4,536 | $4,806 | $4,725 | $3,962 |
Portfolio turnover rateH | 71% | 29% | 60% | 160% | 33% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $11.65 | $12.15 | $11.55 | $9.91 | $7.49 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .06 | (.01) | .02B | (.01) |
Net realized and unrealized gain (loss) | 1.69 | (.20) | .62 | 1.62 | 2.43 |
Total from investment operations | 1.73 | (.14) | .61 | 1.64 | 2.42 |
Distributions from net investment income | (.02) | – | (.01) | – | – |
Distributions from net realized gain | (.18) | (.36) | – | – | – |
Total distributions | (.20) | (.36) | (.01) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $13.18 | $11.65 | $12.15 | $11.55 | $9.91 |
Total ReturnD,E | 14.94% | (.83)% | 5.24% | 16.55% | 32.31% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 2.11% | 2.41% | 2.19% | 2.25% | 2.52% |
Expenses net of fee waivers, if any | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% | 1.65% | 1.64% | 1.64% | 1.62% |
Net investment income (loss) | .31% | .56% | (.09)% | .14%B | (.07)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $4,236 | $3,674 | $4,029 | $3,995 | $3,342 |
Portfolio turnover rateH | 71% | 29% | 60% | 160% | 33% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $10.74 | $11.27 | $10.76 | $9.28 | $7.05 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.02) | .01 | (.07) | (.04)B | (.05) |
Net realized and unrealized gain (loss) | 1.56 | (.19) | .58 | 1.52 | 2.28 |
Total from investment operations | 1.54 | (.18) | .51 | 1.48 | 2.23 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (.18) | (.35) | – | – | – |
Total distributions | (.18) | (.35) | – | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $12.10 | $10.74 | $11.27 | $10.76 | $9.28 |
Total ReturnD,E | 14.39% | (1.29)% | 4.74% | 15.95% | 31.63% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 2.55% | 2.86% | 2.65% | 2.73% | 2.98% |
Expenses net of fee waivers, if any | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% | 2.15% | 2.14% | 2.14% | 2.12% |
Net investment income (loss) | (.19)% | .06% | (.59)% | (.35)%B | (.57)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $3,066 | $2,479 | $2,966 | $2,744 | $2,334 |
Portfolio turnover rateH | 71% | 29% | 60% | 160% | 33% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $12.54 | $13.01 | $12.35 | $10.55 | $7.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | .11 | .12 | .05 | .08B | .04 |
Net realized and unrealized gain (loss) | 1.83 | (.20) | .67 | 1.72 | 2.58 |
Total from investment operations | 1.94 | (.08) | .72 | 1.80 | 2.62 |
Distributions from net investment income | (.08) | – | (.06) | – | (.02) |
Distributions from net realized gain | (.18) | (.39) | – | – | – |
Total distributions | (.26) | (.39) | (.06) | – | (.02) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $14.22 | $12.54 | $13.01 | $12.35 | $10.55 |
Total ReturnD | 15.55% | (.33)% | 5.83% | 17.06% | 32.92% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.46% | 1.69% | 1.57% | 1.45% | 1.93% |
Expenses net of fee waivers, if any | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.14% | 1.14% | 1.14% | 1.14% | 1.12% |
Net investment income (loss) | .81% | 1.06% | .41% | .65%B | .43% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $4,733 | $1,209 | $1,024 | $2,592 | $855 |
Portfolio turnover rateG | 71% | 29% | 60% | 160% | 33% |
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 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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 3.61% | 13.01% | 8.22% |
Class M (incl. 3.50% sales charge) | 5.78% | 13.21% | 8.19% |
Class C (incl. contingent deferred sales charge) | 8.08% | 13.50% | 8.06% |
Class I | 10.27% | 14.69% | 9.18% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Consumer Discretionary Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$22,039 | Fidelity Advisor® Consumer Discretionary Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Consumer Discretionary Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Peter Dixon: For the year, the fund’s share classes (excluding sales charges, if applicable) gained about 10%, lagging the 14.53% result of the MSCI U.S. IMI Consumer Discretionary 25/50 Index. The fund also lagged the broad-market S&P 500®. Consumer discretionary's solid gain was helped in part by strong fundamentals in the sector. A positive surge in business and consumer sentiment following the November elections, along with a decline in unemployment claims, provided a solid backdrop for the U.S. consumer and for continued overall expansion; nevertheless, consumer spending remained anemic this period – a notable negative. Versus the benchmark, the fund's overweighting in the apparel retail group hurt most; stock selection there also proved unfavorable. Apparel retail suffered amid consumers' growing preference for online shopping, exacerbated by the June announcement from Amazon.com – the fund's largest holding and its No. 2 contributor – that it intended to buy organic grocery chain Whole Foods. A significant overweighting in L Brands (-35%) was the fund’s biggest individual detractor by far. The share price declined amid the company’s repositioning of its Victoria’s Secret brand. This overhaul included eliminating its swim and apparel lines, which hurt year-over-year sales figures. Additionally, slowing foot-traffic trends continued to negatively affect mall retailers. Another major laggard was Dollar Tree (-25%). Shares of the discount retailer were hurt by continued headwinds facing many brick-and-mortar retailers, as well as by slower-than-expected progress integrating Family Dollar, which Dollar Tree acquired in 2015. On the positive side, choices in the cable & satellite group proved a big plus. This included an overweighting in telecom Charter Communications, one of the fund’s largest holdings. Positive financial results stemming from the company's May 2016 acquisition of Time Warner Cable boosted the stock early in the period. In late July, shares jumped amid speculation that Japanese conglomerate Softbank Group would make a bid for Charter, despite Charter rejecting a merger proposal with Sprint. The stock rose about 67% for the full 12 months.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.On August 3, 2017, Katherine Shaw became Portfolio Manager of the fund, succeeding Peter Dixon.
Fidelity Advisor® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amazon.com, Inc. | 16.2 | 14.6 |
The Walt Disney Co. | 9.5 | 10.3 |
Home Depot, Inc. | 8.9 | 9.5 |
Charter Communications, Inc. Class A | 7.1 | 7.0 |
NIKE, Inc. Class B | 6.4 | 5.8 |
Dollar Tree, Inc. | 3.7 | 4.0 |
L Brands, Inc. | 3.3 | 4.3 |
Comcast Corp. Class A | 3.2 | 2.2 |
Wyndham Worldwide Corp. | 3.1 | 0.0 |
Priceline Group, Inc. | 3.0 | 0.0 |
64.4 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Internet & Direct Marketing Retail | 24.7% | |
Media | 22.2% | |
Specialty Retail | 20.5% | |
Hotels, Restaurants & Leisure | 13.2% | |
Textiles, Apparel & Luxury Goods | 6.7% | |
All Others* | 12.7% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Consumer Discretionary Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
Automobiles - 0.7% | |||
Automobile Manufacturers - 0.7% | |||
Ferrari NV | 17,500 | $1,840,825 | |
Beverages - 1.4% | |||
Soft Drinks - 1.4% | |||
Monster Beverage Corp. (a) | 75,216 | 3,967,644 | |
Hotels, Restaurants & Leisure - 13.2% | |||
Casinos & Gaming - 3.1% | |||
Las Vegas Sands Corp. | 88,680 | 5,463,575 | |
Melco Crown Entertainment Ltd. sponsored ADR | 149,800 | 3,025,960 | |
8,489,535 | |||
Hotels, Resorts & Cruise Lines - 5.2% | |||
Hilton Grand Vacations, Inc. (a) | 31,300 | 1,150,588 | |
Marriott International, Inc. Class A | 45,475 | 4,738,040 | |
Wyndham Worldwide Corp. | 82,520 | 8,612,612 | |
14,501,240 | |||
Leisure Facilities - 1.2% | |||
International Speedway Corp. Class A | 21,800 | 780,440 | |
Vail Resorts, Inc. | 11,640 | 2,453,246 | |
3,233,686 | |||
Restaurants - 3.7% | |||
Chipotle Mexican Grill, Inc. (a)(b) | 1,300 | 446,901 | |
Darden Restaurants, Inc. | 11,725 | 983,493 | |
Jack in the Box, Inc. | 20,700 | 1,920,132 | |
Papa John's International, Inc. | 10,500 | 748,965 | |
Starbucks Corp. | 100,676 | 5,434,490 | |
U.S. Foods Holding Corp. (a) | 28,600 | 805,090 | |
10,339,071 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 36,563,532 | ||
Household Durables - 1.6% | |||
Home Furnishings - 0.1% | |||
Nien Made Enterprise Co. Ltd. | 35,000 | 426,865 | |
Household Appliances - 1.5% | |||
Techtronic Industries Co. Ltd. | 914,500 | 4,068,581 | |
TOTAL HOUSEHOLD DURABLES | 4,495,446 | ||
Household Products - 1.6% | |||
Household Products - 1.6% | |||
Spectrum Brands Holdings, Inc. (b) | 37,658 | 4,347,240 | |
Internet & Direct Marketing Retail - 24.7% | |||
Internet & Direct Marketing Retail - 24.7% | |||
Amazon.com, Inc. (a) | 45,580 | 45,023,012 | |
Boohoo.Com PLC (a) | 213,800 | 664,317 | |
Etsy, Inc. (a) | 22,200 | 319,014 | |
Liberty Interactive Corp. QVC Group Series A(a) | 210,869 | 5,048,204 | |
Netflix, Inc. (a) | 35,500 | 6,448,930 | |
Ocado Group PLC (a)(b) | 541,137 | 2,149,782 | |
Priceline Group, Inc. (a) | 4,100 | 8,316,850 | |
Zalando SE (a) | 15,100 | 675,957 | |
68,646,066 | |||
Leisure Products - 2.4% | |||
Leisure Products - 2.4% | |||
Hasbro, Inc. | 41,200 | 4,362,256 | |
Mattel, Inc. | 115,800 | 2,318,316 | |
6,680,572 | |||
Media - 21.8% | |||
Advertising - 1.4% | |||
Interpublic Group of Companies, Inc. | 178,276 | 3,852,544 | |
Cable & Satellite - 10.3% | |||
Charter Communications, Inc. Class A (a) | 50,294 | 19,710,722 | |
Comcast Corp. Class A | 224,500 | 9,081,025 | |
28,791,747 | |||
Movies & Entertainment - 10.1% | |||
The Walt Disney Co. | 239,406 | 26,317,902 | |
Time Warner, Inc. | 16,016 | 1,640,359 | |
27,958,261 | |||
TOTAL MEDIA | 60,602,552 | ||
Multiline Retail - 4.2% | |||
General Merchandise Stores - 4.2% | |||
B&M European Value Retail S.A. | 310,379 | 1,474,251 | |
Dollar Tree, Inc. (a) | 142,600 | 10,278,608 | |
11,752,859 | |||
Personal Products - 0.2% | |||
Personal Products - 0.2% | |||
Avon Products, Inc. (a) | 140,800 | 512,512 | |
Specialty Retail - 20.5% | |||
Apparel Retail - 8.5% | |||
Burlington Stores, Inc. (a) | 8,200 | 713,646 | |
Cia. Hering SA | 164,300 | 1,132,268 | |
L Brands, Inc. | 196,400 | 9,110,996 | |
Ross Stores, Inc. | 80,569 | 4,457,077 | |
The Children's Place Retail Stores, Inc. | 10,000 | 1,056,500 | |
TJX Companies, Inc. | 94,211 | 6,623,975 | |
Zumiez, Inc. (a) | 48,734 | 618,922 | |
23,713,384 | |||
Automotive Retail - 1.8% | |||
O'Reilly Automotive, Inc. (a) | 24,462 | 4,997,587 | |
Home Improvement Retail - 10.2% | |||
Home Depot, Inc. | 164,820 | 24,657,072 | |
Lowe's Companies, Inc. | 47,100 | 3,645,540 | |
28,302,612 | |||
TOTAL SPECIALTY RETAIL | 57,013,583 | ||
Textiles, Apparel & Luxury Goods - 6.7% | |||
Apparel, Accessories & Luxury Goods - 0.3% | |||
G-III Apparel Group Ltd. (a) | 15,500 | 403,465 | |
Regina Miracle International Holdings Ltd. | 481,635 | 424,239 | |
827,704 | |||
Footwear - 6.4% | |||
NIKE, Inc. Class B | 299,434 | 17,681,578 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 18,509,282 | ||
TOTAL COMMON STOCKS | |||
(Cost $219,498,060) | 274,932,113 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.4% | |||
Media - 0.4% | |||
Cable & Satellite - 0.4% | |||
DISH Network Corp. 3.375% 8/15/26 (c) | |||
(Cost $810,000) | $810,000 | 1,006,425 | |
Shares | Value | ||
Money Market Funds - 3.1% | |||
Fidelity Cash Central Fund, 1.11% (d) | 2,098,474 | 2,098,893 | |
Fidelity Securities Lending Cash Central Fund 1.11% (d)(e) | 6,641,309 | 6,641,973 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $8,740,665) | 8,740,866 | ||
TOTAL INVESTMENT PORTFOLIO - 102.5% | |||
(Cost $229,048,725) | 284,679,404 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (6,825,260) | ||
NET ASSETS - 100% | $277,854,144 |
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 $1,006,425 or 0.4% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $44,303 |
Fidelity Securities Lending Cash Central Fund | 149,778 |
Total | $194,081 |
Investment Valuation
The following is a summary of the inputs used, as of July 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 | $274,932,113 | $274,932,113 | $-- | $-- |
Convertible Bonds | 1,006,425 | -- | 1,006,425 | -- |
Money Market Funds | 8,740,866 | 8,740,866 | -- | -- |
Total Investments in Securities: | $284,679,404 | $283,672,979 | $1,006,425 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,396,093) — See accompanying schedule: Unaffiliated issuers (cost $220,308,060) | $275,938,538 | |
Fidelity Central Funds (cost $8,740,665) | 8,740,866 | |
Total Investments (cost $229,048,725) | $284,679,404 | |
Receivable for fund shares sold | 418,260 | |
Dividends receivable | 91,909 | |
Interest receivable | 12,606 | |
Distributions receivable from Fidelity Central Funds | 12,949 | |
Other receivables | 8,004 | |
Total assets | 285,223,132 | |
Liabilities | ||
Payable for fund shares redeemed | $414,500 | |
Accrued management fee | 128,185 | |
Distribution and service plan fees payable | 83,884 | |
Other affiliated payables | 59,416 | |
Other payables and accrued expenses | 42,477 | |
Collateral on securities loaned | 6,640,526 | |
Total liabilities | 7,368,988 | |
Net Assets | $277,854,144 | |
Net Assets consist of: | ||
Paid in capital | $223,365,041 | |
Distributions in excess of net investment income | (1) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,141,649) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 55,630,753 | |
Net Assets | $277,854,144 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($109,303,297 ÷ 4,768,735 shares) | $22.92 | |
Maximum offering price per share (100/94.25 of $22.92) | $24.32 | |
Class M: | ||
Net Asset Value and redemption price per share ($26,397,900 ÷ 1,229,359 shares) | $21.47 | |
Maximum offering price per share (100/96.50 of $21.47) | $22.25 | |
Class C: | ||
Net Asset Value and offering price per share ($59,957,518 ÷ 3,199,234 shares)(a) | $18.74 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($82,195,429 ÷ 3,336,279 shares) | $24.64 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $3,748,444 | |
Interest | 26,806 | |
Income from Fidelity Central Funds (including $149,778 from security lending) | 194,081 | |
Total income | 3,969,331 | |
Expenses | ||
Management fee | $1,582,575 | |
Transfer agent fees | 602,507 | |
Distribution and service plan fees | 1,075,276 | |
Accounting and security lending fees | 114,365 | |
Custodian fees and expenses | 17,715 | |
Independent trustees' fees and expenses | 6,517 | |
Registration fees | 75,059 | |
Audit | 62,899 | |
Legal | 5,444 | |
Miscellaneous | 6,150 | |
Total expenses before reductions | 3,548,507 | |
Expense reductions | (2,878) | 3,545,629 |
Net investment income (loss) | 423,702 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 13,398,655 | |
Fidelity Central Funds | 2,659 | |
Foreign currency transactions | (6,544) | |
Total net realized gain (loss) | 13,394,770 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 11,644,654 | |
Assets and liabilities in foreign currencies | 5,620 | |
Total change in net unrealized appreciation (depreciation) | 11,650,274 | |
Net gain (loss) | 25,045,044 | |
Net increase (decrease) in net assets resulting from operations | $25,468,746 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $423,702 | $1,178,511 |
Net realized gain (loss) | 13,394,770 | (14,404,874) |
Change in net unrealized appreciation (depreciation) | 11,650,274 | 12,404,189 |
Net increase (decrease) in net assets resulting from operations | 25,468,746 | (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) | (62,438,702) | 87,843,131 |
Redemption fees | 5,343 | 35,244 |
Total increase (decrease) in net assets | (38,031,680) | 81,145,501 |
Net Assets | ||
Beginning of period | 315,885,824 | 234,740,323 |
End of period | $277,854,144 | $315,885,824 |
Other Information | ||
Undistributed net investment income end of period | $– | $771,118 |
Distributions in excess of net investment income end of period | $(1) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.94 | $21.51 | $19.75 | $19.59 | $16.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .10B | .05 | (.04) | (.02) |
Net realized and unrealized gain (loss) | 2.01 | (.21) | 3.99 | 1.75 | 5.04 |
Total from investment operations | 2.07 | (.11) | 4.04 | 1.71 | 5.02 |
Distributions from net investment income | (.09) | (.02) | – | – | – |
Distributions from net realized gain | – | (.44) | (2.28) | (1.55) | (1.65) |
Total distributions | (.09) | (.46) | (2.28) | (1.55) | (1.65) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $22.92 | $20.94 | $21.51 | $19.75 | $19.59 |
Total ReturnD,E | 9.93% | (.38)% | 22.26% | 9.28% | 33.65% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.10% | 1.10% | 1.15% | 1.20% | 1.31% |
Expenses net of fee waivers, if any | 1.10% | 1.10% | 1.15% | 1.20% | 1.31% |
Expenses net of all reductions | 1.10% | 1.09% | 1.14% | 1.19% | 1.29% |
Net investment income (loss) | .26% | .49%B | .27% | (.21)% | (.10)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $109,303 | $144,578 | $115,027 | $59,089 | $45,292 |
Portfolio turnover rateH | 47% | 59% | 71% | 171% | 146% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.66 | $20.26 | $18.75 | $18.68 | $15.57 |
Income from Investment Operations | |||||
Net investment income (loss)A | –B | .03C | (.01) | (.10) | (.06) |
Net realized and unrealized gain (loss) | 1.89 | (.19) | 3.77 | 1.67 | 4.81 |
Total from investment operations | 1.89 | (.16) | 3.76 | 1.57 | 4.75 |
Distributions from net investment income | (.08) | – | – | – | – |
Distributions from net realized gain | – | (.44) | (2.25) | (1.50) | (1.64) |
Total distributions | (.08) | (.44) | (2.25) | (1.50) | (1.64) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $21.47 | $19.66 | $20.26 | $18.75 | $18.68 |
Total ReturnD,E | 9.62% | (.68)% | 21.92% | 8.94% | 33.25% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.39% | 1.40% | 1.46% | 1.50% | 1.60% |
Expenses net of fee waivers, if any | 1.39% | 1.40% | 1.45% | 1.50% | 1.60% |
Expenses net of all reductions | 1.39% | 1.39% | 1.45% | 1.49% | 1.58% |
Net investment income (loss) | (.02)% | .19%C | (.03)% | (.51)% | (.39)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $26,398 | $28,259 | $25,948 | $18,779 | $15,613 |
Portfolio turnover rateH | 47% | 59% | 71% | 171% | 146% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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%.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.18 | $17.84 | $16.79 | $16.90 | $14.27 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.09) | (.04)B | (.08) | (.16) | (.12) |
Net realized and unrealized gain (loss) | 1.65 | (.18) | 3.34 | 1.49 | 4.37 |
Total from investment operations | 1.56 | (.22) | 3.26 | 1.33 | 4.25 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | (.44) | (2.21) | (1.44) | (1.62) |
Total distributions | – | (.44) | (2.21) | (1.44) | (1.62) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $18.74 | $17.18 | $17.84 | $16.79 | $16.90 |
Total ReturnD,E | 9.08% | (1.11)% | 21.37% | 8.44% | 32.68% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.85% | 1.86% | 1.91% | 1.97% | 2.04% |
Expenses net of fee waivers, if any | 1.85% | 1.86% | 1.91% | 1.97% | 2.04% |
Expenses net of all reductions | 1.85% | 1.85% | 1.90% | 1.96% | 2.02% |
Net investment income (loss) | (.49)% | (.27)%B | (.49)% | (.97)% | (.83)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $59,958 | $67,306 | $43,999 | $20,726 | $17,176 |
Portfolio turnover rateH | 47% | 59% | 71% | 171% | 146% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.48 | $23.06 | $21.00 | $20.72 | $17.04 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .16B | .12 | .02 | .04 |
Net realized and unrealized gain (loss) | 2.18 | (.22) | 4.26 | 1.85 | 5.32 |
Total from investment operations | 2.30 | (.06) | 4.38 | 1.87 | 5.36 |
Distributions from net investment income | (.14) | (.08) | – | – | – |
Distributions from net realized gain | – | (.44) | (2.32) | (1.59) | (1.68) |
Total distributions | (.14) | (.52) | (2.32) | (1.59) | (1.68) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $24.64 | $22.48 | $23.06 | $21.00 | $20.72 |
Total ReturnD | 10.27% | (.13)% | 22.60% | 9.61% | 34.06% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .83% | .84% | .87% | .91% | .97% |
Expenses net of fee waivers, if any | .83% | .84% | .87% | .91% | .97% |
Expenses net of all reductions | .83% | .83% | .87% | .91% | .96% |
Net investment income (loss) | .54% | .75%B | .55% | .08% | .24% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $82,195 | $75,742 | $48,329 | $21,708 | $13,044 |
Portfolio turnover rateG | 47% | 59% | 71% | 171% | 146% |
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 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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (6.83)% | (0.80)% | (1.46)% |
Class M (incl. 3.50% sales charge) | (4.86)% | (0.57)% | (1.46)% |
Class C (incl. contingent deferred sales charge) | (2.83)% | (0.34)% | (1.60)% |
Class I | (0.86)% | 0.66% | (0.60)% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Energy Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$8,629 | Fidelity Advisor® Energy Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Energy Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager John Dowd: For the fiscal year, the fund’s share classes (excluding sales charges) returned about -1%, trailing the -0.27% return of the MSCI U.S. IMI Energy 25/50 Index. The fund also trailed the broad-based S&P 500®. Relative to the MSCI sector index, favoring U.S.-based exploration & production (E&P) companies was the primary detractor, as the fund’s holdings within this group lagged those in the index. A sizable overweighting here also detracted. Conversely, favorable security selection in the oil & gas equipment & services and integrated oil & gas industries contributed, as did an underweighting in the latter category. The biggest individual detractor was a large underweighting in integrated oil & gas company Chevron. The stock appreciated relative to many of its peers, in part because several capital-intensive projects became operational and were perceived to contribute to earnings growth going forward. In addition, overweighting poor-performing E&Ps Newfield Exploration and Continental Resources proved disappointing because investors favored other companies with less debt and stronger balance sheets. In contrast, the largest individual relative contributor was Exxon Mobil, a notable underweighting that declined. Positions in services company Baker Hughes and E&P EOG Resources – two stocks with strong returns – also provided a boost.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
EOG Resources, Inc. | 7.7 | 5.8 |
Chevron Corp. | 7.4 | 5.9 |
Exxon Mobil Corp. | 6.9 | 2.4 |
Pioneer Natural Resources Co. | 5.9 | 4.1 |
Diamondback Energy, Inc. | 4.9 | 3.4 |
Halliburton Co. | 4.6 | 4.4 |
The Williams Companies, Inc. | 3.2 | 1.3 |
Phillips 66 Co. | 3.0 | 2.2 |
Parsley Energy, Inc. Class A | 2.5 | 1.8 |
RSP Permian, Inc. | 2.4 | 2.0 |
48.5 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Oil, Gas & Consumable Fuels | 81.9% | |
Energy Equipment & Services | 15.0% | |
Chemicals | 1.5% | |
Gas Utilities | 0.4% | |
Machinery | 0.2% | |
All Others* | 1.0% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Energy Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value | ||
Chemicals - 1.5% | |||
Commodity Chemicals - 1.5% | |||
LyondellBasell Industries NV Class A | 150,500 | $13,558,545 | |
Energy Equipment & Services - 15.0% | |||
Oil & Gas Drilling - 1.6% | |||
Nabors Industries Ltd. | 273,000 | 2,104,830 | |
Odfjell Drilling A/S (a) | 564,256 | 1,528,536 | |
Shelf Drilling Ltd. (a) | 865,700 | 7,266,602 | |
Trinidad Drilling Ltd. (a) | 1,101,400 | 1,581,316 | |
Xtreme Drilling & Coil Services Corp. (a) | 1,160,402 | 1,861,483 | |
14,342,767 | |||
Oil & Gas Equipment & Services - 13.4% | |||
Baker Hughes, a GE Co. | 395,100 | 14,575,239 | |
C&J Energy Services, Inc. (a) | 58,500 | 1,891,890 | |
Dril-Quip, Inc. (a) | 162,591 | 7,251,559 | |
Frank's International NV (b) | 444,545 | 3,600,815 | |
Halliburton Co. | 973,200 | 41,302,608 | |
National Oilwell Varco, Inc. | 260,100 | 8,507,871 | |
NCS Multistage Holdings, Inc. | 128,237 | 2,878,921 | |
Newpark Resources, Inc. (a) | 846,000 | 7,064,100 | |
Oceaneering International, Inc. | 216,273 | 5,547,402 | |
RigNet, Inc. (a) | 178,100 | 3,374,995 | |
Schlumberger Ltd. | 290,018 | 19,895,235 | |
Smart Sand, Inc. (b) | 137,500 | 904,750 | |
Tesco Corp. (a) | 196,400 | 903,440 | |
TETRA Technologies, Inc. (a) | 510,500 | 1,434,505 | |
Total Energy Services, Inc. | 38,900 | 377,534 | |
119,510,864 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 133,853,631 | ||
Gas Utilities - 0.4% | |||
Gas Utilities - 0.4% | |||
Indraprastha Gas Ltd. | 198,379 | 3,644,573 | |
Independent Power and Renewable Electricity Producers - 0.1% | |||
Renewable Electricity - 0.1% | |||
NextEra Energy Partners LP | 22,500 | 927,450 | |
Machinery - 0.2% | |||
Industrial Machinery - 0.2% | |||
ProPetro Holding Corp. (b) | 149,700 | 1,946,100 | |
Oil, Gas & Consumable Fuels - 81.9% | |||
Integrated Oil & Gas - 16.9% | |||
Chevron Corp. | 608,509 | 66,443,098 | |
Exxon Mobil Corp. | 763,861 | 61,139,434 | |
Occidental Petroleum Corp. | 240,800 | 14,912,744 | |
Suncor Energy, Inc. | 253,900 | 8,282,425 | |
150,777,701 | |||
Oil & Gas Exploration & Production - 49.9% | |||
Anadarko Petroleum Corp. | 451,683 | 20,628,363 | |
Cabot Oil & Gas Corp. | 593,100 | 14,750,397 | |
Callon Petroleum Co. (a)(b) | 1,045,800 | 11,838,456 | |
Centennial Resource Development, Inc.: | |||
Class A | 45,200 | 758,456 | |
Class A (b) | 334,200 | 5,607,876 | |
Cimarex Energy Co. | 205,447 | 20,345,416 | |
Concho Resources, Inc. (a) | 145,800 | 18,991,908 | |
ConocoPhillips Co. | 187,700 | 8,515,949 | |
Continental Resources, Inc. (a) | 512,000 | 17,116,160 | |
Devon Energy Corp. | 604,200 | 20,125,902 | |
Diamondback Energy, Inc. (a) | 455,300 | 43,654,164 | |
Encana Corp. | 1,482,100 | 14,919,074 | |
EOG Resources, Inc. | 721,186 | 68,613,633 | |
Extraction Oil & Gas, Inc. (b) | 422,098 | 5,141,154 | |
Hess Corp. | 126,500 | 5,634,310 | |
Jagged Peak Energy, Inc. (b) | 70,600 | 999,696 | |
Jones Energy, Inc. | 1 | 2 | |
Marathon Oil Corp. | 270,700 | 3,310,661 | |
Matador Resources Co. (a)(b) | 102,200 | 2,479,372 | |
Murphy Oil Corp. | 86,300 | 2,293,854 | |
Newfield Exploration Co. (a) | 714,600 | 20,530,458 | |
Parsley Energy, Inc. Class A (a) | 772,300 | 22,612,944 | |
PDC Energy, Inc. (a) | 202,888 | 9,568,198 | |
Pioneer Natural Resources Co. | 322,116 | 52,537,120 | |
Range Resources Corp. | 101,700 | 2,146,887 | |
Resolute Energy Corp. (a)(b) | 125,077 | 4,247,615 | |
Ring Energy, Inc. (a) | 287,932 | 3,760,392 | |
RSP Permian, Inc. (a) | 632,600 | 21,736,136 | |
Seven Generations Energy Ltd. (a) | 416,600 | 7,241,004 | |
Viper Energy Partners LP | 358,600 | 6,096,200 | |
WPX Energy, Inc. (a) | 875,300 | 9,435,734 | |
445,637,491 | |||
Oil & Gas Refining & Marketing - 7.2% | |||
Bharat Petroleum Corp. Ltd. | 429,875 | 3,155,743 | |
Delek U.S. Holdings, Inc. | 719,000 | 18,773,090 | |
Phillips 66 Co. | 319,618 | 26,768,008 | |
Reliance Industries Ltd. | 219,883 | 5,533,734 | |
Tesoro Corp. | 92,000 | 9,156,760 | |
World Fuel Services Corp. | 11,070 | 358,004 | |
63,745,339 | |||
Oil & Gas Storage & Transport - 7.9% | |||
Cheniere Energy, Inc. (a) | 127,400 | 5,758,480 | |
Enterprise Products Partners LP | 414,000 | 11,260,800 | |
GasLog Partners LP | 127,700 | 3,160,575 | |
Gener8 Maritime, Inc. (a) | 1,260,909 | 6,745,863 | |
Golar LNG Ltd. (b) | 205,000 | 4,881,050 | |
Noble Midstream Partners LP | 145,387 | 6,600,570 | |
Noble Midstream Partners LP (c) | 48,372 | 2,086,284 | |
Teekay LNG Partners LP | 64,100 | 1,208,285 | |
The Williams Companies, Inc. | 900,900 | 28,630,602 | |
70,332,509 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 730,493,040 | ||
TOTAL COMMON STOCKS | |||
(Cost $849,852,979) | 884,423,339 | ||
Money Market Funds - 3.1% | |||
Fidelity Securities Lending Cash Central Fund 1.11% (d)(e) | |||
(Cost $27,605,913) | 27,604,547 | 27,607,307 | |
TOTAL INVESTMENT PORTFOLIO - 102.2% | |||
(Cost $877,458,892) | 912,030,646 | ||
NET OTHER ASSETS (LIABILITIES) - (2.2)% | (19,211,829) | ||
NET ASSETS - 100% | $892,818,817 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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 $2,086,284 or 0.2% of net assets.
(d) Investment made with cash collateral received from securities on loan.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Noble Midstream Partners LP | 6/21/17 | $1,956,647 |
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 | $57,194 |
Fidelity Securities Lending Cash Central Fund | 331,564 |
Total | $388,758 |
Investment Valuation
The following is a summary of the inputs used, as of July 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 | $884,423,339 | $871,425,880 | $5,730,857 | $7,266,602 |
Money Market Funds | 27,607,307 | 27,607,307 | -- | -- |
Total Investments in Securities: | $912,030,646 | $899,033,187 | $5,730,857 | $7,266,602 |
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 | 87.4% |
Canada | 4.0% |
Curacao | 2.2% |
Netherlands | 1.9% |
India | 1.4% |
Marshall Islands | 1.3% |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $26,439,207) — See accompanying schedule: Unaffiliated issuers (cost $849,852,979) | $884,423,339 | |
Fidelity Central Funds (cost $27,605,913) | 27,607,307 | |
Total Investments (cost $877,458,892) | $912,030,646 | |
Cash | 313 | |
Foreign currency held at value (cost $136,239) | 136,239 | |
Receivable for investments sold | 23,689,553 | |
Receivable for fund shares sold | 688,171 | |
Dividends receivable | 230,257 | |
Distributions receivable from Fidelity Central Funds | 17,782 | |
Other receivables | 95,709 | |
Total assets | 936,888,670 | |
Liabilities | ||
Payable for investments purchased | $6,693,070 | |
Payable for fund shares redeemed | 1,822,150 | |
Accrued management fee | 403,301 | |
Distribution and service plan fees payable | 283,485 | |
Notes payable to affiliates | 6,620,305 | |
Other affiliated payables | 194,907 | |
Other payables and accrued expenses | 449,102 | |
Collateral on securities loaned | 27,603,533 | |
Total liabilities | 44,069,853 | |
Net Assets | $892,818,817 | |
Net Assets consist of: | ||
Paid in capital | $1,021,138,378 | |
Undistributed net investment income | 9,122,175 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (171,655,768) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 34,214,032 | |
Net Assets | $892,818,817 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($277,378,237 ÷ 9,035,470 shares) | $30.70 | |
Maximum offering price per share (100/94.25 of $30.70) | $32.57 | |
Class M: | ||
Net Asset Value and redemption price per share ($125,951,352 ÷ 4,014,588 shares) | $31.37 | |
Maximum offering price per share (100/96.50 of $31.37) | $32.51 | |
Class C: | ||
Net Asset Value and offering price per share ($212,104,640 ÷ 7,532,597 shares)(a) | $28.16 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($277,384,588 ÷ 8,571,546 shares) | $32.36 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $11,797,824 | |
Special dividends | 10,668,000 | |
Income from Fidelity Central Funds (including $331,564 from security lending) | 388,758 | |
Total income | 22,854,582 | |
Expenses | ||
Management fee | $5,614,530 | |
Transfer agent fees | 2,310,355 | |
Distribution and service plan fees | 4,186,544 | |
Accounting and security lending fees | 344,456 | |
Custodian fees and expenses | 35,753 | |
Independent trustees' fees and expenses | 23,188 | |
Registration fees | 104,898 | |
Audit | 54,588 | |
Legal | 14,979 | |
Interest | 2,104 | |
Miscellaneous | 13,069 | |
Total expenses before reductions | 12,704,464 | |
Expense reductions | (136,375) | 12,568,089 |
Net investment income (loss) | 10,286,493 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $18,246) | 14,592,411 | |
Fidelity Central Funds | 3,791 | |
Foreign currency transactions | (36,823) | |
Total net realized gain (loss) | 14,559,379 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities (net of increase in deferred foreign taxes of $357,629) | (43,915,349) | |
Assets and liabilities in foreign currencies | (112) | |
Total change in net unrealized appreciation (depreciation) | (43,915,461) | |
Net gain (loss) | (29,356,082) | |
Net increase (decrease) in net assets resulting from operations | $(19,069,589) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,286,493 | $2,929,237 |
Net realized gain (loss) | 14,559,379 | (124,793,502) |
Change in net unrealized appreciation (depreciation) | (43,915,461) | 145,167,487 |
Net increase (decrease) in net assets resulting from operations | (19,069,589) | 23,303,222 |
Distributions to shareholders from net investment income | (574,320) | (3,958,354) |
Distributions to shareholders from net realized gain | (1,566,619) | – |
Total distributions | (2,140,939) | (3,958,354) |
Share transactions - net increase (decrease) | (24,365,448) | 161,035,631 |
Redemption fees | 21,760 | 63,717 |
Total increase (decrease) in net assets | (45,554,216) | 180,444,216 |
Net Assets | ||
Beginning of period | 938,373,033 | 757,928,817 |
End of period | $892,818,817 | $938,373,033 |
Other Information | ||
Undistributed net investment income end of period | $9,122,175 | $– |
Distributions in excess of net investment income end of period | $– | $(372,614) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.12 | $30.96 | $45.71 | $40.59 | $33.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .38B | .16 | .28 | .15 | .23 |
Net realized and unrealized gain (loss) | (.72) | .20 | (12.89) | 7.06 | 6.81 |
Total from investment operations | (.34) | .36 | (12.61) | 7.21 | 7.04 |
Distributions from net investment income | – | (.20) | (.18)C | (.17) | (.16) |
Distributions from net realized gain | (.08) | – | (1.96)C | (1.93) | – |
Total distributions | (.08) | (.20) | (2.14) | (2.09)D | (.16) |
Redemption fees added to paid in capitalA,E | – | – | – | – | – |
Net asset value, end of period | $30.70 | $31.12 | $30.96 | $45.71 | $40.59 |
Total ReturnF,G | (1.14)% | 1.25% | (28.92)% | 18.46% | 20.94% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.09% | 1.12% | 1.12% | 1.12% | 1.16% |
Expenses net of fee waivers, if any | 1.09% | 1.12% | 1.12% | 1.12% | 1.16% |
Expenses net of all reductions | 1.08% | 1.11% | 1.11% | 1.12% | 1.15% |
Net investment income (loss) | 1.15%B | .54% | .76% | .36% | .61% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $277,378 | $347,885 | $292,288 | $369,400 | $279,798 |
Portfolio turnover rateJ | 90% | 85% | 61% | 112% | 68% |
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 $.35 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
E Amount represents less than $.005 per share.
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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.82 | $31.63 | $46.64 | $41.38 | $34.40 |
Income from Investment Operations | |||||
Net investment income (loss)A | .30B | .08 | .20 | .06 | .15 |
Net realized and unrealized gain (loss) | (.75) | .22 | (13.18) | 7.21 | 6.95 |
Total from investment operations | (.45) | .30 | (12.98) | 7.27 | 7.10 |
Distributions from net investment income | – | (.11) | (.08)C | (.08) | (.12) |
Distributions from net realized gain | – | – | (1.95)C | (1.93) | – |
Total distributions | – | (.11) | (2.03) | (2.01) | (.12) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $31.37 | $31.82 | $31.63 | $46.64 | $41.38 |
Total ReturnE,F | (1.41)% | .98% | (29.09)% | 18.19% | 20.70% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.36% | 1.38% | 1.36% | 1.34% | 1.36% |
Expenses net of fee waivers, if any | 1.36% | 1.38% | 1.35% | 1.34% | 1.36% |
Expenses net of all reductions | 1.35% | 1.37% | 1.35% | 1.34% | 1.35% |
Net investment income (loss) | .88%B | .28% | .52% | .14% | .40% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $125,951 | $155,856 | $164,848 | $245,828 | $223,248 |
Portfolio turnover rateI | 90% | 85% | 61% | 112% | 68% |
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 $.35 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.69 | $28.58 | $42.40 | $37.92 | $31.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | .13B | (.05) | .01 | (.15) | (.04) |
Net realized and unrealized gain (loss) | (.66) | .19 | (11.93) | 6.57 | 6.38 |
Total from investment operations | (.53) | .14 | (11.92) | 6.42 | 6.34 |
Distributions from net investment income | – | (.03) | (.03)C | (.01) | (.05) |
Distributions from net realized gain | – | – | (1.88)C | (1.93) | – |
Total distributions | – | (.03) | (1.90)D | (1.94) | (.05) |
Redemption fees added to paid in capitalA,E | – | – | – | – | – |
Net asset value, end of period | $28.16 | $28.69 | $28.58 | $42.40 | $37.92 |
Total ReturnF,G | (1.85)% | .52% | (29.44)% | 17.57% | 20.08% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.82% | 1.84% | 1.85% | 1.86% | 1.90% |
Expenses net of fee waivers, if any | 1.81% | 1.84% | 1.85% | 1.86% | 1.90% |
Expenses net of all reductions | 1.80% | 1.83% | 1.85% | 1.86% | 1.88% |
Net investment income (loss) | .42%B | (.18)% | .02% | (.38)% | (.13)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $212,105 | $240,949 | $162,322 | $130,881 | $99,833 |
Portfolio turnover rateJ | 90% | 85% | 61% | 112% | 68% |
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 $.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62) %.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D 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.
E Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.78 | $32.62 | $48.05 | $42.55 | $35.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | .50B | .25 | .39 | .28 | .35 |
Net realized and unrealized gain (loss) | (.75) | .20 | (13.56) | 7.42 | 7.12 |
Total from investment operations | (.25) | .45 | (13.17) | 7.70 | 7.47 |
Distributions from net investment income | (.08) | (.29) | (.30)C | (.27) | (.20) |
Distributions from net realized gain | (.09) | – | (1.96)C | (1.93) | – |
Total distributions | (.17) | (.29) | (2.26) | (2.20) | (.20) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $32.36 | $32.78 | $32.62 | $48.05 | $42.55 |
Total ReturnE | (.86)% | 1.50% | (28.73)% | 18.80% | 21.26% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .81% | .85% | .85% | .85% | .88% |
Expenses net of fee waivers, if any | .81% | .85% | .85% | .85% | .88% |
Expenses net of all reductions | .80% | .83% | .85% | .85% | .86% |
Net investment income (loss) | 1.43%B | .82% | 1.02% | .63% | .89% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $277,385 | $193,683 | $130,308 | $110,795 | $65,034 |
Portfolio turnover rateH | 90% | 85% | 61% | 112% | 68% |
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 $.36 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 19.67% | 13.31% | 0.21% |
Class M (incl. 3.50% sales charge) | 22.19% | 13.54% | 0.19% |
Class C (incl. contingent deferred sales charge) | 25.06% | 13.82% | 0.07% |
Class I | 27.36% | 15.04% | 1.12% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Financial Services Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$10,217 | Fidelity Advisor® Financial Services Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Financial Services Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Christopher Lee: For the year, the fund’s share classes (excluding sales charges) gained about 26% to 27%, lagging the 31.25% return of the MSCI U.S. IMI Financials 5% Capped Linked Index but outpacing the 16.04% advance of the broad-based S&P 500®. Security selection in both the life & health insurance and data processing & outsourced services groups detracted from the fund’s performance versus the MSCI index. Positioning in consumer finance and a small cash position also hurt. Individual disappointments included private-label credit-card issuer Synchrony Financial, an overweighting that took a hit in April as rising credit losses among low-end borrowers led to increased loan-loss provisions. Other detractors included real estate investment trust (REIT) American Tower, an operator of cellular towers. Its shares declined in the post-election shift toward more-economically sensitive stocks. Most REITs were removed from the MSCI sector index in September 2016, but we did not eliminate American Tower from the portfolio until late November. Selection in the regional banks group aided relative performance, with added gains from our positioning in the financial exchanges & data group, lack of exposure to retail REITs, and picks in investment banking & brokerage. Standouts included online broker E Trade Financial, an overweighting that posted a steep gain, thanks to turnaround efforts and higher short-term interest rates.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund’s fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. These changes will not impact how the funds are managed. Additionally, the Board has agreed to present a proposal to shareholders to reclassify Advisor Financial Services Fund as a non-diversified fund, which would allow it to focus its investments more heavily in securities of fewer issuers. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval).Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Capital One Financial Corp. | 5.8 | 5.2 |
Citigroup, Inc. | 5.7 | 4.9 |
Bank of America Corp. | 5.0 | 4.9 |
Berkshire Hathaway, Inc. Class B | 5.0 | 6.0 |
Huntington Bancshares, Inc. | 4.9 | 3.2 |
Goldman Sachs Group, Inc. | 4.6 | 4.7 |
TD Ameritrade Holding Corp. | 4.1 | 0.4 |
Chubb Ltd. | 3.9 | 2.9 |
The Travelers Companies, Inc. | 3.7 | 2.8 |
JPMorgan Chase & Co. | 3.5 | 3.4 |
46.2 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Banks | 33.8% | |
Capital Markets | 26.0% | |
Insurance | 21.1% | |
Consumer Finance | 8.6% | |
Diversified Financial Services | 5.0% | |
All Others* | 5.5% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Financial Services Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
Banks - 33.8% | |||
Diversified Banks - 17.3% | |||
Allied Irish Banks PLC | 39,601 | $232,054 | |
Bank of America Corp. | 791,656 | 19,094,743 | |
Citigroup, Inc. | 318,915 | 21,829,732 | |
JPMorgan Chase & Co. | 142,831 | 13,111,886 | |
Wells Fargo & Co. | 210,778 | 11,369,365 | |
65,637,780 | |||
Regional Banks - 16.5% | |||
Bank of the Ozarks, Inc. | 100,200 | 4,323,630 | |
CIT Group, Inc. | 52,800 | 2,515,920 | |
CoBiz, Inc. | 145,091 | 2,553,602 | |
East West Bancorp, Inc. | 52,900 | 3,014,242 | |
First Republic Bank | 38,700 | 3,882,771 | |
Huntington Bancshares, Inc. | 1,390,400 | 18,422,800 | |
PNC Financial Services Group, Inc. | 100,500 | 12,944,400 | |
Popular, Inc. | 102,917 | 4,336,922 | |
Preferred Bank, Los Angeles | 14,800 | 831,020 | |
Regions Financial Corp. | 140,100 | 2,045,460 | |
Signature Bank (a) | 3,500 | 485,030 | |
SunTrust Banks, Inc. | 97,400 | 5,580,046 | |
SVB Financial Group (a) | 8,800 | 1,570,272 | |
62,506,115 | |||
TOTAL BANKS | 128,143,895 | ||
Capital Markets - 26.0% | |||
Asset Management & Custody Banks - 8.0% | |||
Affiliated Managers Group, Inc. | 31,754 | 5,900,846 | |
BlackRock, Inc. Class A | 18,100 | 7,720,193 | |
Invesco Ltd. | 166,600 | 5,792,682 | |
Northern Trust Corp. | 109,100 | 9,547,341 | |
State Street Corp. | 17,600 | 1,640,848 | |
30,601,910 | |||
Financial Exchanges & Data - 5.5% | |||
CBOE Holdings, Inc. | 104,273 | 9,856,927 | |
Deutsche Borse AG | 19,600 | 2,051,331 | |
IntercontinentalExchange, Inc. | 132,420 | 8,833,738 | |
20,741,996 | |||
Investment Banking & Brokerage - 12.5% | |||
E*TRADE Financial Corp. (a) | 299,200 | 12,267,200 | |
Goldman Sachs Group, Inc. | 76,640 | 17,269,291 | |
Investment Technology Group, Inc. | 96,775 | 2,135,824 | |
TD Ameritrade Holding Corp. | 343,200 | 15,694,536 | |
47,366,851 | |||
TOTAL CAPITAL MARKETS | 98,710,757 | ||
Consumer Finance - 8.6% | |||
Consumer Finance - 8.6% | |||
Capital One Financial Corp. | 254,938 | 21,970,558 | |
Synchrony Financial | 344,400 | 10,442,208 | |
32,412,766 | |||
Diversified Financial Services - 5.0% | |||
Multi-Sector Holdings - 5.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 108,289 | 18,947,326 | |
Insurance - 21.1% | |||
Insurance Brokers - 1.2% | |||
Willis Group Holdings PLC | 29,600 | 4,406,848 | |
Life & Health Insurance - 3.2% | |||
MetLife, Inc. | 79,200 | 4,356,000 | |
Torchmark Corp. | 99,180 | 7,832,245 | |
12,188,245 | |||
Multi-Line Insurance - 2.7% | |||
American International Group, Inc. | 8,800 | 575,960 | |
Hartford Financial Services Group, Inc. | 176,300 | 9,696,500 | |
10,272,460 | |||
Property & Casualty Insurance - 12.2% | |||
Allstate Corp. | 107,890 | 9,817,990 | |
Chubb Ltd. | 100,527 | 14,723,184 | |
FNF Group | 158,350 | 7,736,981 | |
The Travelers Companies, Inc. | 110,200 | 14,115,518 | |
46,393,673 | |||
Reinsurance - 1.8% | |||
Reinsurance Group of America, Inc. | 49,100 | 6,883,820 | |
TOTAL INSURANCE | 80,145,046 | ||
IT Services - 2.8% | |||
Data Processing & Outsourced Services - 2.8% | |||
Visa, Inc. Class A | 44,620 | 4,442,367 | |
WEX, Inc. (a) | 56,600 | 6,151,288 | |
10,593,655 | |||
Thrifts & Mortgage Finance - 0.6% | |||
Thrifts & Mortgage Finance - 0.6% | |||
MGIC Investment Corp. (a) | 144,900 | 1,690,983 | |
Radian Group, Inc. | 42,600 | 742,092 | |
2,433,075 | |||
TOTAL COMMON STOCKS | |||
(Cost $327,913,038) | 371,386,520 | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund, 1.11% (b) | |||
(Cost $8,073,036) | 8,071,422 | 8,073,036 | |
TOTAL INVESTMENT PORTFOLIO - 100.0% | |||
(Cost $335,986,074) | 379,459,556 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (13,654) | ||
NET ASSETS - 100% | $379,445,902 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $55,726 |
Fidelity Securities Lending Cash Central Fund | 1,649 |
Total | $57,375 |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $327,913,038) | $371,386,520 | |
Fidelity Central Funds (cost $8,073,036) | 8,073,036 | |
Total Investments (cost $335,986,074) | $379,459,556 | |
Receivable for fund shares sold | 715,841 | |
Dividends receivable | 176,463 | |
Distributions receivable from Fidelity Central Funds | 7,800 | |
Other receivables | 5,369 | |
Total assets | 380,365,029 | |
Liabilities | ||
Payable for fund shares redeemed | $502,503 | |
Accrued management fee | 169,897 | |
Transfer agent fee payable | 64,632 | |
Distribution and service plan fees payable | 124,994 | |
Other affiliated payables | 12,149 | |
Other payables and accrued expenses | 44,952 | |
Total liabilities | 919,127 | |
Net Assets | $379,445,902 | |
Net Assets consist of: | ||
Paid in capital | $359,272,488 | |
Undistributed net investment income | 357,795 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (23,657,742) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 43,473,361 | |
Net Assets | $379,445,902 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($144,143,508 ÷ 7,371,933 shares) | $19.55 | |
Maximum offering price per share (100/94.25 of $19.55) | $20.74 | |
Class M: | ||
Net Asset Value and redemption price per share ($45,920,482 ÷ 2,374,080 shares) | $19.34 | |
Maximum offering price per share (100/96.50 of $19.34) | $20.04 | |
Class C: | ||
Net Asset Value and offering price per share ($92,593,349 ÷ 5,048,699 shares)(a) | $18.34 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($96,788,563 ÷ 4,812,040 shares) | $20.11 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $4,749,387 | |
Income from Fidelity Central Funds (including $1,649 from security lending) | 57,375 | |
Total income | 4,806,762 | |
Expenses | ||
Management fee | $1,650,133 | |
Transfer agent fees | 672,297 | |
Distribution and service plan fees | 1,230,407 | |
Accounting and security lending fees | 117,698 | |
Custodian fees and expenses | 23,313 | |
Independent trustees' fees and expenses | 6,466 | |
Registration fees | 82,089 | |
Audit | 52,423 | |
Legal | 4,986 | |
Miscellaneous | 2,886 | |
Total expenses before reductions | 3,842,698 | |
Expense reductions | (10,731) | 3,831,967 |
Net investment income (loss) | 974,795 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 22,817,920 | |
Fidelity Central Funds | (408) | |
Foreign currency transactions | 180 | |
Total net realized gain (loss) | 22,817,692 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 38,933,958 | |
Assets and liabilities in foreign currencies | 717 | |
Total change in net unrealized appreciation (depreciation) | 38,934,675 | |
Net gain (loss) | 61,752,367 | |
Net increase (decrease) in net assets resulting from operations | $62,727,162 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $974,795 | $1,283,134 |
Net realized gain (loss) | 22,817,692 | (1,102,596) |
Change in net unrealized appreciation (depreciation) | 38,934,675 | (19,200,638) |
Net increase (decrease) in net assets resulting from operations | 62,727,162 | (19,020,100) |
Distributions to shareholders from net investment income | (502,160) | (957,546) |
Distributions to shareholders from net realized gain | – | (189,767) |
Total distributions | (502,160) | (1,147,313) |
Share transactions - net increase (decrease) | 122,064,772 | (18,476,090) |
Redemption fees | 8,334 | 14,186 |
Total increase (decrease) in net assets | 184,298,108 | (38,629,317) |
Net Assets | ||
Beginning of period | 195,147,794 | 233,777,111 |
End of period | $379,445,902 | $195,147,794 |
Other Information | ||
Undistributed net investment income end of period | $357,795 | $– |
Distributions in excess of net investment income end of period | $– | $(122,111) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.43 | $16.53 | $14.97 | $13.41 | $10.18 |
Income from Investment Operations | |||||
Net investment income (loss)A | .08 | .11 | .10 | .10 | .15 |
Net realized and unrealized gain (loss) | 4.08 | (1.13) | 1.59B | 1.55 | 3.18 |
Total from investment operations | 4.16 | (1.02) | 1.69 | 1.65 | 3.33 |
Distributions from net investment income | (.04) | (.07) | (.13) | (.08) | (.10) |
Distributions from net realized gain | – | (.01) | – | (.01) | – |
Total distributions | (.04) | (.08) | (.13) | (.09) | (.10) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $19.55 | $15.43 | $16.53 | $14.97 | $13.41 |
Total ReturnD,E | 26.97% | (6.15)% | 11.29%B | 12.39% | 32.99% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.12% | 1.15% | 1.17% | 1.22% | 1.29% |
Expenses net of fee waivers, if any | 1.12% | 1.15% | 1.17% | 1.22% | 1.29% |
Expenses net of all reductions | 1.12% | 1.15% | 1.17% | 1.22% | 1.21% |
Net investment income (loss) | .48% | .77% | .61% | .68% | 1.31% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $144,144 | $97,011 | $102,983 | $77,674 | $64,428 |
Portfolio turnover rateH | 81% | 63% | 44% | 49% | 288% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.29 | $16.41 | $14.86 | $13.31 | $10.11 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .07 | .05 | .06 | .12 |
Net realized and unrealized gain (loss) | 4.03 | (1.13) | 1.58B | 1.55 | 3.16 |
Total from investment operations | 4.07 | (1.06) | 1.63 | 1.61 | 3.28 |
Distributions from net investment income | (.02) | (.05) | (.08) | (.05) | (.08) |
Distributions from net realized gain | – | (.01) | – | (.01) | – |
Total distributions | (.02) | (.06) | (.08) | (.06) | (.08) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $19.34 | $15.29 | $16.41 | $14.86 | $13.31 |
Total ReturnD,E | 26.63% | (6.43)% | 10.98%B | 12.10% | 32.66% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.40% | 1.45% | 1.45% | 1.48% | 1.55% |
Expenses net of fee waivers, if any | 1.40% | 1.45% | 1.45% | 1.48% | 1.55% |
Expenses net of all reductions | 1.40% | 1.44% | 1.45% | 1.48% | 1.47% |
Net investment income (loss) | .20% | .47% | .33% | .42% | 1.06% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $45,920 | $30,044 | $34,314 | $31,596 | $30,576 |
Portfolio turnover rateH | 81% | 63% | 44% | 49% | 288% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $14.55 | $15.67 | $14.22 | $12.75 | $9.70 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05) | –B | (.02) | –B | .06 |
Net realized and unrealized gain (loss) | 3.84 | (1.08) | 1.51C | 1.48 | 3.03 |
Total from investment operations | 3.79 | (1.08) | 1.49 | 1.48 | 3.09 |
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 | $18.34 | $14.55 | $15.67 | $14.22 | $12.75 |
Total ReturnD,E | 26.06% | (6.88)% | 10.45%C | 11.65% | 31.98% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.87% | 1.90% | 1.90% | 1.94% | 2.03% |
Expenses net of fee waivers, if any | 1.87% | 1.90% | 1.90% | 1.94% | 2.03% |
Expenses net of all reductions | 1.87% | 1.89% | 1.90% | 1.93% | 1.96% |
Net investment income (loss) | (.27)% | .02% | (.12)% | (.03)% | .57% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $92,593 | $47,505 | $50,206 | $36,740 | $29,897 |
Portfolio turnover rateH | 81% | 63% | 44% | 49% | 288% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.84 | $16.94 | $15.34 | $13.73 | $10.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | .14 | .17 | .15 | .15 | .20 |
Net realized and unrealized gain (loss) | 4.19 | (1.17) | 1.62B | 1.60 | 3.25 |
Total from investment operations | 4.33 | (1.00) | 1.77 | 1.75 | 3.45 |
Distributions from net investment income | (.06) | (.09) | (.17) | (.13) | (.14) |
Distributions from net realized gain | – | (.01) | – | (.01) | – |
Total distributions | (.06) | (.10) | (.17) | (.14) | (.14) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $20.11 | $15.84 | $16.94 | $15.34 | $13.73 |
Total ReturnD | 27.36% | (5.89)% | 11.61%B | 12.85% | 33.45% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .84% | .85% | .84% | .87% | .96% |
Expenses net of fee waivers, if any | .84% | .85% | .84% | .87% | .96% |
Expenses net of all reductions | .83% | .84% | .84% | .86% | .88% |
Net investment income (loss) | .76% | 1.07% | .94% | 1.04% | 1.65% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $96,789 | $20,588 | $42,443 | $16,164 | $9,275 |
Portfolio turnover rateG | 81% | 63% | 44% | 49% | 288% |
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 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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 3.17% | 19.14% | 12.42% |
Class M (incl. 3.50% sales charge) | 5.36% | 19.39% | 12.39% |
Class C (incl. contingent deferred sales charge) | 7.68% | 19.67% | 12.26% |
Class I | 9.78% | 20.88% | 13.39% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Health Care Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$32,241 | Fidelity Advisor® Health Care Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Health Care Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Eddie Yoon: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) performed about in line with the 9.35% result of the MSCI U.S. IMI Health Care 25/50 Index but trailed the broad-market S&P 500® index. In general, health care companies enjoyed solid balance sheets the past 12 months, and stock valuations appeared fair to modestly below average on a historical basis. Firms in the sector benefited from rising demand for the products and services they offer. However, health care stocks significantly lagged the broad market, primarily due to the roughly breakeven performance of pharmaceuticals – the MSCI sector index’s largest industry component. Pharma stocks were hampered by increasing concern about potential legislation for drug-pricing practices. Versus the MSCI sector index, the fund benefited from a combination of owning more-opportunistic stocks and avoiding some more-defensive index names. Largely avoiding pharma giant and index component Pfizer was the top individual relative contributor, as large-cap, more-defensive names tended to underperform. A large overweighting in Vertex Pharmaceuticals also notably contributed. Vertex shares shot up roughly 56% the past 12 months, with a notable surge in July following news of positive results from clinical studies of its cystic fibrosis treatments. Conversely, an out-of-index position in Teva Pharmaceuticals Industries was by far the biggest individual detractor this period. Our investments in Teva returned -39%, pressured by significant concern about the pricing environment for generic drugs and the durability of its key multiple sclerosis drug, Copaxone®. This was exacerbated by the market’s concern that Teva had overpaid to acquire the Actavis Generics business from Allergan. We sold our position in Teva from the fund in February.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. These changes will not impact how the funds are managed. Additionally, the Board has agreed to present a proposal to shareholders to reclassify Advisor Health Care Fund as a non-diversified fund, which would allow it to focus its investments more heavily in securities of fewer issuers. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval).Fidelity Advisor® Health Care Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Amgen, Inc. | 9.3 | 7.8 |
Allergan PLC | 7.8 | 6.4 |
UnitedHealth Group, Inc. | 7.8 | 5.3 |
Boston Scientific Corp. | 5.0 | 5.6 |
Becton, Dickinson & Co. | 4.0 | 0.0 |
Intuitive Surgical, Inc. | 3.6 | 2.4 |
Medtronic PLC | 3.3 | 7.3 |
Cigna Corp. | 3.3 | 2.1 |
Aetna, Inc. | 2.6 | 0.0 |
Humana, Inc. | 2.4 | 2.1 |
49.1 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Biotechnology | 27.3% | |
Health Care Equipment & Supplies | 22.9% | |
Health Care Providers & Services | 22.0% | |
Pharmaceuticals | 19.2% | |
Health Care Technology | 2.9% | |
All Others* | 5.7% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Health Care Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
Biotechnology - 27.3% | |||
Biotechnology - 27.3% | |||
Ablynx NV (a)(b) | 800,000 | $12,122,112 | |
AC Immune SA (a) | 226,800 | 1,662,444 | |
Acorda Therapeutics, Inc. (b) | 550,000 | 11,907,500 | |
Advanced Accelerator Applications SA sponsored ADR (b) | 196,300 | 9,420,437 | |
Advaxis, Inc. (a)(b) | 700,000 | 4,529,000 | |
Alexion Pharmaceuticals, Inc. (b) | 270,000 | 37,081,800 | |
Alnylam Pharmaceuticals, Inc. (b) | 200,191 | 16,563,803 | |
Amgen, Inc. | 1,430,000 | 249,549,297 | |
Amicus Therapeutics, Inc. (a)(b) | 1,623,929 | 21,029,881 | |
Ascendis Pharma A/S sponsored ADR (a)(b) | 400,000 | 11,280,000 | |
BeiGene Ltd. ADR (b) | 112,359 | 7,920,186 | |
Biogen, Inc. (b) | 130,000 | 37,646,700 | |
BioMarin Pharmaceutical, Inc. (b) | 430,000 | 37,723,900 | |
Bioverativ, Inc. | 460,000 | 28,506,200 | |
bluebird bio, Inc. (b) | 76,920 | 7,249,710 | |
Blueprint Medicines Corp. (b) | 360,000 | 18,838,800 | |
Calithera Biosciences, Inc. (b) | 280,000 | 4,284,000 | |
Cellectis SA sponsored ADR (b) | 227,000 | 5,495,670 | |
Curis, Inc. (b) | 1,529,100 | 2,981,745 | |
Cytokinetics, Inc. (b) | 350,000 | 4,917,500 | |
CytomX Therapeutics, Inc. (b) | 151,100 | 2,038,339 | |
Five Prime Therapeutics, Inc. (b) | 146,839 | 4,132,049 | |
Heron Therapeutics, Inc. (a)(b) | 224,815 | 3,563,318 | |
Insmed, Inc. (b) | 1,000,000 | 16,170,000 | |
Intercept Pharmaceuticals, Inc. (b) | 70,744 | 8,286,245 | |
La Jolla Pharmaceutical Co. (b) | 123,381 | 3,655,779 | |
Loxo Oncology, Inc. (b) | 200,000 | 14,462,000 | |
Neurocrine Biosciences, Inc. (b) | 329,158 | 15,809,459 | |
Proteostasis Therapeutics, Inc. (b) | 163,800 | 465,192 | |
Prothena Corp. PLC (b) | 14,500 | 895,520 | |
Puma Biotechnology, Inc. (a)(b) | 135,000 | 12,831,750 | |
Regeneron Pharmaceuticals, Inc. (b) | 35,000 | 17,206,700 | |
Spark Therapeutics, Inc. (b) | 148,774 | 10,562,954 | |
TESARO, Inc. (b) | 222,100 | 28,353,286 | |
Vertex Pharmaceuticals, Inc. (b) | 330,000 | 50,100,600 | |
Xencor, Inc. (b) | 435,600 | 10,171,260 | |
729,415,136 | |||
Capital Markets - 0.3% | |||
Asset Management & Custody Banks - 0.3% | |||
RPI International Holdings LP (b)(c) | 61,683 | 8,352,187 | |
Diversified Consumer Services - 0.2% | |||
Specialized Consumer Services - 0.2% | |||
Carriage Services, Inc. | 195,535 | 4,769,099 | |
Food & Staples Retailing - 2.2% | |||
Drug Retail - 2.2% | |||
CVS Health Corp. | 744,000 | 59,467,920 | |
Health Care Equipment & Supplies - 22.2% | |||
Health Care Equipment - 22.2% | |||
Atricure, Inc. (b) | 650,000 | 15,749,500 | |
Becton, Dickinson & Co. | 528,000 | 106,339,200 | |
Boston Scientific Corp. (b) | 4,972,000 | 132,354,640 | |
DexCom, Inc. (b) | 440,000 | 29,308,400 | |
Fisher & Paykel Healthcare Corp. | 900,000 | 7,414,623 | |
Insulet Corp. (b) | 550,000 | 27,670,500 | |
Integra LifeSciences Holdings Corp. (b) | 400,000 | 19,864,000 | |
Intuitive Surgical, Inc. (b) | 102,500 | 96,171,650 | |
Medtronic PLC | 1,060,000 | 89,008,200 | |
NxStage Medical, Inc. (b) | 600,000 | 14,130,000 | |
Penumbra, Inc. (b) | 331,900 | 27,099,635 | |
Wright Medical Group NV (b) | 1,120,000 | 29,422,400 | |
594,532,748 | |||
Health Care Providers & Services - 21.9% | |||
Health Care Distributors & Services - 1.0% | |||
Amplifon SpA | 660,000 | 9,485,079 | |
EBOS Group Ltd. | 1,280,000 | 17,389,555 | |
26,874,634 | |||
Health Care Facilities - 1.9% | |||
HCA Holdings, Inc. (b) | 310,000 | 24,905,400 | |
Universal Health Services, Inc. Class B | 235,000 | 26,045,050 | |
50,950,450 | |||
Health Care Services - 2.5% | |||
American Renal Associates Holdings, Inc. (a)(b) | 500,000 | 8,550,000 | |
Premier, Inc. (b) | 404,300 | 14,110,070 | |
Teladoc, Inc. (a)(b) | 1,000,000 | 32,800,000 | |
United Drug PLC (United Kingdom) | 1,100,000 | 12,292,850 | |
67,752,920 | |||
Managed Health Care - 16.5% | |||
Aetna, Inc. | 450,000 | 69,439,500 | |
Anthem, Inc. | 60,000 | 11,172,600 | |
Cigna Corp. | 510,000 | 88,515,600 | |
Humana, Inc. | 270,000 | 62,424,000 | |
UnitedHealth Group, Inc. | 1,085,000 | 208,113,850 | |
439,665,550 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 585,243,554 | ||
Health Care Technology - 2.9% | |||
Health Care Technology - 2.9% | |||
athenahealth, Inc. (b) | 250,100 | 34,593,832 | |
Castlight Health, Inc. (b) | 336,800 | 1,448,240 | |
Castlight Health, Inc. Class B (b) | 348,500 | 1,498,550 | |
Evolent Health, Inc. (a)(b) | 600,000 | 14,820,000 | |
HealthStream, Inc. (b) | 454,175 | 10,727,614 | |
Medidata Solutions, Inc. (b) | 200,000 | 15,362,000 | |
78,450,236 | |||
Internet Software & Services - 0.9% | |||
Internet Software & Services - 0.9% | |||
Benefitfocus, Inc. (a)(b) | 700,000 | 25,025,000 | |
Life Sciences Tools & Services - 0.9% | |||
Life Sciences Tools & Services - 0.9% | |||
Agilent Technologies, Inc. | 400,000 | 23,916,000 | |
Pharmaceuticals - 19.2% | |||
Pharmaceuticals - 19.2% | |||
Aclaris Therapeutics, Inc. (b) | 188,600 | 5,431,680 | |
Allergan PLC | 828,000 | 208,929,240 | |
Avexis, Inc. (b) | 19,200 | 1,778,880 | |
Bristol-Myers Squibb Co. | 800,000 | 45,520,000 | |
Catalent, Inc. (b) | 302,716 | 10,504,245 | |
Dechra Pharmaceuticals PLC | 800,000 | 18,735,480 | |
Eisai Co. Ltd. | 280,000 | 15,033,063 | |
GlaxoSmithKline PLC | 2,000,000 | 39,813,947 | |
Jazz Pharmaceuticals PLC (b) | 235,000 | 36,098,350 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 2,160,000 | 16,441,118 | |
Merck & Co., Inc. | 580,000 | 37,050,400 | |
Sanofi SA | 280,000 | 26,680,925 | |
The Medicines Company (a)(b) | 345,961 | 13,302,200 | |
TherapeuticsMD, Inc. (a)(b) | 2,700,000 | 15,255,000 | |
Theravance Biopharma, Inc. (a)(b) | 506,000 | 16,257,780 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 2,399,894 | 6,115,198 | |
512,947,506 | |||
Professional Services - 0.2% | |||
Human Resource & Employment Services - 0.2% | |||
WageWorks, Inc. (b) | 84,338 | 5,498,838 | |
TOTAL COMMON STOCKS | |||
(Cost $2,061,579,117) | 2,627,618,224 | ||
Preferred Stocks - 0.9% | |||
Convertible Preferred Stocks - 0.2% | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
1Life Healthcare, Inc. Series G (b)(c) | 322,145 | 2,483,738 | |
Software - 0.1% | |||
Application Software - 0.1% | |||
Outset Medical, Inc. Series C 0.00 (c) | 1,003,280 | 2,600,000 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 5,083,738 | ||
Nonconvertible Preferred Stocks - 0.7% | |||
Health Care Equipment & Supplies - 0.7% | |||
Health Care Equipment - 0.7% | |||
Sartorius AG (non-vtg.) | 190,000 | 17,982,514 | |
TOTAL PREFERRED STOCKS | |||
(Cost $19,106,276) | 23,066,252 | ||
Money Market Funds - 3.4% | |||
Fidelity Cash Central Fund, 1.11% (d) | 40,152,081 | 40,160,111 | |
Fidelity Securities Lending Cash Central Fund 1.11% (d)(e) | 50,261,320 | 50,266,346 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $90,422,559) | 90,426,457 | ||
TOTAL INVESTMENT PORTFOLIO - 102.5% | |||
(Cost $2,171,107,952) | 2,741,110,933 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (65,606,727) | ||
NET ASSETS - 100% | $2,675,504,206 |
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 $13,435,925 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 |
Outset Medical, Inc. Series C 0.00 | 4/19/17 | $2,600,000 |
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 | $196,077 |
Fidelity Securities Lending Cash Central Fund | 832,832 |
Total | $1,028,909 |
Investment Valuation
The following is a summary of the inputs used, as of July 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 | $2,627,618,224 | $2,552,771,165 | $66,494,872 | $8,352,187 |
Preferred Stocks | 23,066,252 | 17,982,514 | -- | 5,083,738 |
Money Market Funds | 90,426,457 | 90,426,457 | -- | -- |
Total Investments in Securities: | $2,741,110,933 | $2,661,180,136 | $66,494,872 | $13,435,925 |
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 | 77.0% |
Ireland | 12.9% |
United Kingdom | 2.2% |
France | 1.5% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 5.3% |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $48,102,617) — See accompanying schedule: Unaffiliated issuers (cost $2,080,685,393) | $2,650,684,476 | |
Fidelity Central Funds (cost $90,422,559) | 90,426,457 | |
Total Investments (cost $2,171,107,952) | $2,741,110,933 | |
Receivable for investments sold | 37,163,742 | |
Receivable for fund shares sold | 3,280,253 | |
Dividends receivable | 933,800 | |
Distributions receivable from Fidelity Central Funds | 66,675 | |
Other receivables | 35,429 | |
Total assets | 2,782,590,832 | |
Liabilities | ||
Payable for investments purchased | $49,737,440 | |
Payable for fund shares redeemed | 4,493,612 | |
Accrued management fee | 1,220,576 | |
Distribution and service plan fees payable | 819,505 | |
Other affiliated payables | 491,769 | |
Other payables and accrued expenses | 62,513 | |
Collateral on securities loaned | 50,261,211 | |
Total liabilities | 107,086,626 | |
Net Assets | $2,675,504,206 | |
Net Assets consist of: | ||
Paid in capital | $2,169,772,136 | |
Accumulated net investment loss | (17) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (64,271,860) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 570,003,947 | |
Net Assets | $2,675,504,206 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($875,175,812 ÷ 20,910,392 shares) | $41.85 | |
Maximum offering price per share (100/94.25 of $41.85) | $44.40 | |
Class M: | ||
Net Asset Value and redemption price per share ($269,331,928 ÷ 6,861,855 shares) | $39.25 | |
Maximum offering price per share (100/96.50 of $39.25) | $40.67 | |
Class C: | ||
Net Asset Value and offering price per share ($619,991,278 ÷ 18,332,798 shares)(a) | $33.82 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($911,005,188 ÷ 20,088,798 shares) | $45.35 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $23,031,547 | |
Income from Fidelity Central Funds (including $832,832 from security lending) | 1,028,909 | |
Total income | 24,060,456 | |
Expenses | ||
Management fee | $13,977,123 | |
Transfer agent fees | 5,095,026 | |
Distribution and service plan fees | 9,879,679 | |
Accounting and security lending fees | 772,657 | |
Custodian fees and expenses | 75,289 | |
Independent trustees' fees and expenses | 57,016 | |
Registration fees | 138,135 | |
Audit | 57,229 | |
Legal | 42,787 | |
Interest | 659 | |
Miscellaneous | 36,112 | |
Total expenses before reductions | 30,131,712 | |
Expense reductions | (77,454) | 30,054,258 |
Net investment income (loss) | (5,993,802) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 38,081,558 | |
Fidelity Central Funds | (2,078) | |
Foreign currency transactions | (46,806) | |
Total net realized gain (loss) | 38,032,674 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 178,566,248 | |
Assets and liabilities in foreign currencies | 1,640 | |
Total change in net unrealized appreciation (depreciation) | 178,567,888 | |
Net gain (loss) | 216,600,562 | |
Net increase (decrease) in net assets resulting from operations | $210,606,760 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(5,993,802) | $(11,497,439) |
Net realized gain (loss) | 38,032,674 | (94,928,076) |
Change in net unrealized appreciation (depreciation) | 178,567,888 | (255,190,600) |
Net increase (decrease) in net assets resulting from operations | 210,606,760 | (361,616,115) |
Distributions to shareholders from net realized gain | – | (200,296,642) |
Share transactions - net increase (decrease) | (342,516,356) | 39,266,649 |
Redemption fees | 20,759 | 89,122 |
Total increase (decrease) in net assets | (131,888,837) | (522,556,986) |
Net Assets | ||
Beginning of period | 2,807,393,043 | 3,329,950,029 |
End of period | $2,675,504,206 | $2,807,393,043 |
Other Information | ||
Accumulated net investment loss end of period | $(17) | $(6,590,642) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $38.23 | $45.17 | $37.72 | $31.29 | $24.35 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.04) | (.09) | (.19) | (.18) | –B |
Net realized and unrealized gain (loss) | 3.66 | (4.30) | 12.03 | 10.13 | 9.53 |
Total from investment operations | 3.62 | (4.39) | 11.84 | 9.95 | 9.53 |
Distributions from net realized gain | – | (2.55) | (4.39) | (3.52) | (2.59) |
Total distributions | – | (2.55) | (4.39) | (3.52) | (2.59) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $41.85 | $38.23 | $45.17 | $37.72 | $31.29 |
Total ReturnC,D | 9.47% | (9.82)% | 34.07% | 34.79% | 42.77% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Expenses net of fee waivers, if any | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Expenses net of all reductions | 1.04% | 1.04% | 1.04% | 1.07% | 1.13% |
Net investment income (loss) | (.10)% | (.25)% | (.45)% | (.54)% | (.01)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $875,176 | $1,159,614 | $1,374,654 | $613,995 | $365,416 |
Portfolio turnover rateG | 64% | 67% | 80% | 111% | 92% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.95 | $42.68 | $35.87 | $29.91 | $23.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.13) | (.18) | (.28) | (.26) | (.07) |
Net realized and unrealized gain (loss) | 3.43 | (4.06) | 11.39 | 9.67 | 9.13 |
Total from investment operations | 3.30 | (4.24) | 11.11 | 9.41 | 9.06 |
Distributions from net realized gain | – | (2.49) | (4.30) | (3.45) | (2.57) |
Total distributions | – | (2.49) | (4.30) | (3.45) | (2.57) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $39.25 | $35.95 | $42.68 | $35.87 | $29.91 |
Total ReturnC,D | 9.18% | (10.05)% | 33.69% | 34.49% | 42.39% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.31% | 1.31% | 1.31% | 1.34% | 1.39% |
Expenses net of fee waivers, if any | 1.31% | 1.31% | 1.31% | 1.34% | 1.39% |
Expenses net of all reductions | 1.31% | 1.31% | 1.30% | 1.34% | 1.38% |
Net investment income (loss) | (.37)% | (.52)% | (.72)% | (.80)% | (.26)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $269,332 | $293,556 | $348,886 | $216,973 | $158,611 |
Portfolio turnover rateG | 64% | 67% | 80% | 111% | 92% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.12 | $37.45 | $32.03 | $27.11 | $21.51 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.26) | (.30) | (.41) | (.38) | (.17) |
Net realized and unrealized gain (loss) | 2.96 | (3.57) | 10.05 | 8.68 | 8.31 |
Total from investment operations | 2.70 | (3.87) | 9.64 | 8.30 | 8.14 |
Distributions from net realized gain | – | (2.46) | (4.22) | (3.38) | (2.54) |
Total distributions | – | (2.46) | (4.22) | (3.38) | (2.54) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $33.82 | $31.12 | $37.45 | $32.03 | $27.11 |
Total ReturnC,D | 8.68% | (10.50)% | 33.04% | 33.83% | 41.74% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Expenses net of fee waivers, if any | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Expenses net of all reductions | 1.79% | 1.79% | 1.79% | 1.82% | 1.85% |
Net investment income (loss) | (.85)% | (1.00)% | (1.20)% | (1.29)% | (.74)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $619,991 | $695,374 | $761,070 | $257,859 | $125,965 |
Portfolio turnover rateG | 64% | 67% | 80% | 111% | 92% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.31 | $48.53 | $40.22 | $33.12 | $25.60 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | –B | (.09) | (.10) | .07 |
Net realized and unrealized gain (loss) | 3.97 | (4.62) | 12.88 | 10.80 | 10.07 |
Total from investment operations | 4.04 | (4.62) | 12.79 | 10.70 | 10.14 |
Distributions from net realized gain | – | (2.60) | (4.48) | (3.60) | (2.62) |
Total distributions | – | (2.60) | (4.48) | (3.60) | (2.62) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $45.35 | $41.31 | $48.53 | $40.22 | $33.12 |
Total ReturnC | 9.78% | (9.60)% | 34.40% | 35.21% | 43.12% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .78% | .78% | .79% | .81% | .87% |
Expenses net of fee waivers, if any | .78% | .78% | .79% | .81% | .87% |
Expenses net of all reductions | .78% | .78% | .78% | .81% | .85% |
Net investment income (loss) | .16% | .01% | (.20)% | (.27)% | .26% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $911,005 | $658,848 | $832,415 | $292,654 | $74,417 |
Portfolio turnover rateF | 64% | 67% | 80% | 111% | 92% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 6.14% | 12.52% | 7.76% |
Class M (incl. 3.50% sales charge) | 8.40% | 12.76% | 7.74% |
Class C (incl. contingent deferred sales charge) | 10.76% | 13.00% | 7.59% |
Class I | 12.91% | 14.17% | 8.70% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Industrials Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$21,111 | Fidelity Advisor® Industrials Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Industrials Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Tobias Welo: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 12% to 13%, significantly trailing the 18.82% return of the MSCI U.S. IMI Industrials 25/50 Index. The fund also lagged the broadly based S&P 500®. Although it was generally a solid period for industrials stocks, investors had to adjust their expectations, as hopes for a major increase in infrastructure spending were overshadowed by the Trump administration’s effort to repeal and replace the Affordable Care Act. Versus the MSCI sector index, stock selection in aerospace & defense and in industrial machinery hampered performance, as did positioning in construction & engineering. Aircraft manufacturer Boeing was by far the fund’s largest relative detractor, as we didn’t own this index component until the final month of the period and therefore largely missed out on its 87% gain. The firm’s free cash flow was strong, and it announced plans to make a voluntary $3.5 billion contribution to its pension fund in the third quarter of 2017. Boeing expected the contribution to nearly eliminate future mandatory pension funding through 2021. I didn’t think the story was compelling enough to carry a market weighting, but in view of the improving fundamentals, I was comfortable establishing an underweighted stake here. A sizable overweighting in multinational engineering firm Aecom also detracted, as did overweighted exposure to HD Supply Holdings, a provider of construction and industrial equipment. On the bright side, overweighting construction machinery & heavy trucks added value, along with stock picking in building products. Among individual holdings, the fund’s top relative contributor was an overweighted stake in Southwest Airlines. The stock climbed 51% this period, bolstered by the Republican presidential win and healthy demand for air travel. Heavy-equipment manufacturer Caterpillar, where we had a sizable overweighting, also lifted relative performance.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
General Electric Co. | 6.5 | 10.0 |
United Technologies Corp. | 5.6 | 4.6 |
Honeywell International, Inc. | 5.3 | 4.7 |
Caterpillar, Inc. | 5.2 | 3.7 |
Northrop Grumman Corp. | 4.2 | 3.5 |
Union Pacific Corp. | 4.1 | 0.0 |
General Dynamics Corp. | 4.0 | 4.4 |
Fortive Corp. | 2.8 | 2.0 |
AECOM | 2.6 | 3.0 |
Allison Transmission Holdings, Inc. | 2.5 | 2.1 |
42.8 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Aerospace & Defense | 23.8% | |
Machinery | 23.1% | |
Industrial Conglomerates | 11.8% | |
Electrical Equipment | 8.4% | |
Road & Rail | 8.4% | |
All Others* | 24.5% |
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% |
* 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 July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
Aerospace & Defense - 23.8% | |||
Aerospace & Defense - 23.8% | |||
Astronics Corp. (a) | 84,766 | $2,479,406 | |
Astronics Corp. Class B | 6,099 | 177,786 | |
Axon Enterprise, Inc. (a) | 170,200 | 4,185,218 | |
Elbit Systems Ltd. | 27,000 | 3,402,540 | |
General Dynamics Corp. | 166,862 | 32,760,016 | |
Huntington Ingalls Industries, Inc. | 26,600 | 5,482,526 | |
Northrop Grumman Corp. | 128,300 | 33,759,579 | |
Raytheon Co. | 115,600 | 19,856,612 | |
Rockwell Collins, Inc. | 126,700 | 13,497,351 | |
Teledyne Technologies, Inc. (a) | 84,865 | 11,570,494 | |
The Boeing Co. | 34,100 | 8,267,886 | |
TransDigm Group, Inc. | 45,900 | 12,950,226 | |
United Technologies Corp. | 387,751 | 45,975,636 | |
194,365,276 | |||
Air Freight & Logistics - 1.3% | |||
Air Freight & Logistics - 1.3% | |||
XPO Logistics, Inc. (a) | 169,300 | 10,176,623 | |
Airlines - 2.9% | |||
Airlines - 2.9% | |||
Allegiant Travel Co. | 16,711 | 2,159,897 | |
Ryanair Holdings PLC sponsored ADR (a) | 33,300 | 3,773,889 | |
Southwest Airlines Co. | 319,900 | 17,757,649 | |
23,691,435 | |||
Building Products - 3.8% | |||
Building Products - 3.8% | |||
A.O. Smith Corp. | 195,284 | 10,457,458 | |
Fortune Brands Home & Security, Inc. | 147,500 | 9,686,325 | |
Masco Corp. | 273,900 | 10,443,807 | |
30,587,590 | |||
Commercial Services & Supplies - 3.6% | |||
Diversified Support Services - 2.5% | |||
Cintas Corp. | 77,800 | 10,491,330 | |
KAR Auction Services, Inc. | 236,500 | 9,942,460 | |
20,433,790 | |||
Environmental & Facility Services - 1.1% | |||
Waste Connection, Inc. (United States) (a) | 140,600 | 9,136,188 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 29,569,978 | ||
Construction & Engineering - 4.5% | |||
Construction & Engineering - 4.5% | |||
AECOM (a) | 674,721 | 21,523,600 | |
Dycom Industries, Inc. (a)(b) | 76,000 | 6,885,600 | |
KBR, Inc. | 552,000 | 8,235,840 | |
36,645,040 | |||
Electrical Equipment - 8.4% | |||
Electrical Components & Equipment - 7.6% | |||
AMETEK, Inc. | 322,626 | 19,867,309 | |
Eaton Corp. PLC | 253,000 | 19,797,250 | |
Fortive Corp. | 347,866 | 22,520,845 | |
62,185,404 | |||
Heavy Electrical Equipment - 0.8% | |||
TPI Composites, Inc. | 346,791 | 6,533,542 | |
TOTAL ELECTRICAL EQUIPMENT | 68,718,946 | ||
Industrial Conglomerates - 11.8% | |||
Industrial Conglomerates - 11.8% | |||
General Electric Co. | 2,074,648 | 53,131,735 | |
Honeywell International, Inc. | 316,533 | 43,086,472 | |
96,218,207 | |||
Machinery - 23.1% | |||
Construction Machinery & Heavy Trucks - 11.5% | |||
Allison Transmission Holdings, Inc. | 532,600 | 20,132,280 | |
Caterpillar, Inc. | 375,300 | 42,765,435 | |
PACCAR, Inc. | 166,100 | 11,369,545 | |
WABCO Holdings, Inc. (a) | 89,600 | 12,326,272 | |
Wabtec Corp. (b) | 92,200 | 6,948,192 | |
93,541,724 | |||
Industrial Machinery - 11.6% | |||
CIRCOR International, Inc. | 19,300 | 966,158 | |
Flowserve Corp. | 174,400 | 7,173,072 | |
Gardner Denver Holdings, Inc. | 180,000 | 4,132,800 | |
IDEX Corp. | 99,829 | 11,634,072 | |
Ingersoll-Rand PLC | 190,900 | 16,776,292 | |
Lincoln Electric Holdings, Inc. | 62,400 | 5,445,024 | |
Middleby Corp. (a) | 24,000 | 3,136,320 | |
Nordson Corp. | 50,900 | 6,464,300 | |
Parker Hannifin Corp. | 55,100 | 9,145,498 | |
Pentair PLC | 125,418 | 7,910,113 | |
Rexnord Corp. (a) | 385,600 | 8,930,496 | |
Snap-On, Inc. | 84,100 | 12,968,220 | |
94,682,365 | |||
TOTAL MACHINERY | 188,224,089 | ||
Professional Services - 2.9% | |||
Human Resource & Employment Services - 0.7% | |||
Robert Half International, Inc. | 124,400 | 5,629,100 | |
Research & Consulting Services - 2.2% | |||
IHS Markit Ltd. (a) | 333,800 | 15,571,770 | |
Nielsen Holdings PLC | 54,300 | 2,335,443 | |
17,907,213 | |||
TOTAL PROFESSIONAL SERVICES | 23,536,313 | ||
Road & Rail - 8.4% | |||
Railroads - 6.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 12,100 | 788,436 | |
Norfolk Southern Corp. | 158,800 | 17,877,704 | |
Union Pacific Corp. | 323,300 | 33,286,968 | |
51,953,108 | |||
Trucking - 2.0% | |||
J.B. Hunt Transport Services, Inc. | 119,684 | 10,856,536 | |
Old Dominion Freight Lines, Inc. | 60,500 | 5,802,555 | |
16,659,091 | |||
TOTAL ROAD & RAIL | 68,612,199 | ||
Trading Companies & Distributors - 3.2% | |||
Trading Companies & Distributors - 3.2% | |||
HD Supply Holdings, Inc. (a) | 189,706 | 6,163,548 | |
MSC Industrial Direct Co., Inc. Class A | 127,800 | 9,100,638 | |
Univar, Inc. (a) | 353,800 | 10,981,952 | |
26,246,138 | |||
Water Utilities - 0.6% | |||
Water Utilities - 0.6% | |||
AquaVenture Holdings Ltd. (b) | 325,026 | 5,197,166 | |
TOTAL COMMON STOCKS | |||
(Cost $648,713,402) | 801,789,000 | ||
Money Market Funds - 4.1% | |||
Fidelity Cash Central Fund, 1.11% (c) | 20,988,595 | 20,992,793 | |
Fidelity Securities Lending Cash Central Fund 1.11% (c)(d) | 12,421,079 | 12,422,321 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $33,415,114) | 33,415,114 | ||
TOTAL INVESTMENT PORTFOLIO - 102.4% | |||
(Cost $682,128,516) | 835,204,114 | ||
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (19,514,903) | ||
NET ASSETS - 100% | $815,689,211 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $102,630 |
Fidelity Securities Lending Cash Central Fund | 17,361 |
Total | $119,991 |
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 | 89.9% |
Ireland | 5.8% |
Bermuda | 1.9% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 1.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $12,194,442) — See accompanying schedule: Unaffiliated issuers (cost $648,713,402) | $801,789,000 | |
Fidelity Central Funds (cost $33,415,114) | 33,415,114 | |
Total Investments (cost $682,128,516) | $835,204,114 | |
Receivable for investments sold | 11,278,979 | |
Receivable for fund shares sold | 702,626 | |
Dividends receivable | 681,588 | |
Distributions receivable from Fidelity Central Funds | 14,592 | |
Other receivables | 14,360 | |
Total assets | 847,896,259 | |
Liabilities | ||
Payable for investments purchased | $17,266,269 | |
Payable for fund shares redeemed | 1,725,221 | |
Accrued management fee | 374,130 | |
Distribution and service plan fees payable | 216,555 | |
Other affiliated payables | 157,534 | |
Other payables and accrued expenses | 44,979 | |
Collateral on securities loaned | 12,422,360 | |
Total liabilities | 32,207,048 | |
Net Assets | $815,689,211 | |
Net Assets consist of: | ||
Paid in capital | $645,923,304 | |
Undistributed net investment income | 1,058,375 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 15,631,934 | |
Net unrealized appreciation (depreciation) on investments | 153,075,598 | |
Net Assets | $815,689,211 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($309,203,905 ÷ 8,160,485 shares) | $37.89 | |
Maximum offering price per share (100/94.25 of $37.89) | $40.20 | |
Class M: | ||
Net Asset Value and redemption price per share ($87,253,402 ÷ 2,355,995 shares) | $37.03 | |
Maximum offering price per share (100/96.50 of $37.03) | $38.37 | |
Class C: | ||
Net Asset Value and offering price per share ($134,505,019 ÷ 3,945,072 shares)(a) | $34.09 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($284,726,885 ÷ 7,153,656 shares) | $39.80 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $11,530,497 | |
Income from Fidelity Central Funds (including $17,361 from security lending) | 119,991 | |
Total income | 11,650,488 | |
Expenses | ||
Management fee | $4,020,927 | |
Transfer agent fees | 1,456,477 | |
Distribution and service plan fees | 2,457,856 | |
Accounting and security lending fees | 260,660 | |
Custodian fees and expenses | 24,664 | |
Independent trustees' fees and expenses | 16,100 | |
Registration fees | 113,619 | |
Audit | 50,174 | |
Legal | 9,422 | |
Miscellaneous | 8,737 | |
Total expenses before reductions | 8,418,636 | |
Expense reductions | (40,218) | 8,378,418 |
Net investment income (loss) | 3,272,070 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 32,808,785 | |
Fidelity Central Funds | 1,628 | |
Foreign currency transactions | 4,743 | |
Total net realized gain (loss) | 32,815,156 | |
Change in net unrealized appreciation (depreciation) on investment securities | 43,945,008 | |
Net gain (loss) | 76,760,164 | |
Net increase (decrease) in net assets resulting from operations | $80,032,234 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,272,070 | $2,171,712 |
Net realized gain (loss) | 32,815,156 | 31,562,905 |
Change in net unrealized appreciation (depreciation) | 43,945,008 | (14,538,627) |
Net increase (decrease) in net assets resulting from operations | 80,032,234 | 19,195,990 |
Distributions to shareholders from net investment income | (2,760,974) | (2,537,760) |
Distributions to shareholders from net realized gain | (36,711,218) | (58,090,566) |
Total distributions | (39,472,192) | (60,628,326) |
Share transactions - net increase (decrease) | 171,262,093 | (131,906,280) |
Redemption fees | 14,879 | 15,383 |
Total increase (decrease) in net assets | 211,837,014 | (173,323,233) |
Net Assets | ||
Beginning of period | 603,852,197 | 777,175,430 |
End of period | $815,689,211 | $603,852,197 |
Other Information | ||
Undistributed net investment income end of period | $1,058,375 | $802,476 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $35.52 | $37.06 | $36.92 | $34.50 | $26.18 |
Income from Investment Operations | |||||
Net investment income (loss)A | .19 | .15 | .17 | .13 | .23 |
Net realized and unrealized gain (loss) | 4.24 | 1.34 | 2.76 | 4.01 | 8.33 |
Total from investment operations | 4.43 | 1.49 | 2.93 | 4.14 | 8.56 |
Distributions from net investment income | (.16) | (.14) | (.11) | (.15) | (.24) |
Distributions from net realized gain | (1.90) | (2.89) | (2.68) | (1.58) | – |
Total distributions | (2.06) | (3.03) | (2.79) | (1.72)B | (.24) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $37.89 | $35.52 | $37.06 | $36.92 | $34.50 |
Total ReturnD,E | 12.62% | 5.04% | 8.17% | 12.52% | 32.92% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Expenses net of fee waivers, if any | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Expenses net of all reductions | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Net investment income (loss) | .53% | .45% | .46% | .37% | .77% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $309,204 | $279,055 | $333,405 | $378,826 | $271,512 |
Portfolio turnover rateH | 57% | 53% | 70% | 57% | 78% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.77 | $36.35 | $36.29 | $33.93 | $25.75 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .06 | .07 | .04 | .15 |
Net realized and unrealized gain (loss) | 4.14 | 1.31 | 2.71 | 3.95 | 8.20 |
Total from investment operations | 4.24 | 1.37 | 2.78 | 3.99 | 8.35 |
Distributions from net investment income | (.08) | (.06) | (.05) | (.06) | (.17) |
Distributions from net realized gain | (1.90) | (2.89) | (2.67) | (1.58) | – |
Total distributions | (1.98) | (2.95) | (2.72) | (1.63)B | (.17) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $37.03 | $34.77 | $36.35 | $36.29 | $33.93 |
Total ReturnD,E | 12.33% | 4.74% | 7.88% | 12.27% | 32.60% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.32% | 1.33% | 1.33% | 1.33% | 1.37% |
Expenses net of fee waivers, if any | 1.32% | 1.33% | 1.32% | 1.33% | 1.37% |
Expenses net of all reductions | 1.32% | 1.32% | 1.32% | 1.33% | 1.36% |
Net investment income (loss) | .27% | .19% | .20% | .12% | .52% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $87,253 | $79,196 | $88,116 | $90,509 | $79,172 |
Portfolio turnover rateH | 57% | 53% | 70% | 57% | 78% |
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 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.24 | $34.02 | $34.13 | $32.08 | $24.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.08) | (.09) | (.10) | (.13) | .01 |
Net realized and unrealized gain (loss) | 3.83 | 1.20 | 2.54 | 3.73 | 7.75 |
Total from investment operations | 3.75 | 1.11 | 2.44 | 3.60 | 7.76 |
Distributions from net investment income | – | – | – | – | (.06) |
Distributions from net realized gain | (1.90) | (2.89) | (2.55) | (1.55) | – |
Total distributions | (1.90) | (2.89) | (2.55) | (1.55) | (.06) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $34.09 | $32.24 | $34.02 | $34.13 | $32.08 |
Total ReturnC,D | 11.76% | 4.25% | 7.36% | 11.71% | 31.90% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.82% | 1.82% | 1.82% | 1.83% | 1.87% |
Expenses net of fee waivers, if any | 1.82% | 1.82% | 1.82% | 1.83% | 1.87% |
Expenses net of all reductions | 1.81% | 1.81% | 1.81% | 1.83% | 1.86% |
Net investment income (loss) | (.23)% | (.30)% | (.30)% | (.38)% | .02% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $134,505 | $112,425 | $141,494 | $147,749 | $89,893 |
Portfolio turnover rateG | 57% | 53% | 70% | 57% | 78% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.21 | $38.67 | $38.42 | $35.83 | $27.18 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31 | .25 | .28 | .25 | .33 |
Net realized and unrealized gain (loss) | 4.44 | 1.42 | 2.87 | 4.16 | 8.64 |
Total from investment operations | 4.75 | 1.67 | 3.15 | 4.41 | 8.97 |
Distributions from net investment income | (.25) | (.24) | (.22) | (.24) | (.32) |
Distributions from net realized gain | (1.90) | (2.89) | (2.68) | (1.58) | – |
Total distributions | (2.16)B | (3.13) | (2.90) | (1.82) | (.32) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $39.80 | $37.21 | $38.67 | $38.42 | $35.83 |
Total ReturnD | 12.91% | 5.33% | 8.45% | 12.82% | 33.28% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .80% | .80% | .80% | .81% | .84% |
Expenses net of fee waivers, if any | .80% | .80% | .80% | .81% | .84% |
Expenses net of all reductions | .80% | .79% | .79% | .81% | .83% |
Net investment income (loss) | .79% | .72% | .72% | .64% | 1.04% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $284,727 | $133,176 | $207,462 | $242,772 | $84,780 |
Portfolio turnover rateG | 57% | 53% | 70% | 57% | 78% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.16 per share is comprised of distributions from net investment income of $0.254 and distributions from net realized gain of $1.901 per share.
C Amount represents less than $.005 per share.
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 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 23.67% | 22.05% | 9.69% |
Class M (incl. 3.50% sales charge) | 26.14% | 22.26% | 9.64% |
Class C (incl. contingent deferred sales charge) | 29.21% | 22.58% | 9.50% |
Class I | 31.62% | 23.85% | 10.63% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Semiconductors Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$25,216 | Fidelity Advisor® Semiconductors Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Semiconductors Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Stephen Barwikowski: For the year, the fund’s share classes (excluding sales charges, if applicable) generally posted a gain of roughly 31%, modestly lagging the 32.72% return of the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index. However, the fund nearly doubled the return of the S&P 500®. I positioned the fund somewhat more defensively, which hurt fund performance as favorable cyclical market factors pushed riskier semiconductor stocks higher and stretched their valuations. A sizable underweighting in the semiconductor equipment segment hurt performance versus the MSCI industry index the most. At the stock level, underweighting index component Nvidia, a designer of graphics processors, particularly detracted, as it was one of the market’s best-performing stocks for the period. Overweighting chipmaker Qualcomm also hurt the fund, due to two lawsuits filed against the company: one by the Federal Trade Commission alleging anticompetitive behavior, and the other by Apple over patent-royalty issues. The fund’s cash position also was a drag on performance. Conversely, stock picks among semiconductor issues bolstered our relative result, as did an out-of-index allocation to electronic manufacturing services providers. Among individual holdings, an out-of-index position in Netherlands-based NXP Semiconductors added value. Shares of this leading supplier of chips for the automotive market moved sharply higher at the end of September on a buyout offer from Qualcomm.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Semiconductors Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Intel Corp. | 17.3 | 21.8 |
Qualcomm, Inc. | 14.2 | 13.8 |
Broadcom Ltd. | 10.6 | 8.0 |
Analog Devices, Inc. | 5.4 | 6.3 |
ON Semiconductor Corp. | 4.8 | 3.4 |
Micron Technology, Inc. | 4.8 | 4.3 |
Maxim Integrated Products, Inc. | 3.3 | 3.2 |
Semtech Corp. | 2.8 | 1.8 |
Cypress Semiconductor Corp. | 2.6 | 0.4 |
Marvell Technology Group Ltd. | 2.4 | 3.5 |
68.2 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Semiconductors & Semiconductor Equipment | 86.6% | |
Electronic Equipment & Components | 4.3% | |
Internet Software & Services | 3.2% | |
Technology Hardware, Storage & Peripherals | 0.5% | |
IT Services | 0.5% | |
All Others* | 4.9% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Semiconductors Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Communications Equipment - 0.5% | |||
Communications Equipment - 0.5% | |||
F5 Networks, Inc. (a) | 5,200 | $627,900 | |
Finisar Corp. (a) | 18,400 | 500,848 | |
1,128,748 | |||
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
Quantenna Communications, Inc. | 23,500 | 474,935 | |
Electronic Equipment & Components - 4.3% | |||
Electronic Manufacturing Services - 2.4% | |||
Flextronics International Ltd. (a) | 96,000 | 1,535,040 | |
Jabil, Inc. | 82,576 | 2,518,568 | |
Park Electrochemical Corp. | 13,000 | 244,270 | |
Plexus Corp. (a) | 20,100 | 1,077,561 | |
5,375,439 | |||
Technology Distributors - 1.9% | |||
Avnet, Inc. | 107,400 | 4,122,012 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 9,497,451 | ||
Internet Software & Services - 3.2% | |||
Internet Software & Services - 3.2% | |||
Akamai Technologies, Inc. (a) | 31,300 | 1,475,482 | |
Alphabet, Inc. Class A (a) | 5,010 | 4,736,955 | |
Nutanix, Inc. Class A (a)(b) | 26,300 | 558,744 | |
SecureWorks Corp. (a) | 18,600 | 203,484 | |
6,974,665 | |||
IT Services - 0.5% | |||
Data Processing & Outsourced Services - 0.2% | |||
EVERTEC, Inc. | 29,500 | 526,575 | |
IT Consulting & Other Services - 0.3% | |||
IBM Corp. | 4,200 | 607,614 | |
TOTAL IT SERVICES | 1,134,189 | ||
Semiconductors & Semiconductor Equipment - 86.6% | |||
Semiconductor Equipment - 1.5% | |||
Applied Materials, Inc. | 38,400 | 1,701,504 | |
Lam Research Corp. | 6,381 | 1,017,514 | |
PDF Solutions, Inc. (a) | 42,395 | 680,440 | |
3,399,458 | |||
Semiconductors - 85.1% | |||
Acacia Communications, Inc. (a)(b) | 40,600 | 1,777,062 | |
Ambarella, Inc. (a) | 6,600 | 330,330 | |
Analog Devices, Inc. | 151,370 | 11,959,744 | |
Broadcom Ltd. | 95,300 | 23,506,698 | |
Cavium, Inc. (a) | 53,925 | 3,340,115 | |
Cree, Inc. (a) | 169,300 | 4,386,563 | |
Cypress Semiconductor Corp. | 411,200 | 5,839,040 | |
Diodes, Inc. (a) | 24,400 | 647,332 | |
Himax Technologies, Inc. sponsored ADR (b) | 80,900 | 666,616 | |
Inphi Corp. (a) | 115,100 | 4,419,840 | |
Integrated Device Technology, Inc. (a) | 163,200 | 4,266,048 | |
Intel Corp. | 1,081,475 | 38,359,917 | |
Marvell Technology Group Ltd. | 348,300 | 5,419,548 | |
Maxim Integrated Products, Inc. | 160,122 | 7,275,944 | |
Mellanox Technologies Ltd. (a) | 61,800 | 2,901,510 | |
Microchip Technology, Inc. | 21,000 | 1,680,840 | |
Micron Technology, Inc. (a) | 378,912 | 10,655,005 | |
Microsemi Corp. (a) | 8,900 | 463,512 | |
NVIDIA Corp. | 23,523 | 3,822,723 | |
ON Semiconductor Corp. (a) | 714,800 | 10,686,260 | |
Qorvo, Inc. (a) | 48,868 | 3,350,390 | |
Qualcomm, Inc. | 594,426 | 31,617,519 | |
Renesas Electronics Corp. (a) | 15,600 | 147,022 | |
Sanken Electric Co. Ltd. | 116,000 | 590,285 | |
Semtech Corp. (a) | 156,122 | 6,182,431 | |
Silicon Motion Technology Corp. sponsored ADR (b) | 10,800 | 443,988 | |
SMART Global Holdings, Inc. | 43,600 | 788,724 | |
Texas Instruments, Inc. | 27,700 | 2,254,226 | |
United Microelectronics Corp. sponsored ADR (b) | 136,400 | 308,264 | |
Xilinx, Inc. | 10,500 | 664,230 | |
188,751,726 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 192,151,184 | ||
Technology Hardware, Storage & Peripherals - 0.5% | |||
Technology Hardware, Storage & Peripherals - 0.5% | |||
Lenovo Group Ltd. | 996,000 | 617,176 | |
Samsung Electronics Co. Ltd. | 265 | 570,256 | |
1,187,432 | |||
TOTAL COMMON STOCKS | |||
(Cost $183,673,029) | 212,548,604 | ||
Money Market Funds - 5.9% | |||
Fidelity Cash Central Fund, 1.11% (c) | 9,953,111 | 9,955,102 | |
Fidelity Securities Lending Cash Central Fund 1.11% (c)(d) | 3,266,992 | 3,267,318 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $13,221,911) | 13,222,420 | ||
TOTAL INVESTMENT PORTFOLIO - 101.7% | |||
(Cost $196,894,940) | 225,771,024 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (3,867,967) | ||
NET ASSETS - 100% | $221,903,057 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $56,024 |
Fidelity Securities Lending Cash Central Fund | 54,968 |
Total | $110,992 |
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 | 83.1% |
Singapore | 11.3% |
Bermuda | 2.4% |
Israel | 1.3% |
Others (Individually Less Than 1%) | 1.9% |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $3,169,833) — See accompanying schedule: Unaffiliated issuers (cost $183,673,029) | $212,548,604 | |
Fidelity Central Funds (cost $13,221,911) | 13,222,420 | |
Total Investments (cost $196,894,940) | $225,771,024 | |
Receivable for investments sold | 4,905,641 | |
Receivable for fund shares sold | 446,045 | |
Dividends receivable | 37,583 | |
Distributions receivable from Fidelity Central Funds | 18,799 | |
Other receivables | 6,307 | |
Total assets | 231,185,399 | |
Liabilities | ||
Payable for investments purchased | $5,119,752 | |
Payable for fund shares redeemed | 640,300 | |
Accrued management fee | 100,476 | |
Distribution and service plan fees payable | 57,282 | |
Other affiliated payables | 48,079 | |
Other payables and accrued expenses | 49,543 | |
Collateral on securities loaned | 3,266,910 | |
Total liabilities | 9,282,342 | |
Net Assets | $221,903,057 | |
Net Assets consist of: | ||
Paid in capital | $177,222,547 | |
Undistributed net investment income | 459,047 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 15,345,361 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 28,876,102 | |
Net Assets | $221,903,057 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($72,040,204 ÷ 3,340,472 shares) | $21.57 | |
Maximum offering price per share (100/94.25 of $21.57) | $22.89 | |
Class M: | ||
Net Asset Value and redemption price per share ($16,126,605 ÷ 776,346 shares) | $20.77 | |
Maximum offering price per share (100/96.50 of $20.77) | $21.52 | |
Class C: | ||
Net Asset Value and offering price per share ($42,683,862 ÷ 2,234,900 shares)(a) | $19.10 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($91,052,386 ÷ 4,036,538 shares) | $22.56 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $2,847,844 | |
Income from Fidelity Central Funds (including $54,968 from security lending) | 110,992 | |
Total income | 2,958,836 | |
Expenses | ||
Management fee | $945,874 | |
Transfer agent fees | 394,152 | |
Distribution and service plan fees | 551,179 | |
Accounting and security lending fees | 67,800 | |
Custodian fees and expenses | 54,279 | |
Independent trustees' fees and expenses | 3,620 | |
Registration fees | 68,539 | |
Audit | 49,789 | |
Legal | 2,570 | |
Miscellaneous | 1,431 | |
Total expenses before reductions | 2,139,233 | |
Expense reductions | (17,251) | 2,121,982 |
Net investment income (loss) | 836,854 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 23,781,739 | |
Fidelity Central Funds | 1,717 | |
Foreign currency transactions | (1,534) | |
Total net realized gain (loss) | 23,781,922 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 16,843,339 | |
Assets and liabilities in foreign currencies | 17 | |
Total change in net unrealized appreciation (depreciation) | 16,843,356 | |
Net gain (loss) | 40,625,278 | |
Net increase (decrease) in net assets resulting from operations | $41,462,132 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $836,854 | $387,499 |
Net realized gain (loss) | 23,781,922 | (4,788,377) |
Change in net unrealized appreciation (depreciation) | 16,843,356 | 18,061,121 |
Net increase (decrease) in net assets resulting from operations | 41,462,132 | 13,660,243 |
Distributions to shareholders from net investment income | (392,430) | (300,751) |
Distributions to shareholders from net realized gain | (190,781) | (8,936,630) |
Total distributions | (583,211) | (9,237,381) |
Share transactions - net increase (decrease) | 90,258,265 | (19,868,592) |
Redemption fees | 17,812 | 3,897 |
Total increase (decrease) in net assets | 131,154,998 | (15,441,833) |
Net Assets | ||
Beginning of period | 90,748,059 | 106,189,892 |
End of period | $221,903,057 | $90,748,059 |
Other Information | ||
Undistributed net investment income end of period | $459,047 | $76,634 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Semiconductors Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $16.50 | $15.29 | $13.86 | $10.33 | $8.45 |
Income from Investment Operations | |||||
Net investment income (loss)A | .11 | .09 | .03 | (.02) | (.01) |
Net realized and unrealized gain (loss) | 5.03 | 2.67 | 1.48 | 3.55 | 1.89 |
Total from investment operations | 5.14 | 2.76 | 1.51 | 3.53 | 1.88 |
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 | $21.57 | $16.50 | $15.29 | $13.86 | $10.33 |
Total ReturnD,E | 31.21% | 20.46% | 10.85% | 34.17% | 22.25% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.17% | 1.31% | 1.28% | 1.84% | 2.18% |
Expenses net of fee waivers, if any | 1.17% | 1.31% | 1.28% | 1.40% | 1.40% |
Expenses net of all reductions | 1.16% | 1.28% | 1.27% | 1.39% | 1.37% |
Net investment income (loss) | .55% | .61% | .20% | (.16)% | (.07)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $72,040 | $34,066 | $38,237 | $16,542 | $5,833 |
Portfolio turnover rateH | 99% | 185% | 156% | 156% | 179% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.91 | $14.81 | $13.45 | $10.05 | $8.24 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .04 | (.02) | (.05) | (.03) |
Net realized and unrealized gain (loss) | 4.84 | 2.57 | 1.44 | 3.45 | 1.84 |
Total from investment operations | 4.88 | 2.61 | 1.42 | 3.40 | 1.81 |
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 | $20.77 | $15.91 | $14.81 | $13.45 | $10.05 |
Total ReturnC,D | 30.72% | 20.01% | 10.55% | 33.83% | 21.97% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.53% | 1.65% | 1.62% | 2.19% | 2.48% |
Expenses net of fee waivers, if any | 1.53% | 1.65% | 1.62% | 1.65% | 1.65% |
Expenses net of all reductions | 1.52% | 1.62% | 1.61% | 1.64% | 1.62% |
Net investment income (loss) | .20% | .27% | (.14)% | (.42)% | (.32)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $16,127 | $9,766 | $10,826 | $7,144 | $3,756 |
Portfolio turnover rateG | 99% | 185% | 156% | 156% | 179% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $14.69 | $13.80 | $12.58 | $9.44 | $7.78 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.04) | (.02) | (.08) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 4.47 | 2.37 | 1.34 | 3.24 | 1.73 |
Total from investment operations | 4.43 | 2.35 | 1.26 | 3.14 | 1.66 |
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 | $19.10 | $14.69 | $13.80 | $12.58 | $9.44 |
Total ReturnC,D | 30.21% | 19.48% | 10.03% | 33.26% | 21.34% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.95% | 2.08% | 2.06% | 2.60% | 2.93% |
Expenses net of fee waivers, if any | 1.95% | 2.08% | 2.06% | 2.15% | 2.15% |
Expenses net of all reductions | 1.94% | 2.05% | 2.05% | 2.14% | 2.12% |
Net investment income (loss) | (.23)% | (.16)% | (.58)% | (.91)% | (.82)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $42,684 | $21,088 | $20,864 | $7,381 | $3,157 |
Portfolio turnover rateG | 99% | 185% | 156% | 156% | 179% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $17.24 | $15.89 | $14.37 | $10.68 | $8.72 |
Income from Investment Operations | |||||
Net investment income (loss)A | .17 | .14 | .08 | .01 | .02 |
Net realized and unrealized gain (loss) | 5.26 | 2.79 | 1.53 | 3.68 | 1.94 |
Total from investment operations | 5.43 | 2.93 | 1.61 | 3.69 | 1.96 |
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 | $22.56 | $17.24 | $15.89 | $14.37 | $10.68 |
Total ReturnC | 31.62% | 20.85% | 11.17% | 34.55% | 22.48% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .88% | .98% | .98% | 1.34% | 1.86% |
Expenses net of fee waivers, if any | .88% | .98% | .98% | 1.15% | 1.15% |
Expenses net of all reductions | .87% | .95% | .96% | 1.14% | 1.12% |
Net investment income (loss) | .84% | .94% | .51% | .10% | .18% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $91,052 | $25,827 | $35,943 | $25,050 | $2,874 |
Portfolio turnover rateF | 99% | 185% | 156% | 156% | 179% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 31.81% | 17.94% | 10.86% |
Class M (incl. 3.50% sales charge) | 34.62% | 18.19% | 10.84% |
Class C (incl. contingent deferred sales charge) | 37.79% | 18.46% | 10.69% |
Class I | 40.26% | 19.72% | 11.85% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Technology Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$28,033 | Fidelity Advisor® Technology Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Technology Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Charlie Chai: For the fiscal year, the fund’s shares classes (excluding sales charges, if applicable) gained about 40%, well ahead of the 28.93% return of the MSCI U.S. IMI Information Technology 25/50 Index, and more than double the result of the S&P 500®. Information technology was the second-best performer among the 11 S&P 500 sectors. Versus the MSCI sector index, stock selection in semiconductors and positioning in semiconductor equipment were especially helpful. Non-index exposure to internet & direct marketing retail and to education services also contributed, as did positioning in the IT consulting & other services group. At the stock level, avoiding two weak-performing index components aided relative performance: IBM – the fund’s top relative contributor – and Intel. In the second quarter of 2017, all five of IBM’s primary business segments reported declining sales. Elsewhere, a sizable overweighting in Autodesk was timely. The firm makes design software for engineering and architectural firms. One standout in the semiconductor segment was a non-index stake in GlobalWafers, a Taiwan-based firm specializing in silicon-wafer manufacturing. I bought the stock in August 2016. Conversely, out-of-index exposure to health care technology modestly detracted, as did underweighting the strong-performing technology hardware, storage & peripherals segment. Among individual holdings, smartphone maker Apple was the fund’s largest relative detractor, despite being our top absolute contributor. I preferred to play the forthcoming release of the company’s latest iPhone® device primarily through certain Apple suppliers and so maintained underweighted exposure to Apple itself. Two out-of-index positions – in DeNA, a Japan-based provider of online gaming and e-commerce services, and in China-based online advertising provider 58.com – also detracted. DeNA was not held at period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund's fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Apple, Inc. | 9.7 | 9.3 |
Facebook, Inc. Class A | 7.1 | 4.6 |
Alphabet, Inc. Class C | 5.1 | 5.6 |
Alphabet, Inc. Class A | 5.1 | 5.5 |
Tesla, Inc. | 4.8 | 3.5 |
Microsoft Corp. | 4.6 | 4.4 |
Autodesk, Inc. | 3.5 | 3.5 |
Alibaba Group Holding Ltd. sponsored ADR | 2.7 | 0.0 |
Trimble, Inc. | 2.1 | 2.4 |
GlobalWafers Co. Ltd. | 1.7 | 0.9 |
46.4 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Internet Software & Services | 28.2% | |
Software | 18.9% | |
Semiconductors & Semiconductor Equipment | 17.1% | |
Technology Hardware, Storage & Peripherals | 9.7% | |
Electronic Equipment & Components | 7.1% | |
All Others* | 19.0% |
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% |
* 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 July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 97.2% | |||
Shares | Value | ||
Automobiles - 4.8% | |||
Automobile Manufacturers - 4.8% | |||
Tesla, Inc. (a)(b) | 228,309 | $73,851,112 | |
Biotechnology - 0.2% | |||
Biotechnology - 0.2% | |||
BeiGene Ltd. ADR (b) | 38,700 | 2,727,963 | |
Chemicals - 0.7% | |||
Industrial Gases - 0.1% | |||
SK Materials Co., Ltd. | 12,580 | 2,073,574 | |
Specialty Chemicals - 0.6% | |||
Duk San Neolux Co. Ltd. | 239,698 | 5,265,101 | |
Soulbrain Co. Ltd. | 54,828 | 3,353,514 | |
8,618,615 | |||
TOTAL CHEMICALS | 10,692,189 | ||
Diversified Consumer Services - 1.6% | |||
Education Services - 1.6% | |||
China Online Education Group sponsored ADR (a)(b) | 2,563 | 47,134 | |
New Oriental Education & Technology Group, Inc. sponsored ADR | 139,300 | 11,096,638 | |
TAL Education Group ADR | 90,407 | 14,173,105 | |
25,316,877 | |||
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
GDS Holdings Ltd. ADR | 239,500 | 2,241,720 | |
Electrical Equipment - 0.2% | |||
Electrical Components & Equipment - 0.2% | |||
Rockwell Automation, Inc. | 19,900 | 3,284,097 | |
Electronic Equipment & Components - 7.1% | |||
Electronic Components - 2.1% | |||
Genius Electronic Optical Co. Ltd. (b) | 131,000 | 1,500,141 | |
Largan Precision Co. Ltd. | 36,000 | 6,565,060 | |
Ledlink Optics, Inc. | 608,609 | 854,061 | |
Lens Technology Co. Ltd. Class A | 1,002,737 | 4,515,376 | |
Sunny Optical Technology Group Co. Ltd. | 1,275,100 | 15,182,094 | |
Universal Display Corp. | 27,512 | 3,317,947 | |
31,934,679 | |||
Electronic Equipment & Instruments - 4.6% | |||
Anritsu Corp. | 199,200 | 1,609,934 | |
Chroma ATE, Inc. | 3,026,173 | 9,564,928 | |
Cognex Corp. | 62,700 | 5,960,262 | |
Hexagon AB (B Shares) | 181,500 | 8,969,568 | |
National Instruments Corp. | 90,400 | 3,719,056 | |
Topcon Corp. | 552,600 | 9,473,573 | |
Trimble, Inc. (b) | 872,196 | 32,646,296 | |
71,943,617 | |||
Technology Distributors - 0.4% | |||
Dell Technologies, Inc. (b) | 85,760 | 5,511,795 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 109,390,091 | ||
Health Care Technology - 0.4% | |||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (b) | 48,994 | 6,776,850 | |
Household Durables - 1.2% | |||
Consumer Electronics - 1.2% | |||
Sony Corp. | 217,700 | 8,944,055 | |
Sony Corp. sponsored ADR (a) | 216,500 | 8,891,655 | |
17,835,710 | |||
Internet & Direct Marketing Retail - 1.7% | |||
Internet & Direct Marketing Retail - 1.7% | |||
Amazon.com, Inc. (b) | 14,500 | 14,322,810 | |
Cogobuy Group (b) | 150,000 | 89,491 | |
JD.com, Inc. sponsored ADR (b) | 274,900 | 12,417,233 | |
26,829,534 | |||
Internet Software & Services - 27.5% | |||
Internet Software & Services - 27.5% | |||
58.com, Inc. ADR (b) | 266,881 | 13,624,275 | |
Akamai Technologies, Inc. (b) | 187,000 | 8,815,180 | |
Alibaba Group Holding Ltd. sponsored ADR (b) | 275,800 | 42,735,210 | |
Alphabet, Inc.: | |||
Class A (b) | 83,487 | 78,936,959 | |
Class C (b) | 85,655 | 79,701,978 | |
Altaba, Inc. (b) | 212,500 | 12,410,000 | |
Benefitfocus, Inc. (b) | 23,689 | 846,882 | |
CoStar Group, Inc. (b) | 48,400 | 13,336,620 | |
Endurance International Group Holdings, Inc. (b) | 457,000 | 4,227,250 | |
Envestnet, Inc. (b) | 145 | 5,662 | |
Facebook, Inc. Class A (b) | 651,711 | 110,302,087 | |
GoDaddy, Inc. (b) | 90,200 | 3,876,796 | |
Hortonworks, Inc. (b) | 144,800 | 1,940,320 | |
LogMeIn, Inc. | 142,333 | 16,574,678 | |
NetEase, Inc. ADR | 24,400 | 7,595,232 | |
New Relic, Inc. (b) | 89,000 | 4,179,440 | |
Nutanix, Inc. Class B (c) | 39,963 | 849,014 | |
Pandora Media, Inc. (a)(b) | 93,000 | 832,350 | |
Shopify, Inc. (b) | 1,600 | 147,792 | |
Shopify, Inc. Class A (b) | 22,800 | 2,101,056 | |
SMS Co., Ltd. | 312,400 | 9,889,573 | |
Tencent Holdings Ltd. | 214,700 | 8,569,532 | |
Twilio, Inc. Class A (b) | 4,000 | 116,680 | |
Xunlei Ltd. sponsored ADR (b) | 420,444 | 1,370,647 | |
Yandex NV Series A (b) | 154,800 | 4,486,104 | |
427,471,317 | |||
IT Services - 4.2% | |||
Data Processing & Outsourced Services - 2.2% | |||
Fidelity National Information Services, Inc. | 18,295 | 1,668,870 | |
Fiserv, Inc. (b) | 55,100 | 7,080,350 | |
FleetCor Technologies, Inc. (b) | 62,200 | 9,458,132 | |
Global Payments, Inc. | 68,300 | 6,445,471 | |
Paysafe Group PLC (b) | 984,600 | 7,664,579 | |
Total System Services, Inc. | 38,153 | 2,421,189 | |
34,738,591 | |||
IT Consulting & Other Services - 2.0% | |||
Cognizant Technology Solutions Corp. Class A | 332,194 | 23,027,688 | |
CSRA, Inc. | 38,400 | 1,252,224 | |
DXC Technology Co. | 86,400 | 6,772,032 | |
31,051,944 | |||
TOTAL IT SERVICES | 65,790,535 | ||
Life Sciences Tools & Services - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
JHL Biotech, Inc. (b) | 387,462 | 805,714 | |
Machinery - 1.6% | |||
Industrial Machinery - 1.6% | |||
HIWIN Technologies Corp. | 445,000 | 3,225,438 | |
Minebea Mitsumi, Inc. | 1,266,200 | 20,937,753 | |
24,163,191 | |||
Media - 0.0% | |||
Advertising - 0.0% | |||
iCar Asia Ltd. (b) | 1,156,712 | 231,342 | |
Professional Services - 0.1% | |||
Human Resource & Employment Services - 0.1% | |||
WageWorks, Inc. (b) | 28,744 | 1,874,109 | |
Semiconductors & Semiconductor Equipment - 17.1% | |||
Semiconductor Equipment - 5.3% | |||
ASM Pacific Technology Ltd. | 1,813,600 | 23,497,762 | |
Lam Research Corp. | 95,600 | 15,244,376 | |
Rubicon Technology, Inc. (a)(b) | 23,596 | 192,543 | |
Siltronic AG (b) | 180,900 | 19,701,747 | |
Sino-American Silicon Products, Inc. | 1,912,000 | 3,841,149 | |
SolarEdge Technologies, Inc. (a)(b) | 40,000 | 918,000 | |
Sumco Corp. | 1,113,550 | 18,140,830 | |
SunEdison, Inc. (b) | 500 | 6 | |
81,536,413 | |||
Semiconductors - 11.8% | |||
Acacia Communications, Inc. (a)(b) | 28,600 | 1,251,822 | |
Advanced Micro Devices, Inc. (a)(b) | 671,900 | 9,144,559 | |
ams AG | 222,704 | 16,064,537 | |
ASPEED Tech, Inc. | 116,282 | 2,701,682 | |
Broadcom Ltd. | 72,800 | 17,956,848 | |
Cavium, Inc. (b) | 39,600 | 2,452,824 | |
ChipMOS TECHNOLOGIES, Inc. sponsored ADR | 125,652 | 2,442,675 | |
Cirrus Logic, Inc. (b) | 15,814 | 971,612 | |
Cypress Semiconductor Corp. | 109,800 | 1,559,160 | |
Dialog Semiconductor PLC (b) | 60,100 | 2,625,657 | |
GlobalWafers Co. Ltd. | 3,292,400 | 25,988,760 | |
Himax Technologies, Inc. sponsored ADR (a) | 842,604 | 6,943,057 | |
Inphi Corp. (a)(b) | 89,200 | 3,425,280 | |
Integrated Device Technology, Inc. (b) | 124,300 | 3,249,202 | |
Marvell Technology Group Ltd. | 386,361 | 6,011,777 | |
Mellanox Technologies Ltd. (b) | 246,400 | 11,568,480 | |
Micron Technology, Inc. (b) | 688,250 | 19,353,590 | |
Monolithic Power Systems, Inc. | 59,601 | 6,098,374 | |
NVIDIA Corp. | 84,050 | 13,658,966 | |
ON Semiconductor Corp. (b) | 148,600 | 2,221,570 | |
Qualcomm, Inc. | 247,550 | 13,167,185 | |
Renesas Electronics Corp. (b) | 106,800 | 1,006,533 | |
Semtech Corp. (b) | 171,698 | 6,799,241 | |
Silergy Corp. | 72,000 | 1,405,947 | |
Silicon Laboratories, Inc. (b) | 21,100 | 1,584,610 | |
Silicon Motion Technology Corp. sponsored ADR (a) | 63,888 | 2,626,436 | |
Win Semiconductors Corp. | 247,000 | 1,446,954 | |
183,727,338 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 265,263,751 | ||
Software - 18.9% | |||
Application Software - 9.0% | |||
Adobe Systems, Inc. (b) | 63,216 | 9,260,512 | |
Aspen Technology, Inc. (b) | 300 | 17,061 | |
Autodesk, Inc. (b) | 487,000 | 53,954,730 | |
Callidus Software, Inc. (b) | 177,059 | 4,302,534 | |
Ellie Mae, Inc. (b) | 53,000 | 4,622,660 | |
HubSpot, Inc. (b) | 6,900 | 499,215 | |
iFlytek Co. Ltd. | 237,677 | 1,675,546 | |
Intuit, Inc. | 58,700 | 8,054,227 | |
Parametric Technology Corp. (b) | 262,400 | 14,481,856 | |
Paylocity Holding Corp. (b) | 32,600 | 1,482,322 | |
RealPage, Inc. (b) | 5,800 | 224,750 | |
Salesforce.com, Inc. (b) | 162,319 | 14,738,565 | |
SS&C Technologies Holdings, Inc. | 79,200 | 3,069,792 | |
Ultimate Software Group, Inc. (b) | 65,776 | 14,846,301 | |
Workday, Inc. Class A (b) | 14,700 | 1,501,017 | |
Zendesk, Inc. (b) | 201,400 | 5,905,048 | |
138,636,136 | |||
Home Entertainment Software - 4.7% | |||
Activision Blizzard, Inc. | 353,070 | 21,812,665 | |
Electronic Arts, Inc. (b) | 201,400 | 23,511,436 | |
Nintendo Co. Ltd. | 54,300 | 18,441,074 | |
Nintendo Co. Ltd. ADR | 40,200 | 1,706,892 | |
Take-Two Interactive Software, Inc. (b) | 98,400 | 7,820,832 | |
73,292,899 | |||
Systems Software - 5.2% | |||
Microsoft Corp. | 986,500 | 71,718,550 | |
Tableau Software, Inc. (b) | 143,600 | 9,255,020 | |
80,973,570 | |||
TOTAL SOFTWARE | 292,902,605 | ||
Technology Hardware, Storage & Peripherals - 9.7% | |||
Technology Hardware, Storage & Peripherals - 9.7% | |||
Apple, Inc. | 1,014,729 | 150,920,646 | |
TOTAL COMMON STOCKS | |||
(Cost $1,028,809,133) | 1,508,369,353 | ||
Convertible Preferred Stocks - 2.0% | |||
Internet & Direct Marketing Retail - 1.3% | |||
Internet & Direct Marketing Retail - 1.3% | |||
China Internet Plus Holdings Ltd.: | |||
Series A-11 (b)(d) | 1,516,912 | 8,585,722 | |
Series B (b)(d) | 2,042,487 | 11,560,476 | |
20,146,198 | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
Uber Technologies, Inc. Series D, 8.00% (b)(d) | 232,064 | 11,318,278 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $16,280,181) | 31,464,476 | ||
Money Market Funds - 6.4% | |||
Fidelity Securities Lending Cash Central Fund 1.11% (e)(f) | |||
(Cost $99,283,748) | 99,276,148 | 99,286,076 | |
TOTAL INVESTMENT PORTFOLIO - 105.6% | |||
(Cost $1,144,373,062) | 1,639,119,905 | ||
NET OTHER ASSETS (LIABILITIES) - (5.6)% | (86,280,705) | ||
NET ASSETS - 100% | $1,552,839,200 |
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 $849,014 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 $31,464,476 or 2.0% of net assets.
(e) Investment made with cash collateral received from securities on loan.
(f) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
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 | $103,885 |
Fidelity Securities Lending Cash Central Fund | 810,455 |
Total | $914,340 |
Investment Valuation
The following is a summary of the inputs used, as of July 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 | $1,508,369,353 | $1,472,414,692 | $35,954,661 | $-- |
Convertible Preferred Stocks | 31,464,476 | -- | -- | 31,464,476 |
Money Market Funds | 99,286,076 | 99,286,076 | -- | -- |
Total Investments in Securities: | $1,639,119,905 | $1,571,700,768 | $35,954,661 | $31,464,476 |
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) | 6,316,768 |
Cost of Purchases | -- |
Proceeds of Sales | (535,365) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $31,464,476 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2017 | $6,404,427 |
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 | 70.7% |
Cayman Islands | 11.9% |
Japan | 6.5% |
Taiwan | 3.6% |
Germany | 1.3% |
Singapore | 1.1% |
Austria | 1.0% |
Others (Individually Less Than 1%) | 3.9% |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $94,314,818) — See accompanying schedule: Unaffiliated issuers (cost $1,045,089,314) | $1,539,833,829 | |
Fidelity Central Funds (cost $99,283,748) | 99,286,076 | |
Total Investments (cost $1,144,373,062) | $1,639,119,905 | |
Receivable for investments sold | 16,692,177 | |
Receivable for fund shares sold | 7,072,709 | |
Dividends receivable | 910,172 | |
Distributions receivable from Fidelity Central Funds | 58,509 | |
Other receivables | 145,097 | |
Total assets | 1,663,998,569 | |
Liabilities | ||
Payable to custodian bank | $804,411 | |
Payable for investments purchased | 4,023,200 | |
Payable for fund shares redeemed | 5,474,009 | |
Accrued management fee | 695,874 | |
Distribution and service plan fees payable | 442,146 | |
Other affiliated payables | 291,591 | |
Other payables and accrued expenses | 151,131 | |
Collateral on securities loaned | 99,277,007 | |
Total liabilities | 111,159,369 | |
Net Assets | $1,552,839,200 | |
Net Assets consist of: | ||
Paid in capital | $990,684,921 | |
Accumulated net investment loss | (64,088) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 67,469,472 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 494,748,895 | |
Net Assets | $1,552,839,200 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($637,314,910 ÷ 12,229,395 shares) | $52.11 | |
Maximum offering price per share (100/94.25 of $52.11) | $55.29 | |
Class M: | ||
Net Asset Value and redemption price per share ($274,918,054 ÷ 5,539,419 shares) | $49.63 | |
Maximum offering price per share (100/96.50 of $49.63) | $51.43 | |
Class C: | ||
Net Asset Value and offering price per share ($237,582,568 ÷ 5,296,065 shares)(a) | $44.86 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($403,023,668 ÷ 7,236,742 shares) | $55.69 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $11,273,201 | |
Interest | 1,835 | |
Income from Fidelity Central Funds (including $810,455 from security lending) | 914,340 | |
Total income | 12,189,376 | |
Expenses | ||
Management fee | $7,406,520 | |
Transfer agent fees | 2,767,957 | |
Distribution and service plan fees | 4,380,457 | |
Accounting and security lending fees | 441,582 | |
Custodian fees and expenses | 129,874 | |
Independent trustees' fees and expenses | 29,863 | |
Registration fees | 113,923 | |
Audit | 67,258 | |
Legal | 21,597 | |
Interest | 2,776 | |
Miscellaneous | 19,282 | |
Total expenses before reductions | 15,381,089 | |
Expense reductions | (61,784) | 15,319,305 |
Net investment income (loss) | (3,129,929) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 116,942,755 | |
Redemptions in-kind with affiliated entities | 120,776,424 | |
Fidelity Central Funds | 5,554 | |
Foreign currency transactions | 50,346 | |
Total net realized gain (loss) | 237,775,079 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 196,030,626 | |
Assets and liabilities in foreign currencies | (11,509) | |
Total change in net unrealized appreciation (depreciation) | 196,019,117 | |
Net gain (loss) | 433,794,196 | |
Net increase (decrease) in net assets resulting from operations | $430,664,267 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(3,129,929) | $(3,450,231) |
Net realized gain (loss) | 237,775,079 | (14,245,769) |
Change in net unrealized appreciation (depreciation) | 196,019,117 | 122,753,554 |
Net increase (decrease) in net assets resulting from operations | 430,664,267 | 105,057,554 |
Distributions to shareholders from net realized gain | (16,883,284) | (70,068,821) |
Share transactions - net increase (decrease) | (366,177,411) | (137,855,039) |
Redemption fees | 16,813 | 39,457 |
Total increase (decrease) in net assets | 47,620,385 | (102,826,849) |
Net Assets | ||
Beginning of period | 1,505,218,815 | 1,608,045,664 |
End of period | $1,552,839,200 | $1,505,218,815 |
Other Information | ||
Accumulated net investment loss end of period | $(64,088) | $(381,564) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.86 | $36.83 | $36.06 | $29.90 | $25.25 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | (.10) | (.02)B | (.12) | (.07) |
Net realized and unrealized gain (loss) | 14.95 | 2.74 | 3.75 | 6.70 | 4.72 |
Total from investment operations | 14.88 | 2.64 | 3.73 | 6.58 | 4.65 |
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 | $52.11 | $37.86 | $36.83 | $36.06 | $29.90 |
Total ReturnD,E | 39.85% | 7.86% | 10.94% | 22.15% | 18.42% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.07% | 1.09% | 1.09% | 1.14% | 1.18% |
Expenses net of fee waivers, if any | 1.07% | 1.09% | 1.09% | 1.14% | 1.18% |
Expenses net of all reductions | 1.07% | 1.07% | 1.08% | 1.12% | 1.14% |
Net investment income (loss) | (.17)% | (.28)% | (.05)%B | (.35)% | (.25)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $637,315 | $480,573 | $468,819 | $408,687 | $355,306 |
Portfolio turnover rateH | 73%I | 102% | 142%I | 186% | 142% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.14 | $35.26 | $34.66 | $28.79 | $24.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.18) | (.18) | (.11)B | (.19) | (.13) |
Net realized and unrealized gain (loss) | 14.26 | 2.61 | 3.60 | 6.45 | 4.54 |
Total from investment operations | 14.08 | 2.43 | 3.49 | 6.26 | 4.41 |
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 | $49.63 | $36.14 | $35.26 | $34.66 | $28.79 |
Total ReturnD,E | 39.50% | 7.60% | 10.63% | 21.89% | 18.09% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.33% | 1.35% | 1.35% | 1.38% | 1.42% |
Expenses net of fee waivers, if any | 1.33% | 1.35% | 1.35% | 1.38% | 1.42% |
Expenses net of all reductions | 1.33% | 1.34% | 1.34% | 1.37% | 1.39% |
Net investment income (loss) | (.43)% | (.54)% | (.31)%B | (.60)% | (.50)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $274,918 | $203,727 | $208,192 | $196,067 | $173,692 |
Portfolio turnover rateH | 73%I | 102% | 142%I | 186% | 142% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.83 | $32.27 | $31.99 | $26.68 | $22.70 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.35) | (.31) | (.25)B | (.33) | (.24) |
Net realized and unrealized gain (loss) | 12.92 | 2.37 | 3.29 | 5.98 | 4.22 |
Total from investment operations | 12.57 | 2.06 | 3.04 | 5.65 | 3.98 |
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 | $44.86 | $32.83 | $32.27 | $31.99 | $26.68 |
Total ReturnD,E | 38.79% | 7.08% | 10.07% | 21.31% | 17.53% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.83% | 1.85% | 1.84% | 1.87% | 1.91% |
Expenses net of fee waivers, if any | 1.83% | 1.85% | 1.84% | 1.87% | 1.91% |
Expenses net of all reductions | 1.82% | 1.83% | 1.83% | 1.86% | 1.88% |
Net investment income (loss) | (.93)% | (1.04)% | (.80)%B | (1.09)% | (.99)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $237,583 | $151,321 | $138,205 | $105,499 | $84,858 |
Portfolio turnover rateH | 73%I | 102% | 142%I | 186% | 142% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.30 | $39.03 | $38.06 | $31.47 | $26.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .02 | .11B | (.02) | .02 |
Net realized and unrealized gain (loss) | 15.96 | 2.92 | 3.96 | 7.06 | 4.95 |
Total from investment operations | 16.02 | 2.94 | 4.07 | 7.04 | 4.97 |
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 | $55.69 | $40.30 | $39.03 | $38.06 | $31.47 |
Total ReturnD | 40.26% | 8.24% | 11.30% | 22.55% | 18.75% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .77% | .75% | .75% | .83% | .86% |
Expenses net of fee waivers, if any | .77% | .75% | .75% | .83% | .86% |
Expenses net of all reductions | .77% | .74% | .74% | .82% | .83% |
Net investment income (loss) | .13% | .06% | .29%B | (.05)% | .06% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $403,024 | $669,599 | $783,945 | $455,612 | $218,944 |
Portfolio turnover rateG | 73%H | 102% | 142%H | 186% | 142% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 3.55% | 9.55% | 5.95% |
Class M (incl. 3.50% sales charge) | 5.68% | 9.75% | 5.90% |
Class C (incl. contingent deferred sales charge) | 8.01% | 10.03% | 5.79% |
Class I | 10.17% | 11.18% | 6.89% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Utilities Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$17,821 | Fidelity Advisor® Utilities Fund - Class A | |
$21,073 | S&P 500® Index |
Fidelity Advisor® Utilities Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Douglas Simmons: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained a little more than 9%, handily outpacing the 6.77% result of the MSCI U.S. IMI Utilities 25/50 Index, but lagging the broad-based S&P 500®. As interest rates began to climb from historically low levels, investors shifted their focus to utilities with stronger business fundamentals and dividend growth. This aligned with my investment strategy, giving the fund an edge over the MSCI sector index. Stock selection in electric utilities contributed the most to the fund’s outperformance of the MSCI index, led by Florida-based NextEra Energy, the fund’s largest holding at period end. Also contributing was an overweighted stake in NextEra’s subsidiary, NextEra Energy Partners, which owns and operates renewable power projects in North America. An overweighting, as well as stock picking, in the independent power producers & energy traders group, also contributed to the fund’s relative results. Here, a stake in independent power producer NRG Energy proved beneficial. Conversely, the fund’s underweighting in gas utilities held back relative returns. On an individual basis, a larger-than-index position in independent power producer Dynegy also detracted. The fund still held a stake in Dynegy at period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: The Board of Trustees has agreed to present a proposal to shareholders to eliminate each sector/industry fund’s fundamental “invests primarily” policy and to modify the fundamental concentration policy for certain funds. If the proposals are approved, expected in the fourth quarter, the changes will take place on or about January 1, 2018 (or the first day of the month following shareholder approval), and will not impact how the funds are managed.Fidelity Advisor® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
NextEra Energy, Inc. | 18.5 | 16.4 |
Sempra Energy | 12.8 | 11.9 |
PG&E Corp. | 8.4 | 8.3 |
Great Plains Energy, Inc. | 4.9 | 4.2 |
Exelon Corp. | 4.9 | 4.9 |
Avangrid, Inc. | 4.9 | 4.8 |
DTE Energy Co. | 4.6 | 4.8 |
FirstEnergy Corp. | 4.1 | 4.5 |
NRG Energy, Inc. | 4.1 | 1.2 |
Dominion Resources, Inc. | 3.8 | 7.0 |
71.0 |
Top Industries (% of fund's net assets)
As of July 31, 2017 | ||
Electric Utilities | 48.5% | |
Multi-Utilities | 36.9% | |
Independent Power and Renewable Electricity Producers | 11.6% | |
Oil, Gas & Consumable Fuels | 2.0% | |
Gas Utilities | 1.0% |
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% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Utilities Fund
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 100.3% | |||
Shares | Value | ||
Electric Utilities - 48.5% | |||
Electric Utilities - 48.5% | |||
Exelon Corp. | 399,791 | $15,327,987 | |
FirstEnergy Corp. | 402,133 | 12,832,064 | |
Great Plains Energy, Inc. | 499,000 | 15,399,140 | |
NextEra Energy, Inc. | 395,740 | 57,813,655 | |
OGE Energy Corp. | 190,523 | 6,832,155 | |
PG&E Corp. | 386,605 | 26,169,292 | |
PNM Resources, Inc. | 122,617 | 4,886,287 | |
Vistra Energy Corp. | 405,888 | 6,668,740 | |
Westar Energy, Inc. | 106,100 | 5,384,575 | |
151,313,895 | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
Specialized REITs - 0.3% | |||
InfraReit, Inc. | 42,400 | 953,576 | |
Gas Utilities - 1.0% | |||
Gas Utilities - 1.0% | |||
South Jersey Industries, Inc. | 97,280 | 3,304,602 | |
Independent Power and Renewable Electricity Producers - 11.6% | |||
Independent Power Producers & Energy Traders - 8.3% | |||
Calpine Corp. (a) | 248,890 | 3,579,038 | |
Dynegy, Inc. (a) | 173,247 | 1,555,758 | |
NRG Energy, Inc. | 520,972 | 12,826,331 | |
NRG Yield, Inc. Class C | 295,302 | 5,492,617 | |
The AES Corp. | 216,820 | 2,424,048 | |
25,877,792 | |||
Renewable Electricity - 3.3% | |||
NextEra Energy Partners LP | 244,230 | 10,067,161 | |
Pattern Energy Group, Inc. | 13,319 | 334,307 | |
10,401,468 | |||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 36,279,260 | ||
Multi-Utilities - 36.9% | |||
Multi-Utilities - 36.9% | |||
Avangrid, Inc. | 337,330 | 15,321,529 | |
Black Hills Corp. | 119,703 | 8,338,511 | |
CenterPoint Energy, Inc. | 385,313 | 10,861,973 | |
CMS Energy Corp. | 41,000 | 1,895,840 | |
Dominion Resources, Inc. | 153,394 | 11,838,949 | |
DTE Energy Co. | 134,698 | 14,420,768 | |
Public Service Enterprise Group, Inc. | 69,600 | 3,129,912 | |
SCANA Corp. | 146,548 | 9,433,295 | |
Sempra Energy | 352,309 | 39,814,440 | |
115,055,217 | |||
Oil, Gas & Consumable Fuels - 2.0% | |||
Oil & Gas Storage & Transport - 2.0% | |||
Cheniere Energy Partners LP Holdings LLC | 118,462 | 3,100,151 | |
Cheniere Energy, Inc. (a) | 66,766 | 3,017,823 | |
6,117,974 | |||
TOTAL COMMON STOCKS | |||
(Cost $245,189,134) | 313,024,524 | ||
Money Market Funds - 0.4% | |||
Fidelity Cash Central Fund, 1.11% (b) | |||
(Cost $1,279,529) | 1,279,273 | 1,279,529 | |
TOTAL INVESTMENT PORTFOLIO - 100.7% | |||
(Cost $246,468,663) | 314,304,053 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (2,204,496) | ||
NET ASSETS - 100% | $312,099,557 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $23,370 |
Fidelity Securities Lending Cash Central Fund | 5,080 |
Total | $28,450 |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $245,189,134) | $313,024,524 | |
Fidelity Central Funds (cost $1,279,529) | 1,279,529 | |
Total Investments (cost $246,468,663) | $314,304,053 | |
Receivable for investments sold | 1,095,744 | |
Receivable for fund shares sold | 106,380 | |
Dividends receivable | 21,804 | |
Distributions receivable from Fidelity Central Funds | 695 | |
Other receivables | 6,945 | |
Total assets | 315,535,621 | |
Liabilities | ||
Payable for investments purchased | $2,218,108 | |
Payable for fund shares redeemed | 871,536 | |
Accrued management fee | 138,820 | |
Distribution and service plan fees payable | 98,748 | |
Other affiliated payables | 69,404 | |
Other payables and accrued expenses | 39,448 | |
Total liabilities | 3,436,064 | |
Net Assets | $312,099,557 | |
Net Assets consist of: | ||
Paid in capital | $245,878,551 | |
Undistributed net investment income | 2,020,917 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (3,635,525) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 67,835,614 | |
Net Assets | $312,099,557 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($160,039,988 ÷ 5,381,774 shares) | $29.74 | |
Maximum offering price per share (100/94.25 of $29.74) | $31.55 | |
Class M: | ||
Net Asset Value and redemption price per share ($48,152,295 ÷ 1,617,501 shares) | $29.77 | |
Maximum offering price per share (100/96.50 of $29.77) | $30.85 | |
Class C: | ||
Net Asset Value and offering price per share ($56,964,229 ÷ 1,959,457 shares)(a) | $29.07 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($46,943,045 ÷ 1,546,967 shares) | $30.35 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $9,169,616 | |
Income from Fidelity Central Funds (including $5,080 from security lending) | 28,450 | |
Total income | 9,198,066 | |
Expenses | ||
Management fee | $1,685,590 | |
Transfer agent fees | 744,497 | |
Distribution and service plan fees | 1,228,883 | |
Accounting and security lending fees | 120,319 | |
Custodian fees and expenses | 10,988 | |
Independent trustees' fees and expenses | 6,988 | |
Registration fees | 71,487 | |
Audit | 48,970 | |
Legal | 5,709 | |
Interest | 252 | |
Miscellaneous | 4,540 | |
Total expenses before reductions | 3,928,223 | |
Expense reductions | (28,252) | 3,899,971 |
Net investment income (loss) | 5,298,095 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 8,731,315 | |
Fidelity Central Funds | 1,364 | |
Foreign currency transactions | 4,571 | |
Total net realized gain (loss) | 8,737,250 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 9,995,216 | |
Assets and liabilities in foreign currencies | 343 | |
Total change in net unrealized appreciation (depreciation) | 9,995,559 | |
Net gain (loss) | 18,732,809 | |
Net increase (decrease) in net assets resulting from operations | $24,030,904 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,298,095 | $4,622,692 |
Net realized gain (loss) | 8,737,250 | (9,402,085) |
Change in net unrealized appreciation (depreciation) | 9,995,559 | 44,135,404 |
Net increase (decrease) in net assets resulting from operations | 24,030,904 | 39,356,011 |
Distributions to shareholders from net investment income | (5,090,651) | (4,356,273) |
Distributions to shareholders from net realized gain | – | (6,473,264) |
Total distributions | (5,090,651) | (10,829,537) |
Share transactions - net increase (decrease) | (74,927,988) | 66,440,496 |
Redemption fees | 11,601 | 31,604 |
Total increase (decrease) in net assets | (55,976,134) | 94,998,574 |
Net Assets | ||
Beginning of period | 368,075,691 | 273,077,117 |
End of period | $312,099,557 | $368,075,691 |
Other Information | ||
Undistributed net investment income end of period | $2,020,917 | $1,847,812 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $27.59 | $25.48 | $26.77 | $23.48 | $21.20 |
Income from Investment Operations | |||||
Net investment income (loss)A | .50 | .44 | .44 | .41 | .47 |
Net realized and unrealized gain (loss) | 2.14 | 2.75 | .18 | 3.35 | 2.24 |
Total from investment operations | 2.64 | 3.19 | .62 | 3.76 | 2.71 |
Distributions from net investment income | (.49) | (.46) | (.38) | (.46) | (.43) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.49) | (1.08)B | (1.91)C | (.47) | (.43) |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $29.74 | $27.59 | $25.48 | $26.77 | $23.48 |
Total ReturnE,F | 9.87% | 13.49% | 2.01% | 16.38% | 13.09% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.12% | 1.13% | 1.13% | 1.16% | 1.20% |
Expenses net of fee waivers, if any | 1.12% | 1.13% | 1.13% | 1.16% | 1.20% |
Expenses net of all reductions | 1.11% | 1.12% | 1.11% | 1.15% | 1.16% |
Net investment income (loss) | 1.87% | 1.78% | 1.65% | 1.64% | 2.16% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $160,040 | $178,116 | $140,148 | $154,134 | $106,851 |
Portfolio turnover rateI | 37% | 73% | 105% | 112% | 154% |
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 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 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $27.62 | $25.49 | $26.78 | $23.50 | $21.21 |
Income from Investment Operations | |||||
Net investment income (loss)A | .42 | .36 | .36 | .34 | .41 |
Net realized and unrealized gain (loss) | 2.14 | 2.77 | .18 | 3.35 | 2.25 |
Total from investment operations | 2.56 | 3.13 | .54 | 3.69 | 2.66 |
Distributions from net investment income | (.41) | (.39) | (.31) | (.40) | (.37) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.41) | (1.00) | (1.83) | (.41) | (.37) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $29.77 | $27.62 | $25.49 | $26.78 | $23.50 |
Total ReturnC,D | 9.51% | 13.19% | 1.72% | 15.99% | 12.81% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.41% | 1.43% | 1.42% | 1.45% | 1.47% |
Expenses net of fee waivers, if any | 1.41% | 1.43% | 1.42% | 1.45% | 1.47% |
Expenses net of all reductions | 1.41% | 1.42% | 1.41% | 1.44% | 1.43% |
Net investment income (loss) | 1.57% | 1.47% | 1.35% | 1.35% | 1.89% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $48,152 | $56,403 | $46,366 | $49,272 | $41,239 |
Portfolio turnover rateG | 37% | 73% | 105% | 112% | 154% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.98 | $24.91 | $26.23 | $23.03 | $20.80 |
Income from Investment Operations | |||||
Net investment income (loss)A | .29 | .25 | .23 | .23 | .31 |
Net realized and unrealized gain (loss) | 2.09 | 2.70 | .19 | 3.29 | 2.20 |
Total from investment operations | 2.38 | 2.95 | .42 | 3.52 | 2.51 |
Distributions from net investment income | (.29) | (.27) | (.22) | (.31) | (.28) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.29) | (.88) | (1.74) | (.32) | (.28) |
Redemption fees added to paid in capitalA,B | – | – | – | – | – |
Net asset value, end of period | $29.07 | $26.98 | $24.91 | $26.23 | $23.03 |
Total ReturnC,D | 9.01% | 12.64% | 1.29% | 15.52% | 12.27% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.87% | 1.88% | 1.88% | 1.89% | 1.93% |
Expenses net of fee waivers, if any | 1.87% | 1.88% | 1.88% | 1.89% | 1.93% |
Expenses net of all reductions | 1.86% | 1.88% | 1.86% | 1.88% | 1.89% |
Net investment income (loss) | 1.11% | 1.02% | .89% | .91% | 1.43% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $56,964 | $70,957 | $52,172 | $54,810 | $35,457 |
Portfolio turnover rateG | 37% | 73% | 105% | 112% | 154% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.14 | $25.97 | $27.24 | $23.87 | $21.56 |
Income from Investment Operations | |||||
Net investment income (loss)A | .59 | .53 | .52 | .51 | .55 |
Net realized and unrealized gain (loss) | 2.17 | 2.78 | .20 | 3.39 | 2.26 |
Total from investment operations | 2.76 | 3.31 | .72 | 3.90 | 2.81 |
Distributions from net investment income | (.55) | (.53) | (.46) | (.52) | (.50) |
Distributions from net realized gain | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.55) | (1.14) | (1.99)B | (.53) | (.50) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $30.35 | $28.14 | $25.97 | $27.24 | $23.87 |
Total ReturnD | 10.17% | 13.81% | 2.35% | 16.74% | 13.40% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .85% | .84% | .83% | .85% | .89% |
Expenses net of fee waivers, if any | .85% | .84% | .83% | .85% | .89% |
Expenses net of all reductions | .84% | .84% | .81% | .84% | .85% |
Net investment income (loss) | 2.14% | 2.06% | 1.94% | 1.95% | 2.46% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $46,943 | $62,600 | $31,710 | $46,135 | $19,562 |
Portfolio turnover rateG | 37% | 73% | 105% | 112% | 154% |
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 Amount represents less than $.005 per share.
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 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
For the period ended July 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 M (formerly 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, each Fund's outstanding Class B shares were converted to Class A shares. Each Fund's 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.
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, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 | Valuation Technique(s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $61,186,351 | Recovery value | Recovery value | 0.0% | Increase |
Market comparable | Transaction price | $1.98 - $150.00 / $30.63 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 3.2 | Increase | |||
Discount rate | 16.0% - 25.0% / 20.5% | Decrease | |||
Premium rate | 15.0% - 48.6% / 28.0% | Increase | |||
Probability rate | 77.0% | Increase | |||
Proxy premium | 1.9% - 76.0% / 18.5% | Increase | |||
Market approach | Transaction price | $2.15 | Increase | ||
Discount cash flow | Discount rate | 8.0% - 12.2% / 10.6% | Decrease | ||
Probability rate | 6.3% | Increase | |||
Discount for lack of marketability (DLOM) | 10.0% | Decrease |
(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 | Valuation Technique(s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $31,464,476 | Market comparable | Enterprise value/Gross profit multiple (EV/GP) | 15.2 | Increase |
Discount rate | 2.3% | Decrease | |||
Discount for lack of marketability (DLOM) | 15.0% | Decrease | |||
Market approach | Transaction price | $48.77 | 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 July 31, 2017, 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. Large, non-recurring dividends recognized by the Funds are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income 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. As of July 31, 2017, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. Fidelity Advisor Energy Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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 in-kind transactions, certain foreign taxes, passive foreign investment companies (PFIC), foreign currency transactions, partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales, excise tax regulations and expiring capital loss carryforwards.
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 | $2,450,346,214 | $820,427,358 | $(297,956,266) | $522,471,092 |
Fidelity Advisor Communications Equipment Fund | 15,042,670 | 3,931,780 | (241,691) | 3,690,089 |
Fidelity Advisor Consumer Discretionary Fund | 229,269,152 | 68,159,195 | (12,748,943) | 55,410,252 |
Fidelity Advisor Energy Fund | 885,285,321 | 92,805,286 | (66,059,961) | 26,745,325 |
Fidelity Advisor Financial Services Fund | 336,111,816 | 47,587,515 | (4,239,775) | 43,347,740 |
Fidelity Advisor Health Care Fund | 2,181,552,210 | 599,599,629 | (40,040,906) | 559,558,723 |
Fidelity Advisor Industrials Fund | 683,081,903 | 164,812,869 | (12,690,658) | 152,122,211 |
Fidelity Advisor Semiconductors Fund | 198,375,372 | 31,809,611 | (4,413,959) | 27,395,652 |
Fidelity Advisor Technology Fund | 1,146,407,092 | 507,765,425 | (15,052,612) | 492,712,813 |
Fidelity Advisor Utilities Fund | 247,131,532 | 70,169,759 | (2,997,238) | 67,172,521 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income | Undistributed long-term capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) on securities and other investments | |
Fidelity Advisor Biotechnology Fund | $- | $- | $(203,473,664) | $522,471,464 |
Fidelity Advisor Communications Equipment Fund | 181,025 | 129,405 | - | 3,690,089 |
Fidelity Advisor Consumer Discretionary Fund | - | - | (921,221) | 55,410,527 |
Fidelity Advisor Energy Fund | 10,338,928 | - | (163,895,354) | 25,640,312 |
Fidelity Advisor Financial Services Fund | 528,351 | - | (23,702,541) | 43,347,619 |
Fidelity Advisor Health Care Fund | - | - | (53,827,602) | 559,559,689 |
Fidelity Advisor Industrials Fund | 1,237,557 | 16,406,139 | - | 152,122,211 |
Fidelity Advisor Semiconductors Fund | 6,433,901 | 10,850,938 | - | 27,395,670 |
Fidelity Advisor Technology Fund | 33,958,335 | 35,545,169 | - | 492,721,717 |
Fidelity Advisor Utilities Fund | 2,020,922 | - | (2,972,656) | 67,172,745 |
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 fiscal period end and is subject to adjustment.
Fiscal year of expiration | |||
2018 | 2019 | Total with expiration | |
Fidelity Advisor Financial Services Fund | $(23,251,884) | $(450,657) | $(23,702,541) |
No expiration | ||||
Short-term | Long-term | Total no expiration | Total capital loss carryforward | |
Fidelity Advisor Biotechnology Fund | $(173,687,144) | $(29,786,520) | $(203,473,664) | $ (203,473,664) |
Fidelity Advisor Consumer Discretionary Fund | (921,221) | – | (921,221) | (921,221) |
Fidelity Advisor Energy Fund | (93,299,549) | (70,595,805) | (163,895,354) | (163,895,354) |
Fidelity Advisor Financial Services Fund | – | – | – | (23,702,541) |
Fidelity Advisor Health Care Fund | (53,827,602) | – | (53,827,602) | (53,827,602) |
Fidelity Advisor Utilities Fund | (2,972,656) | – | (2,972,656) | (2,972,656) |
Certain of the Funds elected to defer to the next fiscal year capital losses recognized during the period November 1, 2016 to July 31, 2017, and ordinary losses recognized during the period January 1, 2017 to July 31, 2017. Loss deferrals were as follows:
Capital losses | Ordinary losses | |
Fidelity Advisor Biotechnology Fund | $– | $10,028,125 |
The tax character of distributions paid was as follows:
July 31, 2017 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Fidelity Advisor Biotechnology Fund | $– | $– | $– |
Fidelity Advisor Communications Equipment Fund | 70,636 | 269,855 | 340,491 |
Fidelity Advisor Consumer Discretionary Fund | 1,067,067 | – | 1,067,067 |
Fidelity Advisor Energy Fund | 2,140,939 | – | 2,140,939 |
Fidelity Advisor Financial Services Fund | 502,160 | – | 502,160 |
Fidelity Advisor Health Care Fund | - | – | - |
Fidelity Advisor Industrials Fund | 2,760,974 | 36,711,218 | 39,472,192 |
Fidelity Advisor Semiconductors Fund | 392,430 | 190,781 | 583,211 |
Fidelity Advisor Technology Fund | 4,575,606 | 12,307,678 | 16,883,284 |
Fidelity Advisor Utilities Fund | 5,090,651 | – | 5,090,651 |
July 31, 2016 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Fidelity Advisor Biotechnology Fund | $41,819,540 | $147,502,409 | $189,321,949 |
Fidelity Advisor Communications Equipment Fund | 15,482 | 371,843 | 387,325 |
Fidelity Advisor Consumer Discretionary Fund | 425,920 | 5,484,780 | 5,910,700 |
Fidelity Advisor Energy Fund | 3,958,354 | – | 3,958,354 |
Fidelity Advisor Financial Services Fund | 1,147,313 | – | 1,147,313 |
Fidelity Advisor Health Care Fund | 111,063,622 | 89,233,020 | 200,296,642 |
Fidelity Advisor Industrials Fund | 2,537,760 | 58,090,566 | 60,628,326 |
Fidelity Advisor Semiconductors Fund | 8,269,769 | 967,612 | 9,237,381 |
Fidelity Advisor Technology Fund | 47,275,314 | 22,793,507 | 70,068,821 |
Fidelity Advisor Utilities Fund | 4,641,392 | 6,188,145 | 10,829,537 |
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.
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 $13,649,218 in this Subsidiary, representing .51% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Biotechnology Fund | 753,113,895 | 1,204,949,480 |
Fidelity Advisor Communications Equipment Fund | 17,102,215 | 12,710,868 |
Fidelity Advisor Consumer Discretionary Fund | 134,331,247 | 192,747,728 |
Fidelity Advisor Energy Fund | 905,921,521 | 917,395,760 |
Fidelity Advisor Financial Services Fund | 359,198,012 | 237,086,777 |
Fidelity Advisor Health Care Fund | 1,611,034,210 | 1,944,343,842 |
Fidelity Advisor Industrials Fund | 541,148,223 | 411,994,785 |
Fidelity Advisor Semiconductors Fund | 248,599,681 | 162,338,909 |
Fidelity Advisor Technology Fund | 1,000,326,997 | 985,713,386 |
Fidelity Advisor Utilities Fund | 115,117,897 | 184,732,399 |
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 annual 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% | .54% |
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% | $2,241,652 | $329 |
Class M | .25% | .25% | 612,944 | – |
Class C | .75% | .25% | 6,021,547 | 847,856 |
$8,876,143 | $848,185 | |||
Fidelity Advisor Communications Equipment Fund | ||||
Class A | -% | .25% | $14,608 | $142 |
Class M | .25% | .25% | 20,288 | – |
Class C | .75% | .25% | 29,769 | 2,644 |
$64,665 | $2,786 | |||
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | -% | .25% | $314,287 | $7,284 |
Class M | .25% | .25% | 134,940 | – |
Class C | .75% | .25% | 626,049 | 122,330 |
$1,075,276 | $129,614 | |||
Fidelity Advisor Energy Fund | ||||
Class A | -% | .25% | $880,920 | $– |
Class M | .25% | .25% | 754,276 | – |
Class C | .75% | .25% | 2,551,348 | 741,098 |
$4,186,544 | $741,098 | |||
Fidelity Advisor Financial Services Fund | ||||
Class A | -% | .25% | $316,372 | $6,967 |
Class M | .25% | .25% | 190,850 | – |
Class C | .75% | .25% | 723,185 | 174,577 |
$1,230,407 | $181,544 | |||
Fidelity Advisor Health Care Fund | ||||
Class A | -% | .25% | $2,402,202 | $– |
Class M | .25% | .25% | 1,315,456 | – |
Class C | .75% | .25% | 6,162,021 | 737,119 |
$9,879,679 | $737,119 | |||
Fidelity Advisor Industrials Fund | ||||
Class A | -% | .25% | $763,856 | $– |
Class M | .25% | .25% | 430,704 | – |
Class C | .75% | .25% | 1,263,296 | 159,910 |
$2,457,856 | $159,910 | |||
Fidelity Advisor Semiconductors Fund | ||||
Class A | -% | .25% | $141,584 | $– |
Class M | .25% | .25% | 70,578 | 1,304 |
Class C | .75% | .25% | 339,017 | 51,371 |
$551,179 | $52,675 | |||
Fidelity Advisor Technology Fund | ||||
Class A | -% | .25% | $1,358,447 | $– |
Class M | .25% | .25% | 1,143,870 | – |
Class C | .75% | .25% | 1,878,140 | 256,569 |
$4,380,457 | $256,569 | |||
Fidelity Advisor Utilities Fund | ||||
Class A | -% | .25% | $390,322 | $1,190 |
Class M | .25% | .25% | 239,828 | – |
Class C | .75% | .25% | 598,733 | 79,390 |
$1,228,883 | $80,580 |
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 M 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 M 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 M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Fidelity Advisor Biotechnology Fund | |
Class A | $453,027 |
Class M | 35,971 |
Class C(a) | 91,976 |
$580,974 | |
Fidelity Advisor Communications Equipment Fund | |
Class A | $5,292 |
Class M | 1,185 |
Class C(a) | 29 |
$6,506 | |
Fidelity Advisor Consumer Discretionary Fund | |
Class A | $57,778 |
Class M | 5,347 |
Class C(a) | 12,422 |
$75,547 | |
Fidelity Advisor Energy Fund | |
Class A | $185,716 |
Class M | 23,602 |
Class C(a) | 64,252 |
$273,570 | |
Fidelity Advisor Financial Services Fund | |
Class A | $127,135 |
Class M | 14,669 |
Class C(a) | 15,795 |
$157,599 | |
Fidelity Advisor Health Care Fund | |
Class A | $367,596 |
Class M | 42,064 |
Class C(a) | 66,378 |
$476,038 | |
Fidelity Advisor Industrials Fund | |
Class A | $191,100 |
Class M | 14,508 |
Class C | 13,092 |
$218,700 | |
Fidelity Advisor Semiconductors Fund | |
Class A | $125,076 |
Class M | 6,144 |
Class C(a) | 6,601 |
$137,821 | |
Fidelity Advisor Technology Fund | |
Class A | $233,119 |
Class M | 29,712 |
Class C(a) | 29,515 |
$292,346 | |
Fidelity Advisor Utilities Fund | |
Class A | $83,003 |
Class M | 9,844 |
Class C(a) | 10,496 |
$103,343 |
(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 | |
Fidelity Advisor Biotechnology Fund | ||
Class A | $1,826,894 | .20 |
Class M | 350,567 | .29 |
Class C | 1,192,961 | .20 |
Class I | 1,756,999 | .18 |
$5,127,421 | ||
Fidelity Advisor Communications Equipment Fund | ||
Class A | $17,697 | .30 |
Class M | 14,624 | .36 |
Class C | 9,461 | .32 |
Class I | 9,288 | .18 |
$51,070 | ||
Fidelity Advisor Consumer Discretionary Fund | ||
Class A | $264,032 | .21 |
Class M | 66,381 | .25 |
Class C | 131,997 | .21 |
Class I | 140,097 | .19 |
$602,507 | ||
Fidelity Advisor Energy Fund | ||
Class A | $828,915 | .24 |
Class M | 384,078 | .25 |
Class C | 534,632 | .21 |
Class I | 562,730 | .21 |
$2,310,355 | ||
Fidelity Advisor Financial Services Fund | ||
Class A | $286,623 | .23 |
Class M | 97,225 | .26 |
Class C | 162,843 | .23 |
Class I | 125,606 | .19 |
$672,297 | ||
Fidelity Advisor Health Care Fund | ||
Class A | $1,926,493 | .20 |
Class M | 584,945 | .22 |
Class C | 1,231,401 | .20 |
Class I | 1,352,187 | .19 |
$5,095,026 | ||
Fidelity Advisor Industrials Fund | ||
Class A | $609,787 | .20 |
Class M | 178,766 | .21 |
Class C | 259,120 | .21 |
Class I | 408,804 | .19 |
$1,456,477 | ||
Fidelity Advisor Semiconductors Fund | ||
Class A | $129,386 | .23 |
Class M | 47,044 | .33 |
Class C | 86,733 | .26 |
Class I | 130,989 | .19 |
$394,152 | ||
Fidelity Advisor Technology Fund | ||
Class A | $1,171,324 | .22 |
Class M | 516,579 | .23 |
Class C | 415,372 | .22 |
Class I | 664,682 | .17 |
$2,767,957 | ||
Fidelity Advisor Utilities Fund | ||
Class A | $368,106 | .24 |
Class M | 135,818 | .28 |
Class C | 143,690 | .24 |
Class I | 96,883 | .22 |
$744,497 |
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 | $52,951 |
Fidelity Advisor Communications Equipment Fund | 1,010 |
Fidelity Advisor Consumer Discretionary Fund | 2,160 |
Fidelity Advisor Energy Fund | 30,521 |
Fidelity Advisor Financial Services Fund | 6,253 |
Fidelity Advisor Health Care Fund | 47,451 |
Fidelity Advisor Industrials Fund | 17,617 |
Fidelity Advisor Semiconductors Fund | 8,052 |
Fidelity Advisor Technology Fund | 24,817 |
Fidelity Advisor Utilities Fund | 4,825 |
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 except for Fidelity Advisor Energy Fund. Fidelity Advisor Energy Fund's open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Statement of Assets and Liabilities. 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 Energy Fund | Borrower | $7,105,778 | 1.18% | $2,104 |
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 the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The 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 | $8,377 |
Fidelity Advisor Communications Equipment Fund | 58 |
Fidelity Advisor Consumer Discretionary Fund | 957 |
Fidelity Advisor Energy Fund | 3,410 |
Fidelity Advisor Financial Services Fund | 933 |
Fidelity Advisor Health Care Fund | 8,362 |
Fidelity Advisor Industrials Fund | 2,345 |
Fidelity Advisor Semiconductors Fund | 523 |
Fidelity Advisor Technology Fund | 4,381 |
Fidelity Advisor Utilities Fund | 1,024 |
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% | $22,163 |
Class M | 1.65% | 18,627 |
Class C | 2.15% | 11,988 |
Class I | 1.15% | 16,186 |
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 | $134,185 | $59 |
Fidelity Advisor Communications Equipment Fund | 943 | – |
Fidelity Advisor Energy Fund | 124,475 | 180 |
Fidelity Advisor Financial Services Fund | 7,793 | 2 |
Fidelity Advisor Health Care Fund | 53,105 | 722 |
Fidelity Advisor Industrials Fund | 32,606 | 223 |
Fidelity Advisor Semiconductors Fund | 15,668 | – |
Fidelity Advisor Technology Fund | 51,027 | – |
Fidelity Advisor Utilities Fund | 25,319 | – |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses as follows:
Fund-Level Amount | |
Fidelity Advisor Biotechnology Fund | $24,548 |
Fidelity Advisor Communications Equipment Fund | 200 |
Fidelity Advisor Consumer Discretionary Fund | 2,878 |
Fidelity Advisor Energy Fund | 11,720 |
Fidelity Advisor Financial Services Fund | 2,936 |
Fidelity Advisor Health Care Fund | 23,627 |
Fidelity Advisor Industrials Fund | 7,389 |
Fidelity Advisor Semiconductors Fund | 1,583 |
Fidelity Advisor Technology Fund | 10,757 |
Fidelity Advisor Utilities Fund | 2,933 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Fidelity Advisor Biotechnology Fund | ||
From net realized gain | ||
Class A | $– | $71,428,446 |
Class M | – | 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 | $22,884 | $– |
Class M | 7,287 | – |
Class I | 40,465 | – |
Total | $70,636 | $– |
From net realized gain | ||
Class A | $76,855 | $140,942 |
Class M | 56,397 | 120,506 |
Class B | – | 8,665 |
Class C | 45,429 | 87,907 |
Class I | 91,174 | 29,305 |
Total | $269,855 | $387,325 |
Fidelity Advisor Consumer Discretionary Fund | ||
From net investment income | ||
Class A | $574,093 | $145,315 |
Class M | 128,898 | – |
Class I | 364,076 | 280,605 |
Total | $1,067,067 | $425,920 |
From net realized gain | ||
Class A | $– | $2,490,947 |
Class M | – | 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 M | – | 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 | $877,435 | $– |
Class I | 689,184 | – |
Total | $1,566,619 | $– |
Fidelity Advisor Financial Services Fund | ||
From net investment income | ||
Class A | $277,513 | $487,874 |
Class M | 40,519 | 110,989 |
Class B | – | 2,181 |
Class C | 7,495 | 104,614 |
Class I | 176,633 | 251,888 |
Total | $502,160 | $957,546 |
From net realized gain | ||
Class A | $– | $83,636 |
Class M | – | 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 M | – | 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 M | 189,934 | 142,172 |
Class I | 1,253,589 | 1,144,151 |
Total | $2,760,974 | $2,537,760 |
From net realized gain | ||
Class A | $15,952,070 | $24,885,132 |
Class M | 4,629,029 | 6,913,270 |
Class B | – | 520,980 |
Class C | 6,747,943 | 11,465,082 |
Class I | 9,382,176 | 14,306,102 |
Total | $36,711,218 | $58,090,566 |
Fidelity Advisor Semiconductors Fund | ||
From net investment income | ||
Class A | $125,591 | $113,188 |
Class M | – | 30,107 |
Class B | – | 373 |
Class C | – | 23,745 |
Class I | 266,839 | 133,338 |
Total | $392,430 | $300,751 |
From net realized gain | ||
Class A | $63,188 | $3,392,087 |
Class M | 16,965 | 1,000,803 |
Class B | – | 31,868 |
Class C | 39,995 | 2,046,878 |
Class I | 70,633 | 2,464,994 |
Total | $190,781 | $8,936,630 |
Fidelity Advisor Technology Fund | ||
From net realized gain | ||
Class A | $7,901,048 | $20,472,702 |
Class M | 3,251,710 | 9,063,088 |
Class B | – | 374,802 |
Class C | 2,523,567 | 6,550,928 |
Class I | 3,206,959 | 33,607,301 |
Total | $16,883,284 | $70,068,821 |
Fidelity Advisor Utilities Fund | ||
From net investment income | ||
Class A | $2,833,535 | $2,494,667 |
Class M | 721,535 | 696,864 |
Class B | – | 13,894 |
Class C | 680,072 | 548,207 |
Class I | 855,509 | 602,641 |
Total | $5,090,651 | $4,356,273 |
From net realized gain | ||
Class A | $– | $3,341,067 |
Class M | – | 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 | |
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | ||||
Shares sold | 7,653,403 | 20,374,378 | $167,894,976 | $486,458,577 |
Reinvestment of distributions | – | 2,387,343 | – | 66,988,829 |
Shares redeemed | (25,942,034) | (21,904,309) | (575,800,593) | (483,498,927) |
Net increase (decrease) | (18,288,631) | 857,412 | $(407,905,617) | $69,948,479 |
Class M | ||||
Shares sold | 1,036,607 | 1,912,568 | $21,755,495 | $43,113,700 |
Reinvestment of distributions | – | 319,202 | – | 8,560,989 |
Shares redeemed | (2,006,142) | (2,294,307) | (41,093,048) | (48,667,903) |
Net increase (decrease) | (969,535) | (62,537) | $(19,337,553) | $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 | 4,574,019 | 10,596,563 | $87,561,745 | $223,026,722 |
Reinvestment of distributions | – | 1,618,886 | – | 40,002,670 |
Shares redeemed | (12,148,694) | (11,105,389) | (229,492,656) | (214,386,694) |
Net increase (decrease) | (7,574,675) | 1,110,060 | $(141,930,911) | $48,642,698 |
Class I | ||||
Shares sold | 24,415,611 | 22,589,370 | $579,987,789 | $543,276,913 |
Reinvestment of distributions | – | 1,787,031 | – | 52,663,804 |
Shares redeemed | (19,929,416) | (26,641,629) | (453,166,656) | (614,169,645) |
Net increase (decrease) | 4,486,195 | (2,265,228) | $126,821,133 | $(18,228,928) |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | ||||
Shares sold | 196,585 | 61,824 | $2,537,011 | $686,464 |
Reinvestment of distributions | 7,376 | 12,164 | 96,328 | 134,093 |
Shares redeemed | (122,799) | (81,049) | (1,616,350) | (893,648) |
Net increase (decrease) | 81,162 | (7,061) | $1,016,989 | $(73,091) |
Class M | ||||
Shares sold | 45,088 | 29,078 | $566,811 | $312,157 |
Reinvestment of distributions | 5,034 | 11,237 | 63,422 | 119,674 |
Shares redeemed | (44,106) | (56,633) | (560,530) | (598,222) |
Net increase (decrease) | 6,016 | (16,318) | $69,703 | $(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 | 86,903 | 20,424 | $1,000,007 | $201,589 |
Reinvestment of distributions | 3,816 | 8,306 | 44,267 | 81,979 |
Shares redeemed | (68,095) | (61,023) | (804,053) | (616,761) |
Net increase (decrease) | 22,624 | (32,293) | $240,221 | $(333,193) |
Class I | ||||
Shares sold | 696,847 | 32,486 | $9,244,140 | $367,475 |
Reinvestment of distributions | 9,441 | 2,247 | 127,920 | 25,646 |
Shares redeemed | (469,873) | (16,972) | (6,487,593) | (195,689) |
Net increase (decrease) | 236,415 | 17,761 | $2,884,467 | $197,432 |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | ||||
Shares sold | 1,563,667 | 4,814,381 | $33,991,245 | $96,001,482 |
Reinvestment of distributions | 25,062 | 125,818 | 533,815 | 2,487,810 |
Shares redeemed | (3,724,571) | (3,384,129) | (80,253,124) | (65,627,046) |
Net increase (decrease) | (2,135,842) | 1,556,070 | $(45,728,064) | $32,862,246 |
Class M | ||||
Shares sold | 504,914 | 467,315 | $9,997,379 | $8,759,972 |
Reinvestment of distributions | 6,315 | 29,568 | 126,233 | 549,955 |
Shares redeemed | (719,118) | (340,307) | (14,255,751) | (6,370,883) |
Net increase (decrease) | (207,889) | 156,576 | $(4,132,139) | $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 | 557,081 | 2,604,899 | $9,835,047 | $43,132,243 |
Reinvestment of distributions | – | 66,579 | – | 1,085,908 |
Shares redeemed | (1,276,483) | (1,219,501) | (22,490,171) | (19,584,504) |
Net increase (decrease) | (719,402) | 1,451,977 | $(12,655,124) | $24,633,647 |
Class I | ||||
Shares sold | 2,729,213 | 5,034,098 | $63,547,711 | $107,578,453 |
Reinvestment of distributions | 13,622 | 55,475 | 311,266 | 1,176,667 |
Shares redeemed | (2,775,350) | (3,816,680) | (63,782,352) | (80,049,247) |
Net increase (decrease) | (32,515) | 1,272,893 | $76,625 | $28,705,873 |
Fidelity Advisor Energy Fund | ||||
Class A | ||||
Shares sold | 3,731,782 | 5,025,799 | $126,063,464 | $143,627,691 |
Reinvestment of distributions | 22,919 | 66,472 | 837,681 | 1,828,245 |
Shares redeemed | (5,899,065) | (3,353,686) | (197,164,038) | (97,107,576) |
Net increase (decrease) | (2,144,364) | 1,738,585 | $(70,262,893) | $48,348,360 |
Class M | ||||
Shares sold | 633,035 | 872,793 | $21,820,862 | $25,702,490 |
Reinvestment of distributions | – | 18,373 | – | 511,190 |
Shares redeemed | (1,516,413) | (1,205,049) | (51,021,698) | (35,414,324) |
Net increase (decrease) | (883,378) | (313,883) | $(29,200,836) | $(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 | 2,155,681 | 4,491,809 | $67,036,181 | $118,552,042 |
Reinvestment of distributions | – | 7,392 | – | 181,396 |
Shares redeemed | (3,021,436) | (1,780,198) | (91,933,200) | (47,478,698) |
Net increase (decrease) | (865,755) | 2,719,003 | $(24,897,019) | $71,254,740 |
Class I | ||||
Shares sold | 7,723,732 | 4,747,633 | $275,440,495 | $143,380,782 |
Reinvestment of distributions | 27,291 | 40,692 | 1,049,878 | 1,182,189 |
Shares redeemed | (5,087,252) | (2,875,822) | (176,495,073) | (86,056,094) |
Net increase (decrease) | 2,663,771 | 1,912,503 | $99,995,300 | $58,506,877 |
Fidelity Advisor Financial Services Fund | ||||
Class A | ||||
Shares sold | 4,464,580 | 2,461,428 | $79,656,792 | $37,745,282 |
Reinvestment of distributions | 14,068 | 34,331 | 258,984 | 519,430 |
Shares redeemed | (3,395,590) | (2,437,261) | (61,313,608) | (35,887,745) |
Net increase (decrease) | 1,083,058 | 58,498 | $18,602,168 | $2,376,967 |
Class M | ||||
Shares sold | 882,368 | 329,948 | $15,952,818 | $5,036,365 |
Reinvestment of distributions | 2,145 | 8,782 | 39,121 | 131,908 |
Shares redeemed | (475,808) | (464,648) | (8,428,160) | (6,810,235) |
Net increase (decrease) | 408,705 | (125,918) | $7,563,779 | $(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 | 3,210,445 | 1,154,577 | $55,106,415 | $16,736,102 |
Reinvestment of distributions | 381 | 9,045 | 6,602 | 129,709 |
Shares redeemed | (1,427,464) | (1,103,196) | (24,008,233) | (15,422,240) |
Net increase (decrease) | 1,783,362 | 60,426 | $31,104,784 | $1,443,571 |
Class I | ||||
Shares sold | 6,135,135 | 1,492,860 | $113,873,501 | $23,191,855 |
Reinvestment of distributions | 8,203 | 13,725 | 155,027 | 212,871 |
Shares redeemed | (2,631,101) | (2,712,520) | (49,234,487) | (40,632,527) |
Net increase (decrease) | 3,512,237 | (1,205,935) | $64,794,041 | $(17,227,801) |
Fidelity Advisor Health Care Fund | ||||
Class A | ||||
Shares sold | 4,544,454 | 9,336,496 | $169,771,747 | $350,828,959 |
Reinvestment of distributions | – | 1,936,613 | – | 75,411,722 |
Shares redeemed | (13,969,231) | (11,369,542) | (524,686,394) | (411,793,615) |
Net increase (decrease) | (9,424,777) | (96,433) | $(354,914,647) | $14,447,066 |
Class M | ||||
Shares sold | 700,958 | 1,352,279 | $24,882,156 | $47,552,154 |
Reinvestment of distributions | – | 545,495 | – | 20,019,680 |
Shares redeemed | (2,005,513) | (1,905,048) | (69,983,106) | (64,841,826) |
Net increase (decrease) | (1,304,555) | (7,274) | $(45,100,950) | $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 | 3,257,257 | 6,641,532 | $99,280,372 | $205,634,061 |
Reinvestment of distributions | – | 1,474,771 | – | 47,059,934 |
Shares redeemed | (7,269,106) | (6,093,606) | (219,465,705) | (179,489,602) |
Net increase (decrease) | (4,011,849) | 2,022,697 | $(120,185,333) | $73,204,393 |
Class I | ||||
Shares sold | 12,916,139 | 10,191,430 | $530,550,261 | $405,731,198 |
Reinvestment of distributions | – | 979,448 | – | 41,117,225 |
Shares redeemed | (8,776,012) | (12,376,027) | (352,865,687) | (487,979,152) |
Net increase (decrease) | 4,140,127 | (1,205,149) | $177,684,574 | $(41,130,729) |
Fidelity Advisor Industrials Fund | ||||
Class A | ||||
Shares sold | 3,473,128 | 1,099,603 | $129,731,002 | $36,767,902 |
Reinvestment of distributions | 435,669 | 771,777 | 16,089,246 | 24,606,761 |
Shares redeemed | (3,604,639) | (3,011,685) | (134,343,693) | (100,345,381) |
Net increase (decrease) | 304,158 | (1,140,305) | $11,476,555 | $(38,970,718) |
Class M | ||||
Shares sold | 687,232 | 146,735 | $25,114,383 | $4,821,874 |
Reinvestment of distributions | 129,732 | 219,403 | 4,689,810 | 6,858,376 |
Shares redeemed | (738,370) | (513,052) | (27,015,212) | (16,678,141) |
Net increase (decrease) | 78,594 | (146,914) | $2,788,981 | $(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 | 1,417,937 | 426,741 | $47,806,010 | $12,983,156 |
Reinvestment of distributions | 173,011 | 324,873 | 5,776,837 | 9,447,456 |
Shares redeemed | (1,132,989) | (1,423,756) | (37,861,806) | (43,021,482) |
Net increase (decrease) | 457,959 | (672,142) | $15,721,041 | $(20,590,870) |
Class I | ||||
Shares sold | 6,108,219 | 1,450,552 | $239,674,929 | $51,166,989 |
Reinvestment of distributions | 241,469 | 386,271 | 9,349,688 | 12,880,051 |
Shares redeemed | (2,774,981) | (3,622,247) | (107,749,101) | (125,352,471) |
Net increase (decrease) | 3,574,707 | (1,785,424) | $141,275,516 | $(61,305,431) |
Fidelity Advisor Semiconductors Fund | ||||
Class A | ||||
Shares sold | 2,867,916 | 649,014 | $55,505,336 | $9,317,951 |
Reinvestment of distributions | 9,674 | 243,337 | 176,700 | 3,248,410 |
Shares redeemed | (1,601,800) | (1,328,391) | (31,487,416) | (18,785,248) |
Net increase (decrease) | 1,275,790 | (436,040) | $24,194,620 | $(6,218,887) |
Class M | ||||
Shares sold | 423,364 | 103,928 | $7,881,848 | $1,432,589 |
Reinvestment of distributions | 903 | 74,441 | 15,741 | 959,873 |
Shares redeemed | (261,715) | (295,752) | (5,068,409) | (3,952,788) |
Net increase (decrease) | 162,552 | (117,383) | $2,829,180 | $(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 | 1,355,856 | 367,363 | $23,363,381 | $4,677,334 |
Reinvestment of distributions | 2,356 | 160,178 | 37,856 | 1,907,126 |
Shares redeemed | (558,596) | (604,623) | (9,836,334) | (7,649,533) |
Net increase (decrease) | 799,616 | (77,082) | $13,564,903 | $(1,065,073) |
Class I | ||||
Shares sold | 4,699,271 | 790,386 | $93,678,192 | $12,303,195 |
Reinvestment of distributions | 16,678 | 135,996 | 316,449 | 1,894,884 |
Shares redeemed | (2,177,251) | (1,690,148) | (44,325,079) | (24,919,896) |
Net increase (decrease) | 2,538,698 | (763,766) | $49,669,562 | $(10,721,817) |
Fidelity Advisor Technology Fund | ||||
Class A | ||||
Shares sold | 3,055,890 | 2,819,642 | $135,662,012 | $96,436,633 |
Reinvestment of distributions | 188,871 | 590,741 | 7,435,860 | 19,252,239 |
Shares redeemed | (3,709,517) | (3,447,017) | (163,600,241) | (117,531,802) |
Net increase (decrease) | (464,756) | (36,634) | $(20,502,369) | $(1,842,930) |
Class M | ||||
Shares sold | 921,794 | 654,081 | $39,317,522 | $21,462,874 |
Reinvestment of distributions | 84,422 | 284,010 | 3,170,901 | 8,858,269 |
Shares redeemed | (1,104,127) | (1,204,815) | (45,466,739) | (39,345,718) |
Net increase (decrease) | (97,911) | (266,724) | $(2,978,316) | $(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 | 1,894,715 | 1,051,890 | $72,854,963 | $31,371,226 |
Reinvestment of distributions | 66,095 | 202,969 | 2,251,207 | 5,774,470 |
Shares redeemed | (1,274,568) | (927,337) | (49,720,750) | (27,369,639) |
Net increase (decrease) | 686,242 | 327,522 | $25,385,420 | $9,776,057 |
Class I | ||||
Shares sold | 4,625,431 | 2,328,486 | $221,194,715 | $84,913,369 |
Reinvestment of distributions | 71,165 | 955,239 | 2,988,203 | 33,041,700 |
Shares redeemed | (14,076,328)(a) | (6,751,997) | (592,265,064)(a) | (246,495,833) |
Net increase (decrease) | (9,379,732) | (3,468,272) | $(368,082,146) | $(128,540,764) |
Fidelity Advisor Utilities Fund | ||||
Class A | ||||
Shares sold | 1,163,884 | 2,397,271 | $31,313,776 | $60,596,711 |
Reinvestment of distributions | 105,052 | 240,305 | 2,653,670 | 5,414,225 |
Shares redeemed | (2,342,072) | (1,682,909) | (62,630,474) | (41,634,818) |
Net increase (decrease) | (1,073,136) | 954,667 | $(28,663,028) | $24,376,118 |
Class M | ||||
Shares sold | 188,461 | 543,660 | $5,062,955 | $14,096,302 |
Reinvestment of distributions | 26,982 | 76,233 | 683,792 | 1,721,689 |
Shares redeemed | (640,220) | (396,425) | (17,005,411) | (9,632,575) |
Net increase (decrease) | (424,777) | 223,468 | $(11,258,664) | $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 | 395,852 | 1,063,727 | $10,347,902 | $26,276,925 |
Reinvestment of distributions | 24,717 | 71,102 | 613,397 | 1,573,006 |
Shares redeemed | (1,091,078) | (599,522) | (28,375,968) | (14,443,544) |
Net increase (decrease) | (670,509) | 535,307 | $(17,414,669) | $13,406,387 |
Class I | ||||
Shares sold | 1,075,499 | 2,301,270 | $29,795,613 | $58,694,241 |
Reinvestment of distributions | 29,368 | 49,611 | 755,627 | 1,138,487 |
Shares redeemed | (1,782,322) | (1,347,589) | (48,142,867) | (34,650,031) |
Net increase (decrease) | (677,455) | 1,003,292 | $(17,591,627) | $25,182,697 |
(a) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details)
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and the Shareholders of 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:
We have audited the accompanying statements of assets and liabilities of 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), each a fund of Fidelity Advisor Series VII, including the schedules of investments, as of July 31, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of 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 and Fidelity Advisor Utilities Fund as of July 31, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Each of the Trustees oversees 90 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's sector portfolios. Other Boards oversee Fidelity's equity and high income funds, and Fidelity's investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Brian B. Hogan (1964)
Year of Election or Appointment: 2014
Trustee
Chairman of the Board of Trustees
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
David A. Rosow (1942)
Year of Election or Appointment: 2013
Trustee
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed the oil refining, drilling and marketing of petroleum products (including specialty petroleum products), recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present) and serves as its President and CEO. Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006. Mr. Rosow served as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to Fidelity SelectCo, LLC (SelectCo), 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Donald F. Donahue (1950)
Year of Election or Appointment: 2015
Member of the Advisory Board
Mr. Donahue also serves as a Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2013
President and Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Joseph DeSantis (1959)
Year of Election or Appointment: 2015
Vice President
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
James D. Gryglewicz (1972)
Year of Election or Appointment: 2014
Chief Compliance Officer
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Anthony R. Rochte (1968)
Year of Election or Appointment: 2013
Vice President
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors' North American Intermediary Business Group (2006-2012).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a 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 Funds 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 (February 1, 2017 to July 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 February 1, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During Period-B February 1, 2017 to July 31, 2017 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $1,162.10 | $5.58 | |
Hypothetical-C | $1,000.00 | $1,019.64 | $5.21 | |
Class M | 1.37% | |||
Actual | $1,000.00 | $1,160.40 | $7.34 | |
Hypothetical-C | $1,000.00 | $1,018.00 | $6.85 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,158.20 | $9.53 | |
Hypothetical-C | $1,000.00 | $1,015.97 | $8.90 | |
Class I | .77% | |||
Actual | $1,000.00 | $1,163.70 | $4.13 | |
Hypothetical-C | $1,000.00 | $1,020.98 | $3.86 | |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | 1.40% | |||
Actual | $1,000.00 | $1,084.80 | 7.24 | |
Hypothetical-C | $1,000.00 | 1,017.85 | 7.00 | |
Class M | 1.65% | |||
Actual | $1,000.00 | $1,083.00 | $8.52 | |
Hypothetical-C | $1,000.00 | $1,016.61 | $8.25 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,081.30 | 11.10 | |
Hypothetical-C | $1,000.00 | 1,014.13 | 10.74 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,086.30 | 5.95 | |
Hypothetical-C | $1,000.00 | 1,019.09 | 5.76 | |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $1,067.50 | $5.54 | |
Hypothetical-C | $1,000.00 | $1,019.44 | $5.41 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $1,066.00 | $6.97 | |
Hypothetical-C | $1,000.00 | $1,018.05 | $6.81 | |
Class C | 1.83% | |||
Actual | $1,000.00 | $1,063.60 | $9.36 | |
Hypothetical-C | $1,000.00 | $1,015.72 | $9.15 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,069.00 | $4.21 | |
Hypothetical-C | $1,000.00 | $1,020.73 | $4.11 | |
Fidelity Advisor Energy Fund | ||||
Class A | 1.09% | |||
Actual | $1,000.00 | $866.30 | $5.04 | |
Hypothetical-C | $1,000.00 | $1,019.39 | $5.46 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $864.90 | $6.29 | |
Hypothetical-C | $1,000.00 | $1,018.05 | $6.81 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $863.30 | $8.36 | |
Hypothetical-C | $1,000.00 | $1,015.82 | $9.05 | |
Class I | .81% | |||
Actual | $1,000.00 | $867.30 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,020.78 | $4.06 | |
Fidelity Advisor Financial Services Fund | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $1,069.50 | $5.54 | |
Hypothetical-C | $1,000.00 | $1,019.44 | $5.41 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $1,068.50 | $6.98 | |
Hypothetical-C | $1,000.00 | $1,018.05 | $6.81 | |
Class C | 1.84% | |||
Actual | $1,000.00 | $1,065.70 | $9.42 | |
Hypothetical-C | $1,000.00 | $1,015.67 | $9.20 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,070.80 | $4.21 | |
Hypothetical-C | $1,000.00 | $1,020.73 | $4.11 | |
Fidelity Advisor Health Care Fund | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $1,154.50 | $5.56 | |
Hypothetical-C | $1,000.00 | $1,019.64 | $5.21 | |
Class M | 1.31% | |||
Actual | $1,000.00 | $1,153.10 | $6.99 | |
Hypothetical-C | $1,000.00 | $1,018.30 | $6.56 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,150.30 | $9.49 | |
Hypothetical-C | $1,000.00 | $1,015.97 | $8.90 | |
Class I | .77% | |||
Actual | $1,000.00 | $1,156.00 | $4.12 | |
Hypothetical-C | $1,000.00 | $1,020.98 | $3.86 | |
Fidelity Advisor Industrials Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $1,029.60 | $5.28 | |
Hypothetical-C | $1,000.00 | $1,019.59 | $5.26 | |
Class M | 1.31% | |||
Actual | $1,000.00 | $1,028.00 | $6.59 | |
Hypothetical-C | $1,000.00 | $1,018.30 | $6.56 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $1,025.60 | $9.09 | |
Hypothetical-C | $1,000.00 | $1,015.82 | $9.05 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,030.80 | $3.98 | |
Hypothetical-C | $1,000.00 | $1,020.88 | $3.96 | |
Fidelity Advisor Semiconductors Fund | ||||
Class A | 1.12% | |||
Actual | $1,000.00 | $1,106.20 | $5.85 | |
Hypothetical-C | $1,000.00 | $1,019.24 | $5.61 | |
Class M | 1.47% | |||
Actual | $1,000.00 | $1,103.60 | $7.67 | |
Hypothetical-C | $1,000.00 | $1,017.50 | $7.35 | |
Class C | 1.90% | |||
Actual | $1,000.00 | $1,101.50 | $9.90 | |
Hypothetical-C | $1,000.00 | $1,015.37 | $9.49 | |
Class I | .84% | |||
Actual | $1,000.00 | $1,107.50 | $4.39 | |
Hypothetical-C | $1,000.00 | $1,020.63 | $4.21 | |
Fidelity Advisor Technology Fund | ||||
Class A | 1.06% | |||
Actual | $1,000.00 | $1,253.50 | $5.92 | |
Hypothetical-C | $1,000.00 | $1,019.54 | $5.31 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,252.00 | $7.37 | |
Hypothetical-C | $1,000.00 | $1,018.25 | $6.61 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $1,248.90 | $10.09 | |
Hypothetical-C | $1,000.00 | $1,015.82 | $9.05 | |
Class I | .78% | |||
Actual | $1,000.00 | $1,255.40 | $4.36 | |
Hypothetical-C | $1,000.00 | $1,020.93 | $3.91 | |
Fidelity Advisor Utilities Fund | ||||
Class A | 1.10% | |||
Actual | $1,000.00 | $1,133.00 | $5.82 | |
Hypothetical-C | $1,000.00 | $1,019.34 | $5.51 | |
Class M | 1.39% | |||
Actual | $1,000.00 | $1,131.10 | $7.34 | |
Hypothetical-C | $1,000.00 | $1,017.90 | $6.95 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,128.50 | $9.76 | |
Hypothetical-C | $1,000.00 | $1,015.62 | $9.25 | |
Class I | .83% | |||
Actual | $1,000.00 | $1,134.60 | $4.39 | |
Hypothetical-C | $1,000.00 | $1,020.68 | $4.16 |
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 181/ 365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 31, 2017, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Advisor Biotechnology Fund | $0 |
Fidelity Advisor Communications Equipment Fund | $128,999 |
Fidelity Advisor Consumer Discretionary Fund | $0 |
Fidelity Advisor Energy Fund | $0 |
Fidelity Advisor Financial Services Fund | $0 |
Fidelity Advisor Health Care Fund | $0 |
Fidelity Advisor Industrials Fund | $30,925,821 |
Fidelity Advisor Semiconductors Fund | $11,041,720 |
Fidelity Advisor Technology Fund | $47,852,847 |
Fidelity Advisor Utilities Fund | $0 |
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:
Class A | Class M | Class C | Class I | |
Fidelity Advisor Biotechnology Fund | ||||
December, 2016 | 0% | 0% | 0% | 0% |
Fidelity Advisor Communications Equipment Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Consumer Discretionary Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Energy Fund | ||||
December, 2016 | 100% | 0% | 0% | 100% |
Fidelity Advisor Financial Services Fund | ||||
December, 2016 | 100% | 100% | 100% | 100% |
Fidelity Advisor Health Care Fund | ||||
December, 2016 | 0% | 0% | 0% | 0% |
Fidelity Advisor Industrials Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Semiconductors Fund | ||||
December, 2016 | 100% | 0% | 0% | 100% |
Fidelity Advisor Technology Fund | ||||
December, 2016 | 65% | 81% | 100% | 66% |
Fidelity Advisor Utilities Fund | ||||
December, 2016 | 100% | 100% | 100% | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Class A | Class M | Class C | Class I | |
Fidelity Advisor Biotechnology Fund | ||||
December, 2016 | 0% | 0% | 0% | 0% |
Fidelity Advisor Communications Equipment Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Consumer Discretionary Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Energy Fund | ||||
December, 2016 | 100% | 0% | 0% | 100% |
Fidelity Advisor Financial Services Fund | ||||
December, 2016 | 100% | 100% | 100% | 100% |
Fidelity Advisor Health Care Fund | ||||
December, 2016 | 0% | 0% | 0% | 0% |
Fidelity Advisor Industrials Fund | ||||
December, 2016 | 100% | 100% | 0% | 100% |
Fidelity Advisor Semiconductors Fund | ||||
December, 2016 | 100% | 0% | 0% | 100% |
Fidelity Advisor Technology Fund | ||||
December, 2016 | 97% | 100% | 100% | 98% |
Fidelity Advisor Utilities Fund | ||||
December, 2016 | 100% | 100% | 100% | 100% |
The funds will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
AFOC-ANN-0917
1.762411.116
Fidelity Advisor® Global Real Estate Fund Class A, Class M (formerly Class T), Class C and Class I Annual Report July 31, 2017 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity Advisor® Global Real Estate Fund will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Global Real Estate Fund - Class A on August 11, 2016, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the FTSE EPRA/NAREIT Developed Index performed over the same period.
Period Ending Values | ||
$9,331 | Fidelity Advisor® Global Real Estate Fund - Class A | |
$9,960 | FTSE EPRA/NAREIT Developed Index |
Management's Discussion of Fund Performance
Market Recap: The fundamental backdrop for global real estate securities – the balance of supply and demand for commercial property – remained positive for the 12 months ending July 31, 2017, even if the market’s rate of improvement this period trailed that of previous years. Nevertheless, the FTSE® EPRA℠/NAREIT® Developed Index – a proxy for global real estate securities – returned -1.93%. Though negative, this result meaningfully outpaced the market decline of U.S. real estate investment trusts (REITs) – as measured by the Dow Jones U.S. Select Real Estate Securities Index℠ – whose -5.66% return was shaped most notably by weakness among retail-property owners struggling to manage difficult business conditions for tenants. Throughout the period, we saw a large gap between the best- and worst-performing global real estate sectors, with the offices (-4%) and diversified (-7%) groups joining retail (-22%) as the biggest laggards. Meanwhile, the hotels (+5%) and industrial segments (+7%) were strong performers, with the latter benefiting from a global shift in favor of e-commerce and increased demand for specialized distribution facilities. Regionally, only Asia Pacific ex Japan (+2%), Europe (+1%) and the U.K. (+1%) notched gains.Comments from Portfolio Manager Steven Buller: For the period from the fund’s inception date of August 11, 2016, through its fiscal year end on July 31, 2017, the fund’s share classes (excluding sales charges, if applicable) returned about -1% to -2%, lagging the -0.40% result of the benchmark FTSE® EPRASM/NAREIT® Developed Index. On a country basis, the fund was hampered most by positioning in Hong Kong, where a combination of unfavorable security selection and an underweighting in this strong-performing market detracted on a benchmark-relative basis. Subpar security selection in Canada also hampered results, as did some untimely investments in Sweden. On the positive side, our picks in the United States – which made up more than half of the benchmark – and Australia contributed, as did the fund’s overweighting in strong-performing Austria. In industry terms, meanwhile, the fund was hurt by disappointing stock picking among real estate developers and diversified real estate companies. Results were mixed in both the retail and the industrial categories; in each group, security selection was negative but the effect was more than offset by our decision to underweight retail REITs and to overweight industrial REITs. The fund’s biggest individual detractor this period was Spirit Realty Capital, a U.S.-based “triple net” REIT, while our top contributor was Buwog, an Austria-based owner and developer of apartment properties.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Prologis, Inc. | 3.5 | 3.3 |
Ventas, Inc. | 3.0 | 2.5 |
UDR, Inc. | 2.8 | 2.8 |
Simon Property Group, Inc. | 2.7 | 2.3 |
Mitsubishi Estate Co. Ltd. | 2.6 | 2.4 |
Duke Realty Corp. | 2.6 | 3.3 |
Boston Properties, Inc. | 2.3 | 2.4 |
Mitsui Fudosan Co. Ltd. | 2.3 | 2.1 |
Welltower, Inc. | 2.3 | 1.6 |
Public Storage | 2.2 | 3.6 |
26.3 |
Top Five Countries as of July 31, 2017
(excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
United States of America | 51.3 | 54.6 |
Japan | 10.8 | 10.5 |
United Kingdom | 6.0 | 2.6 |
Australia | 5.9 | 4.9 |
Hong Kong | 4.2 | 5.6 |
Top Five REIT Sectors as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
REITs - Apartments | 10.8 | 9.4 |
REITs - Diversified | 9.3 | 8.1 |
REITs - Office Property | 7.8 | 6.0 |
REITs - Health Care | 7.2 | 6.2 |
REITs - Warehouse/Industrial | 6.4 | 6.0 |
Asset Allocation (% of fund's net assets)
As of July 31, 2017* | ||
Stocks | 96.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.7% |
* Foreign investments - 45.0%
As of January 31, 2017 * | ||
Stocks | 95.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.0% |
* Foreign investments - 40.4%
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 96.3% | |||
Shares | Value | ||
Australia - 5.9% | |||
Abacus Property Group unit | 6,465 | $16,085 | |
Goodman Group unit | 7,630 | 48,588 | |
Ingenia Communities Group unit | 14,054 | 28,895 | |
National Storage (REIT) unit | 18,955 | 22,670 | |
Propertylink Group unit | 34,000 | 22,576 | |
The GPT Group unit | 7,120 | 27,284 | |
TOTAL AUSTRALIA | 166,098 | ||
Austria - 1.9% | |||
BUWOG-Gemeinnuetzige Wohnung | 1,812 | 53,272 | |
Canada - 1.0% | |||
Smart (REIT) | 1,074 | 27,015 | |
Cyprus - 0.5% | |||
Aroundtown Property Holdings PLC | 2,529 | 14,969 | |
France - 1.8% | |||
Gecina SA rights 8/2/17 (a) | 315 | 935 | |
Unibail-Rodamco | 199 | 49,789 | |
TOTAL FRANCE | 50,724 | ||
Germany - 3.5% | |||
LEG Immobilien AG | 533 | 51,291 | |
Vonovia SE | 1,150 | 46,634 | |
TOTAL GERMANY | 97,925 | ||
Hong Kong - 4.2% | |||
Henderson Land Development Co. Ltd. | 3,730 | 21,585 | |
Sino Land Ltd. | 26,400 | 43,601 | |
Sun Hung Kai Properties Ltd. | 3,450 | 53,445 | |
TOTAL HONG KONG | 118,631 | ||
Ireland - 2.7% | |||
Hibernia (REIT) PLC | 32,100 | 53,314 | |
Irish Residential Properties REIT PLC | 14,000 | 22,208 | |
TOTAL IRELAND | 75,522 | ||
Japan - 10.8% | |||
Advance Residence Investment Corp. | 11 | 26,880 | |
Ichigo, Inc. | 7,000 | 21,398 | |
Japan Senior Living Investment Corp. | 9 | 11,886 | |
Kenedix Office Investment Corp. | 5 | 28,255 | |
Kenedix Retail REIT Corp. | 10 | 21,942 | |
Mitsubishi Estate Co. Ltd. | 4,080 | 74,239 | |
Mitsui Fudosan Co. Ltd. | 2,810 | 64,601 | |
NTT Urban Development Co. | 2,100 | 21,506 | |
ORIX JREIT, Inc. | 21 | 31,887 | |
TOTAL JAPAN | 302,594 | ||
Mexico - 0.3% | |||
Terrafina | 4,200 | 7,314 | |
Singapore - 3.8% | |||
Mapletree Commercial Trust | 22,000 | 26,056 | |
Parkway Life REIT | 20,600 | 41,195 | |
UOL Group Ltd. | 6,900 | 40,173 | |
TOTAL SINGAPORE | 107,424 | ||
Spain - 2.4% | |||
Hispania Activos Inmobiliarios SA | 1,345 | 24,265 | |
Inmobiliaria Colonial SA | 4,224 | 39,498 | |
Neinor Homes SLU | 210 | 4,863 | |
TOTAL SPAIN | 68,626 | ||
Sweden - 0.2% | |||
Castellum AB | 400 | 6,218 | |
United Kingdom - 6.0% | |||
British Land Co. PLC | 6,770 | 54,532 | |
Derwent London PLC | 999 | 37,539 | |
Londonmetric Properity PLC | 14,495 | 32,187 | |
Tritax Big Box REIT PLC | 13,275 | 26,238 | |
U & I Group PLC | 7,153 | 17,766 | |
TOTAL UNITED KINGDOM | 168,262 | ||
United States of America - 51.3% | |||
American Homes 4 Rent Class A | 1,211 | 27,865 | |
Apartment Investment & Management Co. Class A | 689 | 31,384 | |
AvalonBay Communities, Inc. | 289 | 55,589 | |
Boston Properties, Inc. | 546 | 66,017 | |
Brandywine Realty Trust (SBI) | 1,606 | 26,997 | |
Brixmor Property Group, Inc. | 1,027 | 20,119 | |
Camden Property Trust (SBI) | 189 | 16,953 | |
Cousins Properties, Inc. | 1,725 | 15,853 | |
DCT Industrial Trust, Inc. | 883 | 49,748 | |
DDR Corp. | 586 | 5,971 | |
DiamondRock Hospitality Co. | 1,655 | 19,330 | |
Digital Realty Trust, Inc. | 449 | 51,788 | |
Duke Realty Corp. | 2,516 | 71,932 | |
Equity Lifestyle Properties, Inc. | 649 | 56,658 | |
Equity Residential (SBI) | 436 | 29,674 | |
Essex Property Trust, Inc. | 130 | 34,021 | |
Extra Space Storage, Inc. | 485 | 38,558 | |
Gaming & Leisure Properties | 580 | 22,005 | |
GDS Holdings Ltd. ADR | 1,100 | 10,296 | |
General Growth Properties, Inc. | 2,229 | 50,398 | |
Gramercy Property Trust | 1,073 | 32,426 | |
Host Hotels & Resorts, Inc. | 1,840 | 34,334 | |
Hudson Pacific Properties, Inc. | 702 | 22,969 | |
Invitation Homes, Inc. | 221 | 4,712 | |
Kimco Realty Corp. | 1,155 | 23,308 | |
Prologis, Inc. | 1,610 | 97,905 | |
Public Storage | 303 | 62,288 | |
Regency Centers Corp. | 296 | 19,601 | |
Safety Income and Growth, Inc. | 200 | 3,720 | |
Simon Property Group, Inc. | 475 | 75,288 | |
SL Green Realty Corp. | 254 | 26,231 | |
Spirit Realty Capital, Inc. | 1,300 | 10,309 | |
Sun Communities, Inc. | 405 | 36,049 | |
The Macerich Co. | 202 | 11,593 | |
UDR, Inc. | 2,034 | 79,509 | |
Urban Edge Properties | 340 | 8,544 | |
Ventas, Inc. | 1,240 | 83,514 | |
VEREIT, Inc. | 5,142 | 42,730 | |
Welltower, Inc. | 871 | 63,923 | |
TOTAL UNITED STATES OF AMERICA | 1,440,109 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,661,762) | 2,704,703 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund, 1.11% (b) | |||
(Cost $41,979) | 41,971 | 41,979 | |
TOTAL INVESTMENT PORTFOLIO - 97.8% | |||
(Cost $2,703,741) | 2,746,682 | ||
NET OTHER ASSETS (LIABILITIES) - 2.2% | 60,565 | ||
NET ASSETS - 100% | $2,807,247 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $459 |
Total | $459 |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $2,661,762) | $2,704,703 | |
Fidelity Central Funds (cost $41,979) | 41,979 | |
Total Investments (cost $2,703,741) | $2,746,682 | |
Cash | 30,337 | |
Receivable for investments sold | 36,330 | |
Receivable for fund shares sold | 36 | |
Dividends receivable | 6,070 | |
Distributions receivable from Fidelity Central Funds | 23 | |
Receivable from investment adviser for expense reductions | 42,103 | |
Other receivables | 57 | |
Total assets | 2,861,638 | |
Liabilities | ||
Payable for investments purchased | $3,669 | |
Accrued management fee | 1,593 | |
Distribution and service plan fees payable | 962 | |
Other affiliated payables | 423 | |
Other payables and accrued expenses | 47,744 | |
Total liabilities | 54,391 | |
Net Assets | $2,807,247 | |
Net Assets consist of: | ||
Paid in capital | $2,831,098 | |
Undistributed net investment income | 18,064 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (85,043) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 43,128 | |
Net Assets | $2,807,247 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($657,073 ÷ 66,993 shares) | $9.81 | |
Maximum offering price per share (100/94.25 of $9.81) | $10.41 | |
Class M: | ||
Net Asset Value and redemption price per share ($549,882 ÷ 56,142 shares) | $9.79 | |
Maximum offering price per share (100/96.50 of $9.79) | $10.15 | |
Class C: | ||
Net Asset Value and offering price per share ($737,089 ÷ 75,499 shares)(a) | $9.76 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($863,203 ÷ 87,879 shares) | $9.82 |
(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 July 31, 2017 | ||
Investment Income | ||
Dividends | $74,987 | |
Interest | 43 | |
Income from Fidelity Central Funds | 459 | |
Income before foreign taxes withheld | 75,489 | |
Less foreign taxes withheld | (2,626) | |
Total income | 72,863 | |
Expenses | ||
Management fee | $16,753 | |
Transfer agent fees | 3,206 | |
Distribution and service plan fees | 9,874 | |
Accounting fees and expenses | 936 | |
Custodian fees and expenses | 27,956 | |
Independent trustees' fees and expenses | 51 | |
Registration fees | 107,713 | |
Audit | 52,290 | |
Legal | 21 | |
Miscellaneous | 232 | |
Total expenses before reductions | 219,032 | |
Expense reductions | (181,891) | 37,141 |
Net investment income (loss) | 35,722 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (84,151) | |
Fidelity Central Funds | 5 | |
Foreign currency transactions | 1,430 | |
Total net realized gain (loss) | (82,716) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities | 42,941 | |
Assets and liabilities in foreign currencies | 187 | |
Total change in net unrealized appreciation (depreciation) | 43,128 | |
Net gain (loss) | (39,588) | |
Net increase (decrease) in net assets resulting from operations | $(3,866) |
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 July 31, 2017 | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income (loss) | $35,722 |
Net realized gain (loss) | (82,716) |
Change in net unrealized appreciation (depreciation) | 43,128 |
Net increase (decrease) in net assets resulting from operations | (3,866) |
Distributions to shareholders from net investment income | (17,656) |
Distributions to shareholders from net realized gain | (2,329) |
Total distributions | (19,985) |
Share transactions - net increase (decrease) | 2,831,098 |
Total increase (decrease) in net assets | 2,807,247 |
Net Assets | |
Beginning of period | – |
End of period | $2,807,247 |
Other Information | |
Undistributed net investment income end of period | $18,064 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class A
Years ended July 31, | 2017 A |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .15 |
Net realized and unrealized gain (loss) | (.26) |
Total from investment operations | (.11) |
Distributions from net investment income | (.07) |
Distributions from net realized gain | (.01) |
Total distributions | (.08) |
Net asset value, end of period | $9.81 |
Total ReturnC,D,E | (1.00)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 8.94%H |
Expenses net of fee waivers, if any | 1.40%H |
Expenses net of all reductions | 1.39%H |
Net investment income (loss) | 1.65%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $657 |
Portfolio turnover rateI | 59%H |
A For the period August 11, 2016 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class M
Years ended July 31, | 2017 A |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .13 |
Net realized and unrealized gain (loss) | (.27) |
Total from investment operations | (.14) |
Distributions from net investment income | (.06) |
Distributions from net realized gain | (.01) |
Total distributions | (.07) |
Net asset value, end of period | $9.79 |
Total ReturnC,D,E | (1.30)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 9.20%H |
Expenses net of fee waivers, if any | 1.65%H |
Expenses net of all reductions | 1.64%H |
Net investment income (loss) | 1.40%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $550 |
Portfolio turnover rateI | 59%H |
A For the period August 11, 2016 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class C
Years ended July 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) | (.26) |
Total from investment operations | (.18) |
Distributions from net investment income | (.05) |
Distributions from net realized gain | (.01) |
Total distributions | (.06) |
Net asset value, end of period | $9.76 |
Total ReturnC,D,E | (1.77)% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | 9.75%H |
Expenses net of fee waivers, if any | 2.15%H |
Expenses net of all reductions | 2.14%H |
Net investment income (loss) | .90%H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $737 |
Portfolio turnover rateI | 59%H |
A For the period August 11, 2016 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Real Estate Fund Class I
Years ended July 31, | 2017 A |
Selected Per–Share Data | |
Net asset value, beginning of period | $10.00 |
Income from Investment Operations | |
Net investment income (loss)B | .17 |
Net realized and unrealized gain (loss) | (.26) |
Total from investment operations | (.09) |
Distributions from net investment income | (.08) |
Distributions from net realized gain | (.01) |
Total distributions | (.09) |
Net asset value, end of period | $9.82 |
Total ReturnC,D | (.80)% |
Ratios to Average Net AssetsE,F | |
Expenses before reductions | 8.74%G |
Expenses net of fee waivers, if any | 1.15%G |
Expenses net of all reductions | 1.14%G |
Net investment income (loss) | 1.90%G |
Supplemental Data | |
Net assets, end of period (000 omitted) | $863 |
Portfolio turnover rateH | 59%G |
A For the period August 11, 2016 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 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 M (formerly 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
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 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 July 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. As of July 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $144,547 |
Gross unrealized depreciation | (137,873) |
Net unrealized appreciation (depreciation) on securities | $6,674 |
Tax Cost | $2,740,008 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $– |
Undistributed ordinary income | $51,122 |
Capital loss carryforward | $(81,834) |
Net unrealized appreciation (depreciation) on securities and other investments | $6,863 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(81,834) |
The tax character of distributions paid was as follows:
July 31, 2017(a) | |
Ordinary Income | $19,985 |
Long-term Capital Gains | – |
Total | $19,985 |
(a) For the period August 11, 2016 (commencement of operations) to July 31, 2017.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,156,285 and $1,391,448, 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% | $1,501 | $1,144 |
Class M | .25% | .25% | 2,392 | 2,282 |
Class C | .75% | .25% | 5,981 | 5,931 |
$9,874 | $9,357 |
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 M 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 M 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 M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $1,311 |
Class M | 37 |
Class C(a) | – |
$1,348 |
(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 | $947 | .16 |
Class M | 667 | .14 |
Class C | 732 | .12 |
Class I | 860 | .12 |
$3,206 |
(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 $62 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 $3 and is reflected in Miscellaneous expenses on the Statement of Operations.
7. 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% | $45,139 |
Class M | 1.65% | 36,017 |
Class C | 2.15% | 45,305 |
Class I | 1.15% | 55,175 |
$181,636 |
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 $153 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 $79.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $23.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 31, 2017(a) | |
From net investment income | |
Class A | $4,562 |
Class M | 3,316 |
Class C | 3,067 |
Class I | 6,711 |
Total | $17,656 |
From net realized gain | |
Class A | $562 |
Class M | 466 |
Class C | 563 |
Class I | 738 |
Total | $2,329 |
(a) For the period August 11, 2016 (commencement of operations) to July 31, 2017.
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Dollars | |
Year ended July 31, 2017(a) | Year ended July 31, 2017(a) | |
Class A | ||
Shares sold | 81,755 | $803,455 |
Reinvestment of distributions | 575 | 5,124 |
Shares redeemed | (15,337) | (141,193) |
Net increase (decrease) | 66,993 | $667,386 |
Class M | ||
Shares sold | 55,940 | $555,479 |
Reinvestment of distributions | 424 | 3,782 |
Shares redeemed | (222) | (2,000) |
Net increase (decrease) | 56,142 | $557,261 |
Class C | ||
Shares sold | 75,177 | $736,227 |
Reinvestment of distributions | 335 | 2,984 |
Shares redeemed | (13) | (118) |
Net increase (decrease) | 75,499 | $739,093 |
Class I | ||
Shares sold | 89,258 | $880,092 |
Reinvestment of distributions | 835 | 7,448 |
Shares redeemed | (2,214) | (20,182) |
Net increase (decrease) | 87,879 | $867,358 |
(a) For the period August 11, 2016 (commencement of operations) to July 31, 2017.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 77% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and Shareholders of Fidelity Advisor Global Real Estate Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Global Real Estate Fund (the Fund), a fund of Fidelity Advisor Series VII, including the schedule of investments, as of July 31, 2017, and the related statement of operations, the statement of changes in net assets and the financial highlights for the period from August 11, 2016 (commencement of operations) to July 31, 2017. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Global Real Estate Fund as of July 31, 2017, and the results of its operations, the changes in its net assets and the financial highlights for the period from August 11, 2016 (commencement of operations) to July 31, 2017, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 90 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's sector portfolios. Other Boards oversee Fidelity's equity and high income funds, and Fidelity's investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through SelectCo, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Brian B. Hogan (1964)
Year of Election or Appointment: 2014
Trustee
Chairman of the Board of Trustees
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
David A. Rosow (1942)
Year of Election or Appointment: 2013
Trustee
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed the oil refining, drilling and marketing of petroleum products (including specialty petroleum products), recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present) and serves as its President and CEO. Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006. Mr. Rosow served as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to Fidelity SelectCo, LLC (SelectCo), 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Donald F. Donahue (1950)
Year of Election or Appointment: 2015
Member of the Advisory Board
Mr. Donahue also serves as a Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2013
President and Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Joseph DeSantis (1959)
Year of Election or Appointment: 2015
Vice President
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
James D. Gryglewicz (1972)
Year of Election or Appointment: 2014
Chief Compliance Officer
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Anthony R. Rochte (1968)
Year of Election or Appointment: 2013
Vice President
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors' North American Intermediary Business Group (2006-2012).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (February 1, 2017 to July 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 February 1, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During Period-B February 1, 2017 to July 31, 2017 | |
Class A | 1.40% | |||
Actual | $1,000.00 | $1,081.60 | $7.23 | |
Hypothetical-C | $1,000.00 | $1,017.80 | $7.00 | |
Class M | 1.65% | |||
Actual | $1,000.00 | $1,079.40 | $8.51 | |
Hypothetical-C | $1,000.00 | $1,016.56 | $8.25 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,077.30 | $11.07 | |
Hypothetical-C | $1,000.00 | $1,014.08 | $10.74 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,082.70 | $5.94 | |
Hypothetical-C | $1,000.00 | $1,019.04 | $5.76 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AGRE-ANN-0917
1.9881280.100
Fidelity Advisor® Real Estate Fund Class A, Class M (formerly Class T), Class C and Class I Annual Report July 31, 2017 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (11.06)% | 6.91% | 5.83% |
Class M (incl. 3.50% sales charge) | (9.12)% | 7.17% | 5.83% |
Class C (incl. contingent deferred sales charge) | (7.22)% | 7.37% | 5.66% |
Class I | (5.36)% | 8.46% | 6.74% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Real Estate Fund - Class A on July 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$17,625 | Fidelity Advisor® Real Estate Fund - Class A | |
$21,073 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.Comments from Portfolio Manager Samuel Wald: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned about -5% and -6%, roughly in line with the -5.66% return of the Dow Jones U.S. Select Real Estate Securities Index℠. Compared with the real estate index, underweighting retail REITs (real estate investment trusts) added value, despite subpar stock picking there. In this group, the fund was hurt by relative overweightings in Pennsylvania Real Estate Investment Trust, DDR and Cedar Realty Trust, although not owning certain poor-performing benchmark components, such as Kimco Realty and Macerich, helped results. Elsewhere, the fund benefited from strongly positive results in categories such as the catch-all real estate-related group, which houses many of the fund's non-benchmark holdings, and the hotels group. We also outperformed among self-storage REITs. On an individual basis, the fund benefited from overweighting industrial REIT DCT Industrial Trust, one of the beneficiaries of a global shift toward e-commerce. Tempering that contribution, though, was our substantial underexposure to Prologis, whose risk/reward trade-off we found less appealing than that of DCT and various other industrial REIT competitors. Of final note, among our investments in data-center REITs, out-of-index exposure to Equinix and CoreSite helped results, although an underweight in Digital Realty Trust and our lack of exposure to benchmark component DuPont Fabros Technology were corresponding negatives. Neither Digital Realty nor Pennsylvania Real Estate Investment was in the fund at period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
AvalonBay Communities, Inc. | 6.2 | 5.6 |
Simon Property Group, Inc. | 5.4 | 10.2 |
Ventas, Inc. | 5.3 | 5.1 |
Boston Properties, Inc. | 5.1 | 5.0 |
Extra Space Storage, Inc. | 4.4 | 4.2 |
Mid-America Apartment Communities, Inc. | 4.1 | 3.7 |
Essex Property Trust, Inc. | 4.1 | 2.8 |
Welltower, Inc. | 3.7 | 2.3 |
General Growth Properties, Inc. | 3.2 | 1.3 |
Public Storage | 3.2 | 3.9 |
44.7 |
Top Five REIT Sectors as of July 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
REITs - Apartments | 20.3 | 18.1 |
REITs - Office Property | 16.3 | 14.9 |
REITs - Health Care | 11.6 | 11.1 |
REITs - Regional Malls | 9.5 | 14.4 |
REITs - Storage | 7.6 | 8.1 |
Asset Allocation (% of fund's net assets)
As of July 31, 2017 | ||
Stocks | 98.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
As of January 31, 2017 | ||
Stocks | 99.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value | ||
Equity Real Estate Investment Trusts (REITs) - 96.9% | |||
REITs - Apartments - 20.3% | |||
American Homes 4 Rent Class A | 817,800 | $18,817,578 | |
AvalonBay Communities, Inc. | 278,040 | 53,480,995 | |
Education Realty Trust, Inc. | 183,900 | 6,905,445 | |
Equity Residential (SBI) | 371,609 | 25,291,709 | |
Essex Property Trust, Inc. | 134,647 | 35,237,120 | |
Mid-America Apartment Communities, Inc. | 343,649 | 35,577,981 | |
175,310,828 | |||
REITs - Diversified - 7.4% | |||
Corrections Corp. of America | 130,000 | 3,601,000 | |
Duke Realty Corp. | 796,500 | 22,771,935 | |
Equinix, Inc. | 46,500 | 20,958,945 | |
Vornado Realty Trust | 23,483 | 1,863,376 | |
Washington REIT (SBI) | 448,300 | 14,986,669 | |
64,181,925 | |||
REITs - Health Care - 11.6% | |||
Healthcare Realty Trust, Inc. | 484,500 | 16,133,850 | |
Sabra Health Care REIT, Inc. (a) | 247,861 | 5,750,375 | |
Ventas, Inc. | 681,205 | 45,879,157 | |
Welltower, Inc. | 443,319 | 32,535,181 | |
100,298,563 | |||
REITs - Hotels - 5.8% | |||
DiamondRock Hospitality Co. | 1,229,850 | 14,364,648 | |
Host Hotels & Resorts, Inc. | 958,334 | 17,882,512 | |
Sunstone Hotel Investors, Inc. | 1,076,100 | 17,518,908 | |
49,766,068 | |||
REITs - Management/Investment - 3.5% | |||
American Assets Trust, Inc. | 189,800 | 7,707,778 | |
American Tower Corp. | 17,500 | 2,385,775 | |
CoreSite Realty Corp. | 132,400 | 14,375,992 | |
Empire State Realty Trust, Inc. | 293,500 | 6,131,215 | |
30,600,760 | |||
REITs - Manufactured Homes - 2.6% | |||
Equity Lifestyle Properties, Inc. | 252,503 | 22,043,512 | |
REITs - Office Property - 16.3% | |||
Boston Properties, Inc. | 364,947 | 44,125,742 | |
Corporate Office Properties Trust (SBI) | 477,400 | 15,892,646 | |
Douglas Emmett, Inc. | 580,600 | 22,213,756 | |
Highwoods Properties, Inc. (SBI) | 336,200 | 17,321,024 | |
Hudson Pacific Properties, Inc. | 641,300 | 20,983,336 | |
Mack-Cali Realty Corp. | 239,122 | 6,274,561 | |
SL Green Realty Corp. | 136,300 | 14,075,701 | |
140,886,766 | |||
REITs - Regional Malls - 9.5% | |||
General Growth Properties, Inc. | 1,238,300 | 27,997,963 | |
Simon Property Group, Inc. | 291,850 | 46,258,225 | |
Taubman Centers, Inc. | 143,500 | 8,160,845 | |
82,417,033 | |||
REITs - Shopping Centers - 5.1% | |||
Acadia Realty Trust (SBI) | 177,600 | 5,281,824 | |
Cedar Realty Trust, Inc. | 1,282,058 | 6,641,060 | |
DDR Corp. | 894,000 | 9,109,860 | |
Urban Edge Properties | 931,441 | 23,407,112 | |
44,439,856 | |||
REITs - Storage - 7.6% | |||
Extra Space Storage, Inc. | 471,800 | 37,508,100 | |
Public Storage | 135,450 | 27,844,457 | |
65,352,557 | |||
REITs - Warehouse/Industrial - 7.0% | |||
DCT Industrial Trust, Inc. | 491,966 | 27,717,364 | |
Prologis, Inc. | 409,277 | 24,888,134 | |
Terreno Realty Corp. | 239,980 | 8,308,108 | |
60,913,606 | |||
Specialized REITs - 0.2% | |||
Safety Income and Growth, Inc. | 111,500 | 2,073,900 | |
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 838,285,374 | ||
Hotels, Restaurants & Leisure - 1.5% | |||
Hotels, Resorts & Cruise Lines - 1.5% | |||
Marriott International, Inc. Class A | 125,100 | 13,034,169 | |
TOTAL COMMON STOCKS | |||
(Cost $674,899,318) | 851,319,543 | ||
Money Market Funds - 2.2% | |||
Fidelity Cash Central Fund, 1.11% (b) | 16,091,144 | 16,094,362 | |
Fidelity Securities Lending Cash Central Fund 1.11% (b)(c) | 2,436,506 | 2,436,750 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $18,531,112) | 18,531,112 | ||
TOTAL INVESTMENT PORTFOLIO - 100.6% | |||
(Cost $693,430,430) | 869,850,655 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (4,994,635) | ||
NET ASSETS - 100% | $864,856,020 |
Legend
(a) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(c) 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 | $66,719 |
Fidelity Securities Lending Cash Central Fund | 2,317 |
Total | $69,036 |
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
July 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,380,320) — See accompanying schedule: Unaffiliated issuers (cost $674,899,318) | $851,319,543 | |
Fidelity Central Funds (cost $18,531,112) | 18,531,112 | |
Total Investments (cost $693,430,430) | $869,850,655 | |
Receivable for investments sold | 7,461,497 | |
Receivable for fund shares sold | 470,611 | |
Dividends receivable | 34,046 | |
Distributions receivable from Fidelity Central Funds | 14,647 | |
Other receivables | 75,988 | |
Total assets | 877,907,444 | |
Liabilities | ||
Payable for investments purchased | $6,120,568 | |
Payable for fund shares redeemed | 3,649,514 | |
Accrued management fee | 391,704 | |
Distribution and service plan fees payable | 168,303 | |
Other affiliated payables | 186,865 | |
Other payables and accrued expenses | 97,720 | |
Collateral on securities loaned | 2,436,750 | |
Total liabilities | 13,051,424 | |
Net Assets | $864,856,020 | |
Net Assets consist of: | ||
Paid in capital | $664,545,575 | |
Undistributed net investment income | 3,115,350 | |
Accumulated undistributed net realized gain (loss) on investments | 20,774,870 | |
Net unrealized appreciation (depreciation) on investments | 176,420,225 | |
Net Assets | $864,856,020 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($249,441,775 ÷ 10,864,562 shares) | $22.96 | |
Maximum offering price per share (100/94.25 of $22.96) | $24.36 | |
Class M: | ||
Net Asset Value and redemption price per share ($153,284,502 ÷ 6,681,974 shares) | $22.94 | |
Maximum offering price per share (100/96.50 of $22.94) | $23.77 | |
Class C: | ||
Net Asset Value and offering price per share ($62,551,295 ÷ 2,785,283 shares)(a) | $22.46 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($399,578,448 ÷ 17,246,976 shares) | $23.17 |
(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
Year ended July 31, 2017 | ||
Investment Income | ||
Dividends | $22,746,082 | |
Income from Fidelity Central Funds | 69,036 | |
Total income | 22,815,118 | |
Expenses | ||
Management fee | $4,975,458 | |
Transfer agent fees | 2,064,752 | |
Distribution and service plan fees | 2,317,762 | |
Accounting and security lending fees | 307,694 | |
Custodian fees and expenses | 48,769 | |
Independent trustees' fees and expenses | 20,634 | |
Registration fees | 105,156 | |
Audit | 54,556 | |
Legal | 12,983 | |
Miscellaneous | 13,690 | |
Total expenses before reductions | 9,921,454 | |
Expense reductions | (89,990) | 9,831,464 |
Net investment income (loss) | 12,983,654 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 50,440,735 | |
Fidelity Central Funds | 951 | |
Total net realized gain (loss) | 50,441,686 | |
Change in net unrealized appreciation (depreciation) on investment securities | (127,656,753) | |
Net gain (loss) | (77,215,067) | |
Net increase (decrease) in net assets resulting from operations | $(64,231,413) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2017 | Year ended July 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,983,654 | $15,064,030 |
Net realized gain (loss) | 50,441,686 | 29,473,051 |
Change in net unrealized appreciation (depreciation) | (127,656,753) | 119,116,271 |
Net increase (decrease) in net assets resulting from operations | (64,231,413) | 163,653,352 |
Distributions to shareholders from net investment income | (12,016,018) | (14,426,839) |
Distributions to shareholders from net realized gain | (47,681,990) | (23,588,298) |
Total distributions | (59,698,008) | (38,015,137) |
Share transactions - net increase (decrease) | (90,656,092) | 25,518,551 |
Total increase (decrease) in net assets | (214,585,513) | 151,156,766 |
Net Assets | ||
Beginning of period | 1,079,441,533 | 928,284,767 |
End of period | $864,856,020 | $1,079,441,533 |
Other Information | ||
Undistributed net investment income end of period | $3,115,350 | $2,886,835 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class A
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.93 | $22.90 | $22.57 | $20.92 | $19.83 |
Income from Investment Operations | |||||
Net investment income (loss)A | .33 | .37 | .30 | .31 | .22 |
Net realized and unrealized gain (loss) | (1.82) | 3.61 | 1.82 | 2.13 | 1.27 |
Total from investment operations | (1.49) | 3.98 | 2.12 | 2.44 | 1.49 |
Distributions from net investment income | (.30) | (.36) | (.30) | (.27) | (.23) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.48) | (.95) | (1.79) | (.79) | (.40) |
Net asset value, end of period | $22.96 | $25.93 | $22.90 | $22.57 | $20.92 |
Total ReturnB,C | (5.63)% | 18.33% | 9.70% | 12.34% | 7.66% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.09% | 1.09% | 1.10% | 1.16% | 1.17% |
Expenses net of fee waivers, if any | 1.09% | 1.09% | 1.10% | 1.16% | 1.17% |
Expenses net of all reductions | 1.08% | 1.08% | 1.09% | 1.15% | 1.16% |
Net investment income (loss) | 1.42% | 1.62% | 1.32% | 1.47% | 1.06% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $249,442 | $370,408 | $327,489 | $274,136 | $246,323 |
Portfolio turnover rateF | 69% | 62% | 57% | 83% | 63% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F 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 M
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.90 | $22.88 | $22.55 | $20.91 | $19.82 |
Income from Investment Operations | |||||
Net investment income (loss)A | .27 | .32 | .25 | .26 | .17 |
Net realized and unrealized gain (loss) | (1.81) | 3.60 | 1.82 | 2.13 | 1.28 |
Total from investment operations | (1.54) | 3.92 | 2.07 | 2.39 | 1.45 |
Distributions from net investment income | (.24) | (.30) | (.25) | (.23) | (.19) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.42) | (.90)B | (1.74) | (.75) | (.36) |
Net asset value, end of period | $22.94 | $25.90 | $22.88 | $22.55 | $20.91 |
Total ReturnC,D | (5.83)% | 18.02% | 9.46% | 12.07% | 7.43% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.33% | 1.33% | 1.34% | 1.37% | 1.38% |
Expenses net of fee waivers, if any | 1.33% | 1.33% | 1.34% | 1.37% | 1.38% |
Expenses net of all reductions | 1.32% | 1.32% | 1.33% | 1.36% | 1.38% |
Net investment income (loss) | 1.18% | 1.38% | 1.09% | 1.26% | .85% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $153,285 | $199,431 | $168,375 | $138,783 | $114,717 |
Portfolio turnover rateG | 69% | 62% | 57% | 83% | 63% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E 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 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.43 | $22.49 | $22.23 | $20.61 | $19.55 |
Income from Investment Operations | |||||
Net investment income (loss)A | .15 | .19 | .13 | .15 | .07 |
Net realized and unrealized gain (loss) | (1.78) | 3.54 | 1.78 | 2.10 | 1.26 |
Total from investment operations | (1.63) | 3.73 | 1.91 | 2.25 | 1.33 |
Distributions from net investment income | (.16) | (.20) | (.16) | (.11) | (.10) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.34) | (.79) | (1.65) | (.63) | (.27) |
Net asset value, end of period | $22.46 | $25.43 | $22.49 | $22.23 | $20.61 |
Total ReturnB,C | (6.34)% | 17.40% | 8.85% | 11.52% | 6.89% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.86% | 1.86% | 1.87% | 1.90% | 1.90% |
Expenses net of fee waivers, if any | 1.86% | 1.86% | 1.87% | 1.90% | 1.90% |
Expenses net of all reductions | 1.86% | 1.85% | 1.86% | 1.89% | 1.89% |
Net investment income (loss) | .65% | .85% | .56% | .73% | .33% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $62,551 | $86,755 | $79,291 | $64,822 | $75,461 |
Portfolio turnover rateF | 69% | 62% | 57% | 83% | 63% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F 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
Years ended July 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $26.15 | $23.09 | $22.74 | $21.07 | $19.97 |
Income from Investment Operations | |||||
Net investment income (loss)A | .39 | .43 | .36 | .36 | .28 |
Net realized and unrealized gain (loss) | (1.83) | 3.64 | 1.83 | 2.15 | 1.27 |
Total from investment operations | (1.44) | 4.07 | 2.19 | 2.51 | 1.55 |
Distributions from net investment income | (.36) | (.41) | (.35) | (.32) | (.28) |
Distributions from net realized gain | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.54) | (1.01)B | (1.84) | (.84) | (.45) |
Net asset value, end of period | $23.17 | $26.15 | $23.09 | $22.74 | $21.07 |
Total ReturnC | (5.36)% | 18.61% | 9.99% | 12.64% | 7.92% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .82% | .84% | .85% | .89% | .90% |
Expenses net of fee waivers, if any | .82% | .83% | .85% | .89% | .90% |
Expenses net of all reductions | .81% | .83% | .84% | .88% | .89% |
Net investment income (loss) | 1.69% | 1.87% | 1.57% | 1.74% | 1.33% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $399,578 | $422,848 | $349,301 | $298,932 | $305,619 |
Portfolio turnover rateF | 69% | 62% | 57% | 83% | 63% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F 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
For the period ended July 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 M (formerly 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.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. As of July 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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 | $186,759,548 |
Gross unrealized depreciation | (13,279,458) |
Net unrealized appreciation (depreciation) on securities | $173,480,090 |
Tax Cost | $696,370,565 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $3,162,178 |
Undistributed long-term capital gain | $23,715,006 |
Net unrealized appreciation (depreciation) on securities and other investments | $173,480,090 |
The tax character of distributions paid was as follows:
July 31, 2017 | July 31, 2016 | |
Ordinary Income | $12,016,018 | $ 14,426,839 |
Long-term Capital Gains | 47,681,990 | 23,588,298 |
Total | $59,698,008 | $ 38,015,137 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $626,449,292 and $751,798,161, 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 annual 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% | $748,731 | $6,419 |
Class M | .25% | .25% | 850,472 | – |
Class C | .75% | .25% | 718,559 | 72,045 |
$2,317,762 | $78,464 |
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 M 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 M 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 M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $56,635 |
Class M | 7,744 |
Class C(a) | 8,891 |
$73,270 |
(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 | |
Class A | $703,264 | .23 |
Class M | 373,559 | .22 |
Class C | 186,326 | .26 |
Class I | 801,603 | .22 |
$2,064,752 |
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 $8,279 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 $3,024 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $2,317.
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 $81,103 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8,887.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 31, 2017 | Year ended July 31, 2016 | |
From net investment income | ||
Class A | $4,093,430 | $5,067,842 |
Class M | 1,850,037 | 2,282,274 |
Class B | – | 23,309 |
Class C | 523,780 | 668,898 |
Class I | 5,548,771 | 6,384,516 |
Total | $12,016,018 | $14,426,839 |
From net realized gain | ||
Class A | $16,499,323 | $8,321,843 |
Class M | 8,976,938 | 4,346,704 |
Class B | – | 96,771 |
Class C | 3,942,806 | 2,036,085 |
Class I | 18,262,923 | 8,786,895 |
Total | $47,681,990 | $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 | |
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |
Class A | ||||
Shares sold | 2,873,672 | 4,736,671 | $66,336,642 | $108,878,379 |
Reinvestment of distributions | 875,188 | 609,681 | 19,973,289 | 12,982,247 |
Shares redeemed | (7,171,585) | (5,361,287) | (163,182,157) | (121,804,208) |
Net increase (decrease) | (3,422,725) | (14,935) | $(76,872,226) | $56,418 |
Class M | ||||
Shares sold | 1,097,966 | 1,880,765 | $25,270,280 | $42,893,613 |
Reinvestment of distributions | 466,802 | 305,958 | 10,646,212 | 6,498,077 |
Shares redeemed | (2,581,646) | (1,847,070) | (58,846,191) | (42,128,667) |
Net increase (decrease) | (1,016,878) | 339,653 | $(22,929,699) | $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 | 434,716 | 728,624 | $9,891,189 | $16,601,869 |
Reinvestment of distributions | 186,230 | 120,168 | 4,173,962 | 2,492,064 |
Shares redeemed | (1,247,114) | (963,362) | (27,771,413) | (21,459,688) |
Net increase (decrease) | (626,168) | (114,570) | $(13,706,262) | $(2,365,755) |
Class I | ||||
Shares sold | 9,790,992 | 6,231,007 | $223,594,423 | $143,673,256 |
Reinvestment of distributions | 869,513 | 571,386 | 20,031,574 | 12,312,697 |
Shares redeemed | (9,584,158) | (5,761,958) | (220,773,902) | (131,492,963) |
Net increase (decrease) | 1,076,347 | 1,040,435 | $22,852,095 | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and Shareholders of Fidelity Advisor Real Estate Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Real Estate Fund (the Fund), a fund of Fidelity Advisor Series VII, including the schedule of investments, as of July 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Real Estate Fund as of July 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 90 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's sector portfolios. Other Boards oversee Fidelity's equity and high income funds, and Fidelity's investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through SelectCo, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Brian B. Hogan (1964)
Year of Election or Appointment: 2014
Trustee
Chairman of the Board of Trustees
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
David A. Rosow (1942)
Year of Election or Appointment: 2013
Trustee
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed the oil refining, drilling and marketing of petroleum products (including specialty petroleum products), recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present) and serves as its President and CEO. Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006. Mr. Rosow served as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to Fidelity SelectCo, LLC (SelectCo), 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Donald F. Donahue (1950)
Year of Election or Appointment: 2015
Member of the Advisory Board
Mr. Donahue also serves as a Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2013
President and Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Joseph DeSantis (1959)
Year of Election or Appointment: 2015
Vice President
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
James D. Gryglewicz (1972)
Year of Election or Appointment: 2014
Chief Compliance Officer
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Anthony R. Rochte (1968)
Year of Election or Appointment: 2013
Vice President
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors' North American Intermediary Business Group (2006-2012).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (February 1, 2017 to July 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 February 1, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During Period-B February 1, 2017 to July 31, 2017 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $1,036.20 | $5.50 | |
Hypothetical-C | $1,000.00 | $1,019.39 | $5.46 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,035.20 | $6.66 | |
Hypothetical-C | $1,000.00 | $1,018.25 | $6.61 | |
Class C | 1.86% | |||
Actual | $1,000.00 | $1,032.20 | $9.37 | |
Hypothetical-C | $1,000.00 | $1,015.57 | $9.30 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,037.50 | $4.14 | |
Hypothetical-C | $1,000.00 | $1,020.73 | $4.11 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2017, $50,132,071, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.03% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
ARE-ANN-0917
1.789690.114
Item 2.
Code of Ethics
As of the end of the period, July 31, 2017, Fidelity Advisor Series VII (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that David A. Rosow is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Rosow is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to 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 Global Real Estate Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Real Estate Fund, Fidelity Advisor Semiconductors Fund, Fidelity Advisor Technology Fund, and Fidelity Advisor Utilities Fund (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2017 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $43,000 | $100 | $4,900 | $1,300 |
Fidelity Advisor Communications Equipment Fund | $38,000 | $100 | $4,900 | $1,100 |
Fidelity Advisor Consumer Discretionary Fund | $36,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Energy Fund | $38,000 | $100 | $7,200 | $1,200 |
Fidelity Advisor Financial Services Fund | $38,000 | $100 | $7,000 | $1,200 |
Fidelity Advisor Global Real Estate Fund | $39,000 | $100 | $6,300 | $1,100 |
Fidelity Advisor Health Care Fund | $38,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Industrials Fund | $37,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Real Estate Fund | $41,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Semiconductors Fund | $36,000 | $100 | $5,200 | $1,100 |
Fidelity Advisor Technology Fund | $40,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Utilities Fund | $36,000 | $100 | $6,100 | $1,100 |
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July 31, 2016 FeesA,B,C
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $59,000 | $100 | $5,100 | $1,300 |
Fidelity Advisor Communications Equipment Fund | $38,000 | $- | $4,900 | $900 |
Fidelity Advisor Consumer Discretionary Fund | $36,000 | $- | $6,100 | $900 |
Fidelity Advisor Energy Fund | $38,000 | $100 | $7,300 | $1,000 |
Fidelity Advisor Financial Services Fund | $38,000 | $- | $6,900 | $1,000 |
Fidelity Advisor Global Real Estate Fund | $- | $- | $- | $- |
Fidelity Advisor Health Care Fund | $38,000 | $100 | $6,200 | $1,200 |
Fidelity Advisor Industrials Fund | $37,000 | $- | $6,100 | $1,000 |
Fidelity Advisor Real Estate Fund | $41,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Semiconductors Fund | $36,000 | $- | $5,200 | $900 |
Fidelity Advisor Technology Fund | $53,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Utilities Fund | $36,000 | $- | $6,400 | $900 |
A Amounts may reflect rounding.
B Fidelity Advisor Global Real Estate Fund commenced operations on August 11, 2016.
C Certain amounts have been reclassified to align with current period presentation.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity SelectCo, LLC (“SelectCo”) and entities controlling, controlled by, or under common control with SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| July 31, 2017A,B | July 31, 2016A,B |
Audit-Related Fees | $- | $35,000 |
Tax Fees | $25,000 | $10,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Advisor Global Real Estate Fund’s commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | July 31, 2017A,B | July 31, 2016A,B |
Deloitte Entities | $450,000 | $155,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Advisor Global Real Estate Fund’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and SelectCo’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
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 trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s 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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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: | September 26, 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: | September 26, 2017 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | September 26, 2017 |