UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3010
Fidelity Advisor Series VII
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
Date of reporting period: | January 31, 2018 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Real Estate Fund Semi-Annual Report January 31, 2018 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Simon Property Group, Inc. | 6.9 |
AvalonBay Communities, Inc. | 5.7 |
Boston Properties, Inc. | 5.2 |
Ventas, Inc. | 4.5 |
Essex Property Trust, Inc. | 4.1 |
Public Storage | 4.0 |
Extra Space Storage, Inc. | 3.7 |
Prologis, Inc. | 3.4 |
DCT Industrial Trust, Inc. | 3.4 |
SL Green Realty Corp. | 3.2 |
44.1 |
Top Five REIT Sectors as of January 31, 2018
% of fund's net assets | |
REITs - Apartments | 18.6 |
REITs - Office Property | 17.0 |
REITs - Regional Malls | 11.2 |
REITs - Health Care | 9.1 |
REITs - Diversified | 9.1 |
Asset Allocation (% of fund's net assets)
As of January 31, 2018* | ||
Stocks | 99.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 0.4%
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Equity Real Estate Investment Trusts (REITs) - 98.5% | |||
REITs - Apartments - 18.6% | |||
American Homes 4 Rent Class A | 774,100 | $16,093,539 | |
AvalonBay Communities, Inc. | 246,140 | 41,942,256 | |
Education Realty Trust, Inc. | 301,900 | 9,971,757 | |
Equity Residential (SBI) | 253,209 | 15,600,206 | |
Essex Property Trust, Inc. | 130,547 | 30,414,840 | |
Mid-America Apartment Communities, Inc. | 240,049 | 22,893,473 | |
136,916,071 | |||
REITs - Diversified - 9.1% | |||
Corrections Corp. of America | 114,700 | 2,662,187 | |
Digital Realty Trust, Inc. | 85,000 | 9,515,750 | |
Duke Realty Corp. | 734,200 | 19,390,222 | |
Equinix, Inc. | 42,000 | 19,117,980 | |
Washington REIT (SBI) | 557,400 | 15,975,084 | |
66,661,223 | |||
REITs - Health Care - 9.1% | |||
Healthcare Realty Trust, Inc. | 478,100 | 14,280,847 | |
Sabra Health Care REIT, Inc. | 113,561 | 2,055,454 | |
Ventas, Inc. | 583,905 | 32,681,163 | |
Welltower, Inc. | 299,319 | 17,950,160 | |
66,967,624 | |||
REITs - Hotels - 7.8% | |||
DiamondRock Hospitality Co. | 1,448,350 | 17,032,596 | |
Host Hotels & Resorts, Inc. | 1,074,334 | 22,303,174 | |
Sunstone Hotel Investors, Inc. | 1,068,800 | 18,009,280 | |
57,345,050 | |||
REITs - Management/Investment - 1.3% | |||
American Assets Trust, Inc. | 172,800 | 6,092,928 | |
American Tower Corp. | 25,300 | 3,736,810 | |
9,829,738 | |||
REITs - Manufactured Homes - 2.8% | |||
Equity Lifestyle Properties, Inc. | 236,503 | 20,414,939 | |
REITs - Office Property - 17.0% | |||
Boston Properties, Inc. | 305,447 | 37,786,848 | |
Corporate Office Properties Trust (SBI) | 354,700 | 9,683,310 | |
Douglas Emmett, Inc. | 459,700 | 17,776,599 | |
Highwoods Properties, Inc. (SBI) | 387,700 | 18,563,076 | |
Hudson Pacific Properties, Inc. | 551,400 | 17,628,258 | |
SL Green Realty Corp. | 235,900 | 23,712,668 | |
125,150,759 | |||
REITs - Regional Malls - 11.2% | |||
General Growth Properties, Inc. | 528,800 | 12,178,264 | |
Simon Property Group, Inc. | 310,850 | 50,783,565 | |
Taubman Centers, Inc. | 126,300 | 7,786,395 | |
The Macerich Co. | 175,000 | 11,299,750 | |
82,047,974 | |||
REITs - Shopping Centers - 5.6% | |||
Acadia Realty Trust (SBI) | 356,944 | 8,766,545 | |
Cedar Realty Trust, Inc. | 1,022,770 | 5,226,355 | |
DDR Corp. | 923,900 | 7,502,068 | |
Urban Edge Properties | 828,841 | 19,378,303 | |
40,873,271 | |||
REITs - Storage - 7.7% | |||
Extra Space Storage, Inc. | 332,300 | 27,740,404 | |
Public Storage | 149,450 | 29,256,332 | |
56,996,736 | |||
REITs - Warehouse/Industrial - 8.2% | |||
Americold Realty Trust (a) | 220,800 | 4,036,224 | |
DCT Industrial Trust, Inc. | 420,566 | 24,893,302 | |
Prologis, Inc. | 382,477 | 24,903,077 | |
Rexford Industrial Realty, Inc. | 164,200 | 4,875,098 | |
Terreno Realty Corp. | 51,180 | 1,822,008 | |
60,529,709 | |||
Specialized REITs - 0.1% | |||
Safety Income and Growth, Inc. | 38,800 | 683,268 | |
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 724,416,362 | ||
Hotels, Restaurants & Leisure - 0.1% | |||
Hotels, Resorts & Cruise Lines - 0.1% | |||
Marriott International, Inc. Class A | 8,000 | 1,178,720 | |
Real Estate Management & Development - 0.7% | |||
Real Estate Development - 0.3% | |||
Howard Hughes Corp. (a) | 18,600 | 2,342,856 | |
Real Estate Operating Companies - 0.4% | |||
Vonovia SE | 52,500 | 2,588,352 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 4,931,208 | ||
TOTAL COMMON STOCKS | |||
(Cost $604,561,420) | 730,526,290 | ||
Money Market Funds - 0.9% | |||
Fidelity Cash Central Fund, 1.39% (b) | |||
(Cost $6,403,822) | 6,402,542 | 6,403,822 | |
TOTAL INVESTMENT IN SECURITIES - 100.2% | |||
(Cost $610,965,242) | 736,930,112 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (1,631,601) | ||
NET ASSETS - 100% | $735,298,511 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $48,435 |
Fidelity Securities Lending Cash Central Fund | 1,116 |
Total | $49,551 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $604,561,420) | $730,526,290 | |
Fidelity Central Funds (cost $6,403,822) | 6,403,822 | |
Total Investment in Securities (cost $610,965,242) | $736,930,112 | |
Receivable for investments sold | 1,868,063 | |
Receivable for fund shares sold | 483,640 | |
Dividends receivable | 117,741 | |
Distributions receivable from Fidelity Central Funds | 4,730 | |
Prepaid expenses | 3,450 | |
Other receivables | 78,027 | |
Total assets | 739,485,763 | |
Liabilities | ||
Payable for investments purchased | $1,337,289 | |
Payable for fund shares redeemed | 2,080,034 | |
Accrued management fee | 336,516 | |
Distribution and service plan fees payable | 138,783 | |
Other affiliated payables | 164,212 | |
Other payables and accrued expenses | 130,418 | |
Total liabilities | 4,187,252 | |
Net Assets | $735,298,511 | |
Net Assets consist of: | ||
Paid in capital | $604,514,495 | |
Distributions in excess of net investment income | (1,127,274) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 5,946,466 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 125,964,824 | |
Net Assets | $735,298,511 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($191,957,861 ÷ 9,146,578 shares) | $20.99 | |
Maximum offering price per share (100/94.25 of $20.99) | $22.27 | |
Class M: | ||
Net Asset Value and redemption price per share ($129,767,937 ÷ 6,187,746 shares) | $20.97 | |
Maximum offering price per share (100/96.50 of $20.97) | $21.73 | |
Class C: | ||
Net Asset Value and offering price per share ($49,181,127 ÷ 2,397,295 shares)(a) | $20.52 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($364,391,586 ÷ 17,204,018 shares) | $21.18 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $10,532,103 | |
Income from Fidelity Central Funds | 49,551 | |
Total income | 10,581,654 | |
Expenses | ||
Management fee | $2,201,180 | |
Transfer agent fees | 901,438 | |
Distribution and service plan fees | 923,087 | |
Accounting and security lending fees | 140,230 | |
Custodian fees and expenses | 14,179 | |
Independent trustees' fees and expenses | 9,122 | |
Registration fees | 28,177 | |
Audit | 25,756 | |
Legal | 7,456 | |
Miscellaneous | 42,042 | |
Total expenses before reductions | 4,292,667 | |
Expense reductions | (26,218) | 4,266,449 |
Net investment income (loss) | 6,315,205 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 23,110,678 | |
Fidelity Central Funds | 295 | |
Foreign currency transactions | 3,746 | |
Total net realized gain (loss) | 23,114,719 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (50,455,355) | |
Assets and liabilities in foreign currencies | (46) | |
Total change in net unrealized appreciation (depreciation) | (50,455,401) | |
Net gain (loss) | (27,340,682) | |
Net increase (decrease) in net assets resulting from operations | $(21,025,477) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,315,205 | $12,983,654 |
Net realized gain (loss) | 23,114,719 | 50,441,686 |
Change in net unrealized appreciation (depreciation) | (50,455,401) | (127,656,753) |
Net increase (decrease) in net assets resulting from operations | (21,025,477) | (64,231,413) |
Distributions to shareholders from net investment income | (10,557,829) | (12,016,018) |
Distributions to shareholders from net realized gain | (37,943,123) | (47,681,990) |
Total distributions | (48,500,952) | (59,698,008) |
Share transactions - net increase (decrease) | (60,031,080) | (90,656,092) |
Total increase (decrease) in net assets | (129,557,509) | (214,585,513) |
Net Assets | ||
Beginning of period | 864,856,020 | 1,079,441,533 |
End of period | $735,298,511 | $864,856,020 |
Other Information | ||
Undistributed net investment income end of period | $– | $3,115,350 |
Distributions in excess of net investment income end of period | $(1,127,274) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Real Estate Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.96 | $25.93 | $22.90 | $22.57 | $20.92 | $19.83 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17 | .33 | .37 | .30 | .31 | .22 |
Net realized and unrealized gain (loss) | (.74) | (1.82) | 3.61 | 1.82 | 2.13 | 1.27 |
Total from investment operations | (.57) | (1.49) | 3.98 | 2.12 | 2.44 | 1.49 |
Distributions from net investment income | (.29) | (.30) | (.36) | (.30) | (.27) | (.23) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.40) | (1.48) | (.95) | (1.79) | (.79) | (.40) |
Net asset value, end of period | $20.99 | $22.96 | $25.93 | $22.90 | $22.57 | $20.92 |
Total ReturnB,C,D | (2.75)% | (5.63)% | 18.33% | 9.70% | 12.34% | 7.66% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.09%G | 1.09% | 1.09% | 1.10% | 1.16% | 1.17% |
Expenses net of fee waivers, if any | 1.09%G | 1.09% | 1.09% | 1.10% | 1.16% | 1.17% |
Expenses net of all reductions | 1.09%G | 1.08% | 1.08% | 1.09% | 1.15% | 1.16% |
Net investment income (loss) | 1.52%G | 1.42% | 1.62% | 1.32% | 1.47% | 1.06% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $191,958 | $249,442 | $370,408 | $327,489 | $274,136 | $246,323 |
Portfolio turnover rateH | 39%G | 69% | 62% | 57% | 83% | 63% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the 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 Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.94 | $25.90 | $22.88 | $22.55 | $20.91 | $19.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .14 | .27 | .32 | .25 | .26 | .17 |
Net realized and unrealized gain (loss) | (.74) | (1.81) | 3.60 | 1.82 | 2.13 | 1.28 |
Total from investment operations | (.60) | (1.54) | 3.92 | 2.07 | 2.39 | 1.45 |
Distributions from net investment income | (.26) | (.24) | (.30) | (.25) | (.23) | (.19) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.37) | (1.42) | (.90)B | (1.74) | (.75) | (.36) |
Net asset value, end of period | $20.97 | $22.94 | $25.90 | $22.88 | $22.55 | $20.91 |
Total ReturnC,D,E | (2.88)% | (5.83)% | 18.02% | 9.46% | 12.07% | 7.43% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.32%H | 1.33% | 1.33% | 1.34% | 1.37% | 1.38% |
Expenses net of fee waivers, if any | 1.32%H | 1.33% | 1.33% | 1.34% | 1.37% | 1.38% |
Expenses net of all reductions | 1.32%H | 1.32% | 1.32% | 1.33% | 1.36% | 1.38% |
Net investment income (loss) | 1.29%H | 1.18% | 1.38% | 1.09% | 1.26% | .85% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $129,768 | $153,285 | $199,431 | $168,375 | $138,783 | $114,717 |
Portfolio turnover rateI | 39%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.46 | $25.43 | $22.49 | $22.23 | $20.61 | $19.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .08 | .15 | .19 | .13 | .15 | .07 |
Net realized and unrealized gain (loss) | (.72) | (1.78) | 3.54 | 1.78 | 2.10 | 1.26 |
Total from investment operations | (.64) | (1.63) | 3.73 | 1.91 | 2.25 | 1.33 |
Distributions from net investment income | (.19) | (.16) | (.20) | (.16) | (.11) | (.10) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.30) | (1.34) | (.79) | (1.65) | (.63) | (.27) |
Net asset value, end of period | $20.52 | $22.46 | $25.43 | $22.49 | $22.23 | $20.61 |
Total ReturnB,C,D | (3.12)% | (6.34)% | 17.40% | 8.85% | 11.52% | 6.89% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.87%G | 1.86% | 1.86% | 1.87% | 1.90% | 1.90% |
Expenses net of fee waivers, if any | 1.87%G | 1.86% | 1.86% | 1.87% | 1.90% | 1.90% |
Expenses net of all reductions | 1.86%G | 1.86% | 1.85% | 1.86% | 1.89% | 1.89% |
Net investment income (loss) | .74%G | .65% | .85% | .56% | .73% | .33% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $49,181 | $62,551 | $86,755 | $79,291 | $64,822 | $75,461 |
Portfolio turnover rateH | 39%G | 69% | 62% | 57% | 83% | 63% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.17 | $26.15 | $23.09 | $22.74 | $21.07 | $19.97 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .39 | .43 | .36 | .36 | .28 |
Net realized and unrealized gain (loss) | (.74) | (1.83) | 3.64 | 1.83 | 2.15 | 1.27 |
Total from investment operations | (.54) | (1.44) | 4.07 | 2.19 | 2.51 | 1.55 |
Distributions from net investment income | (.34) | (.36) | (.41) | (.35) | (.32) | (.28) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) | (.17) |
Total distributions | (1.45) | (1.54) | (1.01)B | (1.84) | (.84) | (.45) |
Net asset value, end of period | $21.18 | $23.17 | $26.15 | $23.09 | $22.74 | $21.07 |
Total ReturnC,D | (2.64)% | (5.36)% | 18.61% | 9.99% | 12.64% | 7.92% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .82%G | .82% | .84% | .85% | .89% | .90% |
Expenses net of fee waivers, if any | .81%G | .82% | .83% | .85% | .89% | .90% |
Expenses net of all reductions | .81%G | .81% | .83% | .84% | .88% | .89% |
Net investment income (loss) | 1.80%G | 1.69% | 1.87% | 1.57% | 1.74% | 1.33% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $364,392 | $399,578 | $422,848 | $349,301 | $298,932 | $305,619 |
Portfolio turnover rateH | 39%G | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2018
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, 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 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.
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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $145,019,590 |
Gross unrealized depreciation | (21,108,957) |
Net unrealized appreciation (depreciation) | $123,910,633 |
Tax cost | $613,019,479 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $155,270,976 and $244,657,241, 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 .24% 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 .54% 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% | $282,689 | $3,056 |
Class M | .25% | .25% | 355,199 | – |
Class C | .75% | .25% | 285,199 | 15,492 |
$923,087 | $18,548 |
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 | $14,072 |
Class M | 2,835 |
Class C(a) | 1,313 |
$18,220 |
(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 | $269,197 | .24 |
Class M | 155,510 | .22 |
Class C | 74,251 | .26 |
Class I | 402,480 | .21 |
$901,438 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,349 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,217 and is reflected in Miscellaneous expenses on the Statement of Operations.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,116.
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 $22,580 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $91.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3,547.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2018 | Year ended July 31, 2017 | |
From net investment income | ||
Class A | $2,841,694 | $4,093,430 |
Class M | 1,622,517 | 1,850,037 |
Class C | 483,478 | 523,780 |
Class I | 5,610,140 | 5,548,771 |
Total | $10,557,829 | $12,016,018 |
From net realized gain | ||
Class A | $10,241,720 | $16,499,323 |
Class M | 6,686,045 | 8,976,938 |
Class C | 2,729,897 | 3,942,806 |
Class I | 18,285,461 | 18,262,923 |
Total | $37,943,123 | $47,681,990 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2018 | Year ended July 31, 2017 | Six months ended January 31, 2018 | Year ended July 31, 2017 | |
Class A | ||||
Shares sold | 708,021 | 2,873,672 | $15,844,327 | $66,336,642 |
Reinvestment of distributions | 566,431 | 875,188 | 12,529,573 | 19,973,289 |
Shares redeemed | (2,992,436) | (7,171,585) | (67,294,480) | (163,182,157) |
Net increase (decrease) | (1,717,984) | (3,422,725) | $(38,920,580) | $(76,872,226) |
Class M | ||||
Shares sold | 288,935 | 1,097,966 | $6,456,756 | $25,270,280 |
Reinvestment of distributions | 369,879 | 466,802 | 8,174,100 | 10,646,212 |
Shares redeemed | (1,153,042) | (2,581,646) | (25,867,887) | (58,846,191) |
Net increase (decrease) | (494,228) | (1,016,878) | $(11,237,031) | $(22,929,699) |
Class C | ||||
Shares sold | 66,136 | 434,716 | $1,448,494 | $9,891,189 |
Reinvestment of distributions | 143,007 | 186,230 | 3,091,145 | 4,173,962 |
Shares redeemed | (597,131) | (1,247,114) | (12,973,526) | (27,771,413) |
Net increase (decrease) | (387,988) | (626,168) | $(8,433,887) | $(13,706,262) |
Class I | ||||
Shares sold | 2,107,644 | 9,790,992 | $47,301,288 | $223,594,423 |
Reinvestment of distributions | 1,039,163 | 869,513 | 23,187,018 | 20,031,574 |
Shares redeemed | (3,189,765) | (9,584,158) | (71,927,888) | (220,773,902) |
Net increase (decrease) | (42,958) | 1,076,347 | $(1,439,582) | $22,852,095 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2017 to January 31, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value August 1, 2017 | Ending Account Value January 31, 2018 | Expenses Paid During Period-B August 1, 2017 to January 31, 2018 | |
Class A | 1.09% | |||
Actual | $1,000.00 | $972.50 | $5.42 | |
Hypothetical-C | $1,000.00 | $1,019.71 | $5.55 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $971.20 | $6.56 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.72 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $968.80 | $9.28 | |
Hypothetical-C | $1,000.00 | $1,015.78 | $9.50 | |
Class I | .81% | |||
Actual | $1,000.00 | $973.60 | $4.03 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Real Estate Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. SelectCo and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) — Operations, Audit, Fair Valuation, and Governance and Nominating — each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2018 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also ratified an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, which was effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates to the extent that assets under management that are included in group fee calculations increase above the new breakpoint.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of the Investment Advisers as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staffs, including their size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of SelectCo about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance. The fund underperformed its benchmark for the one-, three-, and five-year periods ended June 30, 2017, and as a result, the Board will continue to discuss with SelectCo the steps it is taking to address the fund's performance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors, including the following: general market conditions; issuer-specific information; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2017.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. For this purpose, all sector focused equity funds are grouped in the same mapped group. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in basis points (BP) in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates (i.e., sector equities), regardless of whether their management fee structures also are comparable. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s and the number of funds in the Total Mapped Group are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee rate ranked, is also included in the chart and considered by the Board.Fidelity Advisor Real Estate Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352940655.jpg)
Proxy Voting Results
A special meeting of shareholders was held on February 9, 2018. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
James C. Curvey | ||
Affirmative | 6,025,729,824.47 | 96.273 |
Withheld | 233,275,796.83 | 3.727 |
TOTAL | 6,259,005,621.30 | 100.000 |
Dennis J. Dirks | ||
Affirmative | 6,037,341,288.16 | 96.459 |
Withheld | 221,664,333.14 | 3.541 |
TOTAL | 6,259,005,621.30 | 100.000 |
Donald F. Donahue | ||
Affirmative | 6,037,036,802.91 | 96.454 |
Withheld | 221,968,818.39 | 3.546 |
TOTAL | 6,259,005,621.30 | 100.000 |
Alan J. Lacy | ||
Affirmative | 6,035,009,671.49 | 96.422 |
Withheld | 223,995,949.81 | 3.578 |
TOTAL | 6,259,005,621.30 | 100.00 |
Ned C. Lautenbach | ||
Affirmative | 6,030,484,320.39 | 96.349 |
Withheld | 228,521,300.91 | 3.651 |
TOTAL | 6,259,005,621.30 | 100.000 |
Joseph Mauriello | ||
Affirmative | 6,033,180,718.55 | 96.393 |
Withheld | 225,824,902.75 | 3.607 |
TOTAL | 6,259,005,621.30 | 100.000 |
Charles S. Morrison | ||
Affirmative | 6,036,762,658.89 | 96.450 |
Withheld | 222,242,962.41 | 3.550 |
TOTAL | 6,259,005,621.30 | 100.000 |
Cornelia M. Small | ||
Affirmative | 6,038,934,439.57 | 96.484 |
Withheld | 220,071,181.73 | 3.516 |
TOTAL | 6,259,005,621.30 | 100.000 |
Garnett A. Smith | ||
Affirmative | 6,035,382,805.96 | 96.428 |
Withheld | 223,622,815.34 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
David M. Thomas | ||
Affirmative | 6,035,686,101.98 | 96.433 |
Withheld | 223,319,519.32 | 3.567 |
TOTAL | 6,259,005,621.30 | 100.000 |
Michael E. Wiley | ||
Affirmative | 6,035,431,517.12 | 96.428 |
Withheld | 223,574,104.18 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
ARE-SANN-0318
1.783109.116
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 Semi-Annual Report January 31, 2018 |
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Contents
Fidelity Advisor® Biotechnology Fund | |
Fidelity Advisor® Communications Equipment Fund | |
Fidelity Advisor® Consumer Discretionary Fund | |
Fidelity Advisor® Energy Fund | |
Fidelity Advisor® Financial Services Fund | |
Fidelity Advisor® Health Care Fund | |
Fidelity Advisor® Industrials Fund | |
Fidelity Advisor® Semiconductors Fund | |
Fidelity Advisor® Technology Fund | |
Fidelity Advisor® Utilities Fund | |
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Amgen, Inc. | 7.0 |
Biogen, Inc. | 6.1 |
Celgene Corp. | 5.2 |
AbbVie, Inc. | 4.9 |
Vertex Pharmaceuticals, Inc. | 3.8 |
Regeneron Pharmaceuticals, Inc. | 3.1 |
Alexion Pharmaceuticals, Inc. | 2.7 |
BioMarin Pharmaceutical, Inc. | 2.1 |
Neurocrine Biosciences, Inc. | 1.7 |
Sage Therapeutics, Inc. | 1.7 |
38.3 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Biotechnology | 88.8% | |
Pharmaceuticals | 8.4% | |
Health Care Equipment & Supplies | 0.4% | |
Health Care Providers & Services | 0.2% | |
Health Care Technology | 0.1% | |
All Others* | 2.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Biotechnology Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.7% | |||
Shares | Value | ||
Biotechnology - 87.4% | |||
Biotechnology - 87.4% | |||
AbbVie, Inc. | 1,226,906 | $137,683,391 | |
Abeona Therapeutics, Inc. (a)(b) | 125,374 | 1,911,954 | |
AC Immune SA (a)(b) | 237,988 | 3,179,520 | |
ACADIA Pharmaceuticals, Inc. (a)(b) | 468,186 | 14,003,443 | |
Acceleron Pharma, Inc. (a) | 446,366 | 18,528,653 | |
Achaogen, Inc. (a)(b) | 431,602 | 4,734,674 | |
Achillion Pharmaceuticals, Inc. (a) | 278,861 | 738,982 | |
Acorda Therapeutics, Inc. (a) | 311,253 | 8,077,015 | |
Adamas Pharmaceuticals, Inc. (a)(b) | 464,448 | 17,574,712 | |
Adaptimmune Therapeutics PLC sponsored ADR (a) | 667,242 | 5,758,298 | |
ADMA Biologics, Inc. (a) | 38,100 | 141,732 | |
Aduro Biotech, Inc. (a) | 461,280 | 2,906,064 | |
Advaxis, Inc. (a)(b) | 127,928 | 378,667 | |
Adverum Biotechnologies, Inc. (a) | 99,429 | 725,832 | |
Agenus, Inc. (a)(b) | 232,560 | 839,542 | |
Agios Pharmaceuticals, Inc. (a) | 68,771 | 5,416,404 | |
Aimmune Therapeutics, Inc. (a) | 342,902 | 12,073,579 | |
Akebia Therapeutics, Inc. (a) | 139,277 | 2,058,514 | |
Alder Biopharmaceuticals, Inc. (a) | 371,813 | 5,261,154 | |
Aldeyra Therapeutics, Inc. (a)(b) | 534,859 | 3,998,071 | |
Alexion Pharmaceuticals, Inc. (a) | 630,826 | 75,270,158 | |
Alkermes PLC (a) | 311,403 | 17,802,910 | |
Allena Pharmaceuticals, Inc. | 360,694 | 2,857,779 | |
Allena Pharmaceuticals, Inc. (a)(b) | 162,880 | 1,358,419 | |
Alnylam Pharmaceuticals, Inc. (a) | 294,024 | 38,217,240 | |
AMAG Pharmaceuticals, Inc. (a) | 185,577 | 2,663,030 | |
Amarin Corp. PLC ADR (a) | 312,794 | 1,172,978 | |
Amgen, Inc. | 1,070,774 | 199,217,503 | |
Amicus Therapeutics, Inc. (a) | 892,770 | 14,480,729 | |
AnaptysBio, Inc. | 122,793 | 12,941,154 | |
Applied Genetic Technologies Corp. (a) | 74,436 | 368,458 | |
Aptevo Therapeutics, Inc. (a) | 38,827 | 131,624 | |
AquaBounty Technologies, Inc. (a) | 1,394 | 3,834 | |
Ardelyx, Inc. (a) | 493,514 | 3,577,977 | |
Arena Pharmaceuticals, Inc. (a) | 713,386 | 26,694,904 | |
Argenx SE ADR | 239,800 | 18,603,684 | |
Array BioPharma, Inc. (a) | 2,563,063 | 37,984,594 | |
Arsanis, Inc. (a)(b) | 201,400 | 2,539,654 | |
Ascendis Pharma A/S sponsored ADR (a) | 38,300 | 1,952,151 | |
Asterias Biotherapeutics, Inc. (a)(b) | 115,938 | 243,470 | |
Atara Biotherapeutics, Inc. (a)(b) | 510,185 | 19,284,993 | |
aTyr Pharma, Inc. (a) | 89,320 | 317,086 | |
aTyr Pharma, Inc. (a)(c) | 55,238 | 196,095 | |
Audentes Therapeutics, Inc. (a) | 212,300 | 7,451,730 | |
Axovant Sciences Ltd. (a) | 79,538 | 161,462 | |
Bellicum Pharmaceuticals, Inc. (a)(b) | 644,725 | 3,919,928 | |
BioCryst Pharmaceuticals, Inc. (a) | 896,223 | 4,033,004 | |
Biogen, Inc. (a) | 499,562 | 173,752,659 | |
Biohaven Pharmaceutical Holding Co. Ltd. | 283,800 | 9,808,128 | |
BioMarin Pharmaceutical, Inc. (a) | 645,415 | 58,235,795 | |
BioTime, Inc. warrants 10/1/18 (a) | 2 | 0 | |
Bioverativ, Inc. | 44,444 | 4,580,399 | |
bluebird bio, Inc. (a) | 70,695 | 14,485,406 | |
Blueprint Medicines Corp. (a) | 531,661 | 41,815,138 | |
Calithera Biosciences, Inc. (a) | 152,188 | 1,217,504 | |
Cara Therapeutics, Inc. (a)(b) | 171,037 | 2,509,113 | |
Celgene Corp. (a) | 1,464,555 | 148,154,384 | |
Celldex Therapeutics, Inc. (a) | 942,136 | 2,600,295 | |
Chiasma, Inc. (a) | 337,192 | 556,367 | |
Chiasma, Inc. warrants (a) | 81,298 | 19,733 | |
Chimerix, Inc. (a) | 387,202 | 1,854,698 | |
Cidara Therapeutics, Inc. (a) | 34,800 | 248,820 | |
Cidara Therapeutics, Inc. (a)(c) | 223,967 | 1,601,364 | |
Clovis Oncology, Inc. (a) | 263,758 | 15,957,359 | |
Corbus Pharmaceuticals Holdings, Inc. (a)(b) | 499,250 | 3,744,375 | |
Corvus Pharmaceuticals, Inc. (a) | 274,564 | 2,311,829 | |
Cytokinetics, Inc. (a) | 352,477 | 3,242,788 | |
CytomX Therapeutics, Inc. (a)(c) | 64,961 | 1,737,707 | |
DBV Technologies SA sponsored ADR (a) | 134,100 | 3,105,756 | |
Denali Therapeutics, Inc. (a)(b) | 126,405 | 2,940,180 | |
Dicerna Pharmaceuticals, Inc. (a) | 259,906 | 2,492,499 | |
Dynavax Technologies Corp. (a)(b) | 505,819 | 8,143,686 | |
Eagle Pharmaceuticals, Inc. (a)(b) | 67,784 | 4,051,450 | |
Edge Therapeutics, Inc. (a)(b) | 9,681 | 123,336 | |
Editas Medicine, Inc. (a)(b) | 162,657 | 5,938,607 | |
Emergent BioSolutions, Inc. (a) | 38,055 | 1,856,703 | |
Enanta Pharmaceuticals, Inc. (a) | 49,752 | 4,226,432 | |
Epizyme, Inc. (a)(b) | 1,258,250 | 20,320,738 | |
Esperion Therapeutics, Inc. (a) | 261,716 | 18,977,027 | |
Exact Sciences Corp. (a) | 418,982 | 20,827,595 | |
Exelixis, Inc. (a) | 1,058,049 | 32,069,465 | |
Fate Therapeutics, Inc. (a) | 544,304 | 4,974,939 | |
FibroGen, Inc. (a) | 600,945 | 35,185,330 | |
Five Prime Therapeutics, Inc. (a) | 160,000 | 3,200,000 | |
Foundation Medicine, Inc. (a)(b) | 21,269 | 1,476,069 | |
Galapagos Genomics NV sponsored ADR (a) | 177,429 | 20,975,656 | |
Genmab A/S (a) | 42,828 | 7,844,715 | |
Genomic Health, Inc. (a) | 20,511 | 681,170 | |
GenSight Biologics SA (a)(c) | 105,964 | 855,137 | |
Geron Corp. (a)(b) | 4,573,774 | 11,205,746 | |
Gilead Sciences, Inc. | 367,039 | 30,757,868 | |
Global Blood Therapeutics, Inc. (a) | 520,809 | 30,154,841 | |
GlycoMimetics, Inc. (a) | 23,800 | 535,262 | |
GTx, Inc. (a) | 209,706 | 3,191,725 | |
Halozyme Therapeutics, Inc. (a) | 715,231 | 13,360,515 | |
Heron Therapeutics, Inc. (a)(b) | 475,742 | 10,299,814 | |
Histogenics Corp. (a) | 597,234 | 1,654,338 | |
Idera Pharmaceuticals, Inc. (a)(b) | 901,100 | 1,649,013 | |
Immune Design Corp. (a) | 242,835 | 825,639 | |
ImmunoGen, Inc. (a)(b) | 2,029,138 | 18,627,487 | |
Immunomedics, Inc. (a)(b) | 1,584,999 | 26,421,933 | |
Incyte Corp. (a) | 453,579 | 40,953,648 | |
Infinity Pharmaceuticals, Inc. (a)(b) | 794,775 | 1,629,289 | |
Insmed, Inc. (a) | 24,900 | 633,456 | |
Insys Therapeutics, Inc. (a)(b) | 50,579 | 478,477 | |
Intellia Therapeutics, Inc. (a)(b) | 139,192 | 3,577,234 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 152,560 | 9,473,976 | |
Intrexon Corp. (a)(b) | 82,708 | 1,075,204 | |
Ionis Pharmaceuticals, Inc. (a) | 403,938 | 21,214,824 | |
Iovance Biotherapeutics, Inc. (a) | 257,646 | 4,006,395 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 935,921 | 13,860,990 | |
Jounce Therapeutics, Inc. (b) | 225,776 | 5,459,264 | |
Karyopharm Therapeutics, Inc. (a) | 1,093,531 | 12,925,536 | |
Keryx Biopharmaceuticals, Inc. (a)(b) | 323,839 | 1,499,375 | |
Krystal Biotech, Inc. | 264,600 | 2,606,310 | |
Kura Oncology, Inc. (a) | 985,602 | 19,317,799 | |
La Jolla Pharmaceutical Co. (a)(b) | 348,100 | 11,925,906 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 519,066 | 5,699,345 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 80,012 | 12,611,491 | |
Loxo Oncology, Inc. (a) | 352,081 | 35,725,659 | |
Macrogenics, Inc. (a) | 566,002 | 12,774,665 | |
Madrigal Pharmaceuticals, Inc. (a)(b) | 142,156 | 21,098,794 | |
MannKind Corp. (a)(b) | 398,539 | 1,084,026 | |
MediciNova, Inc. (a)(b) | 388,780 | 3,436,815 | |
Merrimack Pharmaceuticals, Inc. (b) | 68,240 | 716,520 | |
MiMedx Group, Inc. (a)(b) | 12,313 | 206,243 | |
Minerva Neurosciences, Inc. (a) | 1,417,780 | 9,073,792 | |
Miragen Therapeutics, Inc. (a) | 658,541 | 4,939,058 | |
Molecular Templates, Inc. (a) | 2,436 | 26,260 | |
Momenta Pharmaceuticals, Inc. (a) | 165,625 | 2,815,625 | |
NantKwest, Inc. (a)(b) | 64,653 | 285,766 | |
Neurocrine Biosciences, Inc. (a) | 569,728 | 48,694,652 | |
NewLink Genetics Corp. (a)(b) | 114,392 | 943,734 | |
Novavax, Inc. (a)(b) | 1,083,716 | 2,189,106 | |
Novelion Therapeutics, Inc. (a)(b) | 216,270 | 1,126,767 | |
Opko Health, Inc. (a)(b) | 75,912 | 338,568 | |
Oragenics, Inc. (a) | 10,860 | 23,676 | |
OvaScience, Inc. (a) | 98,745 | 102,695 | |
Ovid Therapeutics, Inc. | 239,026 | 2,031,721 | |
Portola Pharmaceuticals, Inc. (a) | 367,524 | 18,857,656 | |
Progenics Pharmaceuticals, Inc. (a)(b) | 405,208 | 2,370,467 | |
ProQR Therapeutics BV (a) | 237,916 | 761,331 | |
Protagonist Therapeutics, Inc. (a) | 171,123 | 3,911,872 | |
Proteostasis Therapeutics, Inc. (a) | 183,300 | 848,679 | |
Prothena Corp. PLC (a)(b) | 140,434 | 5,870,141 | |
PTC Therapeutics, Inc. (a) | 260,709 | 6,854,040 | |
Puma Biotechnology, Inc. (a) | 237,587 | 15,882,691 | |
Radius Health, Inc. (a)(b) | 443,729 | 16,710,834 | |
Regeneron Pharmaceuticals, Inc. (a) | 239,663 | 87,872,439 | |
REGENXBIO, Inc. (a) | 307,686 | 8,245,985 | |
Regulus Therapeutics, Inc. (a)(b) | 960,221 | 1,142,663 | |
Repligen Corp. (a) | 187,827 | 6,643,441 | |
Retrophin, Inc. (a) | 316,072 | 7,557,282 | |
Rigel Pharmaceuticals, Inc. (a) | 193,300 | 773,200 | |
Sage Therapeutics, Inc. (a) | 253,168 | 48,051,286 | |
Sangamo Therapeutics, Inc. (a) | 1,197,906 | 24,976,340 | |
Sarepta Therapeutics, Inc. (a)(b) | 257,911 | 16,903,487 | |
Seattle Genetics, Inc. (a) | 427,020 | 22,333,146 | |
Selecta Biosciences, Inc. (a)(b) | 88,000 | 804,320 | |
Seres Therapeutics, Inc. (a)(b) | 237,191 | 2,395,629 | |
Seres Therapeutics, Inc. (a)(c) | 352,270 | 3,557,927 | |
Sienna Biopharmaceuticals, Inc. (b) | 61,493 | 1,082,277 | |
Spark Therapeutics, Inc. (a) | 314,145 | 17,607,827 | |
Spectrum Pharmaceuticals, Inc. (a) | 1,329,110 | 28,629,029 | |
Stemline Therapeutics, Inc. (a) | 514,693 | 8,209,353 | |
Syndax Pharmaceuticals, Inc. (a) | 180,699 | 1,969,619 | |
Synlogic, Inc. (a) | 27 | 269 | |
Syros Pharmaceuticals, Inc. (a)(c) | 62,568 | 599,401 | |
Syros Pharmaceuticals, Inc. (a) | 170,750 | 1,635,785 | |
TESARO, Inc. (a)(b) | 207,437 | 13,993,700 | |
TG Therapeutics, Inc. (a)(b) | 1,180,602 | 13,576,923 | |
Tocagen, Inc. (b) | 175,800 | 2,287,158 | |
Trevena, Inc. (a) | 296,455 | 483,222 | |
Ultragenyx Pharmaceutical, Inc. (a) | 462,127 | 24,654,475 | |
uniQure B.V. (a) | 33,577 | 621,175 | |
United Therapeutics Corp. (a) | 45,823 | 5,911,167 | |
Vanda Pharmaceuticals, Inc. (a) | 298,379 | 4,729,307 | |
Vertex Pharmaceuticals, Inc. (a) | 651,928 | 108,787,225 | |
Vital Therapies, Inc. (a)(b) | 412,287 | 2,453,108 | |
Voyager Therapeutics, Inc. (a) | 1,011,377 | 20,874,821 | |
Xencor, Inc. (a) | 367,626 | 8,367,168 | |
Zafgen, Inc. (a) | 1,356,174 | 9,316,915 | |
Zealand Pharma A/S (a)(b) | 112,234 | 1,902,239 | |
2,474,420,961 | |||
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
RPI International Holdings LP (a)(d)(e) | 12,210 | 1,685,163 | |
Health Care Equipment & Supplies - 0.4% | |||
Health Care Equipment - 0.4% | |||
Bellerophon Therapeutics, Inc. (a)(b) | 173,900 | 386,058 | |
Novocure Ltd. (a)(b) | 243,941 | 5,476,475 | |
Novocure Ltd. (a)(c) | 155,553 | 3,492,165 | |
Vermillion, Inc. (a) | 949,803 | 1,424,705 | |
10,779,403 | |||
Health Care Providers & Services - 0.2% | |||
Health Care Services - 0.2% | |||
G1 Therapeutics, Inc. | 207,400 | 4,958,934 | |
OptiNose, Inc. (b) | 51,100 | 968,345 | |
5,927,279 | |||
Health Care Technology - 0.0% | |||
Health Care Technology - 0.0% | |||
NantHealth, Inc. (a)(b) | 49,200 | 169,248 | |
Life Sciences Tools & Services - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
Morphosys AG (a) | 30,400 | 2,996,804 | |
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
MYOS Corp. (a) | 6,666 | 9,532 | |
Pharmaceuticals - 8.4% | |||
Pharmaceuticals - 8.4% | |||
Aclaris Therapeutics, Inc. (a) | 166,983 | 3,693,664 | |
Adimab LLC (d)(e)(f) | 398,401 | 15,278,678 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 (a)(e) | 1,915,787 | 1,992,418 | |
Akcea Therapeutics, Inc. | 171,000 | 3,702,150 | |
Aradigm Corp. (a) | 8,241 | 11,373 | |
Aradigm Corp. (a) | 545 | 752 | |
Avexis, Inc. (a) | 176,162 | 21,796,524 | |
Axsome Therapeutics, Inc. (a)(b) | 557,160 | 1,560,048 | |
Clementia Pharmaceuticals, Inc. | 109,500 | 1,753,095 | |
Corcept Therapeutics, Inc. (a)(b) | 168,373 | 3,875,105 | |
Dermira, Inc. (a) | 264,445 | 7,541,971 | |
Dova Pharmaceuticals, Inc. (b) | 312,882 | 9,968,421 | |
Egalet Corp. (a)(b) | 367,108 | 347,945 | |
GW Pharmaceuticals PLC ADR (a)(b) | 103,133 | 14,245,761 | |
Horizon Pharma PLC (a) | 228,856 | 3,329,855 | |
InflaRx NV (a) | 700 | 16,765 | |
Intra-Cellular Therapies, Inc. (a) | 184,048 | 3,132,497 | |
Jazz Pharmaceuticals PLC (a) | 31,467 | 4,586,001 | |
Kala Pharmaceuticals, Inc. (b) | 131,500 | 2,001,430 | |
Kolltan Pharmaceuticals, Inc. rights (a)(e) | 1,610,391 | 241,559 | |
Melinta Therapeutics, Inc. (a) | 208,535 | 2,909,063 | |
MyoKardia, Inc. (a) | 169,679 | 8,755,436 | |
MyoKardia, Inc. (a)(c) | 484,646 | 25,007,734 | |
Nektar Therapeutics (a) | 277,280 | 23,183,381 | |
NeurogesX, Inc. (a)(e) | 150,000 | 2 | |
Ocular Therapeutix, Inc. (a) | 663,049 | 3,626,878 | |
Odonate Therapeutics, Inc. (a) | 194,300 | 4,037,554 | |
Pacira Pharmaceuticals, Inc. (a) | 100,684 | 3,664,898 | |
Paratek Pharmaceuticals, Inc. (a) | 337,460 | 5,146,265 | |
Reata Pharmaceuticals, Inc. (a) | 169,094 | 4,819,179 | |
Repros Therapeutics, Inc. (a) | 493,954 | 330,949 | |
Rhythm Pharmaceuticals, Inc. (b) | 80,655 | 2,546,278 | |
scPharmaceuticals, Inc. (a) | 45,500 | 580,125 | |
Spero Therapeutics, Inc. (a) | 178,000 | 2,153,800 | |
Stemcentrx, Inc. rights 12/31/21 (a)(e) | 208,907 | 637,166 | |
Tetraphase Pharmaceuticals, Inc. (a) | 285,231 | 1,665,749 | |
The Medicines Company (a)(b) | 322,422 | 10,681,841 | |
TherapeuticsMD, Inc. (a) | 1,012,300 | 5,952,324 | |
Theravance Biopharma, Inc. (a)(b) | 197,203 | 5,214,047 | |
UroGen Pharma Ltd. | 206,400 | 10,138,368 | |
WAVE Life Sciences (a)(b) | 256,388 | 10,255,520 | |
Zogenix, Inc. (a) | 243,649 | 8,856,641 | |
239,239,210 | |||
Software - 0.0% | |||
Application Software - 0.0% | |||
Precipio, Inc. (d) | 450 | 513 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Textiles - 0.1% | |||
Deciphera Pharmaceuticals, Inc. (a) | 27,600 | 717,600 | |
resTORbio, Inc. (a)(b) | 123,300 | 1,999,926 | |
2,717,526 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,936,685,807) | 2,737,945,639 | ||
Preferred Stocks - 1.5% | |||
Convertible Preferred Stocks - 1.4% | |||
Biotechnology - 1.3% | |||
Biotechnology - 1.3% | |||
23andMe, Inc. Series E (a)(d)(e) | 341,730 | 4,744,648 | |
Axcella Health, Inc. Series C (a)(d)(e) | 341,857 | 4,416,792 | |
Immunocore Ltd. Series A (a)(d)(e) | 17,149 | 6,384,797 | |
Moderna Therapeutics, Inc.: | |||
Series D (a)(d)(e) | 269,180 | 2,707,951 | |
Series E (a)(d)(e) | 544,100 | 5,473,646 | |
Scholar Rock LLC Series B (d)(e) | 1,083,994 | 3,902,378 | |
Translate Bio: | |||
Series B (a)(d)(e) | 1,310,353 | 2,594,499 | |
Series C (a)(d)(e) | 1,010,101 | 2,000,000 | |
Twist Bioscience Corp.: | |||
Series C (a)(d)(e) | 1,866,791 | 2,501,500 | |
Series D (a)(d)(e) | 453,587 | 607,807 | |
35,334,018 | |||
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A (a)(d)(e) | 213,402 | 808,281 | |
Series B (a)(d)(e) | 693,558 | 2,626,920 | |
3,435,201 | |||
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Afferent Pharmaceuticals, Inc. Series C (a)(d)(e) | 1,915,787 | 19 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 38,769,238 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
Biotechnology - 0.1% | |||
Biotechnology - 0.1% | |||
Yumanity Holdings LLC Class A (a)(d)(e) | 151,084 | 2,084,959 | |
TOTAL PREFERRED STOCKS | |||
(Cost $28,058,265) | 40,854,197 | ||
Money Market Funds - 8.0% | |||
Fidelity Cash Central Fund, 1.39% (g) | 55,012,880 | 55,023,882 | |
Fidelity Securities Lending Cash Central Fund 1.40% (g)(h) | 171,049,209 | 171,066,314 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $226,077,731) | 226,090,196 | ||
TOTAL INVESTMENT IN SECURITIES - 106.2% | |||
(Cost $2,190,821,803) | 3,004,890,032 | ||
NET OTHER ASSETS (LIABILITIES) - (6.2)% | (174,342,078) | ||
NET ASSETS - 100% | $2,830,547,954 |
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 $37,047,530 or 1.3% 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 $57,818,551 or 2.0% of net assets.
(e) Level 3 security
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
23andMe, Inc. Series E | 6/18/15 | $3,700,003 |
Adimab LLC | 9/17/14 - 6/5/15 | $6,416,091 |
Afferent Pharmaceuticals, Inc. Series C | 7/1/15 | $862,104 |
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 | $107,112 |
Fidelity Securities Lending Cash Central Fund | 1,642,331 |
Total | $1,749,443 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, 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 | $2,737,945,639 | $2,715,233,141 | $2,877,512 | $19,834,986 |
Preferred Stocks | 40,854,197 | -- | -- | 40,854,197 |
Money Market Funds | 226,090,196 | 226,090,196 | -- | -- |
Total Investments in Securities: | $3,004,890,032 | $2,941,323,337 | $2,877,512 | $60,689,183 |
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 | $43,160,615 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 2,545,362 |
Cost of Purchases | 3,251,982 |
Proceeds of Sales | (8,103,762) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $40,854,197 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2018 | $2,620,641 |
Other Investments in Securities | |
Beginning Balance | $18,025,736 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 1,798,930 |
Cost of Purchases | 10,320 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $19,834,986 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2018 | $1,798,930 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $162,024,740) — See accompanying schedule: Unaffiliated issuers (cost $1,964,744,072) | $2,778,799,836 | |
Fidelity Central Funds (cost $226,077,731) | 226,090,196 | |
Total Investment in Securities (cost $2,190,821,803) | $3,004,890,032 | |
Restricted cash | 220 | |
Receivable for investments sold | 836,826 | |
Receivable for fund shares sold | 4,197,045 | |
Dividends receivable | 871,102 | |
Distributions receivable from Fidelity Central Funds | 301,874 | |
Prepaid expenses | 10,713 | |
Other receivables | 19,780 | |
Total assets | 3,011,127,592 | |
Liabilities | ||
Payable for investments purchased | $2,364,901 | |
Payable for fund shares redeemed | 4,467,510 | |
Accrued management fee | 1,241,874 | |
Distribution and service plan fees payable | 706,206 | |
Other affiliated payables | 477,491 | |
Other payables and accrued expenses | 285,431 | |
Collateral on securities loaned | 171,036,225 | |
Total liabilities | 180,579,638 | |
Net Assets | $2,830,547,954 | |
Net Assets consist of: | ||
Paid in capital | $2,210,073,699 | |
Accumulated net investment loss | (18,731,960) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (174,862,014) | |
Net unrealized appreciation (depreciation) on investments | 814,068,229 | |
Net Assets | $2,830,547,954 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($809,212,185 ÷ 29,464,927 shares) | $27.46 | |
Maximum offering price per share (100/94.25 of $27.46) | $29.14 | |
Class M: | ||
Net Asset Value and redemption price per share ($135,604,420 ÷ 5,206,591 shares) | $26.04 | |
Maximum offering price per share (100/96.50 of $26.04) | $26.98 | |
Class C: | ||
Net Asset Value and offering price per share ($597,576,929 ÷ 25,153,558 shares)(a) | $23.76 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,288,154,420 ÷ 44,379,404 shares) | $29.03 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $4,439,453 | |
Income from Fidelity Central Funds (including $1,642,331 from security lending) | 1,749,443 | |
Total income | 6,188,896 | |
Expenses | ||
Management fee | $7,259,607 | |
Transfer agent fees | 2,577,877 | |
Distribution and service plan fees | 4,189,660 | |
Accounting and security lending fees | 423,610 | |
Custodian fees and expenses | 34,600 | |
Independent trustees' fees and expenses | 29,141 | |
Registration fees | 81,294 | |
Audit | 30,887 | |
Legal | 21,069 | |
Miscellaneous | 256,750 | |
Total expenses before reductions | 14,904,495 | |
Expense reductions | (11,764) | 14,892,731 |
Net investment income (loss) | (8,703,835) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 42,240,819 | |
Fidelity Central Funds | 8,337 | |
Foreign currency transactions | 166 | |
Total net realized gain (loss) | 42,249,322 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 277,963,792 | |
Fidelity Central Funds | (4,328) | |
Assets and liabilities in foreign currencies | (372) | |
Total change in net unrealized appreciation (depreciation) | 277,959,092 | |
Net gain (loss) | 320,208,414 | |
Net increase (decrease) in net assets resulting from operations | $311,504,579 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(8,703,835) | $(20,027,138) |
Net realized gain (loss) | 42,249,322 | 518,045 |
Change in net unrealized appreciation (depreciation) | 277,959,092 | 341,266,027 |
Net increase (decrease) in net assets resulting from operations | 311,504,579 | 321,756,934 |
Share transactions - net increase (decrease) | (146,340,168) | (442,352,948) |
Redemption fees | – | 48,144 |
Total increase (decrease) in net assets | 165,164,411 | (120,547,870) |
Net Assets | ||
Beginning of period | 2,665,383,543 | 2,785,931,413 |
End of period | $2,830,547,954 | $2,665,383,543 |
Other Information | ||
Accumulated net investment loss end of period | $(18,731,960) | $(10,028,125) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Biotechnology Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.45 | $21.39 | $31.43 | $20.19 | $17.25 | $11.79 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | (.15)B | (.16) | (.20) | (.13) | (.09) |
Net realized and unrealized gain (loss) | 3.08 | 3.21 | (8.48) | 12.04 | 3.12 | 6.24 |
Total from investment operations | 3.01 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $27.46 | $24.45 | $21.39 | $31.43 | $20.19 | $17.25 |
Total ReturnD,E,F | 12.31% | 14.31% | (28.55)% | 59.66% | 17.38% | 54.94% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.06%I | 1.05% | 1.05% | 1.04% | 1.08% | 1.15% |
Expenses net of fee waivers, if any | 1.06%I | 1.05% | 1.05% | 1.04% | 1.08% | 1.15% |
Expenses net of all reductions | 1.06%I | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Net investment income (loss) | (.59)%I | (.69)%B | (.69)% | (.75)% | (.68)% | (.63)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $809,212 | $787,802 | $1,080,733 | $1,560,528 | $602,625 | $286,695 |
Portfolio turnover rateJ | 29%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.22 | $20.39 | $30.06 | $19.39 | $16.63 | $11.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.11) | (.21)B | (.22) | (.27) | (.19) | (.12) |
Net realized and unrealized gain (loss) | 2.93 | 3.04 | (8.10) | 11.54 | 3.00 | 6.02 |
Total from investment operations | 2.82 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $26.04 | $23.22 | $20.39 | $30.06 | $19.39 | $16.63 |
Total ReturnD,E,F | 12.14% | 13.88% | (28.75)% | 59.17% | 16.95% | 54.50% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.38%I | 1.38% | 1.37% | 1.35% | 1.41% | 1.46% |
Expenses net of fee waivers, if any | 1.38%I | 1.38% | 1.37% | 1.35% | 1.41% | 1.46% |
Expenses net of all reductions | 1.38%I | 1.38% | 1.37% | 1.34% | 1.40% | 1.46% |
Net investment income (loss) | (.91)%I | (1.02)%B | (1.01)% | (1.05)% | (1.01)% | (.94)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $135,604 | $127,734 | $131,928 | $196,393 | $95,945 | $67,887 |
Portfolio turnover rateJ | 29%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.23 | $18.71 | $27.78 | $18.04 | $15.53 | $10.76 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.15) | (.27)B | (.29) | (.35) | (.25) | (.17) |
Net realized and unrealized gain (loss) | 2.68 | 2.79 | (7.46) | 10.69 | 2.81 | 5.63 |
Total from investment operations | 2.53 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $23.76 | $21.23 | $18.71 | $27.78 | $18.04 | $15.53 |
Total ReturnD,E,F | 11.92% | 13.47% | (29.06)% | 58.43% | 16.54% | 53.71% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.80%I | 1.79% | 1.80% | 1.79% | 1.83% | 1.88% |
Expenses net of fee waivers, if any | 1.80%I | 1.79% | 1.80% | 1.79% | 1.83% | 1.88% |
Expenses net of all reductions | 1.80%I | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Net investment income (loss) | (1.34)%I | (1.43)%B | (1.44)% | (1.49)% | (1.43)% | (1.36)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $597,577 | $593,489 | $665,036 | $956,495 | $359,967 | $146,684 |
Portfolio turnover rateJ | 29%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.80 | $22.52 | $32.95 | $21.10 | $17.97 | $12.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | (.10)B | (.10) | (.14) | (.08) | (.05) |
Net realized and unrealized gain (loss) | 3.27 | 3.38 | (8.89) | 12.60 | 3.26 | 6.49 |
Total from investment operations | 3.23 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $29.03 | $25.80 | $22.52 | $32.95 | $21.10 | $17.97 |
Total ReturnE,F | 12.52% | 14.56% | (28.32)% | 60.00% | 17.74% | 55.39% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .79%I | .78% | .78% | .78% | .81% | .85% |
Expenses net of fee waivers, if any | .79%I | .78% | .78% | .78% | .81% | .85% |
Expenses net of all reductions | .79%I | .77% | .78% | .77% | .80% | .84% |
Net investment income (loss) | (.33)%I | (.42)%B | (.42)% | (.48)% | (.41)% | (.32)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,288,154 | $1,156,358 | $908,234 | $1,403,666 | $465,889 | $177,926 |
Portfolio turnover rateJ | 29%I | 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 for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Cisco Systems, Inc. | 24.9 |
CommScope Holding Co., Inc. | 6.8 |
Nokia Corp. sponsored ADR | 6.7 |
F5 Networks, Inc. | 6.2 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.7 |
Juniper Networks, Inc. | 4.7 |
Palo Alto Networks, Inc. | 3.4 |
Arista Networks, Inc. | 2.5 |
Motorola Solutions, Inc. | 2.1 |
Finisar Corp. | 2.0 |
64.0 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Communications Equipment | 84.2% | |
Semiconductors & Semiconductor Equipment | 4.4% | |
Electronic Equipment & Components | 2.7% | |
Internet Software & Services | 2.4% | |
Software | 2.0% | |
All Others* | 4.3% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Communications Equipment Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
Aerospace & Defense - 0.8% | |||
Aerospace & Defense - 0.8% | |||
Harris Corp. | 760 | $121,129 | |
Communications Equipment - 84.2% | |||
Communications Equipment - 84.2% | |||
ADTRAN, Inc. | 12,170 | 194,720 | |
ADVA Optical Networking SE (a) | 1,506 | 12,705 | |
Arista Networks, Inc. (a) | 1,360 | 375,115 | |
Arris International PLC (a) | 9,929 | 251,204 | |
Calix Networks, Inc. (a) | 9,040 | 57,856 | |
Ciena Corp. (a) | 2,150 | 45,752 | |
Cisco Systems, Inc. | 88,594 | 3,680,194 | |
CommScope Holding Co., Inc. (a) | 26,070 | 1,007,084 | |
Comtech Telecommunications Corp. | 1,930 | 41,746 | |
EchoStar Holding Corp. Class A (a) | 2,490 | 152,039 | |
F5 Networks, Inc. (a) | 6,305 | 911,325 | |
Finisar Corp. (a) | 16,550 | 297,238 | |
Infinera Corp. (a) | 19,637 | 127,051 | |
InterDigital, Inc. | 3,270 | 255,224 | |
Juniper Networks, Inc. | 26,448 | 691,615 | |
Lumentum Holdings, Inc. (a)(b) | 5,700 | 263,910 | |
Mitel Networks Corp. (a) | 26,820 | 241,380 | |
Motorola Solutions, Inc. | 3,179 | 316,183 | |
NETGEAR, Inc. (a) | 2,600 | 181,220 | |
NetScout Systems, Inc. (a) | 5,760 | 164,160 | |
Nokia Corp. sponsored ADR | 205,180 | 986,916 | |
Oclaro, Inc. (a)(b) | 13,430 | 79,774 | |
Palo Alto Networks, Inc. (a) | 3,220 | 508,341 | |
Plantronics, Inc. | 2,500 | 147,475 | |
Quantenna Communications, Inc. (a) | 14,550 | 200,208 | |
Radware Ltd. (a) | 2,790 | 56,107 | |
Sierra Wireless, Inc. (a) | 1,000 | 19,325 | |
Sonus Networks, Inc. (a) | 21,560 | 150,489 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (b) | 108,470 | 698,547 | |
ViaSat, Inc. (a)(b) | 720 | 54,446 | |
Viavi Solutions, Inc. (a) | 34,130 | 292,835 | |
12,462,184 | |||
Electronic Equipment & Components - 2.7% | |||
Electronic Manufacturing Services - 1.4% | |||
Fabrinet | 2,980 | 73,934 | |
Jabil, Inc. | 3,350 | 85,191 | |
TE Connectivity Ltd. | 400 | 41,012 | |
200,137 | |||
Technology Distributors - 1.3% | |||
CDW Corp. | 1,290 | 96,479 | |
Dell Technologies, Inc. (a) | 1,394 | 99,950 | |
196,429 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 396,566 | ||
Internet Software & Services - 2.4% | |||
Internet Software & Services - 2.4% | |||
Akamai Technologies, Inc. (a) | 230 | 15,408 | |
Alphabet, Inc.: | |||
Class A (a) | 134 | 158,417 | |
Class C (a) | 98 | 114,654 | |
LogMeIn, Inc. | 490 | 61,642 | |
350,121 | |||
IT Services - 1.5% | |||
Data Processing & Outsourced Services - 0.4% | |||
WNS Holdings Ltd. sponsored ADR (a) | 1,250 | 55,575 | |
IT Consulting & Other Services - 1.1% | |||
Amdocs Ltd. | 750 | 51,300 | |
Cognizant Technology Solutions Corp. Class A | 770 | 60,045 | |
Presidio, Inc. | 2,910 | 53,282 | |
164,627 | |||
TOTAL IT SERVICES | 220,202 | ||
Semiconductors & Semiconductor Equipment - 4.4% | |||
Semiconductors - 4.4% | |||
Acacia Communications, Inc. (a)(b) | 5,670 | 209,280 | |
Analog Devices, Inc. | 380 | 34,914 | |
Broadcom Ltd. | 305 | 75,649 | |
Maxim Integrated Products, Inc. | 640 | 39,040 | |
ON Semiconductor Corp. (a) | 2,170 | 53,686 | |
Qualcomm, Inc. | 3,431 | 234,166 | |
646,735 | |||
Software - 2.0% | |||
Application Software - 0.6% | |||
Citrix Systems, Inc. (a) | 730 | 67,715 | |
Micro Focus International PLC | 700 | 21,369 | |
SailPoint Technologies Holding, Inc. (a) | 500 | 8,365 | |
97,449 | |||
Systems Software - 1.4% | |||
Check Point Software Technologies Ltd. (a) | 1,040 | 107,546 | |
Oracle Corp. | 1,900 | 98,021 | |
205,567 | |||
TOTAL SOFTWARE | 303,016 | ||
Technology Hardware, Storage & Peripherals - 0.9% | |||
Technology Hardware, Storage & Peripherals - 0.9% | |||
HP, Inc. | 3,130 | 72,992 | |
Samsung Electronics Co. Ltd. | 26 | 60,638 | |
133,630 | |||
TOTAL COMMON STOCKS | |||
(Cost $10,757,063) | 14,633,583 | ||
Money Market Funds - 7.7% | |||
Fidelity Cash Central Fund, 1.39% (c) | 68,132 | 68,145 | |
Fidelity Securities Lending Cash Central Fund 1.40% (c)(d) | 1,062,811 | 1,062,918 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,131,063) | 1,131,063 | ||
TOTAL INVESTMENT IN SECURITIES - 106.6% | |||
(Cost $11,888,126) | 15,764,646 | ||
NET OTHER ASSETS (LIABILITIES) - (6.6)% | (972,292) | ||
NET ASSETS - 100% | $14,792,354 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $597 |
Fidelity Securities Lending Cash Central Fund | 12,294 |
Total | $12,891 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | 81.5% |
Finland | 6.7% |
Sweden | 4.7% |
United Kingdom | 1.8% |
Canada | 1.7% |
Israel | 1.1% |
Others (Individually Less Than 1%) | 2.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $999,398) — See accompanying schedule: Unaffiliated issuers (cost $10,757,063) | $14,633,583 | |
Fidelity Central Funds (cost $1,131,063) | 1,131,063 | |
Total Investment in Securities (cost $11,888,126) | $15,764,646 | |
Cash | 19,118 | |
Receivable for investments sold | 163,095 | |
Receivable for fund shares sold | 2,082 | |
Dividends receivable | 2,017 | |
Distributions receivable from Fidelity Central Funds | 2,826 | |
Prepaid expenses | 76 | |
Receivable from investment adviser for expense reductions | 3,351 | |
Other receivables | 272 | |
Total assets | 15,957,483 | |
Liabilities | ||
Payable for investments purchased | $31,403 | |
Payable for fund shares redeemed | 10,010 | |
Accrued management fee | 6,769 | |
Distribution and service plan fees payable | 5,623 | |
Other affiliated payables | 3,842 | |
Other payables and accrued expenses | 44,582 | |
Collateral on securities loaned | 1,062,900 | |
Total liabilities | 1,165,129 | |
Net Assets | $14,792,354 | |
Net Assets consist of: | ||
Paid in capital | $10,138,122 | |
Accumulated net investment loss | (26,206) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 803,917 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,876,521 | |
Net Assets | $14,792,354 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($5,863,803 ÷ 410,222 shares) | $14.29 | |
Maximum offering price per share (100/94.25 of $14.29) | $15.16 | |
Class M: | ||
Net Asset Value and redemption price per share ($4,495,935 ÷ 326,805 shares) | $13.76 | |
Maximum offering price per share (100/96.50 of $13.76) | $14.26 | |
Class C: | ||
Net Asset Value and offering price per share ($2,942,990 ÷ 233,376 shares)(a) | $12.61 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,489,626 ÷ 100,326 shares) | $14.85 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $82,676 | |
Income from Fidelity Central Funds (including $12,294 from security lending) | 12,891 | |
Total income | 95,567 | |
Expenses | ||
Management fee | $42,137 | |
Transfer agent fees | 22,836 | |
Distribution and service plan fees | 32,434 | |
Accounting and security lending fees | 3,116 | |
Custodian fees and expenses | 4,531 | |
Independent trustees' fees and expenses | 180 | |
Registration fees | 46,077 | |
Audit | 23,713 | |
Legal | 1,010 | |
Miscellaneous | 16,948 | |
Total expenses before reductions | 192,982 | |
Expense reductions | (71,285) | 121,697 |
Net investment income (loss) | (26,130) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,212,982 | |
Fidelity Central Funds | 17 | |
Foreign currency transactions | (690) | |
Total net realized gain (loss) | 1,212,309 | |
Change in net unrealized appreciation (depreciation) on investment securities | 89,757 | |
Net gain (loss) | 1,302,066 | |
Net increase (decrease) in net assets resulting from operations | $1,275,936 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(26,130) | $81,778 |
Net realized gain (loss) | 1,212,309 | 316,784 |
Change in net unrealized appreciation (depreciation) | 89,757 | 2,113,533 |
Net increase (decrease) in net assets resulting from operations | 1,275,936 | 2,512,095 |
Distributions to shareholders from net investment income | (71,166) | (70,636) |
Distributions to shareholders from net realized gain | (551,059) | (269,855) |
Total distributions | (622,225) | (340,491) |
Share transactions - net increase (decrease) | (4,144,494) | 4,211,380 |
Redemption fees | 961 | 684 |
Total increase (decrease) in net assets | (3,489,822) | 6,383,668 |
Net Assets | ||
Beginning of period | 18,282,176 | 11,898,508 |
End of period | $14,792,354 | $18,282,176 |
Other Information | ||
Undistributed net investment income end of period | $– | $71,090 |
Accumulated net investment loss end of period | $(26,206) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Communications Equipment Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.69 | $12.09 | $12.57 | $11.94 | $10.22 | $7.71 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .07 | .09 | .02 | .04B | .02 |
Net realized and unrealized gain (loss) | 1.23 | 1.76 | (.20) | .64 | 1.68 | 2.50 |
Total from investment operations | 1.22 | 1.83 | (.11) | .66 | 1.72 | 2.52 |
Distributions from net investment income | (.09) | (.05) | – | (.03) | – | (.01) |
Distributions from net realized gain | (.53) | (.18) | (.37) | – | – | – |
Total distributions | (.62) | (.23) | (.37) | (.03) | – | (.01) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $14.29 | $13.69 | $12.09 | $12.57 | $11.94 | $10.22 |
Total ReturnD,E,F | 9.14% | 15.24% | (.53)% | 5.54% | 16.83% | 32.65% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.34%I | 1.78% | 2.10% | 1.90% | 1.96% | 2.22% |
Expenses net of fee waivers, if any | 1.40%I | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.40%I | 1.39% | 1.40% | 1.39% | 1.39% | 1.37% |
Net investment income (loss) | (.17)%I | .56% | .81% | .16% | .40%B | .18% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $5,864 | $6,247 | $4,536 | $4,806 | $4,725 | $3,962 |
Portfolio turnover rateJ | 47%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.18 | $11.65 | $12.15 | $11.55 | $9.91 | $7.49 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | .04 | .06 | (.01) | .02B | (.01) |
Net realized and unrealized gain (loss) | 1.20 | 1.69 | (.20) | .62 | 1.62 | 2.43 |
Total from investment operations | 1.17 | 1.73 | (.14) | .61 | 1.64 | 2.42 |
Distributions from net investment income | (.06) | (.02) | – | (.01) | – | – |
Distributions from net realized gain | (.53) | (.18) | (.36) | – | – | – |
Total distributions | (.59) | (.20) | (.36) | (.01) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $13.76 | $13.18 | $11.65 | $12.15 | $11.55 | $9.91 |
Total ReturnD,E,F | 9.11% | 14.94% | (.83)% | 5.24% | 16.55% | 32.31% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 2.65%I | 2.11% | 2.41% | 2.19% | 2.25% | 2.52% |
Expenses net of fee waivers, if any | 1.65%I | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.65%I | 1.64% | 1.65% | 1.64% | 1.64% | 1.62% |
Net investment income (loss) | (.42)%I | .31% | .56% | (.09)% | .14%B | (.07)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,496 | $4,236 | $3,674 | $4,029 | $3,995 | $3,342 |
Portfolio turnover rateJ | 47%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.10 | $10.74 | $11.27 | $10.76 | $9.28 | $7.05 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.06) | (.02) | .01 | (.07) | (.04)B | (.05) |
Net realized and unrealized gain (loss) | 1.10 | 1.56 | (.19) | .58 | 1.52 | 2.28 |
Total from investment operations | 1.04 | 1.54 | (.18) | .51 | 1.48 | 2.23 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (.53) | (.18) | (.35) | – | – | – |
Total distributions | (.53) | (.18) | (.35) | – | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $12.61 | $12.10 | $10.74 | $11.27 | $10.76 | $9.28 |
Total ReturnD,E,F | 8.77% | 14.39% | (1.29)% | 4.74% | 15.95% | 31.63% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 3.10%I | 2.55% | 2.86% | 2.65% | 2.73% | 2.98% |
Expenses net of fee waivers, if any | 2.15%I | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15%I | 2.14% | 2.15% | 2.14% | 2.14% | 2.12% |
Net investment income (loss) | (.92)%I | (.19)% | .06% | (.59)% | (.35)%B | (.57)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,943 | $3,066 | $2,479 | $2,966 | $2,744 | $2,334 |
Portfolio turnover rateJ | 47%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.22 | $12.54 | $13.01 | $12.35 | $10.55 | $7.95 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .01 | .11 | .12 | .05 | .08B | .04 |
Net realized and unrealized gain (loss) | 1.28 | 1.83 | (.20) | .67 | 1.72 | 2.58 |
Total from investment operations | 1.29 | 1.94 | (.08) | .72 | 1.80 | 2.62 |
Distributions from net investment income | (.13) | (.08) | – | (.06) | – | (.02) |
Distributions from net realized gain | (.53) | (.18) | (.39) | – | – | – |
Total distributions | (.66) | (.26) | (.39) | (.06) | – | (.02) |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $14.85 | $14.22 | $12.54 | $13.01 | $12.35 | $10.55 |
Total ReturnD,E | 9.29% | 15.55% | (.33)% | 5.83% | 17.06% | 32.92% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.80%H | 1.46% | 1.69% | 1.57% | 1.45% | 1.93% |
Expenses net of fee waivers, if any | 1.15%H | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.14%H | 1.14% | 1.14% | 1.14% | 1.14% | 1.12% |
Net investment income (loss) | .08%H | .81% | 1.06% | .41% | .65%B | .43% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,490 | $4,733 | $1,209 | $1,024 | $2,592 | $855 |
Portfolio turnover rateI | 47%H | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Amazon.com, Inc. | 16.7 |
Home Depot, Inc. | 7.9 |
Comcast Corp. Class A | 4.0 |
The Walt Disney Co. | 4.0 |
Charter Communications, Inc. Class A | 3.9 |
McDonald's Corp. | 3.7 |
Dollar Tree, Inc. | 3.4 |
Netflix, Inc. | 3.1 |
Lowe's Companies, Inc. | 2.9 |
Priceline Group, Inc. | 2.6 |
52.2 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Hotels, Restaurants & Leisure | 24.1% | |
Internet & Direct Marketing Retail | 23.0% | |
Specialty Retail | 18.2% | |
Media | 13.7% | |
Textiles, Apparel & Luxury Goods | 4.7% | |
All Others* | 16.3% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Consumer Discretionary Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Air Freight & Logistics - 0.1% | |||
Air Freight & Logistics - 0.1% | |||
XPO Logistics, Inc. (a) | 3,100 | $292,764 | |
Auto Components - 0.2% | |||
Auto Parts & Equipment - 0.2% | |||
Aptiv PLC | 6,800 | 645,184 | |
Tenneco, Inc. | 400 | 23,204 | |
668,388 | |||
Automobiles - 2.2% | |||
Automobile Manufacturers - 2.2% | |||
Ferrari NV | 4,400 | 525,800 | |
General Motors Co. | 7,700 | 326,557 | |
Tesla, Inc. (a) | 15,800 | 5,598,098 | |
Thor Industries, Inc. | 5,200 | 710,632 | |
7,161,087 | |||
Beverages - 0.8% | |||
Distillers & Vintners - 0.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 9,500 | 2,084,965 | |
Soft Drinks - 0.2% | |||
Monster Beverage Corp. (a) | 6,616 | 451,410 | |
TOTAL BEVERAGES | 2,536,375 | ||
Building Products - 0.1% | |||
Building Products - 0.1% | |||
Masco Corp. | 10,200 | 455,532 | |
Commercial Services & Supplies - 0.2% | |||
Diversified Support Services - 0.2% | |||
Copart, Inc. (a) | 11,500 | 506,805 | |
Distributors - 0.7% | |||
Distributors - 0.7% | |||
LKQ Corp. (a) | 40,900 | 1,719,027 | |
Pool Corp. | 4,100 | 554,484 | |
2,273,511 | |||
Diversified Consumer Services - 0.6% | |||
Education Services - 0.4% | |||
Adtalem Global Education, Inc. (a) | 6,100 | 280,600 | |
Grand Canyon Education, Inc. (a) | 8,800 | 818,312 | |
New Oriental Education & Technology Group, Inc. sponsored ADR | 3,400 | 313,106 | |
1,412,018 | |||
Specialized Consumer Services - 0.2% | |||
Service Corp. International | 4,200 | 167,874 | |
ServiceMaster Global Holdings, Inc. (a) | 8,000 | 421,760 | |
589,634 | |||
TOTAL DIVERSIFIED CONSUMER SERVICES | 2,001,652 | ||
Electronic Equipment & Components - 0.1% | |||
Electronic Equipment & Instruments - 0.1% | |||
ADT, Inc. (a) | 28,000 | 349,440 | |
Food & Staples Retailing - 1.2% | |||
Food Distributors - 0.8% | |||
Performance Food Group Co. (a) | 80,300 | 2,758,305 | |
Hypermarkets & Super Centers - 0.4% | |||
Costco Wholesale Corp. | 2,400 | 467,688 | |
Walmart, Inc. | 6,800 | 724,880 | |
1,192,568 | |||
TOTAL FOOD & STAPLES RETAILING | 3,950,873 | ||
Health Care Providers & Services - 0.0% | |||
Health Care Services - 0.0% | |||
National Vision Holdings, Inc. | 1,900 | 74,328 | |
Hotels, Restaurants & Leisure - 24.1% | |||
Casinos & Gaming - 4.1% | |||
Boyd Gaming Corp. | 12,600 | 497,322 | |
Caesars Entertainment Corp. (a) | 44,500 | 620,775 | |
Churchill Downs, Inc. | 1,900 | 492,100 | |
Eldorado Resorts, Inc. (a) | 39,300 | 1,357,815 | |
Las Vegas Sands Corp. | 68,480 | 5,308,570 | |
Melco Crown Entertainment Ltd. sponsored ADR | 13,400 | 399,052 | |
MGM Mirage, Inc. | 82,500 | 3,007,125 | |
Penn National Gaming, Inc. (a) | 25,196 | 804,004 | |
PlayAGS, Inc. (a) | 10,300 | 201,571 | |
Wynn Resorts Ltd. | 5,491 | 909,255 | |
13,597,589 | |||
Hotels, Resorts & Cruise Lines - 8.6% | |||
Bluegreen Vacations Corp. | 39,400 | 748,206 | |
Carnival Corp. | 37,600 | 2,692,536 | |
Hilton Grand Vacations, Inc. (a) | 24,700 | 1,110,759 | |
Hilton Worldwide Holdings, Inc. | 68,000 | 5,824,200 | |
Hyatt Hotels Corp. Class A (a) | 4,000 | 325,200 | |
ILG, Inc. | 11,600 | 364,356 | |
Marriott International, Inc. Class A | 37,975 | 5,595,237 | |
Marriott Vacations Worldwide Corp. | 12,100 | 1,843,193 | |
Royal Caribbean Cruises Ltd. | 44,000 | 5,876,200 | |
Wyndham Worldwide Corp. | 32,220 | 3,999,469 | |
28,379,356 | |||
Leisure Facilities - 1.0% | |||
Cedar Fair LP (depositary unit) | 3,400 | 230,520 | |
Drive Shack, Inc. | 8,000 | 41,440 | |
Vail Resorts, Inc. | 14,040 | 3,068,582 | |
3,340,542 | |||
Restaurants - 10.4% | |||
ARAMARK Holdings Corp. | 25,100 | 1,149,831 | |
Compass Group PLC | 10,100 | 212,598 | |
Darden Restaurants, Inc. | 18,225 | 1,746,866 | |
Del Frisco's Restaurant Group, Inc. (a) | 15,200 | 266,000 | |
Del Taco Restaurants, Inc. (a) | 7,325 | 92,808 | |
Domino's Pizza, Inc. | 7,700 | 1,669,745 | |
Dunkin' Brands Group, Inc. | 24,000 | 1,551,600 | |
Jack in the Box, Inc. | 6,100 | 555,039 | |
McDonald's Corp. | 71,400 | 12,219,396 | |
Restaurant Brands International, Inc. | 23,300 | 1,407,472 | |
Ruth's Hospitality Group, Inc. | 13,754 | 325,970 | |
Shake Shack, Inc. Class A (a) | 8,200 | 358,422 | |
Starbucks Corp. | 145,276 | 8,253,130 | |
Texas Roadhouse, Inc. Class A | 14,800 | 869,056 | |
U.S. Foods Holding Corp. (a) | 64,800 | 2,082,024 | |
Wingstop, Inc. | 21,000 | 1,015,560 | |
Yum! Brands, Inc. | 10,300 | 871,277 | |
34,646,794 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 79,964,281 | ||
Household Durables - 2.4% | |||
Home Furnishings - 0.3% | |||
Mohawk Industries, Inc. (a) | 3,000 | 843,180 | |
Homebuilding - 2.0% | |||
Cavco Industries, Inc. (a) | 2,600 | 398,190 | |
D.R. Horton, Inc. | 48,400 | 2,374,020 | |
Lennar Corp.: | |||
Class A | 27,100 | 1,698,086 | |
Class B | 446 | 22,585 | |
LGI Homes, Inc. (a)(b) | 3,000 | 203,040 | |
New Home Co. LLC (a) | 8,800 | 104,280 | |
NVR, Inc. (a) | 300 | 953,451 | |
Taylor Morrison Home Corp. (a) | 9,200 | 233,956 | |
TopBuild Corp. (a) | 1,100 | 84,194 | |
TRI Pointe Homes, Inc. (a) | 37,100 | 605,101 | |
6,676,903 | |||
Household Appliances - 0.1% | |||
Techtronic Industries Co. Ltd. | 70,500 | 469,540 | |
TOTAL HOUSEHOLD DURABLES | 7,989,623 | ||
Internet & Direct Marketing Retail - 23.0% | |||
Internet & Direct Marketing Retail - 23.0% | |||
Amazon.com, Inc. (a) | 37,980 | 55,104,801 | |
Boohoo.Com PLC (a) | 124,200 | 326,856 | |
Liberty Interactive Corp. QVC Group Series A (a) | 58,569 | 1,645,203 | |
Netflix, Inc. (a) | 37,683 | 10,185,715 | |
Priceline Group, Inc. (a) | 4,500 | 8,604,225 | |
Wayfair LLC Class A (a) | 839 | 77,196 | |
Zalando SE (a) | 1,600 | 93,722 | |
76,037,718 | |||
Internet Software & Services - 1.0% | |||
Internet Software & Services - 1.0% | |||
2U, Inc. (a) | 13,202 | 980,513 | |
Alphabet, Inc. Class A (a) | 1,400 | 1,655,108 | |
CarGurus, Inc. Class A | 400 | 13,400 | |
Facebook, Inc. Class A (a) | 4,300 | 803,627 | |
3,452,648 | |||
IT Services - 0.4% | |||
Data Processing & Outsourced Services - 0.4% | |||
Global Payments, Inc. | 4,000 | 447,120 | |
PayPal Holdings, Inc. (a) | 10,100 | 861,732 | |
1,308,852 | |||
Leisure Products - 0.5% | |||
Leisure Products - 0.5% | |||
Mattel, Inc. (b) | 115,600 | 1,831,104 | |
Media - 13.7% | |||
Advertising - 0.0% | |||
Interpublic Group of Companies, Inc. | 4,500 | 98,505 | |
Broadcasting - 0.2% | |||
CBS Corp. Class B | 8,100 | 466,641 | |
Cable & Satellite - 8.3% | |||
Charter Communications, Inc. Class A (a) | 34,494 | 13,012,862 | |
Comcast Corp. Class A | 313,600 | 13,337,408 | |
DISH Network Corp. Class A (a) | 7,600 | 356,440 | |
Naspers Ltd. Class N | 2,900 | 828,042 | |
27,534,752 | |||
Movies & Entertainment - 5.2% | |||
Cinemark Holdings, Inc. | 34,900 | 1,284,320 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 7,400 | 278,906 | |
Lions Gate Entertainment Corp. Class B (a) | 1,800 | 57,600 | |
Live Nation Entertainment, Inc. (a) | 9,300 | 419,058 | |
The Walt Disney Co. | 121,506 | 13,204,057 | |
Time Warner, Inc. | 17,400 | 1,659,090 | |
Twenty-First Century Fox, Inc. Class A | 8,600 | 317,340 | |
17,220,371 | |||
TOTAL MEDIA | 45,320,269 | ||
Multiline Retail - 4.5% | |||
Department Stores - 0.2% | |||
Kohl's Corp. | 5,400 | 349,758 | |
Macy's, Inc. | 16,800 | 435,960 | |
785,718 | |||
General Merchandise Stores - 4.3% | |||
B&M European Value Retail S.A. | 94,205 | 556,295 | |
Dollar General Corp. | 12,400 | 1,278,688 | |
Dollar Tree, Inc. (a) | 97,800 | 11,247,000 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 4,600 | 255,530 | |
Target Corp. | 9,700 | 729,634 | |
14,067,147 | |||
TOTAL MULTILINE RETAIL | 14,852,865 | ||
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
Estee Lauder Companies, Inc. Class A | 1,100 | 148,456 | |
Real Estate Management & Development - 0.1% | |||
Real Estate Services - 0.1% | |||
Redfin Corp. (b) | 12,800 | 259,840 | |
Software - 0.2% | |||
Application Software - 0.1% | |||
Adobe Systems, Inc. (a) | 1,200 | 239,712 | |
Home Entertainment Software - 0.1% | |||
Activision Blizzard, Inc. | 4,500 | 333,585 | |
TOTAL SOFTWARE | 573,297 | ||
Specialty Retail - 18.2% | |||
Apparel Retail - 4.6% | |||
Burlington Stores, Inc. (a) | 27,000 | 3,286,170 | |
Inditex SA | 9,016 | 322,623 | |
Ross Stores, Inc. | 70,869 | 5,838,897 | |
The Children's Place Retail Stores, Inc. | 4,200 | 629,160 | |
TJX Companies, Inc. | 66,111 | 5,310,036 | |
15,386,886 | |||
Automotive Retail - 2.2% | |||
AutoZone, Inc. (a) | 4,100 | 3,138,304 | |
O'Reilly Automotive, Inc. (a) | 15,662 | 4,145,575 | |
7,283,879 | |||
Home Improvement Retail - 10.9% | |||
Floor & Decor Holdings, Inc. Class A | 6,800 | 318,920 | |
Home Depot, Inc. | 130,620 | 26,241,558 | |
Lowe's Companies, Inc. | 91,800 | 9,614,214 | |
36,174,692 | |||
Specialty Stores - 0.5% | |||
Tiffany & Co., Inc. | 2,300 | 245,295 | |
Ulta Beauty, Inc. | 5,900 | 1,310,390 | |
1,555,685 | |||
TOTAL SPECIALTY RETAIL | 60,401,142 | ||
Technology Hardware, Storage & Peripherals - 0.4% | |||
Technology Hardware, Storage & Peripherals - 0.4% | |||
Apple, Inc. | 7,000 | 1,172,010 | |
Textiles, Apparel & Luxury Goods - 4.7% | |||
Apparel, Accessories & Luxury Goods - 2.3% | |||
adidas AG | 3,197 | 743,438 | |
Canada Goose Holdings, Inc. | 10,200 | 367,034 | |
Carter's, Inc. | 8,600 | 1,034,580 | |
G-III Apparel Group Ltd. (a) | 14,400 | 537,840 | |
Kering SA | 600 | 303,782 | |
LVMH Moet Hennessy - Louis Vuitton SA | 2,740 | 858,308 | |
PVH Corp. | 20,300 | 3,148,124 | |
Tapestry, Inc. | 11,700 | 550,368 | |
7,543,474 | |||
Footwear - 2.4% | |||
NIKE, Inc. Class B | 117,334 | 8,004,525 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 15,547,999 | ||
TOTAL COMMON STOCKS | |||
(Cost $222,166,646) | 329,130,859 | ||
Money Market Funds - 1.3% | |||
Fidelity Cash Central Fund, 1.39% (c) | 2,354,987 | 2,355,458 | |
Fidelity Securities Lending Cash Central Fund 1.40% (c)(d) | 1,985,612 | 1,985,810 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $4,341,268) | 4,341,268 | ||
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $226,507,914) | 333,472,127 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (2,279,131) | ||
NET ASSETS - 100% | $331,192,996 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $9,131 |
Fidelity Securities Lending Cash Central Fund | 18,183 |
Total | $27,314 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, 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 | $329,130,859 | $327,949,928 | $1,180,931 | $-- |
Money Market Funds | 4,341,268 | 4,341,268 | -- | -- |
Total Investments in Securities: | $333,472,127 | $332,291,196 | $1,180,931 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,908,186) — See accompanying schedule: Unaffiliated issuers (cost $222,166,646) | $329,130,859 | |
Fidelity Central Funds (cost $4,341,268) | 4,341,268 | |
Total Investment in Securities (cost $226,507,914) | $333,472,127 | |
Cash | 58,050 | |
Receivable for fund shares sold | 5,315,572 | |
Dividends receivable | 70,894 | |
Distributions receivable from Fidelity Central Funds | 12,784 | |
Prepaid expenses | 1,128 | |
Other receivables | 9,992 | |
Total assets | 338,940,547 | |
Liabilities | ||
Payable for investments purchased | $716,939 | |
Payable for fund shares redeemed | 4,684,837 | |
Accrued management fee | 143,153 | |
Distribution and service plan fees payable | 93,184 | |
Other affiliated payables | 57,560 | |
Other payables and accrued expenses | 67,678 | |
Collateral on securities loaned | 1,984,200 | |
Total liabilities | 7,747,551 | |
Net Assets | $331,192,996 | |
Net Assets consist of: | ||
Paid in capital | $222,457,577 | |
Distributions in excess of net investment income | (294,522) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,065,773 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 106,964,168 | |
Net Assets | $331,192,996 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($118,893,093 ÷ 4,298,800 shares) | $27.66 | |
Maximum offering price per share (100/94.25 of $27.66) | $29.35 | |
Class M: | ||
Net Asset Value and redemption price per share ($39,006,884 ÷ 1,507,531 shares) | $25.87 | |
Maximum offering price per share (100/96.50 of $25.87) | $26.81 | |
Class C: | ||
Net Asset Value and offering price per share ($66,522,607 ÷ 2,952,720 shares)(a) | $22.53 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($106,770,412 ÷ 3,586,547 shares) | $29.77 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $1,374,347 | |
Interest | 869 | |
Income from Fidelity Central Funds (including $18,183 from security lending) | 27,314 | |
Total income | 1,402,530 | |
Expenses | ||
Management fee | $753,071 | |
Transfer agent fees | 278,141 | |
Distribution and service plan fees | 496,700 | |
Accounting and security lending fees | 54,343 | |
Custodian fees and expenses | 10,703 | |
Independent trustees' fees and expenses | 2,976 | |
Registration fees | 44,771 | |
Audit | 23,239 | |
Legal | 2,449 | |
Miscellaneous | 40,735 | |
Total expenses before reductions | 1,707,128 | |
Expense reductions | (10,077) | 1,697,051 |
Net investment income (loss) | (294,521) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,219,250 | |
Fidelity Central Funds | 364 | |
Foreign currency transactions | (12,192) | |
Total net realized gain (loss) | 3,207,422 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 51,333,735 | |
Fidelity Central Funds | (201) | |
Assets and liabilities in foreign currencies | (119) | |
Total change in net unrealized appreciation (depreciation) | 51,333,415 | |
Net gain (loss) | 54,540,837 | |
Net increase (decrease) in net assets resulting from operations | $54,246,316 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(294,521) | $423,702 |
Net realized gain (loss) | 3,207,422 | 13,394,770 |
Change in net unrealized appreciation (depreciation) | 51,333,415 | 11,650,274 |
Net increase (decrease) in net assets resulting from operations | 54,246,316 | 25,468,746 |
Distributions to shareholders from net investment income | – | (1,067,067) |
Share transactions - net increase (decrease) | (907,464) | (62,438,702) |
Redemption fees | – | 5,343 |
Total increase (decrease) in net assets | 53,338,852 | (38,031,680) |
Net Assets | ||
Beginning of period | 277,854,144 | 315,885,824 |
End of period | $331,192,996 | $277,854,144 |
Other Information | ||
Distributions in excess of net investment income end of period | $(294,522) | $(1) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Consumer Discretionary Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.92 | $20.94 | $21.51 | $19.75 | $19.59 | $16.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .06 | .10B | .05 | (.04) | (.02) |
Net realized and unrealized gain (loss) | 4.75 | 2.01 | (.21) | 3.99 | 1.75 | 5.04 |
Total from investment operations | 4.74 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $27.66 | $22.92 | $20.94 | $21.51 | $19.75 | $19.59 |
Total ReturnD,E,F | 20.68% | 9.93% | (.38)% | 22.26% | 9.28% | 33.65% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.13%I | 1.10% | 1.10% | 1.15% | 1.20% | 1.31% |
Expenses net of fee waivers, if any | 1.13%I | 1.10% | 1.10% | 1.15% | 1.20% | 1.31% |
Expenses net of all reductions | 1.12%I | 1.10% | 1.09% | 1.14% | 1.19% | 1.29% |
Net investment income (loss) | (.11)%I | .26% | .49%B | .27% | (.21)% | (.10)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $118,893 | $109,303 | $144,578 | $115,027 | $59,089 | $45,292 |
Portfolio turnover rateJ | 115%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.47 | $19.66 | $20.26 | $18.75 | $18.68 | $15.57 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | –B | .03C | (.01) | (.10) | (.06) |
Net realized and unrealized gain (loss) | 4.44 | 1.89 | (.19) | 3.77 | 1.67 | 4.81 |
Total from investment operations | 4.40 | 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 | –B | –B | –B | –B |
Net asset value, end of period | $25.87 | $21.47 | $19.66 | $20.26 | $18.75 | $18.68 |
Total ReturnD,E,F | 20.49% | 9.62% | (.68)% | 21.92% | 8.94% | 33.25% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.39%I | 1.39% | 1.40% | 1.46% | 1.50% | 1.60% |
Expenses net of fee waivers, if any | 1.39%I | 1.39% | 1.40% | 1.45% | 1.50% | 1.60% |
Expenses net of all reductions | 1.39%I | 1.39% | 1.39% | 1.45% | 1.49% | 1.58% |
Net investment income (loss) | (.38)%I | (.02)% | .19%C | (.03)% | (.51)% | (.39)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $39,007 | $26,398 | $28,259 | $25,948 | $18,779 | $15,613 |
Portfolio turnover rateJ | 115%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.74 | $17.18 | $17.84 | $16.79 | $16.90 | $14.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.08) | (.09) | (.04)B | (.08) | (.16) | (.12) |
Net realized and unrealized gain (loss) | 3.87 | 1.65 | (.18) | 3.34 | 1.49 | 4.37 |
Total from investment operations | 3.79 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $22.53 | $18.74 | $17.18 | $17.84 | $16.79 | $16.90 |
Total ReturnD,E,F | 20.22% | 9.08% | (1.11)% | 21.37% | 8.44% | 32.68% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.88%I | 1.85% | 1.86% | 1.91% | 1.97% | 2.04% |
Expenses net of fee waivers, if any | 1.88%I | 1.85% | 1.86% | 1.91% | 1.97% | 2.04% |
Expenses net of all reductions | 1.88%I | 1.85% | 1.85% | 1.90% | 1.96% | 2.02% |
Net investment income (loss) | (.87)%I | (.49)% | (.27)%B | (.49)% | (.97)% | (.83)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $66,523 | $59,958 | $67,306 | $43,999 | $20,726 | $17,176 |
Portfolio turnover rateJ | 115%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.64 | $22.48 | $23.06 | $21.00 | $20.72 | $17.04 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .12 | .16B | .12 | .02 | .04 |
Net realized and unrealized gain (loss) | 5.11 | 2.18 | (.22) | 4.26 | 1.85 | 5.32 |
Total from investment operations | 5.13 | 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 | –C | –C | –C | –C |
Net asset value, end of period | $29.77 | $24.64 | $22.48 | $23.06 | $21.00 | $20.72 |
Total ReturnD,E | 20.82% | 10.27% | (.13)% | 22.60% | 9.61% | 34.06% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .85%H | .83% | .84% | .87% | .91% | .97% |
Expenses net of fee waivers, if any | .85%H | .83% | .84% | .87% | .91% | .97% |
Expenses net of all reductions | .84%H | .83% | .83% | .87% | .91% | .96% |
Net investment income (loss) | .17%H | .54% | .75%B | .55% | .08% | .24% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $106,770 | $82,195 | $75,742 | $48,329 | $21,708 | $13,044 |
Portfolio turnover rateI | 115%H | 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 dividends which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
EOG Resources, Inc. | 7.5 |
Chevron Corp. | 6.8 |
Halliburton Co. | 6.2 |
Diamondback Energy, Inc. | 5.9 |
Pioneer Natural Resources Co. | 4.6 |
Exxon Mobil Corp. | 4.6 |
Phillips 66 Co. | 3.6 |
RSP Permian, Inc. | 3.0 |
Encana Corp. | 2.8 |
The Williams Companies, Inc. | 2.7 |
47.7 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Oil, Gas & Consumable Fuels | 80.9% | |
Energy Equipment & Services | 15.3% | |
Chemicals | 2.0% | |
Machinery | 0.5% | |
Gas Utilities | 0.4% | |
All Others* | 0.9% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Energy Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Chemicals - 2.0% | |||
Commodity Chemicals - 2.0% | |||
LG Chemical Ltd. | 6,465 | $2,610,668 | |
LyondellBasell Industries NV Class A | 135,900 | 16,286,256 | |
18,896,924 | |||
Energy Equipment & Services - 15.3% | |||
Oil & Gas Drilling - 2.3% | |||
Nabors Industries Ltd. | 1,020,752 | 8,002,696 | |
Odfjell Drilling Ltd. (a) | 564,256 | 2,664,312 | |
Shelf Drilling Ltd. (b) | 865,700 | 7,299,420 | |
Trinidad Drilling Ltd. (a) | 971,300 | 1,389,828 | |
Xtreme Drilling & Coil Services Corp. (a) | 1,035,902 | 1,878,099 | |
21,234,355 | |||
Oil & Gas Equipment & Services - 13.0% | |||
Baker Hughes, a GE Co. Class A | 468,000 | 15,046,200 | |
C&J Energy Services, Inc. | 51,000 | 1,561,620 | |
Dril-Quip, Inc. (a) | 146,891 | 7,586,920 | |
Frank's International NV (c) | 373,745 | 2,586,315 | |
Halliburton Co. | 1,084,300 | 58,226,910 | |
Liberty Oilfield Services, Inc. Class A (a) | 17,800 | 394,092 | |
NCS Multistage Holdings, Inc. (c) | 249,300 | 4,073,562 | |
Newpark Resources, Inc. (a) | 764,000 | 6,952,400 | |
Oceaneering International, Inc. | 216,273 | 4,472,526 | |
RigNet, Inc. (a) | 274,950 | 4,536,675 | |
Schlumberger Ltd. | 196,818 | 14,481,868 | |
Smart Sand, Inc. (a)(c) | 113,800 | 1,045,822 | |
TETRA Technologies, Inc. (a) | 443,800 | 1,704,192 | |
Total Energy Services, Inc. | 38,900 | 433,276 | |
123,102,378 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 144,336,733 | ||
Gas Utilities - 0.4% | |||
Gas Utilities - 0.4% | |||
Indraprastha Gas Ltd. (a) | 863,409 | 4,138,413 | |
Machinery - 0.5% | |||
Industrial Machinery - 0.5% | |||
ProPetro Holding Corp. (c) | 253,600 | 4,737,248 | |
Oil, Gas & Consumable Fuels - 80.9% | |||
Integrated Oil & Gas - 14.5% | |||
Chevron Corp. | 517,409 | 64,857,218 | |
Exxon Mobil Corp. | 499,461 | 43,602,945 | |
Occidental Petroleum Corp. | 248,300 | 18,615,051 | |
Suncor Energy, Inc. | 291,100 | 10,545,867 | |
137,621,081 | |||
Oil & Gas Exploration & Production - 51.0% | |||
Anadarko Petroleum Corp. | 340,383 | 20,439,999 | |
Cabot Oil & Gas Corp. | 679,500 | 17,904,825 | |
Callon Petroleum Co. (a) | 959,900 | 10,894,865 | |
Centennial Resource Development, Inc.: | |||
Class A (a) | 45,200 | 922,532 | |
Class A (a)(c) | 385,500 | 7,868,055 | |
Cimarex Energy Co. | 164,847 | 18,495,833 | |
Concho Resources, Inc. (a) | 116,400 | 18,326,016 | |
ConocoPhillips Co. | 163,300 | 9,603,673 | |
Continental Resources, Inc. (a) | 413,800 | 22,978,314 | |
Devon Energy Corp. | 601,200 | 24,871,644 | |
Diamondback Energy, Inc. (a) | 446,100 | 55,985,550 | |
Encana Corp. | 2,152,700 | 26,619,973 | |
EOG Resources, Inc. | 616,886 | 70,941,890 | |
Extraction Oil & Gas, Inc. (a)(c) | 494,730 | 6,975,693 | |
Hess Corp. | 167,100 | 8,440,221 | |
Jagged Peak Energy, Inc. | 6,000 | 77,100 | |
Lilis Energy, Inc. (a)(c) | 278,256 | 1,196,501 | |
Marathon Oil Corp. | 334,100 | 6,077,279 | |
Murphy Oil Corp. | 71,500 | 2,295,150 | |
Newfield Exploration Co. (a) | 629,200 | 19,920,472 | |
Parsley Energy, Inc. Class A (a) | 821,900 | 19,396,840 | |
PDC Energy, Inc. (a) | 199,188 | 10,327,898 | |
Pioneer Natural Resources Co. | 239,016 | 43,718,417 | |
PrairieSky Royalty Ltd. | 79,800 | 1,976,185 | |
Range Resources Corp. (c) | 90,900 | 1,295,325 | |
Ring Energy, Inc. (a) | 250,632 | 3,458,722 | |
RSP Permian, Inc. (a) | 703,400 | 27,910,912 | |
Viper Energy Partners LP | 507,400 | 12,274,006 | |
WPX Energy, Inc. (a) | 775,500 | 11,423,115 | |
482,617,005 | |||
Oil & Gas Refining & Marketing - 8.0% | |||
Andeavor | 94,500 | 10,221,120 | |
Delek U.S. Holdings, Inc. | 711,700 | 24,831,213 | |
Phillips 66 Co. | 336,118 | 34,418,483 | |
Reliance Industries Ltd. | 233,406 | 3,530,101 | |
Valero Energy Corp. | 25,300 | 2,428,041 | |
75,428,958 | |||
Oil & Gas Storage & Transport - 7.4% | |||
Cheniere Energy, Inc. (a) | 155,800 | 8,812,048 | |
Enterprise Products Partners LP | 366,700 | 10,128,254 | |
GasLog Partners LP | 117,100 | 2,775,270 | |
Gener8 Maritime, Inc. (a) | 854,703 | 5,017,107 | |
Golar LNG Ltd. (c) | 196,500 | 5,362,485 | |
Noble Midstream Partners LP | 122,187 | 6,865,688 | |
Noble Midstream Partners LP (d) | 48,372 | 2,718,023 | |
Plains GP Holdings LP Class A | 92,100 | 1,959,888 | |
Teekay LNG Partners LP | 64,100 | 1,265,975 | |
The Williams Companies, Inc. | 813,700 | 25,542,043 | |
70,446,781 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 766,113,825 | ||
Semiconductors & Semiconductor Equipment - 0.2% | |||
Semiconductor Equipment - 0.2% | |||
SolarEdge Technologies, Inc. (a) | 58,500 | 2,100,150 | |
TOTAL COMMON STOCKS | |||
(Cost $768,496,768) | 940,323,293 | ||
Money Market Funds - 2.3% | |||
Fidelity Cash Central Fund, 1.39% (e) | 1,445,892 | 1,446,181 | |
Fidelity Securities Lending Cash Central Fund 1.40% (e)(f) | 19,938,572 | 19,940,566 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $21,386,747) | 21,386,747 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $789,883,515) | 961,710,040 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (14,982,916) | ||
NET ASSETS - 100% | $946,727,124 |
Legend
(a) Non-income producing
(b) 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 $7,299,420 or 0.8% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,718,023 or 0.3% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
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 | $27,856 |
Fidelity Securities Lending Cash Central Fund | 63,697 |
Total | $91,553 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | 87.5% |
Canada | 4.5% |
Netherlands | 2.0% |
Bermuda | 1.7% |
Curacao | 1.5% |
Others (Individually Less Than 1%) | 2.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $19,111,850) — See accompanying schedule: Unaffiliated issuers (cost $768,496,768) | $940,323,293 | |
Fidelity Central Funds (cost $21,386,747) | 21,386,747 | |
Total Investment in Securities (cost $789,883,515) | $961,710,040 | |
Foreign currency held at value (cost $3,912,798) | 3,946,698 | |
Receivable for investments sold | 642,905 | |
Receivable for fund shares sold | 6,131,473 | |
Dividends receivable | 260,626 | |
Distributions receivable from Fidelity Central Funds | 11,161 | |
Prepaid expenses | 3,552 | |
Other receivables | 73,265 | |
Total assets | 972,779,720 | |
Liabilities | ||
Payable for fund shares redeemed | $4,603,759 | |
Accrued management fee | 439,050 | |
Distribution and service plan fees payable | 302,003 | |
Other affiliated payables | 187,420 | |
Other payables and accrued expenses | 585,343 | |
Collateral on securities loaned | 19,935,021 | |
Total liabilities | 26,052,596 | |
Net Assets | $946,727,124 | |
Net Assets consist of: | ||
Paid in capital | $960,371,599 | |
Distributions in excess of net investment income | (2,022,357) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (183,152,570) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 171,530,452 | |
Net Assets | $946,727,124 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($293,544,339 ÷ 8,403,623 shares) | $34.93 | |
Maximum offering price per share (100/94.25 of $34.93) | $37.06 | |
Class M: | ||
Net Asset Value and redemption price per share ($134,802,422 ÷ 3,769,454 shares) | $35.76 | |
Maximum offering price per share (100/96.50 of $35.76) | $37.06 | |
Class C: | ||
Net Asset Value and offering price per share ($204,294,111 ÷ 6,357,009 shares)(a) | $32.14 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($314,086,252 ÷ 8,537,685 shares) | $36.79 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $5,960,032 | |
Income from Fidelity Central Funds (including $63,697 from security lending) | 91,553 | |
Total income | 6,051,585 | |
Expenses | ||
Management fee | $2,402,082 | |
Transfer agent fees | 975,194 | |
Distribution and service plan fees | 1,675,299 | |
Accounting and security lending fees | 154,142 | |
Custodian fees and expenses | 16,013 | |
Independent trustees' fees and expenses | 9,761 | |
Registration fees | 60,246 | |
Audit | 27,452 | |
Legal | 7,634 | |
Interest | 1,179 | |
Miscellaneous | 170,772 | |
Total expenses before reductions | 5,499,774 | |
Expense reductions | (5,495) | 5,494,279 |
Net investment income (loss) | 557,306 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $50,638) | (11,398,240) | |
Fidelity Central Funds | 3,165 | |
Foreign currency transactions | 5,025 | |
Total net realized gain (loss) | (11,390,050) | |
Change in net unrealized appreciation (depreciation) on: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $27,492) | 137,283,657 | |
Fidelity Central Funds | (1,394) | |
Assets and liabilities in foreign currencies | 34,157 | |
Total change in net unrealized appreciation (depreciation) | 137,316,420 | |
Net gain (loss) | 125,926,370 | |
Net increase (decrease) in net assets resulting from operations | $126,483,676 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $557,306 | $10,286,493 |
Net realized gain (loss) | (11,390,050) | 14,559,379 |
Change in net unrealized appreciation (depreciation) | 137,316,420 | (43,915,461) |
Net increase (decrease) in net assets resulting from operations | 126,483,676 | (19,069,589) |
Distributions to shareholders from net investment income | (11,701,838) | (574,320) |
Distributions to shareholders from net realized gain | (106,752) | (1,566,619) |
Total distributions | (11,808,590) | (2,140,939) |
Share transactions - net increase (decrease) | (60,766,779) | (24,365,448) |
Redemption fees | – | 21,760 |
Total increase (decrease) in net assets | 53,908,307 | (45,554,216) |
Net Assets | ||
Beginning of period | 892,818,817 | 938,373,033 |
End of period | $946,727,124 | $892,818,817 |
Other Information | ||
Undistributed net investment income end of period | $– | $9,122,175 |
Distributions in excess of net investment income end of period | $(2,022,357) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Energy Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.70 | $31.12 | $30.96 | $45.71 | $40.59 | $33.71 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .38B | .16 | .28 | .15 | .23 |
Net realized and unrealized gain (loss) | 4.67 | (.72) | .20 | (12.89) | 7.06 | 6.81 |
Total from investment operations | 4.71 | (.34) | .36 | (12.61) | 7.21 | 7.04 |
Distributions from net investment income | (.48) | – | (.20) | (.18)C | (.17) | (.16) |
Distributions from net realized gain | –D | (.08) | – | (1.96)C | (1.93) | – |
Total distributions | (.48) | (.08) | (.20) | (2.14) | (2.09)E | (.16) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D | –D |
Net asset value, end of period | $34.93 | $30.70 | $31.12 | $30.96 | $45.71 | $40.59 |
Total ReturnF,G,H | 15.51% | (1.14)% | 1.25% | (28.92)% | 18.46% | 20.94% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.13%K | 1.09% | 1.12% | 1.12% | 1.12% | 1.16% |
Expenses net of fee waivers, if any | 1.13%K | 1.09% | 1.12% | 1.12% | 1.12% | 1.16% |
Expenses net of all reductions | 1.13%K | 1.08% | 1.11% | 1.11% | 1.12% | 1.15% |
Net investment income (loss) | .24%K | 1.15%B | .54% | .76% | .36% | .61% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $293,544 | $277,378 | $347,885 | $292,288 | $369,400 | $279,798 |
Portfolio turnover rateL | 35%K | 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 Amount represents less than $.005 per share.
E 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.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L 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 Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.37 | $31.82 | $31.63 | $46.64 | $41.38 | $34.40 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .30B | .08 | .20 | .06 | .15 |
Net realized and unrealized gain (loss) | 4.79 | (.75) | .22 | (13.18) | 7.21 | 6.95 |
Total from investment operations | 4.78 | (.45) | .30 | (12.98) | 7.27 | 7.10 |
Distributions from net investment income | (.39) | – | (.11) | (.08)C | (.08) | (.12) |
Distributions from net realized gain | –D | – | – | (1.95)C | (1.93) | – |
Total distributions | (.39) | – | (.11) | (2.03) | (2.01) | (.12) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D | –D |
Net asset value, end of period | $35.76 | $31.37 | $31.82 | $31.63 | $46.64 | $41.38 |
Total ReturnE,F,G | 15.36% | (1.41)% | .98% | (29.09)% | 18.19% | 20.70% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.40%J | 1.36% | 1.38% | 1.36% | 1.34% | 1.36% |
Expenses net of fee waivers, if any | 1.40%J | 1.36% | 1.38% | 1.35% | 1.34% | 1.36% |
Expenses net of all reductions | 1.40%J | 1.35% | 1.37% | 1.35% | 1.34% | 1.35% |
Net investment income (loss) | (.03)%J | .88%B | .28% | .52% | .14% | .40% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $134,802 | $125,951 | $155,856 | $164,848 | $245,828 | $223,248 |
Portfolio turnover rateK | 35%J | 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 for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.16 | $28.69 | $28.58 | $42.40 | $37.92 | $31.63 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | .13B | (.05) | .01 | (.15) | (.04) |
Net realized and unrealized gain (loss) | 4.30 | (.66) | .19 | (11.93) | 6.57 | 6.38 |
Total from investment operations | 4.23 | (.53) | .14 | (11.92) | 6.42 | 6.34 |
Distributions from net investment income | (.24) | – | (.03) | (.03)C | (.01) | (.05) |
Distributions from net realized gain | –D | – | – | (1.88)C | (1.93) | – |
Total distributions | (.25)E | – | (.03) | (1.90)F | (1.94) | (.05) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D | –D |
Net asset value, end of period | $32.14 | $28.16 | $28.69 | $28.58 | $42.40 | $37.92 |
Total ReturnG,H,I | 15.10% | (1.85)% | .52% | (29.44)% | 17.57% | 20.08% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.85%L | 1.82% | 1.84% | 1.85% | 1.86% | 1.90% |
Expenses net of fee waivers, if any | 1.85%L | 1.81% | 1.84% | 1.85% | 1.86% | 1.90% |
Expenses net of all reductions | 1.85%L | 1.80% | 1.83% | 1.85% | 1.86% | 1.88% |
Net investment income (loss) | (.48)%L | .42%B | (.18)% | .02% | (.38)% | (.13)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $204,294 | $212,105 | $240,949 | $162,322 | $130,881 | $99,833 |
Portfolio turnover rateM | 35%L | 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 Amount represents less than $.005 per share.
E Total distributions of $.25 per share is comprised of distributions from net investment income of $.244 and distributions from net realized gain of $.004 per share.
F 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.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the contingent deferred sales charge.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Annualized
M 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 Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.36 | $32.78 | $32.62 | $48.05 | $42.55 | $35.28 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .09 | .50B | .25 | .39 | .28 | .35 |
Net realized and unrealized gain (loss) | 4.93 | (.75) | .20 | (13.56) | 7.42 | 7.12 |
Total from investment operations | 5.02 | (.25) | .45 | (13.17) | 7.70 | 7.47 |
Distributions from net investment income | (.58) | (.08) | (.29) | (.30)C | (.27) | (.20) |
Distributions from net realized gain | –D | (.09) | – | (1.96)C | (1.93) | – |
Total distributions | (.59)E | (.17) | (.29) | (2.26) | (2.20) | (.20) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D | –D |
Net asset value, end of period | $36.79 | $32.36 | $32.78 | $32.62 | $48.05 | $42.55 |
Total ReturnF,G | 15.69% | (.86)% | 1.50% | (28.73)% | 18.80% | 21.26% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .84%J | .81% | .85% | .85% | .85% | .88% |
Expenses net of fee waivers, if any | .84%J | .81% | .85% | .85% | .85% | .88% |
Expenses net of all reductions | .84%J | .80% | .83% | .85% | .85% | .86% |
Net investment income (loss) | .53%J | 1.43%B | .82% | 1.02% | .63% | .89% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $314,086 | $277,385 | $193,683 | $130,308 | $110,795 | $65,034 |
Portfolio turnover rateK | 35%J | 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 distributions of $.59 per share is comprised of distributions from net investment income of $.584 and distributions from net realized gain of $.004 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Bank of America Corp. | 5.0 |
Capital One Financial Corp. | 5.0 |
Citigroup, Inc. | 5.0 |
Huntington Bancshares, Inc. | 4.9 |
Berkshire Hathaway, Inc. Class B | 4.7 |
TD Ameritrade Holding Corp. | 4.4 |
Wells Fargo & Co. | 4.3 |
The Travelers Companies, Inc. | 4.0 |
Goldman Sachs Group, Inc. | 3.8 |
E*TRADE Financial Corp. | 3.7 |
44.8 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Banks | 34.0% | |
Capital Markets | 25.2% | |
Insurance | 20.5% | |
Consumer Finance | 10.6% | |
Diversified Financial Services | 4.7% | |
All Others* | 5.0% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Financial Services Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
Banks - 34.0% | |||
Diversified Banks - 17.8% | |||
Bank of America Corp. | 836,756 | $26,776,191 | |
Citigroup, Inc. | 338,005 | 26,526,632 | |
HDFC Bank Ltd. sponsored ADR | 9,700 | 1,053,323 | |
JPMorgan Chase & Co. | 149,531 | 17,296,251 | |
Wells Fargo & Co. | 348,978 | 22,955,773 | |
94,608,170 | |||
Regional Banks - 16.2% | |||
Bank of the Ozarks, Inc. | 118,200 | 5,904,090 | |
CoBiz, Inc. | 165,991 | 3,329,779 | |
East West Bancorp, Inc. | 78,700 | 5,187,117 | |
First Republic Bank | 39,100 | 3,501,405 | |
Huntington Bancshares, Inc. | 1,598,220 | 25,859,200 | |
PNC Financial Services Group, Inc. | 123,231 | 19,472,963 | |
Popular, Inc. | 77,717 | 3,158,419 | |
Preferred Bank, Los Angeles | 19,400 | 1,249,748 | |
Signature Bank (a) | 41,400 | 6,375,600 | |
SunTrust Banks, Inc. | 168,800 | 11,934,160 | |
85,972,481 | |||
TOTAL BANKS | 180,580,651 | ||
Capital Markets - 25.2% | |||
Asset Management & Custody Banks - 7.5% | |||
Affiliated Managers Group, Inc. | 37,254 | 7,437,016 | |
BlackRock, Inc. Class A | 20,400 | 11,460,720 | |
Invesco Ltd. | 235,300 | 8,501,389 | |
Northern Trust Corp. | 119,500 | 12,594,105 | |
39,993,230 | |||
Financial Exchanges & Data - 4.3% | |||
CBOE Holdings, Inc. | 87,373 | 11,742,057 | |
IntercontinentalExchange, Inc. | 148,820 | 10,988,869 | |
22,730,926 | |||
Investment Banking & Brokerage - 13.4% | |||
E*TRADE Financial Corp. (a) | 372,580 | 19,634,966 | |
Goldman Sachs Group, Inc. | 75,740 | 20,289,989 | |
Greenhill & Co., Inc. (b) | 19,200 | 356,160 | |
Hamilton Lane, Inc. Class A | 31,900 | 1,189,232 | |
Investment Technology Group, Inc. | 137,775 | 2,942,874 | |
Lazard Ltd. Class A | 38,700 | 2,266,659 | |
PJT Partners, Inc. | 22,500 | 1,065,375 | |
TD Ameritrade Holding Corp. | 418,800 | 23,364,852 | |
71,110,107 | |||
TOTAL CAPITAL MARKETS | 133,834,263 | ||
Consumer Finance - 10.6% | |||
Consumer Finance - 10.6% | |||
Capital One Financial Corp. | 257,138 | 26,732,066 | |
Discover Financial Services | 78,900 | 6,296,220 | |
OneMain Holdings, Inc. (a) | 73,800 | 2,413,998 | |
SLM Corp. (a) | 590,500 | 6,755,320 | |
Synchrony Financial | 359,000 | 14,245,120 | |
56,442,724 | |||
Diversified Financial Services - 4.7% | |||
Multi-Sector Holdings - 4.7% | |||
Berkshire Hathaway, Inc. Class B (a) | 115,719 | 24,807,839 | |
Insurance - 20.5% | |||
Life & Health Insurance - 4.7% | |||
MetLife, Inc. | 299,100 | 14,377,737 | |
Torchmark Corp. | 113,580 | 10,318,743 | |
24,696,480 | |||
Multi-Line Insurance - 4.8% | |||
American International Group, Inc. | 138,900 | 8,878,488 | |
Hartford Financial Services Group, Inc. | 284,900 | 16,740,724 | |
25,619,212 | |||
Property & Casualty Insurance - 9.2% | |||
Allstate Corp. | 42,990 | 4,246,122 | |
Chubb Ltd. | 109,927 | 17,165,101 | |
FNF Group | 162,950 | 6,351,791 | |
The Travelers Companies, Inc. | 142,000 | 21,288,640 | |
49,051,654 | |||
Reinsurance - 1.8% | |||
Reinsurance Group of America, Inc. | 59,800 | 9,367,670 | |
TOTAL INSURANCE | 108,735,016 | ||
IT Services - 2.4% | |||
Data Processing & Outsourced Services - 2.4% | |||
Visa, Inc. Class A | 42,520 | 5,282,260 | |
WEX, Inc. (a) | 49,000 | 7,585,690 | |
12,867,950 | |||
Software - 0.4% | |||
Application Software - 0.4% | |||
Black Knight, Inc. (a) | 47,483 | 2,350,409 | |
Thrifts & Mortgage Finance - 0.9% | |||
Thrifts & Mortgage Finance - 0.9% | |||
MGIC Investment Corp. (a) | 196,800 | 2,916,576 | |
Radian Group, Inc. | 75,800 | 1,672,906 | |
4,589,482 | |||
TOTAL COMMON STOCKS | |||
(Cost $422,019,978) | 524,208,334 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund, 1.39% (c) | 6,908,953 | 6,910,335 | |
Fidelity Securities Lending Cash Central Fund 1.40% (c)(d) | 372,400 | 372,437 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,282,784) | 7,282,772 | ||
TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
(Cost $429,302,762) | 531,491,106 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (588,180) | ||
NET ASSETS - 100% | $530,902,926 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $39,675 |
Fidelity Securities Lending Cash Central Fund | 131 |
Total | $39,806 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $354,305) — See accompanying schedule: Unaffiliated issuers (cost $422,019,978) | $524,208,334 | |
Fidelity Central Funds (cost $7,282,784) | 7,282,772 | |
Total Investment in Securities (cost $429,302,762) | $531,491,106 | |
Receivable for investments sold | 5,927,886 | |
Receivable for fund shares sold | 1,721,632 | |
Dividends receivable | 119,882 | |
Distributions receivable from Fidelity Central Funds | 10,034 | |
Prepaid expenses | 1,497 | |
Other receivables | 4,433 | |
Total assets | 539,276,470 | |
Liabilities | ||
Payable for investments purchased | $6,921,094 | |
Payable for fund shares redeemed | 500,699 | |
Accrued management fee | 227,327 | |
Distribution and service plan fees payable | 159,104 | |
Other affiliated payables | 91,613 | |
Other payables and accrued expenses | 101,257 | |
Collateral on securities loaned | 372,450 | |
Total liabilities | 8,373,544 | |
Net Assets | $530,902,926 | |
Net Assets consist of: | ||
Paid in capital | $436,608,898 | |
Distributions in excess of net investment income | (297,169) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,597,029) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 102,188,226 | |
Net Assets | $530,902,926 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($188,698,188 ÷ 8,131,563 shares) | $23.21 | |
Maximum offering price per share (100/94.25 of $23.21) | $24.63 | |
Class M: | ||
Net Asset Value and redemption price per share ($56,379,722 ÷ 2,453,631 shares) | $22.98 | |
Maximum offering price per share (100/96.50 of $22.98) | $23.81 | |
Class C: | ||
Net Asset Value and offering price per share ($126,228,679 ÷ 5,799,663 shares)(a) | $21.76 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($159,596,337 ÷ 6,692,971 shares) | $23.85 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $3,189,388 | |
Income from Fidelity Central Funds (including $131 from security lending) | 39,806 | |
Total income | 3,229,194 | |
Expenses | ||
Management fee | $1,137,450 | |
Transfer agent fees | 431,610 | |
Distribution and service plan fees | 810,213 | |
Accounting and security lending fees | 81,616 | |
Custodian fees and expenses | 3,451 | |
Independent trustees' fees and expenses | 4,312 | |
Registration fees | 57,622 | |
Audit | 24,606 | |
Legal | 4,973 | |
Miscellaneous | 73,179 | |
Total expenses before reductions | 2,629,032 | |
Expense reductions | (7,301) | 2,621,731 |
Net investment income (loss) | 607,463 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 16,259,744 | |
Fidelity Central Funds | (255) | |
Foreign currency transactions | 1,701 | |
Total net realized gain (loss) | 16,261,190 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 58,714,874 | |
Fidelity Central Funds | (12) | |
Assets and liabilities in foreign currencies | 3 | |
Total change in net unrealized appreciation (depreciation) | 58,714,865 | |
Net gain (loss) | 74,976,055 | |
Net increase (decrease) in net assets resulting from operations | $75,583,518 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $607,463 | $974,795 |
Net realized gain (loss) | 16,261,190 | 22,817,692 |
Change in net unrealized appreciation (depreciation) | 58,714,865 | 38,934,675 |
Net increase (decrease) in net assets resulting from operations | 75,583,518 | 62,727,162 |
Distributions to shareholders from net investment income | (1,262,427) | (502,160) |
Distributions to shareholders from net realized gain | (200,477) | – |
Total distributions | (1,462,904) | (502,160) |
Share transactions - net increase (decrease) | 77,336,410 | 122,064,772 |
Redemption fees | – | 8,334 |
Total increase (decrease) in net assets | 151,457,024 | 184,298,108 |
Net Assets | ||
Beginning of period | 379,445,902 | 195,147,794 |
End of period | $530,902,926 | $379,445,902 |
Other Information | ||
Undistributed net investment income end of period | $– | $357,795 |
Distributions in excess of net investment income end of period | $(297,169) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Financial Services Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.55 | $15.43 | $16.53 | $14.97 | $13.41 | $10.18 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .08 | .11 | .10 | .10 | .15 |
Net realized and unrealized gain (loss) | 3.70 | 4.08 | (1.13) | 1.59B | 1.55 | 3.18 |
Total from investment operations | 3.74 | 4.16 | (1.02) | 1.69 | 1.65 | 3.33 |
Distributions from net investment income | (.07) | (.04) | (.07) | (.13) | (.08) | (.10) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) | – |
Total distributions | (.08) | (.04) | (.08) | (.13) | (.09) | (.10) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $23.21 | $19.55 | $15.43 | $16.53 | $14.97 | $13.41 |
Total ReturnD,E,F | 19.16% | 26.97% | (6.15)% | 11.29%B | 12.39% | 32.99% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.12%I | 1.12% | 1.15% | 1.17% | 1.22% | 1.29% |
Expenses net of fee waivers, if any | 1.12%I | 1.12% | 1.15% | 1.17% | 1.22% | 1.29% |
Expenses net of all reductions | 1.12%I | 1.12% | 1.15% | 1.17% | 1.22% | 1.21% |
Net investment income (loss) | .42%I | .48% | .77% | .61% | .68% | 1.31% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $188,698 | $144,144 | $97,011 | $102,983 | $77,674 | $64,428 |
Portfolio turnover rateJ | 37%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.34 | $15.29 | $16.41 | $14.86 | $13.31 | $10.11 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .04 | .07 | .05 | .06 | .12 |
Net realized and unrealized gain (loss) | 3.65 | 4.03 | (1.13) | 1.58B | 1.55 | 3.16 |
Total from investment operations | 3.67 | 4.07 | (1.06) | 1.63 | 1.61 | 3.28 |
Distributions from net investment income | (.02) | (.02) | (.05) | (.08) | (.05) | (.08) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) | – |
Total distributions | (.03) | (.02) | (.06) | (.08) | (.06) | (.08) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $22.98 | $19.34 | $15.29 | $16.41 | $14.86 | $13.31 |
Total ReturnD,E,F | 18.99% | 26.63% | (6.43)% | 10.98%B | 12.10% | 32.66% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.39%I | 1.40% | 1.45% | 1.45% | 1.48% | 1.55% |
Expenses net of fee waivers, if any | 1.39%I | 1.40% | 1.45% | 1.45% | 1.48% | 1.55% |
Expenses net of all reductions | 1.39%I | 1.40% | 1.44% | 1.45% | 1.48% | 1.47% |
Net investment income (loss) | .15%I | .20% | .47% | .33% | .42% | 1.06% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $56,380 | $45,920 | $30,044 | $34,314 | $31,596 | $30,576 |
Portfolio turnover rateJ | 37%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.34 | $14.55 | $15.67 | $14.22 | $12.75 | $9.70 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | (.05) | –B | (.02) | –B | .06 |
Net realized and unrealized gain (loss) | 3.45 | 3.84 | (1.08) | 1.51C | 1.48 | 3.03 |
Total from investment operations | 3.42 | 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 | –B | –B | –B | –B |
Net asset value, end of period | $21.76 | $18.34 | $14.55 | $15.67 | $14.22 | $12.75 |
Total ReturnD,E,F | 18.65% | 26.06% | (6.88)% | 10.45%C | 11.65% | 31.98% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.88%I | 1.87% | 1.90% | 1.90% | 1.94% | 2.03% |
Expenses net of fee waivers, if any | 1.87%I | 1.87% | 1.90% | 1.90% | 1.94% | 2.03% |
Expenses net of all reductions | 1.87%I | 1.87% | 1.89% | 1.90% | 1.93% | 1.96% |
Net investment income (loss) | (.33)%I | (.27)% | .02% | (.12)% | (.03)% | .57% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $126,229 | $92,593 | $47,505 | $50,206 | $36,740 | $29,897 |
Portfolio turnover rateJ | 37%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.11 | $15.84 | $16.94 | $15.34 | $13.73 | $10.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .07 | .14 | .17 | .15 | .15 | .20 |
Net realized and unrealized gain (loss) | 3.81 | 4.19 | (1.17) | 1.62B | 1.60 | 3.25 |
Total from investment operations | 3.88 | 4.33 | (1.00) | 1.77 | 1.75 | 3.45 |
Distributions from net investment income | (.13) | (.06) | (.09) | (.17) | (.13) | (.14) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) | – |
Total distributions | (.14) | (.06) | (.10) | (.17) | (.14) | (.14) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $23.85 | $20.11 | $15.84 | $16.94 | $15.34 | $13.73 |
Total ReturnD,E | 19.33% | 27.36% | (5.89)% | 11.61%B | 12.85% | 33.45% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .85%H | .84% | .85% | .84% | .87% | .96% |
Expenses net of fee waivers, if any | .85%H | .84% | .85% | .84% | .87% | .96% |
Expenses net of all reductions | .84%H | .83% | .84% | .84% | .86% | .88% |
Net investment income (loss) | .70%H | .76% | 1.07% | .94% | 1.04% | 1.65% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $159,596 | $96,789 | $20,588 | $42,443 | $16,164 | $9,275 |
Portfolio turnover rateI | 37%H | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
UnitedHealth Group, Inc. | 8.6 |
Becton, Dickinson & Co. | 6.7 |
Amgen, Inc. | 6.5 |
Boston Scientific Corp. | 4.6 |
Humana, Inc. | 4.5 |
Cigna Corp. | 4.0 |
Biogen, Inc. | 3.0 |
Intuitive Surgical, Inc. | 2.6 |
Roche Holding AG (participation certificate) | 2.4 |
Vertex Pharmaceuticals, Inc. | 2.3 |
45.2 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Biotechnology | 32.1% | |
Health Care Equipment & Supplies | 23.0% | |
Health Care Providers & Services | 20.8% | |
Pharmaceuticals | 14.7% | |
Health Care Technology | 4.2% | |
All Others* | 5.2% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Health Care Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
Biotechnology - 31.9% | |||
Biotechnology - 31.9% | |||
Abeona Therapeutics, Inc. (a)(b) | 529,300 | $8,071,825 | |
Ablynx NV (a)(b) | 800,000 | 43,543,641 | |
AC Immune SA (a) | 400,000 | 5,344,000 | |
Acceleron Pharma, Inc. (a) | 227,200 | 9,431,072 | |
Acorda Therapeutics, Inc. (a) | 363,600 | 9,435,420 | |
Alexion Pharmaceuticals, Inc. (a) | 485,000 | 57,870,200 | |
Alnylam Pharmaceuticals, Inc. (a) | 260,000 | 33,794,800 | |
Amgen, Inc. | 1,010,000 | 187,910,500 | |
Amicus Therapeutics, Inc. (a) | 140,000 | 2,270,800 | |
AnaptysBio, Inc. | 190,000 | 20,024,100 | |
Argenx SE ADR | 160,000 | 12,412,800 | |
Ascendis Pharma A/S sponsored ADR (a) | 400,000 | 20,388,000 | |
Atara Biotherapeutics, Inc. (a) | 365,000 | 13,797,000 | |
Audentes Therapeutics, Inc. (a) | 280,000 | 9,828,000 | |
BeiGene Ltd. ADR (a) | 200,000 | 27,150,000 | |
Biogen, Inc. (a) | 250,000 | 86,952,500 | |
BioMarin Pharmaceutical, Inc. (a) | 200,000 | 18,046,000 | |
bluebird bio, Inc. (a) | 89,320 | 18,301,668 | |
Blueprint Medicines Corp. (a) | 360,300 | 28,337,595 | |
Cellectis SA sponsored ADR (a) | 229,000 | 7,204,340 | |
Clovis Oncology, Inc. (a) | 130,000 | 7,865,000 | |
Coherus BioSciences, Inc. (a) | 550,000 | 5,555,000 | |
Curis, Inc. (a) | 298,179 | 184,006 | |
CytomX Therapeutics, Inc. (a) | 158,600 | 4,242,550 | |
Five Prime Therapeutics, Inc. (a) | 188,369 | 3,767,380 | |
Global Blood Therapeutics, Inc. (a) | 121,281 | 7,022,170 | |
GlycoMimetics, Inc. (a)(b) | 311,699 | 7,010,111 | |
Heron Therapeutics, Inc. (a) | 286,700 | 6,207,055 | |
Incyte Corp. (a) | 60,000 | 5,417,400 | |
Insmed, Inc. (a) | 1,026,600 | 26,116,704 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 101,744 | 6,318,302 | |
La Jolla Pharmaceutical Co. (a) | 174,681 | 5,984,571 | |
Loxo Oncology, Inc. (a) | 140,000 | 14,205,800 | |
Neurocrine Biosciences, Inc. (a) | 430,000 | 36,752,100 | |
Prothena Corp. PLC (a)(b) | 19,100 | 798,380 | |
Sarepta Therapeutics, Inc. (a)(b) | 560,000 | 36,702,400 | |
Spark Therapeutics, Inc. (a)(b) | 300,000 | 16,815,000 | |
TESARO, Inc. (a)(b) | 360,000 | 24,285,600 | |
uniQure B.V. (a) | 188,182 | 3,481,367 | |
Vertex Pharmaceuticals, Inc. (a) | 400,000 | 66,748,000 | |
Xencor, Inc. (a) | 440,000 | 10,014,400 | |
Zai Lab Ltd. ADR (b) | 260,408 | 7,020,600 | |
922,628,157 | |||
Diversified Consumer Services - 0.2% | |||
Specialized Consumer Services - 0.2% | |||
Carriage Services, Inc. | 188,135 | 5,010,035 | |
Diversified Financial Services - 0.3% | |||
Other Diversified Financial Services - 0.3% | |||
RPI International Holdings LP (a)(c)(d) | 61,683 | 8,513,179 | |
Food & Staples Retailing - 1.6% | |||
Drug Retail - 1.6% | |||
CVS Health Corp. | 570,000 | 44,853,300 | |
Health Care Equipment & Supplies - 22.2% | |||
Health Care Equipment - 21.7% | |||
Atricure, Inc. (a) | 650,000 | 10,601,500 | |
Baxter International, Inc. | 200,000 | 14,406,000 | |
Becton, Dickinson & Co. | 800,000 | 194,352,000 | |
Boston Scientific Corp. (a) | 4,770,000 | 133,369,200 | |
Danaher Corp. | 300,000 | 30,384,000 | |
DexCom, Inc. (a)(b) | 410,400 | 23,885,280 | |
Fisher & Paykel Healthcare Corp. | 900,000 | 8,854,454 | |
Insulet Corp. (a) | 470,000 | 35,969,100 | |
Integra LifeSciences Holdings Corp. (a) | 583,900 | 30,748,174 | |
Intuitive Surgical, Inc. (a) | 177,000 | 76,405,590 | |
Medtronic PLC | 70,000 | 6,012,300 | |
Penumbra, Inc. (a) | 288,000 | 28,684,800 | |
Stryker Corp. | 40,000 | 6,575,200 | |
Wright Medical Group NV (a) | 1,200,000 | 27,300,000 | |
627,547,598 | |||
Health Care Supplies - 0.5% | |||
Dentsply Sirona, Inc. | 220,000 | 13,378,200 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 640,925,798 | ||
Health Care Providers & Services - 20.7% | |||
Health Care Distributors & Services - 0.9% | |||
Amplifon SpA | 460,000 | 8,172,627 | |
EBOS Group Ltd. | 1,274,589 | 17,273,881 | |
25,446,508 | |||
Health Care Facilities - 1.4% | |||
HCA Holdings, Inc. | 400,000 | 40,464,000 | |
Health Care Services - 1.2% | |||
G1 Therapeutics, Inc. | 314,000 | 7,507,740 | |
Premier, Inc. (a) | 440,000 | 14,278,000 | |
United Drug PLC (United Kingdom) | 1,100,000 | 12,814,856 | |
34,600,596 | |||
Managed Health Care - 17.2% | |||
Aetna, Inc. | 14,300 | 2,671,526 | |
Cigna Corp. | 560,000 | 116,676,000 | |
Humana, Inc. | 464,000 | 130,769,120 | |
UnitedHealth Group, Inc. | 1,050,000 | 248,619,001 | |
498,735,647 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 599,246,751 | ||
Health Care Technology - 4.2% | |||
Health Care Technology - 4.2% | |||
athenahealth, Inc. (a) | 116,000 | 14,535,960 | |
Castlight Health, Inc. (a) | 336,800 | 1,246,160 | |
Castlight Health, Inc. Class B (a) | 447,600 | 1,656,120 | |
Cerner Corp. (a) | 800,000 | 55,304,000 | |
Medidata Solutions, Inc. (a) | 170,000 | 11,578,700 | |
Teladoc, Inc. (a)(b) | 1,000,000 | 37,400,000 | |
121,720,940 | |||
Internet Software & Services - 0.6% | |||
Internet Software & Services - 0.6% | |||
Benefitfocus, Inc. (a)(b) | 700,000 | 17,640,000 | |
Life Sciences Tools & Services - 1.2% | |||
Life Sciences Tools & Services - 1.2% | |||
Agilent Technologies, Inc. | 300,000 | 22,029,000 | |
Lonza Group AG | 44,000 | 12,239,162 | |
34,268,162 | |||
Pharmaceuticals - 14.7% | |||
Pharmaceuticals - 14.7% | |||
Allergan PLC | 228,389 | 41,169,401 | |
AstraZeneca PLC (United Kingdom) | 770,000 | 53,448,216 | |
Avexis, Inc. (a) | 50,000 | 6,186,500 | |
Bristol-Myers Squibb Co. | 970,000 | 60,722,000 | |
CymaBay Therapeutics, Inc. (a) | 715,900 | 8,533,528 | |
Dechra Pharmaceuticals PLC | 830,100 | 28,286,820 | |
Eisai Co. Ltd. | 130,000 | 7,398,422 | |
Impax Laboratories, Inc. (a) | 91,000 | 1,769,950 | |
Indivior PLC (a) | 2,600,000 | 14,866,113 | |
Jazz Pharmaceuticals PLC (a) | 67,653 | 9,859,748 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 1,770,000 | 21,303,158 | |
Mallinckrodt PLC (a) | 81,600 | 1,473,696 | |
Mylan NV (a) | 330,200 | 14,149,070 | |
MyoKardia, Inc. (a) | 77,100 | 3,978,360 | |
Nektar Therapeutics (a) | 460,000 | 38,460,600 | |
Roche Holding AG (participation certificate) | 280,000 | 69,180,804 | |
The Medicines Company (a) | 418,893 | 13,877,925 | |
TherapeuticsMD, Inc. (a)(b) | 1,280,000 | 7,526,400 | |
Theravance Biopharma, Inc. (a)(b) | 526,013 | 13,907,784 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 2,399,894 | 8,704,615 | |
424,803,110 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,013,908,603) | 2,819,609,432 | ||
Preferred Stocks - 1.3% | |||
Convertible Preferred Stocks - 0.5% | |||
Biotechnology - 0.2% | |||
Biotechnology - 0.2% | |||
BioNTech AG Series A (c)(d) | 27,793 | 6,298,453 | |
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
1Life Healthcare, Inc. Series G (a)(c)(d) | 322,145 | 2,042,399 | |
Software - 0.1% | |||
Application Software - 0.1% | |||
Outset Medical, Inc. Series C (c)(d) | 1,003,280 | 2,277,446 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Textiles - 0.1% | |||
Harmony Biosciences II, Inc. Series A (c)(d) | 4,262,580 | 4,262,580 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 14,880,878 | ||
Nonconvertible Preferred Stocks - 0.8% | |||
Health Care Equipment & Supplies - 0.8% | |||
Health Care Equipment - 0.8% | |||
Sartorius AG (non-vtg.) | 190,000 | 22,704,846 | |
TOTAL PREFERRED STOCKS | |||
(Cost $29,455,763) | 37,585,724 | ||
Money Market Funds - 6.3% | |||
Fidelity Cash Central Fund, 1.39% (e) | 70,889,447 | 70,903,625 | |
Fidelity Securities Lending Cash Central Fund 1.40% (e)(f) | 112,266,599 | 112,277,825 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $183,178,743) | 183,181,450 | ||
TOTAL INVESTMENT IN SECURITIES - 105.2% | |||
(Cost $2,226,543,109) | 3,040,376,606 | ||
NET OTHER ASSETS (LIABILITIES) - (5.2)% | (151,185,085) | ||
NET ASSETS - 100% | $2,889,191,521 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(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 $23,394,057 or 0.8% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
1Life Healthcare, Inc. Series G | 4/10/14 | $2,121,583 |
BioNTech AG Series A | 12/29/17 | $6,086,907 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $4,262,580 |
Outset Medical, Inc. Series C | 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 | $314,530 |
Fidelity Securities Lending Cash Central Fund | 424,738 |
Total | $739,268 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, 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 | $2,819,609,432 | $2,681,068,811 | $130,027,442 | $8,513,179 |
Preferred Stocks | 37,585,724 | 22,704,846 | -- | 14,880,878 |
Money Market Funds | 183,181,450 | 183,181,450 | -- | -- |
Total Investments in Securities: | $3,040,376,606 | $2,886,955,107 | $130,027,442 | $23,394,057 |
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 | 82.2% |
United Kingdom | 3.3% |
Switzerland | 3.0% |
Ireland | 2.4% |
Cayman Islands | 1.6% |
Netherlands | 1.5% |
Belgium | 1.5% |
China | 1.0% |
Germany | 1.0% |
Others (Individually Less Than 1%) | 2.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $108,270,818) — See accompanying schedule: Unaffiliated issuers (cost $2,043,364,366) | $2,857,195,156 | |
Fidelity Central Funds (cost $183,178,743) | 183,181,450 | |
Total Investment in Securities (cost $2,226,543,109) | $3,040,376,606 | |
Foreign currency held at value (cost $6,298,458) | 6,298,458 | |
Receivable for investments sold | 23,899,866 | |
Receivable for fund shares sold | 4,350,807 | |
Dividends receivable | 1,094,805 | |
Distributions receivable from Fidelity Central Funds | 163,131 | |
Prepaid expenses | 10,746 | |
Other receivables | 58,045 | |
Total assets | 3,076,252,464 | |
Liabilities | ||
Payable for investments purchased | $65,874,644 | |
Payable for fund shares redeemed | 6,039,313 | |
Accrued management fee | 1,278,361 | |
Distribution and service plan fees payable | 828,954 | |
Other affiliated payables | 495,507 | |
Other payables and accrued expenses | 270,197 | |
Collateral on securities loaned | 112,273,967 | |
Total liabilities | 187,060,943 | |
Net Assets | $2,889,191,521 | |
Net Assets consist of: | ||
Paid in capital | $2,104,111,509 | |
Accumulated net investment loss | (3,999,224) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (24,766,832) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 813,846,068 | |
Net Assets | $2,889,191,521 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($920,241,977 ÷ 19,858,189 shares) | $46.34 | |
Maximum offering price per share (100/94.25 of $46.34) | $49.17 | |
Class M: | ||
Net Asset Value and redemption price per share ($280,594,033 ÷ 6,465,200 shares) | $43.40 | |
Maximum offering price per share (100/96.50 of $43.40) | $44.97 | |
Class C: | ||
Net Asset Value and offering price per share ($644,157,262 ÷ 17,267,380 shares)(a) | $37.30 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,044,198,249 ÷ 20,781,430 shares) | $50.25 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $10,824,582 | |
Income from Fidelity Central Funds (including $424,738 from security lending) | 739,268 | |
Total income | 11,563,850 | |
Expenses | ||
Management fee | $7,374,024 | |
Transfer agent fees | 2,613,139 | |
Distribution and service plan fees | 4,837,010 | |
Accounting and security lending fees | 409,774 | |
Custodian fees and expenses | 34,702 | |
Independent trustees' fees and expenses | 29,425 | |
Registration fees | 76,615 | |
Audit | 26,676 | |
Legal | 21,056 | |
Miscellaneous | 245,146 | |
Total expenses before reductions | 15,667,567 | |
Expense reductions | (104,510) | 15,563,057 |
Net investment income (loss) | (3,999,207) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 40,124,489 | |
Fidelity Central Funds | (86) | |
Foreign currency transactions | (34,327) | |
Total net realized gain (loss) | 40,090,076 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 243,831,707 | |
Fidelity Central Funds | (1,191) | |
Assets and liabilities in foreign currencies | 11,605 | |
Total change in net unrealized appreciation (depreciation) | 243,842,121 | |
Net gain (loss) | 283,932,197 | |
Net increase (decrease) in net assets resulting from operations | $279,932,990 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(3,999,207) | $(5,993,802) |
Net realized gain (loss) | 40,090,076 | 38,032,674 |
Change in net unrealized appreciation (depreciation) | 243,842,121 | 178,567,888 |
Net increase (decrease) in net assets resulting from operations | 279,932,990 | 210,606,760 |
Distributions to shareholders from net realized gain | (585,048) | – |
Share transactions - net increase (decrease) | (65,660,627) | (342,516,356) |
Redemption fees | – | 20,759 |
Total increase (decrease) in net assets | 213,687,315 | (131,888,837) |
Net Assets | ||
Beginning of period | 2,675,504,206 | 2,807,393,043 |
End of period | $2,889,191,521 | $2,675,504,206 |
Other Information | ||
Accumulated net investment loss end of period | $(3,999,224) | $(17) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Health Care Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.85 | $38.23 | $45.17 | $37.72 | $31.29 | $24.35 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | (.04) | (.09) | (.19) | (.18) | –B |
Net realized and unrealized gain (loss) | 4.53 | 3.66 | (4.30) | 12.03 | 10.13 | 9.53 |
Total from investment operations | 4.49 | 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 | –B | –B | –B | –B |
Net asset value, end of period | $46.34 | $41.85 | $38.23 | $45.17 | $37.72 | $31.29 |
Total ReturnC,D,E | 10.73% | 9.47% | (9.82)% | 34.07% | 34.79% | 42.77% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.05%H | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Expenses net of fee waivers, if any | 1.05%H | 1.04% | 1.04% | 1.04% | 1.08% | 1.14% |
Expenses net of all reductions | 1.04%H | 1.04% | 1.04% | 1.04% | 1.07% | 1.13% |
Net investment income (loss) | (.19)%H | (.10)% | (.25)% | (.45)% | (.54)% | (.01)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $920,242 | $875,176 | $1,159,614 | $1,374,654 | $613,995 | $365,416 |
Portfolio turnover rateI | 84%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.25 | $35.95 | $42.68 | $35.87 | $29.91 | $23.42 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.09) | (.13) | (.18) | (.28) | (.26) | (.07) |
Net realized and unrealized gain (loss) | 4.24 | 3.43 | (4.06) | 11.39 | 9.67 | 9.13 |
Total from investment operations | 4.15 | 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 | –B | –B | –B | –B |
Net asset value, end of period | $43.40 | $39.25 | $35.95 | $42.68 | $35.87 | $29.91 |
Total ReturnC,D,E | 10.57% | 9.18% | (10.05)% | 33.69% | 34.49% | 42.39% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.32%H | 1.31% | 1.31% | 1.31% | 1.34% | 1.39% |
Expenses net of fee waivers, if any | 1.32%H | 1.31% | 1.31% | 1.31% | 1.34% | 1.39% |
Expenses net of all reductions | 1.31%H | 1.31% | 1.31% | 1.30% | 1.34% | 1.38% |
Net investment income (loss) | (.46)%H | (.37)% | (.52)% | (.72)% | (.80)% | (.26)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $280,594 | $269,332 | $293,556 | $348,886 | $216,973 | $158,611 |
Portfolio turnover rateI | 84%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.82 | $31.12 | $37.45 | $32.03 | $27.11 | $21.51 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.16) | (.26) | (.30) | (.41) | (.38) | (.17) |
Net realized and unrealized gain (loss) | 3.64 | 2.96 | (3.57) | 10.05 | 8.68 | 8.31 |
Total from investment operations | 3.48 | 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 | –B | –B | –B | –B |
Net asset value, end of period | $37.30 | $33.82 | $31.12 | $37.45 | $32.03 | $27.11 |
Total ReturnC,D,E | 10.29% | 8.68% | (10.50)% | 33.04% | 33.83% | 41.74% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.80%H | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Expenses net of fee waivers, if any | 1.80%H | 1.79% | 1.79% | 1.79% | 1.83% | 1.87% |
Expenses net of all reductions | 1.79%H | 1.79% | 1.79% | 1.79% | 1.82% | 1.85% |
Net investment income (loss) | (.94)%H | (.85)% | (1.00)% | (1.20)% | (1.29)% | (.74)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $644,157 | $619,991 | $695,374 | $761,070 | $257,859 | $125,965 |
Portfolio turnover rateI | 84%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $45.35 | $41.31 | $48.53 | $40.22 | $33.12 | $25.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .07 | –B | (.09) | (.10) | .07 |
Net realized and unrealized gain (loss) | 4.91 | 3.97 | (4.62) | 12.88 | 10.80 | 10.07 |
Total from investment operations | 4.93 | 4.04 | (4.62) | 12.79 | 10.70 | 10.14 |
Distributions from net realized gain | (.03) | – | (2.60) | (4.48) | (3.60) | (2.62) |
Total distributions | (.03) | – | (2.60) | (4.48) | (3.60) | (2.62) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B | –B |
Net asset value, end of period | $50.25 | $45.35 | $41.31 | $48.53 | $40.22 | $33.12 |
Total ReturnC,D | 10.87% | 9.78% | (9.60)% | 34.40% | 35.21% | 43.12% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .79%G | .78% | .78% | .79% | .81% | .87% |
Expenses net of fee waivers, if any | .79%G | .78% | .78% | .79% | .81% | .87% |
Expenses net of all reductions | .78%G | .78% | .78% | .78% | .81% | .85% |
Net investment income (loss) | .07%G | .16% | .01% | (.20)% | (.27)% | .26% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,044,198 | $911,005 | $658,848 | $832,415 | $292,654 | $74,417 |
Portfolio turnover rateH | 84%G | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
United Technologies Corp. | 6.5 |
Honeywell International, Inc. | 5.0 |
Northrop Grumman Corp. | 4.8 |
General Dynamics Corp. | 3.8 |
Caterpillar, Inc. | 3.3 |
The Boeing Co. | 3.0 |
Raytheon Co. | 2.9 |
Union Pacific Corp. | 2.8 |
Fortive Corp. | 2.6 |
Ingersoll-Rand PLC | 2.6 |
37.3 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Aerospace & Defense | 27.7% | |
Machinery | 21.2% | |
Road & Rail | 8.4% | |
Industrial Conglomerates | 8.1% | |
Electrical Equipment | 5.5% | |
All Others* | 29.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Industrials Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value | ||
Aerospace & Defense - 27.7% | |||
Aerospace & Defense - 27.7% | |||
Astronics Corp. (a) | 94,066 | $4,195,344 | |
Axon Enterprise, Inc. (a) | 178,500 | 4,723,110 | |
Bombardier, Inc. Class B (sub. vtg.) (a) | 1,786,200 | 5,053,639 | |
Elbit Systems Ltd. | 27,000 | 4,044,330 | |
General Dynamics Corp. | 160,362 | 35,677,338 | |
Huntington Ingalls Industries, Inc. | 32,100 | 7,625,034 | |
Moog, Inc. Class A (a) | 16,900 | 1,522,014 | |
Northrop Grumman Corp. | 131,700 | 44,847,801 | |
Raytheon Co. | 129,000 | 26,953,260 | |
Spirit AeroSystems Holdings, Inc. Class A | 93,400 | 9,560,424 | |
Teledyne Technologies, Inc. (a) | 80,965 | 15,457,838 | |
The Boeing Co. | 78,300 | 27,747,171 | |
TransDigm Group, Inc. | 30,700 | 9,729,137 | |
United Technologies Corp. | 435,851 | 60,151,795 | |
257,288,235 | |||
Air Freight & Logistics - 4.2% | |||
Air Freight & Logistics - 4.2% | |||
Air Transport Services Group, Inc. (a) | 115,500 | 2,871,330 | |
FedEx Corp. | 91,100 | 23,911,928 | |
XPO Logistics, Inc. (a) | 133,500 | 12,607,740 | |
39,390,998 | |||
Airlines - 5.0% | |||
Airlines - 5.0% | |||
Allegiant Travel Co. | 33,100 | 5,271,175 | |
Delta Air Lines, Inc. | 331,100 | 18,796,547 | |
Southwest Airlines Co. | 259,100 | 15,753,280 | |
Spirit Airlines, Inc. (a) | 160,000 | 6,739,200 | |
46,560,202 | |||
Building Products - 4.4% | |||
Building Products - 4.4% | |||
A.O. Smith Corp. | 107,884 | 7,204,494 | |
Fortune Brands Home & Security, Inc. | 109,200 | 7,745,556 | |
Johnson Controls International PLC | 339,300 | 13,276,809 | |
Masco Corp. | 292,200 | 13,049,652 | |
41,276,511 | |||
Commercial Services & Supplies - 2.8% | |||
Diversified Support Services - 1.7% | |||
Cintas Corp. | 57,300 | 9,652,185 | |
KAR Auction Services, Inc. | 120,300 | 6,561,162 | |
16,213,347 | |||
Environmental & Facility Services - 1.1% | |||
Waste Connection, Inc. (United States) | 140,600 | 10,097,892 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 26,311,239 | ||
Construction & Engineering - 5.3% | |||
Construction & Engineering - 5.3% | |||
AECOM (a) | 219,721 | 8,593,288 | |
Dycom Industries, Inc. (a) | 46,600 | 5,438,686 | |
Fluor Corp. | 193,000 | 11,715,100 | |
Jacobs Engineering Group, Inc. | 170,100 | 11,815,146 | |
KBR, Inc. | 502,800 | 10,226,952 | |
MasTec, Inc. (a) | 22,000 | 1,174,800 | |
48,963,972 | |||
Electrical Equipment - 5.5% | |||
Electrical Components & Equipment - 5.3% | |||
Acuity Brands, Inc. | 36,300 | 5,606,172 | |
AMETEK, Inc. | 250,326 | 19,099,874 | |
Fortive Corp. | 319,466 | 24,285,805 | |
48,991,851 | |||
Heavy Electrical Equipment - 0.2% | |||
TPI Composites, Inc. (a) | 98,000 | 1,967,840 | |
TOTAL ELECTRICAL EQUIPMENT | 50,959,691 | ||
Electronic Equipment & Components - 0.8% | |||
Electronic Equipment & Instruments - 0.8% | |||
ADT, Inc. (a) | 558,800 | 6,973,824 | |
Household Durables - 0.3% | |||
Homebuilding - 0.3% | |||
Lennar Corp. Class A | 37,000 | 2,318,420 | |
Industrial Conglomerates - 8.1% | |||
Industrial Conglomerates - 8.1% | |||
General Electric Co. | 989,348 | 15,997,757 | |
Honeywell International, Inc. | 291,633 | 46,565,041 | |
ITT, Inc. | 230,000 | 12,880,000 | |
75,442,798 | |||
Machinery - 21.2% | |||
Agricultural & Farm Machinery - 1.7% | |||
Deere & Co. | 92,300 | 15,360,566 | |
Construction Machinery & Heavy Trucks - 7.7% | |||
Allison Transmission Holdings, Inc. | 457,400 | 20,235,376 | |
Caterpillar, Inc. | 187,000 | 30,439,860 | |
WABCO Holdings, Inc. (a) | 107,400 | 16,581,486 | |
Wabtec Corp. (b) | 54,300 | 4,400,472 | |
71,657,194 | |||
Industrial Machinery - 11.8% | |||
Flowserve Corp. | 196,600 | 8,909,912 | |
Gardner Denver Holdings, Inc. | 367,100 | 12,694,318 | |
IDEX Corp. | 54,429 | 7,809,473 | |
Ingersoll-Rand PLC | 253,100 | 23,950,853 | |
Lincoln Electric Holdings, Inc. | 62,400 | 6,088,368 | |
Nordson Corp. | 33,700 | 4,843,364 | |
Parker Hannifin Corp. | 93,600 | 18,852,912 | |
Snap-On, Inc. | 118,800 | 20,351,628 | |
Xylem, Inc. | 85,000 | 6,142,100 | |
109,642,928 | |||
TOTAL MACHINERY | 196,660,688 | ||
Professional Services - 3.1% | |||
Human Resource & Employment Services - 0.8% | |||
Robert Half International, Inc. | 124,400 | 7,200,272 | |
Research & Consulting Services - 2.3% | |||
IHS Markit Ltd. (a) | 445,200 | 21,249,396 | |
TOTAL PROFESSIONAL SERVICES | 28,449,668 | ||
Road & Rail - 8.4% | |||
Railroads - 6.8% | |||
CSX Corp. | 316,000 | 17,939,320 | |
Genesee & Wyoming, Inc. Class A (a) | 31,262 | 2,496,271 | |
Norfolk Southern Corp. | 111,600 | 16,838,208 | |
Union Pacific Corp. | 197,300 | 26,339,550 | |
63,613,349 | |||
Trucking - 1.6% | |||
J.B. Hunt Transport Services, Inc. | 61,484 | 7,429,112 | |
Old Dominion Freight Lines, Inc. | 50,900 | 7,454,305 | |
14,883,417 | |||
TOTAL ROAD & RAIL | 78,496,766 | ||
Specialty Retail - 0.8% | |||
Home Improvement Retail - 0.8% | |||
Lowe's Companies, Inc. | 70,400 | 7,372,992 | |
Trading Companies & Distributors - 1.9% | |||
Trading Companies & Distributors - 1.9% | |||
Bunzl PLC | 157,500 | 4,606,703 | |
Univar, Inc. (a) | 450,300 | 13,445,958 | |
18,052,661 | |||
Water Utilities - 0.3% | |||
Water Utilities - 0.3% | |||
AquaVenture Holdings Ltd. (a) | 205,466 | 3,125,138 | |
TOTAL COMMON STOCKS | |||
(Cost $669,181,853) | 927,643,803 | ||
Money Market Funds - 1.6% | |||
Fidelity Cash Central Fund, 1.39% (c) | 10,866,984 | 10,869,158 | |
Fidelity Securities Lending Cash Central Fund 1.40% (c)(d) | 4,566,935 | 4,567,392 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,436,550) | 15,436,550 | ||
TOTAL INVESTMENT IN SECURITIES - 101.4% | |||
(Cost $684,618,403) | 943,080,353 | ||
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (13,436,659) | ||
NET ASSETS - 100% | $929,643,694 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $42,812 |
Fidelity Securities Lending Cash Central Fund | 11,943 |
Total | $54,755 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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® Industrials Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,395,123) — See accompanying schedule: Unaffiliated issuers (cost $669,181,853) | $927,643,803 | |
Fidelity Central Funds (cost $15,436,550) | 15,436,550 | |
Total Investment in Securities (cost $684,618,403) | $943,080,353 | |
Receivable for investments sold | 5,463,897 | |
Receivable for fund shares sold | 960,198 | |
Dividends receivable | 559,593 | |
Distributions receivable from Fidelity Central Funds | 11,467 | |
Prepaid expenses | 3,293 | |
Other receivables | 9,163 | |
Total assets | 950,087,964 | |
Liabilities | ||
Payable for investments purchased | $12,582,365 | |
Payable for fund shares redeemed | 2,317,671 | |
Accrued management fee | 413,875 | |
Distribution and service plan fees payable | 234,331 | |
Other affiliated payables | 160,369 | |
Other payables and accrued expenses | 166,444 | |
Collateral on securities loaned | 4,569,215 | |
Total liabilities | 20,444,270 | |
Net Assets | $929,643,694 | |
Net Assets consist of: | ||
Paid in capital | $634,338,965 | |
Distributions in excess of net investment income | (531,137) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 37,373,916 | |
Net unrealized appreciation (depreciation) on investments | 258,461,950 | |
Net Assets | $929,643,694 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($345,901,561 ÷ 7,878,478 shares) | $43.90 | |
Maximum offering price per share (100/94.25 of $43.90) | $46.58 | |
Class M: | ||
Net Asset Value and redemption price per share ($87,649,979 ÷ 2,040,548 shares) | $42.95 | |
Maximum offering price per share (100/96.50 of $42.95) | $44.51 | |
Class C: | ||
Net Asset Value and offering price per share ($152,842,083 ÷ 3,881,189 shares)(a) | $39.38 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($343,250,071 ÷ 7,440,843 shares) | $46.13 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $5,436,541 | |
Income from Fidelity Central Funds (including $11,943 from security lending) | 54,755 | |
Total income | 5,491,296 | |
Expenses | ||
Management fee | $2,296,542 | |
Transfer agent fees | 801,745 | |
Distribution and service plan fees | 1,314,557 | |
Accounting and security lending fees | 146,047 | |
Custodian fees and expenses | 6,649 | |
Independent trustees' fees and expenses | 9,080 | |
Registration fees | 63,700 | |
Audit | 23,752 | |
Legal | 7,783 | |
Miscellaneous | 141,684 | |
Total expenses before reductions | 4,811,539 | |
Expense reductions | (18,902) | 4,792,637 |
Net investment income (loss) | 698,659 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 45,471,281 | |
Fidelity Central Funds | (1,785) | |
Foreign currency transactions | 3,924 | |
Total net realized gain (loss) | 45,473,420 | |
Change in net unrealized appreciation (depreciation) on investment securities | 105,386,352 | |
Net gain (loss) | 150,859,772 | |
Net increase (decrease) in net assets resulting from operations | $151,558,431 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $698,659 | $3,272,070 |
Net realized gain (loss) | 45,473,420 | 32,815,156 |
Change in net unrealized appreciation (depreciation) | 105,386,352 | 43,945,008 |
Net increase (decrease) in net assets resulting from operations | 151,558,431 | 80,032,234 |
Distributions to shareholders from net investment income | (2,288,171) | (2,760,974) |
Distributions to shareholders from net realized gain | (23,731,438) | (36,711,218) |
Total distributions | (26,019,609) | (39,472,192) |
Share transactions - net increase (decrease) | (11,584,339) | 171,262,093 |
Redemption fees | – | 14,879 |
Total increase (decrease) in net assets | 113,954,483 | 211,837,014 |
Net Assets | ||
Beginning of period | 815,689,211 | 603,852,197 |
End of period | $929,643,694 | $815,689,211 |
Other Information | ||
Undistributed net investment income end of period | $– | $1,058,375 |
Distributions in excess of net investment income end of period | $(531,137) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Industrials Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.89 | $35.52 | $37.06 | $36.92 | $34.50 | $26.18 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .19 | .15 | .17 | .13 | .23 |
Net realized and unrealized gain (loss) | 7.24 | 4.24 | 1.34 | 2.76 | 4.01 | 8.33 |
Total from investment operations | 7.28 | 4.43 | 1.49 | 2.93 | 4.14 | 8.56 |
Distributions from net investment income | (.10) | (.16) | (.14) | (.11) | (.15) | (.24) |
Distributions from net realized gain | (1.17) | (1.90) | (2.89) | (2.68) | (1.58) | – |
Total distributions | (1.27) | (2.06) | (3.03) | (2.79) | (1.72)B | (.24) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $43.90 | $37.89 | $35.52 | $37.06 | $36.92 | $34.50 |
Total ReturnD,E,F | 19.45% | 12.62% | 5.04% | 8.17% | 12.52% | 32.92% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.08%I | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Expenses net of fee waivers, if any | 1.08%I | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Expenses net of all reductions | 1.07%I | 1.06% | 1.06% | 1.06% | 1.09% | 1.11% |
Net investment income (loss) | .22%I | .53% | .45% | .46% | .37% | .77% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $345,902 | $309,204 | $279,055 | $333,405 | $378,826 | $271,512 |
Portfolio turnover rateJ | 70%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.03 | $34.77 | $36.35 | $36.29 | $33.93 | $25.75 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .10 | .06 | .07 | .04 | .15 |
Net realized and unrealized gain (loss) | 7.08 | 4.14 | 1.31 | 2.71 | 3.95 | 8.20 |
Total from investment operations | 7.07 | 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 | (1.15) | (1.90) | (2.89) | (2.67) | (1.58) | – |
Total distributions | (1.15) | (1.98) | (2.95) | (2.72) | (1.63)B | (.17) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $42.95 | $37.03 | $34.77 | $36.35 | $36.29 | $33.93 |
Total ReturnD,E,F | 19.31% | 12.33% | 4.74% | 7.88% | 12.27% | 32.60% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.34%I | 1.32% | 1.33% | 1.33% | 1.33% | 1.37% |
Expenses net of fee waivers, if any | 1.34%I | 1.32% | 1.33% | 1.32% | 1.33% | 1.37% |
Expenses net of all reductions | 1.33%I | 1.32% | 1.32% | 1.32% | 1.33% | 1.36% |
Net investment income (loss) | (.04)%I | .27% | .19% | .20% | .12% | .52% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $87,650 | $87,253 | $79,196 | $88,116 | $90,509 | $79,172 |
Portfolio turnover rateJ | 70%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $34.09 | $32.24 | $34.02 | $34.13 | $32.08 | $24.38 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.10) | (.08) | (.09) | (.10) | (.13) | .01 |
Net realized and unrealized gain (loss) | 6.51 | 3.83 | 1.20 | 2.54 | 3.73 | 7.75 |
Total from investment operations | 6.41 | 3.75 | 1.11 | 2.44 | 3.60 | 7.76 |
Distributions from net investment income | – | – | – | – | – | (.06) |
Distributions from net realized gain | (1.12) | (1.90) | (2.89) | (2.55) | (1.55) | – |
Total distributions | (1.12) | (1.90) | (2.89) | (2.55) | (1.55) | (.06) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B | –B |
Net asset value, end of period | $39.38 | $34.09 | $32.24 | $34.02 | $34.13 | $32.08 |
Total ReturnC,D,E | 19.02% | 11.76% | 4.25% | 7.36% | 11.71% | 31.90% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.84%H | 1.82% | 1.82% | 1.82% | 1.83% | 1.87% |
Expenses net of fee waivers, if any | 1.83%H | 1.82% | 1.82% | 1.82% | 1.83% | 1.87% |
Expenses net of all reductions | 1.83%H | 1.81% | 1.81% | 1.81% | 1.83% | 1.86% |
Net investment income (loss) | (.53)%H | (.23)% | (.30)% | (.30)% | (.38)% | .02% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $152,842 | $134,505 | $112,425 | $141,494 | $147,749 | $89,893 |
Portfolio turnover rateI | 70%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $39.80 | $37.21 | $38.67 | $38.42 | $35.83 | $27.18 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .10 | .31 | .25 | .28 | .25 | .33 |
Net realized and unrealized gain (loss) | 7.61 | 4.44 | 1.42 | 2.87 | 4.16 | 8.64 |
Total from investment operations | 7.71 | 4.75 | 1.67 | 3.15 | 4.41 | 8.97 |
Distributions from net investment income | (.21) | (.25) | (.24) | (.22) | (.24) | (.32) |
Distributions from net realized gain | (1.17) | (1.90) | (2.89) | (2.68) | (1.58) | – |
Total distributions | (1.38) | (2.16)B | (3.13) | (2.90) | (1.82) | (.32) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $46.13 | $39.80 | $37.21 | $38.67 | $38.42 | $35.83 |
Total ReturnD,E | 19.62% | 12.91% | 5.33% | 8.45% | 12.82% | 33.28% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .82%H | .80% | .80% | .80% | .81% | .84% |
Expenses net of fee waivers, if any | .81%H | .80% | .80% | .80% | .81% | .84% |
Expenses net of all reductions | .81%H | .80% | .79% | .79% | .81% | .83% |
Net investment income (loss) | .49%H | .79% | .72% | .72% | .64% | 1.04% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $343,250 | $284,727 | $133,176 | $207,462 | $242,772 | $84,780 |
Portfolio turnover rateI | 70%H | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Intel Corp. | 18.2 |
Broadcom Ltd. | 10.2 |
Qualcomm, Inc. | 8.4 |
Analog Devices, Inc. | 6.8 |
Micron Technology, Inc. | 6.0 |
NVIDIA Corp. | 5.0 |
Marvell Technology Group Ltd. | 4.9 |
Cavium, Inc. | 3.0 |
ON Semiconductor Corp. | 2.7 |
Microchip Technology, Inc. | 2.5 |
67.7 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Semiconductors & Semiconductor Equipment | 84.7% | |
Technology Hardware, Storage & Peripherals | 3.3% | |
Electronic Equipment & Components | 3.2% | |
Communications Equipment | 2.1% | |
Internet Software & Services | 1.8% | |
All Others* | 4.9% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Semiconductors Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% | |||
Shares | Value | ||
Communications Equipment - 2.1% | |||
Communications Equipment - 2.1% | |||
F5 Networks, Inc. (a) | 7,400 | $1,069,596 | |
Finisar Corp. (a) | 57,300 | 1,029,108 | |
Infinera Corp. (a) | 71,404 | 461,984 | |
Quantenna Communications, Inc. (a) | 265,544 | 3,653,885 | |
6,214,573 | |||
Diversified Telecommunication Services - 0.2% | |||
Alternative Carriers - 0.2% | |||
CenturyLink, Inc. | 33,600 | 598,416 | |
Electronic Equipment & Components - 3.2% | |||
Electronic Equipment & Instruments - 0.1% | |||
ADT, Inc. (a) | 29,200 | 364,416 | |
Electronic Manufacturing Services - 2.2% | |||
Benchmark Electronics, Inc. (a) | 15,000 | 434,250 | |
Celestica, Inc. (a) | 54,900 | 554,490 | |
Flextronics International Ltd. (a) | 24,500 | 441,245 | |
Jabil, Inc. | 121,576 | 3,091,678 | |
Plexus Corp. (a) | 2,700 | 161,325 | |
TTM Technologies, Inc. (a) | 118,100 | 1,947,469 | |
6,630,457 | |||
Technology Distributors - 0.9% | |||
Avnet, Inc. | 59,700 | 2,537,250 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 9,532,123 | ||
Internet Software & Services - 1.8% | |||
Internet Software & Services - 1.8% | |||
Alphabet, Inc. Class A (a) | 4,610 | 5,450,034 | |
IT Services - 0.4% | |||
Data Processing & Outsourced Services - 0.4% | |||
EVERTEC, Inc. | 66,500 | 1,040,725 | |
Semiconductors & Semiconductor Equipment - 84.6% | |||
Semiconductor Equipment - 2.4% | |||
Amkor Technology, Inc. (a) | 37,800 | 380,268 | |
Applied Materials, Inc. | 25,400 | 1,362,202 | |
Experi Corp. | 51,800 | 1,162,910 | |
Lam Research Corp. | 7,781 | 1,490,217 | |
PDF Solutions, Inc. (a) | 60,795 | 831,676 | |
Xcerra Corp. (a) | 196,600 | 1,962,068 | |
7,189,341 | |||
Semiconductors - 82.2% | |||
Acacia Communications, Inc. (a)(b) | 49,100 | 1,812,281 | |
Advanced Micro Devices, Inc. (a)(b) | 42,600 | 585,324 | |
Alpha & Omega Semiconductor Ltd. (a) | 52,400 | 879,796 | |
Analog Devices, Inc. | 217,470 | 19,981,144 | |
Broadcom Ltd. | 122,000 | 30,259,660 | |
Cavium, Inc. (a) | 98,791 | 8,770,665 | |
Cirrus Logic, Inc. (a) | 39,300 | 1,948,101 | |
Cree, Inc. (a) | 43,000 | 1,483,930 | |
Cypress Semiconductor Corp. | 129,200 | 2,233,868 | |
Inphi Corp. (a)(b) | 121,638 | 3,633,327 | |
Integrated Device Technology, Inc. (a) | 39,700 | 1,187,030 | |
Intel Corp. | 1,120,675 | 53,949,290 | |
Lattice Semiconductor Corp. (a) | 30,152 | 196,290 | |
M/A-COM Technology Solutions Holdings, Inc. (a)(b) | 180,700 | 5,619,770 | |
Marvell Technology Group Ltd. | 627,800 | 14,646,574 | |
Maxim Integrated Products, Inc. | 77,622 | 4,734,942 | |
MaxLinear, Inc. Class A (a) | 164,764 | 4,249,264 | |
Mellanox Technologies Ltd. (a) | 2,100 | 136,395 | |
Microchip Technology, Inc. | 76,600 | 7,293,852 | |
Micron Technology, Inc. (a) | 406,412 | 17,768,333 | |
NVIDIA Corp. | 60,123 | 14,778,233 | |
O2Micro International Ltd. sponsored ADR (a) | 47,900 | 72,329 | |
ON Semiconductor Corp. (a) | 319,100 | 7,894,534 | |
Qorvo, Inc. (a) | 58,796 | 4,219,789 | |
Qualcomm, Inc. | 364,126 | 24,851,600 | |
Sanken Electric Co. Ltd. | 112,000 | 821,244 | |
Semtech Corp. (a) | 180,222 | 6,451,948 | |
Sequans Communications SA ADR (a)(b) | 57,100 | 100,496 | |
Synaptics, Inc. (a) | 27,900 | 1,209,186 | |
United Microelectronics Corp. sponsored ADR (b) | 156,000 | 380,640 | |
Xilinx, Inc. | 14,300 | 1,044,186 | |
243,194,021 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 250,383,362 | ||
Software - 0.4% | |||
Application Software - 0.2% | |||
Citrix Systems, Inc. (a) | 6,100 | 565,836 | |
Systems Software - 0.2% | |||
Symantec Corp. | 21,200 | 577,276 | |
TOTAL SOFTWARE | 1,143,112 | ||
Technology Hardware, Storage & Peripherals - 3.3% | |||
Technology Hardware, Storage & Peripherals - 3.3% | |||
Catcher Technology Co. Ltd. | 13,000 | 148,803 | |
Lenovo Group Ltd. | 862,000 | 496,970 | |
Samsung Electronics Co. Ltd. | 2,615 | 6,098,762 | |
Super Micro Computer, Inc. (a) | 45,900 | 1,047,668 | |
Western Digital Corp. | 20,400 | 1,815,192 | |
9,607,395 | |||
TOTAL COMMON STOCKS | |||
(Cost $216,111,261) | 283,969,740 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.1% | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Semiconductors - 0.1% | |||
Synaptics, Inc. 0.5% 6/15/22 (Cost $318,967)(c) | 350,000 | 329,929 | |
Shares | Value | ||
Money Market Funds - 7.4% | |||
Fidelity Cash Central Fund, 1.39% (d) | 13,987,560 | 13,990,358 | |
Fidelity Securities Lending Cash Central Fund 1.40% (d)(e) | 7,961,743 | 7,962,539 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $21,952,388) | 21,952,897 | ||
TOTAL INVESTMENT IN SECURITIES - 103.5% | |||
(Cost $238,382,616) | 306,252,566 | ||
NET OTHER ASSETS (LIABILITIES) - (3.5)% | (10,364,432) | ||
NET ASSETS - 100% | $295,888,134 |
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 $329,929 or 0.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $63,735 |
Fidelity Securities Lending Cash Central Fund | 121,547 |
Total | $185,282 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, 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 | $283,969,740 | $283,148,496 | $821,244 | $-- |
Convertible Bonds | 329,929 | -- | 329,929 | -- |
Money Market Funds | 21,952,897 | 21,952,897 | -- | -- |
Total Investments in Securities: | $306,252,566 | $305,101,393 | $1,151,173 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 81.2% |
Singapore | 10.3% |
Bermuda | 5.2% |
Korea (South) | 2.1% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,748,316) — See accompanying schedule: Unaffiliated issuers (cost $216,430,228) | $284,299,669 | |
Fidelity Central Funds (cost $21,952,388) | 21,952,897 | |
Total Investment in Securities (cost $238,382,616) | $306,252,566 | |
Foreign currency held at value (cost $2) | 2 | |
Receivable for investments sold | 2,783,711 | |
Receivable for fund shares sold | 507,020 | |
Dividends receivable | 18,561 | |
Interest receivable | 224 | |
Distributions receivable from Fidelity Central Funds | 32,505 | |
Prepaid expenses | 885 | |
Other receivables | 6,941 | |
Total assets | 309,602,415 | |
Liabilities | ||
Payable for investments purchased | $5,086,665 | |
Payable for fund shares redeemed | 333,056 | |
Accrued management fee | 130,663 | |
Distribution and service plan fees payable | 72,388 | |
Other affiliated payables | 55,847 | |
Other payables and accrued expenses | 73,787 | |
Collateral on securities loaned | 7,961,875 | |
Total liabilities | 13,714,281 | |
Net Assets | $295,888,134 | |
Net Assets consist of: | ||
Paid in capital | $219,347,222 | |
Accumulated net investment loss | (1,259,156) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 9,930,084 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 67,869,984 | |
Net Assets | $295,888,134 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($89,345,577 ÷ 3,621,505 shares) | $24.67 | |
Maximum offering price per share (100/94.25 of $24.67) | $26.18 | |
Class M: | ||
Net Asset Value and redemption price per share ($21,398,237 ÷ 902,545 shares) | $23.71 | |
Maximum offering price per share (100/96.50 of $23.71) | $24.57 | |
Class C: | ||
Net Asset Value and offering price per share ($55,524,665 ÷ 2,567,659 shares)(a) | $21.62 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($129,619,655 ÷ 5,008,409 shares) | $25.88 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $881,115 | |
Interest | 2,728 | |
Income from Fidelity Central Funds (including $121,547 from security lending) | 185,282 | |
Total income | 1,069,125 | |
Expenses | ||
Management fee | $689,215 | |
Transfer agent fees | 270,027 | |
Distribution and service plan fees | 387,099 | |
Accounting and security lending fees | 49,970 | |
Custodian fees and expenses | 17,376 | |
Independent trustees' fees and expenses | 2,632 | |
Registration fees | 65,528 | |
Audit | 24,387 | |
Legal | 2,425 | |
Miscellaneous | 39,186 | |
Total expenses before reductions | 1,547,845 | |
Expense reductions | (12,070) | 1,535,775 |
Net investment income (loss) | (466,650) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,843,612 | |
Fidelity Central Funds | 255 | |
Foreign currency transactions | (2,052) | |
Total net realized gain (loss) | 17,841,815 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 38,993,866 | |
Assets and liabilities in foreign currencies | 16 | |
Total change in net unrealized appreciation (depreciation) | 38,993,882 | |
Net gain (loss) | 56,835,697 | |
Net increase (decrease) in net assets resulting from operations | $56,369,047 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(466,650) | $836,854 |
Net realized gain (loss) | 17,841,815 | 23,781,922 |
Change in net unrealized appreciation (depreciation) | 38,993,882 | 16,843,356 |
Net increase (decrease) in net assets resulting from operations | 56,369,047 | 41,462,132 |
Distributions to shareholders from net investment income | (1,251,553) | (392,430) |
Distributions to shareholders from net realized gain | (23,257,092) | (190,781) |
Total distributions | (24,508,645) | (583,211) |
Share transactions - net increase (decrease) | 42,092,026 | 90,258,265 |
Redemption fees | 32,649 | 17,812 |
Total increase (decrease) in net assets | 73,985,077 | 131,154,998 |
Net Assets | ||
Beginning of period | 221,903,057 | 90,748,059 |
End of period | $295,888,134 | $221,903,057 |
Other Information | ||
Undistributed net investment income end of period | $– | $459,047 |
Accumulated net investment loss end of period | $(1,259,156) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Semiconductors Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.57 | $16.50 | $15.29 | $13.86 | $10.33 | $8.45 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.04) | .11 | .09 | .03 | (.02) | (.01) |
Net realized and unrealized gain (loss) | 5.40 | 5.03 | 2.67 | 1.48 | 3.55 | 1.89 |
Total from investment operations | 5.36 | 5.14 | 2.76 | 1.51 | 3.53 | 1.88 |
Distributions from net investment income | (.12) | (.05) | (.05) | (.01) | – | – |
Distributions from net realized gain | (2.14) | (.02) | (1.49) | (.07) | – | – |
Total distributions | (2.26) | (.07) | (1.55)B | (.08) | – | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
Net asset value, end of period | $24.67 | $21.57 | $16.50 | $15.29 | $13.86 | $10.33 |
Total ReturnD,E,F | 25.37% | 31.21% | 20.46% | 10.85% | 34.17% | 22.25% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.17%I | 1.17% | 1.31% | 1.28% | 1.84% | 2.18% |
Expenses net of fee waivers, if any | 1.17%I | 1.17% | 1.31% | 1.28% | 1.40% | 1.40% |
Expenses net of all reductions | 1.16%I | 1.16% | 1.28% | 1.27% | 1.39% | 1.37% |
Net investment income (loss) | (.32)%I | .55% | .61% | .20% | (.16)% | (.07)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $89,346 | $72,040 | $34,066 | $38,237 | $16,542 | $5,833 |
Portfolio turnover rateJ | 108%I | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.77 | $15.91 | $14.81 | $13.45 | $10.05 | $8.24 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | .04 | .04 | (.02) | (.05) | (.03) |
Net realized and unrealized gain (loss) | 5.19 | 4.84 | 2.57 | 1.44 | 3.45 | 1.84 |
Total from investment operations | 5.12 | 4.88 | 2.61 | 1.42 | 3.40 | 1.81 |
Distributions from net investment income | (.04) | – | (.04) | – | – | – |
Distributions from net realized gain | (2.14) | (.02) | (1.47) | (.06) | – | – |
Total distributions | (2.18) | (.02) | (1.51) | (.06) | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $23.71 | $20.77 | $15.91 | $14.81 | $13.45 | $10.05 |
Total ReturnC,D,E | 25.21% | 30.72% | 20.01% | 10.55% | 33.83% | 21.97% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.51%H | 1.53% | 1.65% | 1.62% | 2.19% | 2.48% |
Expenses net of fee waivers, if any | 1.51%H | 1.53% | 1.65% | 1.62% | 1.65% | 1.65% |
Expenses net of all reductions | 1.50%H | 1.52% | 1.62% | 1.61% | 1.64% | 1.62% |
Net investment income (loss) | (.66)%H | .20% | .27% | (.14)% | (.42)% | (.32)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $21,398 | $16,127 | $9,766 | $10,826 | $7,144 | $3,756 |
Portfolio turnover rateI | 108%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.10 | $14.69 | $13.80 | $12.58 | $9.44 | $7.78 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.11) | (.04) | (.02) | (.08) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 4.76 | 4.47 | 2.37 | 1.34 | 3.24 | 1.73 |
Total from investment operations | 4.65 | 4.43 | 2.35 | 1.26 | 3.14 | 1.66 |
Distributions from net investment income | – | – | (.02) | – | – | – |
Distributions from net realized gain | (2.13) | (.02) | (1.44) | (.04) | – | – |
Total distributions | (2.13) | (.02) | (1.46) | (.04) | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $21.62 | $19.10 | $14.69 | $13.80 | $12.58 | $9.44 |
Total ReturnC,D,E | 24.88% | 30.21% | 19.48% | 10.03% | 33.26% | 21.34% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.94%H | 1.95% | 2.08% | 2.06% | 2.60% | 2.93% |
Expenses net of fee waivers, if any | 1.94%H | 1.95% | 2.08% | 2.06% | 2.15% | 2.15% |
Expenses net of all reductions | 1.93%H | 1.94% | 2.05% | 2.05% | 2.14% | 2.12% |
Net investment income (loss) | (1.09)%H | (.23)% | (.16)% | (.58)% | (.91)% | (.82)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $55,525 | $42,684 | $21,088 | $20,864 | $7,381 | $3,157 |
Portfolio turnover rateI | 108%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.56 | $17.24 | $15.89 | $14.37 | $10.68 | $8.72 |
Income from Investment Operations | ||||||
Net investment income (loss)A | –B | .17 | .14 | .08 | .01 | .02 |
Net realized and unrealized gain (loss) | 5.64 | 5.26 | 2.79 | 1.53 | 3.68 | 1.94 |
Total from investment operations | 5.64 | 5.43 | 2.93 | 1.61 | 3.69 | 1.96 |
Distributions from net investment income | (.18) | (.09) | (.09) | (.02) | – | – |
Distributions from net realized gain | (2.14) | (.02) | (1.49) | (.07) | – | – |
Total distributions | (2.32) | (.11) | (1.58) | (.09) | – | – |
Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
Net asset value, end of period | $25.88 | $22.56 | $17.24 | $15.89 | $14.37 | $10.68 |
Total ReturnC,D | 25.56% | 31.62% | 20.85% | 11.17% | 34.55% | 22.48% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .89%G | .88% | .98% | .98% | 1.34% | 1.86% |
Expenses net of fee waivers, if any | .88%G | .88% | .98% | .98% | 1.15% | 1.15% |
Expenses net of all reductions | .88%G | .87% | .95% | .96% | 1.14% | 1.12% |
Net investment income (loss) | (.03)%G | .84% | .94% | .51% | .10% | .18% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $129,620 | $91,052 | $25,827 | $35,943 | $25,050 | $2,874 |
Portfolio turnover rateH | 108%G | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Apple, Inc. | 7.0 |
Microsoft Corp. | 6.4 |
Tesla, Inc. | 4.6 |
Alphabet, Inc. Class A | 3.9 |
NVIDIA Corp. | 3.6 |
Qualcomm, Inc. | 3.1 |
Alphabet, Inc. Class C | 3.0 |
Facebook, Inc. Class A | 2.9 |
Alibaba Group Holding Ltd. sponsored ADR | 2.8 |
Salesforce.com, Inc. | 2.6 |
39.9 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Software | 27.8% | |
Semiconductors & Semiconductor Equipment | 20.2% | |
Internet Software & Services | 18.9% | |
Technology Hardware, Storage & Peripherals | 7.3% | |
IT Services | 6.8% | |
All Others* | 19.0% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Technology Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
Air Freight & Logistics - 0.1% | |||
Air Freight & Logistics - 0.1% | |||
Best, Inc. ADR (a) | 312,800 | $2,815,200 | |
Automobiles - 4.6% | |||
Automobile Manufacturers - 4.6% | |||
Tesla, Inc. (a)(b) | 258,909 | 91,734,048 | |
Biotechnology - 0.3% | |||
Biotechnology - 0.3% | |||
BeiGene Ltd. ADR (b) | 38,700 | 5,253,525 | |
Zai Lab Ltd. ADR | 13,300 | 358,568 | |
5,612,093 | |||
Chemicals - 0.3% | |||
Specialty Chemicals - 0.3% | |||
Duk San Neolux Co. Ltd. | 87,777 | 1,628,698 | |
Soulbrain Co. Ltd. | 25,159 | 1,434,573 | |
Tokyo Ohka Kogyo Co. Ltd. | 68,500 | 3,144,805 | |
6,208,076 | |||
Communications Equipment - 0.6% | |||
Communications Equipment - 0.6% | |||
Applied Optoelectronics, Inc. (a)(b) | 38,800 | 1,256,732 | |
CommScope Holding Co., Inc. (b) | 122,600 | 4,736,038 | |
Hytera Communications Corp. Ltd. Class A | 3,378,700 | 6,651,238 | |
12,644,008 | |||
Diversified Consumer Services - 1.2% | |||
Education Services - 1.2% | |||
China Online Education Group sponsored ADR (a)(b) | 2,563 | 30,756 | |
New Oriental Education & Technology Group, Inc. sponsored ADR | 78,600 | 7,238,274 | |
TAL Education Group ADR | 494,042 | 16,090,948 | |
23,359,978 | |||
Diversified Financial Services - 0.5% | |||
Other Diversified Financial Services - 0.5% | |||
GDS Holdings Ltd. ADR (b) | 180,530 | 5,152,326 | |
Jianpu Technology, Inc. ADR (b) | 559,600 | 4,314,516 | |
9,466,842 | |||
Electrical Equipment - 0.1% | |||
Electrical Components & Equipment - 0.1% | |||
BizLink Holding, Inc. | 148,010 | 1,407,590 | |
Electronic Equipment & Components - 3.6% | |||
Electronic Components - 0.3% | |||
E Ink Holdings, Inc. | 2,498,000 | 4,545,787 | |
Ledlink Optics, Inc. | 608,609 | 930,241 | |
5,476,028 | |||
Electronic Equipment & Instruments - 2.4% | |||
Chroma ATE, Inc. | 3,026,173 | 17,215,673 | |
Topcon Corp. | 375,600 | 9,562,539 | |
Trimble, Inc. (b) | 494,296 | 21,798,454 | |
48,576,666 | |||
Technology Distributors - 0.9% | |||
Dell Technologies, Inc. (b) | 239,660 | 17,183,622 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 71,236,316 | ||
Health Care Equipment & Supplies - 0.1% | |||
Health Care Supplies - 0.1% | |||
Hoya Corp. | 45,100 | 2,316,472 | |
Health Care Technology - 0.3% | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (b) | 48,994 | 6,139,438 | |
Hotels, Restaurants & Leisure - 0.0% | |||
Casinos & Gaming - 0.0% | |||
Sea Ltd. ADR (a) | 28,700 | 351,862 | |
Hotels, Resorts & Cruise Lines - 0.0% | |||
Tuniu Corp. Class A sponsored ADR (a)(b) | 43,500 | 353,655 | |
TOTAL HOTELS, RESTAURANTS & LEISURE | 705,517 | ||
Internet & Direct Marketing Retail - 2.3% | |||
Internet & Direct Marketing Retail - 2.3% | |||
Amazon.com, Inc. (b) | 9,000 | 13,058,010 | |
Cogobuy Group (c) | 150,000 | 90,698 | |
Netflix, Inc. (b) | 85,900 | 23,218,770 | |
Vipshop Holdings Ltd. ADR (b) | 591,920 | 9,784,438 | |
46,151,916 | |||
Internet Software & Services - 18.5% | |||
Internet Software & Services - 18.5% | |||
58.com, Inc. ADR (b) | 23,781 | 1,899,626 | |
Akamai Technologies, Inc. (b) | 187,000 | 12,527,130 | |
Alibaba Group Holding Ltd. sponsored ADR (b) | 277,200 | 56,629,188 | |
Alphabet, Inc.: | |||
Class A (b) | 65,187 | 77,065,375 | |
Class C (b) | 51,155 | 59,848,281 | |
Benefitfocus, Inc. (b) | 23,689 | 596,963 | |
Endurance International Group Holdings, Inc. (b) | 457,000 | 3,793,100 | |
Envestnet, Inc. (b) | 145 | 7,794 | |
Facebook, Inc. Class A (b) | 309,011 | 57,751,066 | |
GoDaddy, Inc. (b) | 90,200 | 4,981,746 | |
LogMeIn, Inc. | 142,333 | 17,905,491 | |
NetEase, Inc. ADR | 53,700 | 17,192,592 | |
New Relic, Inc. (b) | 89,000 | 5,315,970 | |
Nutanix, Inc.: | |||
Class A (b) | 242,200 | 7,774,620 | |
Class B (c) | 39,963 | 1,282,812 | |
Pandora Media, Inc. (a)(b) | 93,000 | 444,540 | |
Shopify, Inc. (b) | 1,600 | 204,672 | |
SMS Co., Ltd. | 312,400 | 11,102,643 | |
Sogou, Inc. ADR (a)(b) | 1,640 | 16,859 | |
Tencent Holdings Ltd. | 181,000 | 10,694,828 | |
Twilio, Inc. Class A (b) | 4,000 | 104,960 | |
Xunlei Ltd. sponsored ADR (a)(b) | 647,544 | 9,926,850 | |
Yandex NV Series A (b) | 269,900 | 10,453,227 | |
367,520,333 | |||
IT Services - 6.8% | |||
Data Processing & Outsourced Services - 4.1% | |||
Fidelity National Information Services, Inc. | 18,295 | 1,872,676 | |
Fiserv, Inc. (b) | 26,400 | 3,718,176 | |
FleetCor Technologies, Inc. (b) | 78,300 | 16,638,750 | |
Global Payments, Inc. | 68,300 | 7,634,574 | |
PayPal Holdings, Inc. (b) | 386,000 | 32,933,520 | |
Square, Inc. (b) | 146,200 | 6,858,242 | |
Total System Services, Inc. | 38,153 | 3,390,276 | |
WEX, Inc. (b) | 50,600 | 7,833,386 | |
80,879,600 | |||
IT Consulting & Other Services - 2.7% | |||
Cognizant Technology Solutions Corp. Class A | 556,009 | 43,357,582 | |
CSRA, Inc. | 38,400 | 1,277,952 | |
DXC Technology Co. | 86,400 | 8,601,120 | |
53,236,654 | |||
TOTAL IT SERVICES | 134,116,254 | ||
Life Sciences Tools & Services - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
JHL Biotech, Inc. (b) | 387,462 | 801,229 | |
Machinery - 1.2% | |||
Industrial Machinery - 1.2% | |||
Minebea Mitsumi, Inc. | 1,010,700 | 23,003,022 | |
Media - 1.4% | |||
Advertising - 0.0% | |||
iCar Asia Ltd. (b) | 1,356,145 | 273,195 | |
iCar Asia Ltd. warrants 6/12/19 (b) | 199,433 | 13,340 | |
286,535 | |||
Cable & Satellite - 1.3% | |||
Naspers Ltd. Class N | 89,300 | 25,497,982 | |
Publishing - 0.1% | |||
China Literature Ltd. (b)(c) | 273,903 | 2,837,892 | |
TOTAL MEDIA | 28,622,409 | ||
Professional Services - 0.1% | |||
Human Resource & Employment Services - 0.1% | |||
WageWorks, Inc. (b) | 28,744 | 1,740,449 | |
Real Estate Management & Development - 0.1% | |||
Real Estate Services - 0.1% | |||
Relo Holdings Corp. | 75,000 | 2,227,271 | |
Semiconductors & Semiconductor Equipment - 20.2% | |||
Semiconductor Equipment - 4.8% | |||
ASM Pacific Technology Ltd. | 1,882,100 | 25,695,676 | |
ASML Holding NV | 25,000 | 5,074,000 | |
Ferrotec Holdings Corp. | 247,100 | 6,483,242 | |
GlobalWafers Co. Ltd. | 1,255,400 | 19,188,417 | |
KLA-Tencor Corp. | 79,400 | 8,718,120 | |
Screen Holdings Co. Ltd. | 62,100 | 5,412,779 | |
Sino-American Silicon Products, Inc. | 6,644,000 | 23,110,951 | |
SolarEdge Technologies, Inc. (b) | 40,000 | 1,436,000 | |
SunEdison, Inc. (b)(d) | 500 | 0 | |
95,119,185 | |||
Semiconductors - 15.4% | |||
Acacia Communications, Inc. (a)(b) | 28,600 | 1,055,626 | |
Advanced Micro Devices, Inc. (a)(b) | 1,231,600 | 16,922,184 | |
ams AG | 288,874 | 26,654,310 | |
ASPEED Tech, Inc. | 116,282 | 3,052,554 | |
Cavium, Inc. (b) | 25,900 | 2,299,402 | |
ChipMOS TECHNOLOGIES, Inc. sponsored ADR (a) | 107,627 | 1,952,354 | |
Cree, Inc. (b) | 412,400 | 14,231,924 | |
Global Unichip Corp. | 261,000 | 3,215,597 | |
Himax Technologies, Inc. sponsored ADR (a) | 1,914,604 | 16,331,572 | |
Inphi Corp. (a)(b) | 168,500 | 5,033,095 | |
International Quantum Epitaxy PLC (a)(b) | 3,354,700 | 5,087,066 | |
M/A-COM Technology Solutions Holdings, Inc. (b) | 443,200 | 13,783,520 | |
Marvell Technology Group Ltd. | 209,461 | 4,886,725 | |
Monolithic Power Systems, Inc. | 59,601 | 7,099,671 | |
Nanya Technology Corp. | 14,477,000 | 39,393,197 | |
NVIDIA Corp. | 293,450 | 72,130,010 | |
Qualcomm, Inc. | 905,150 | 61,776,488 | |
Renesas Electronics Corp. (b) | 106,800 | 1,258,555 | |
Semtech Corp. (b) | 110,998 | 3,973,728 | |
Silergy Corp. | 72,000 | 1,534,776 | |
Silicon Laboratories, Inc. (b) | 21,100 | 2,029,820 | |
Silicon Motion Technology Corp. sponsored ADR | 67,788 | 3,367,708 | |
307,069,882 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 402,189,067 | ||
Software - 27.8% | |||
Application Software - 14.2% | |||
Adobe Systems, Inc. (b) | 161,816 | 32,324,364 | |
Altair Engineering, Inc. Class A (b) | 7,300 | 194,180 | |
Aspen Technology, Inc. (b) | 300 | 23,235 | |
Autodesk, Inc. (b) | 415,100 | 47,993,862 | |
Callidus Software, Inc. (b) | 177,059 | 6,365,271 | |
Citrix Systems, Inc. (b) | 388,600 | 36,046,536 | |
Ellie Mae, Inc. (b) | 90,900 | 8,499,150 | |
HubSpot, Inc. (b) | 6,900 | 669,645 | |
Parametric Technology Corp. (b) | 571,840 | 41,561,331 | |
Paylocity Holding Corp. (b) | 17,900 | 935,991 | |
RealPage, Inc. (b) | 5,800 | 288,550 | |
SailPoint Technologies Holding, Inc. (b) | 10,800 | 180,684 | |
Salesforce.com, Inc. (b) | 457,619 | 52,127,380 | |
Snap, Inc. Class A (a)(b) | 262,700 | 3,551,704 | |
SS&C Technologies Holdings, Inc. | 79,200 | 3,982,176 | |
Ultimate Software Group, Inc. (b) | 146,576 | 34,136,085 | |
Workday, Inc. Class A (b) | 54,400 | 6,522,016 | |
Zendesk, Inc. (b) | 201,400 | 7,757,928 | |
283,160,088 | |||
Home Entertainment Software - 5.7% | |||
Activision Blizzard, Inc. | 353,070 | 26,173,079 | |
Electronic Arts, Inc. (b) | 301,200 | 38,240,352 | |
Nintendo Co. Ltd. | 54,800 | 24,819,731 | |
Nintendo Co. Ltd. ADR | 185,900 | 10,611,172 | |
Take-Two Interactive Software, Inc. (b) | 98,400 | 12,464,328 | |
112,308,662 | |||
Systems Software - 7.9% | |||
Microsoft Corp. | 1,324,900 | 125,878,749 | |
Oracle Corp. | 165,600 | 8,543,304 | |
Red Hat, Inc. (b) | 60,600 | 7,961,628 | |
Tableau Software, Inc. (b) | 182,700 | 14,033,187 | |
156,416,868 | |||
TOTAL SOFTWARE | 551,885,618 | ||
Technology Hardware, Storage & Peripherals - 7.3% | |||
Technology Hardware, Storage & Peripherals - 7.3% | |||
Apple, Inc. | 836,029 | 139,976,337 | |
Primax Electronics Ltd. | 1,728,000 | 4,891,544 | |
144,867,881 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,312,343,368) | 1,936,771,027 | ||
Convertible Preferred Stocks - 1.4% | |||
Internet & Direct Marketing Retail - 1.0% | |||
Internet & Direct Marketing Retail - 1.0% | |||
China Internet Plus Holdings Ltd.: | |||
Series A-11 (b)(d)(e) | 1,516,912 | 8,478,112 | |
Series B (b)(d)(e) | 2,042,487 | 11,415,582 | |
19,893,694 | |||
Internet Software & Services - 0.4% | |||
Internet Software & Services - 0.4% | |||
Uber Technologies, Inc. Series D, 8.00% (b)(d)(e) | 232,064 | 8,145,446 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $16,280,181) | 28,039,140 | ||
Money Market Funds - 8.3% | |||
Fidelity Cash Central Fund, 1.39% (f) | 19,850,273 | 19,854,243 | |
Fidelity Securities Lending Cash Central Fund 1.40% (f)(g) | 145,333,752 | 145,348,285 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $165,202,529) | 165,202,528 | ||
TOTAL INVESTMENT IN SECURITIES - 107.1% | |||
(Cost $1,493,826,078) | 2,130,012,695 | ||
NET OTHER ASSETS (LIABILITIES) - (7.1)% | (142,064,219) | ||
NET ASSETS - 100% | $1,987,948,476 |
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 $4,211,402 or 0.2% of net assets.
(d) Level 3 security
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $28,039,140 or 1.4% of net assets.
(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 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 |
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 | $175,425 |
Fidelity Securities Lending Cash Central Fund | 934,798 |
Total | $1,110,223 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, 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 | $1,936,771,027 | $1,836,731,800 | $100,039,227 | $-- |
Convertible Preferred Stocks | 28,039,140 | -- | -- | 28,039,140 |
Money Market Funds | 165,202,528 | 165,202,528 | -- | -- |
Total Investments in Securities: | $2,130,012,695 | $2,001,934,328 | $100,039,227 | $28,039,140 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $41,307,432 |
Level 2 to Level 1 | $0 |
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 | $31,464,476 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | (3,425,342) |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | 6 |
Transfers out of Level 3 | -- |
Ending Balance | $28,039,140 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2018 | $(3,425,342) |
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 | 74.1% |
Cayman Islands | 10.4% |
Taiwan | 6.0% |
Japan | 5.2% |
Austria | 1.3% |
South Africa | 1.3% |
Others (Individually Less Than 1%) | 1.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $144,784,180) — See accompanying schedule: Unaffiliated issuers (cost $1,328,623,549) | $1,964,810,167 | |
Fidelity Central Funds (cost $165,202,529) | 165,202,528 | |
Total Investment in Securities (cost $1,493,826,078) | $2,130,012,695 | |
Foreign currency held at value (cost $490,630) | 490,630 | |
Receivable for investments sold | 3,116,227 | |
Receivable for fund shares sold | 3,764,992 | |
Dividends receivable | 89,125 | |
Distributions receivable from Fidelity Central Funds | 293,888 | |
Prepaid expenses | 6,132 | |
Other receivables | 151,663 | |
Total assets | 2,137,925,352 | |
Liabilities | ||
Payable for investments purchased | $944,171 | |
Payable for fund shares redeemed | 1,675,858 | |
Accrued management fee | 863,635 | |
Distribution and service plan fees payable | 533,929 | |
Other affiliated payables | 331,642 | |
Other payables and accrued expenses | 289,392 | |
Collateral on securities loaned | 145,338,249 | |
Total liabilities | 149,976,876 | |
Net Assets | $1,987,948,476 | |
Net Assets consist of: | ||
Paid in capital | $1,223,659,457 | |
Accumulated net investment loss | (5,257,507) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 133,356,537 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 636,189,989 | |
Net Assets | $1,987,948,476 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($779,980,286 ÷ 13,334,734 shares) | $58.49 | |
Maximum offering price per share (100/94.25 of $58.49) | $62.06 | |
Class M: | ||
Net Asset Value and redemption price per share ($327,870,208 ÷ 5,905,025 shares) | $55.52 | |
Maximum offering price per share (100/96.50 of $55.52) | $57.53 | |
Class C: | ||
Net Asset Value and offering price per share ($304,131,058 ÷ 6,110,182 shares)(a) | $49.77 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($575,966,924 ÷ 9,176,927 shares) | $62.76 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $3,630,952 | |
Income from Fidelity Central Funds (including $934,798 from security lending) | 1,110,223 | |
Total income | 4,741,175 | |
Expenses | ||
Management fee | $4,711,260 | |
Transfer agent fees | 1,673,819 | |
Distribution and service plan fees | 2,927,263 | |
Accounting and security lending fees | 279,437 | |
Custodian fees and expenses | 56,988 | |
Independent trustees' fees and expenses | 18,152 | |
Registration fees | 87,620 | |
Audit | 32,366 | |
Legal | 12,616 | |
Miscellaneous | 156,376 | |
Total expenses before reductions | 9,955,897 | |
Expense reductions | (21,303) | 9,934,594 |
Net investment income (loss) | (5,193,419) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 203,246,033 | |
Fidelity Central Funds | 3,295 | |
Foreign currency transactions | (60,295) | |
Total net realized gain (loss) | 203,189,033 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 141,442,103 | |
Fidelity Central Funds | (2,329) | |
Assets and liabilities in foreign currencies | 1,320 | |
Total change in net unrealized appreciation (depreciation) | 141,441,094 | |
Net gain (loss) | 344,630,127 | |
Net increase (decrease) in net assets resulting from operations | $339,436,708 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(5,193,419) | $(3,129,929) |
Net realized gain (loss) | 203,189,033 | 237,775,079 |
Change in net unrealized appreciation (depreciation) | 141,441,094 | 196,019,117 |
Net increase (decrease) in net assets resulting from operations | 339,436,708 | 430,664,267 |
Distributions to shareholders from net realized gain | (137,301,968) | (16,883,284) |
Share transactions - net increase (decrease) | 232,974,536 | (366,177,411) |
Redemption fees | – | 16,813 |
Total increase (decrease) in net assets | 435,109,276 | 47,620,385 |
Net Assets | ||
Beginning of period | 1,552,839,200 | 1,505,218,815 |
End of period | $1,987,948,476 | $1,552,839,200 |
Other Information | ||
Accumulated net investment loss end of period | $(5,257,507) | $(64,088) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Technology Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $52.11 | $37.86 | $36.83 | $36.06 | $29.90 | $25.25 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.14) | (.07) | (.10) | (.02)B | (.12) | (.07) |
Net realized and unrealized gain (loss) | 10.93 | 14.95 | 2.74 | 3.75 | 6.70 | 4.72 |
Total from investment operations | 10.79 | 14.88 | 2.64 | 3.73 | 6.58 | 4.65 |
Distributions from net investment income | – | – | – | (.02) | – | – |
Distributions from net realized gain | (4.41) | (.63) | (1.61) | (2.94) | (.42) | – |
Total distributions | (4.41) | (.63) | (1.61) | (2.96) | (.42) | – |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $58.49 | $52.11 | $37.86 | $36.83 | $36.06 | $29.90 |
Total ReturnD,E,F | 21.52% | 39.85% | 7.86% | 10.94% | 22.15% | 18.42% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.06%I | 1.07% | 1.09% | 1.09% | 1.14% | 1.18% |
Expenses net of fee waivers, if any | 1.06%I | 1.07% | 1.09% | 1.09% | 1.14% | 1.18% |
Expenses net of all reductions | 1.06%I | 1.07% | 1.07% | 1.08% | 1.12% | 1.14% |
Net investment income (loss) | (.51)%I | (.17)% | (.28)% | (.05)%B | (.35)% | (.25)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $779,980 | $637,315 | $480,573 | $468,819 | $408,687 | $355,306 |
Portfolio turnover rateJ | 74%I | 73%K | 102% | 142%K | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $49.63 | $36.14 | $35.26 | $34.66 | $28.79 | $24.38 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.20) | (.18) | (.18) | (.11)B | (.19) | (.13) |
Net realized and unrealized gain (loss) | 10.38 | 14.26 | 2.61 | 3.60 | 6.45 | 4.54 |
Total from investment operations | 10.18 | 14.08 | 2.43 | 3.49 | 6.26 | 4.41 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (4.29) | (.59) | (1.55) | (2.89) | (.39) | – |
Total distributions | (4.29) | (.59) | (1.55) | (2.89) | (.39) | – |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $55.52 | $49.63 | $36.14 | $35.26 | $34.66 | $28.79 |
Total ReturnD,E,F | 21.35% | 39.50% | 7.60% | 10.63% | 21.89% | 18.09% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.32%I | 1.33% | 1.35% | 1.35% | 1.38% | 1.42% |
Expenses net of fee waivers, if any | 1.32%I | 1.33% | 1.35% | 1.35% | 1.38% | 1.42% |
Expenses net of all reductions | 1.32%I | 1.33% | 1.34% | 1.34% | 1.37% | 1.39% |
Net investment income (loss) | (.77)%I | (.43)% | (.54)% | (.31)%B | (.60)% | (.50)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $327,870 | $274,918 | $203,727 | $208,192 | $196,067 | $173,692 |
Portfolio turnover rateJ | 74%I | 73%K | 102% | 142%K | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $44.86 | $32.83 | $32.27 | $31.99 | $26.68 | $22.70 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.30) | (.35) | (.31) | (.25)B | (.33) | (.24) |
Net realized and unrealized gain (loss) | 9.35 | 12.92 | 2.37 | 3.29 | 5.98 | 4.22 |
Total from investment operations | 9.05 | 12.57 | 2.06 | 3.04 | 5.65 | 3.98 |
Distributions from net investment income | – | – | – | – | – | – |
Distributions from net realized gain | (4.14) | (.54) | (1.50) | (2.76) | (.34) | – |
Total distributions | (4.14) | (.54) | (1.50) | (2.76) | (.34) | – |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $49.77 | $44.86 | $32.83 | $32.27 | $31.99 | $26.68 |
Total ReturnD,E,F | 21.05% | 38.79% | 7.08% | 10.07% | 21.31% | 17.53% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.82%I | 1.83% | 1.85% | 1.84% | 1.87% | 1.91% |
Expenses net of fee waivers, if any | 1.82%I | 1.83% | 1.85% | 1.84% | 1.87% | 1.91% |
Expenses net of all reductions | 1.82%I | 1.82% | 1.83% | 1.83% | 1.86% | 1.88% |
Net investment income (loss) | (1.27)%I | (.93)% | (1.04)% | (.80)%B | (1.09)% | (.99)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $304,131 | $237,583 | $151,321 | $138,205 | $105,499 | $84,858 |
Portfolio turnover rateJ | 74%I | 73%K | 102% | 142%K | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $55.69 | $40.30 | $39.03 | $38.06 | $31.47 | $26.50 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.07) | .06 | .02 | .11B | (.02) | .02 |
Net realized and unrealized gain (loss) | 11.70 | 15.96 | 2.92 | 3.96 | 7.06 | 4.95 |
Total from investment operations | 11.63 | 16.02 | 2.94 | 4.07 | 7.04 | 4.97 |
Distributions from net investment income | – | – | – | (.07) | – | – |
Distributions from net realized gain | (4.56) | (.63) | (1.67) | (3.03) | (.45) | – |
Total distributions | (4.56) | (.63) | (1.67) | (3.10) | (.45) | – |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $62.76 | $55.69 | $40.30 | $39.03 | $38.06 | $31.47 |
Total ReturnD,E | 21.68% | 40.26% | 8.24% | 11.30% | 22.55% | 18.75% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .80%H | .77% | .75% | .75% | .83% | .86% |
Expenses net of fee waivers, if any | .79%H | .77% | .75% | .75% | .83% | .86% |
Expenses net of all reductions | .79%H | .77% | .74% | .74% | .82% | .83% |
Net investment income (loss) | (.25)%H | .13% | .06% | .29%B | (.05)% | .06% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $575,967 | $403,024 | $669,599 | $783,945 | $455,612 | $218,944 |
Portfolio turnover rateI | 74%H | 73%J | 102% | 142%J | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
NextEra Energy, Inc. | 18.4 |
Exelon Corp. | 10.8 |
Sempra Energy | 9.4 |
NRG Energy, Inc. | 6.5 |
Eversource Energy | 4.9 |
Comcast Corp. Class A | 4.8 |
The AES Corp. | 4.8 |
Public Service Enterprise Group, Inc. | 4.7 |
Great Plains Energy, Inc. | 3.9 |
Avangrid, Inc. | 3.9 |
72.1 |
Top Industries (% of fund's net assets)
As of January 31, 2018 | ||
Electric Utilities | 50.5% | |
Multi-Utilities | 24.8% | |
Independent Power and Renewable Electricity Producers | 14.6% | |
Media | 5.0% | |
Oil, Gas & Consumable Fuels | 3.0% | |
All Others* | 2.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Utilities Fund
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
Electric Utilities - 50.5% | |||
Electric Utilities - 50.5% | |||
Eversource Energy | 229,800 | $14,498,082 | |
Exelon Corp. | 838,691 | 32,297,990 | |
FirstEnergy Corp. | 221,860 | 7,299,194 | |
Great Plains Energy, Inc. | 373,400 | 11,620,208 | |
NextEra Energy, Inc. | 346,450 | 54,884,609 | |
PG&E Corp. | 252,405 | 10,709,544 | |
Vistra Energy Corp. (a) | 529,788 | 10,330,866 | |
Westar Energy, Inc. | 174,151 | 8,996,641 | |
150,637,134 | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
Specialized REITs - 0.2% | |||
InfraReit, Inc. | 29,202 | 554,254 | |
Independent Power and Renewable Electricity Producers - 14.6% | |||
Independent Power Producers & Energy Traders - 11.3% | |||
NRG Energy, Inc. | 747,972 | 19,454,752 | |
The AES Corp. | 1,245,320 | 14,395,899 | |
33,850,651 | |||
Renewable Electricity - 3.3% | |||
NextEra Energy Partners LP | 216,130 | 9,706,398 | |
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 43,557,049 | ||
Media - 5.0% | |||
Cable & Satellite - 4.8% | |||
Comcast Corp. Class A | 340,500 | 14,481,465 | |
Movies & Entertainment - 0.2% | |||
Time Warner, Inc. | 6,200 | 591,170 | |
TOTAL MEDIA | 15,072,635 | ||
Multi-Utilities - 24.8% | |||
Multi-Utilities - 24.8% | |||
Avangrid, Inc. | 236,130 | 11,504,254 | |
CenterPoint Energy, Inc. | 344,313 | 9,702,740 | |
Dominion Resources, Inc. | 132,194 | 10,104,909 | |
Public Service Enterprise Group, Inc. | 272,038 | 14,110,611 | |
SCANA Corp. | 14,400 | 585,216 | |
Sempra Energy | 261,309 | 27,965,289 | |
73,973,019 | |||
Oil, Gas & Consumable Fuels - 3.0% | |||
Oil & Gas Storage & Transport - 3.0% | |||
Cheniere Energy Partners LP Holdings LLC | 135,097 | 3,846,212 | |
Cheniere Energy, Inc. (a) | 91,766 | 5,190,285 | |
9,036,497 | |||
TOTAL COMMON STOCKS | |||
(Cost $232,599,480) | 292,830,588 | ||
Money Market Funds - 0.8% | |||
Fidelity Cash Central Fund, 1.39% (b) | |||
(Cost $2,524,040) | 2,523,535 | 2,524,040 | |
TOTAL INVESTMENT IN SECURITIES - 98.9% | |||
(Cost $235,123,520) | 295,354,628 | ||
NET OTHER ASSETS (LIABILITIES) - 1.1% | 3,165,501 | ||
NET ASSETS - 100% | $298,520,129 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $17,079 |
Fidelity Securities Lending Cash Central Fund | 1,557 |
Total | $18,636 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $232,599,480) | $292,830,588 | |
Fidelity Central Funds (cost $2,524,040) | 2,524,040 | |
Total Investment in Securities (cost $235,123,520) | $295,354,628 | |
Cash | 229 | |
Receivable for investments sold | 4,113,439 | |
Receivable for fund shares sold | 274,749 | |
Dividends receivable | 184,330 | |
Distributions receivable from Fidelity Central Funds | 3,758 | |
Prepaid expenses | 1,224 | |
Other receivables | 14,152 | |
Total assets | 299,946,509 | |
Liabilities | ||
Payable for investments purchased | $742,049 | |
Payable for fund shares redeemed | 307,712 | |
Accrued management fee | 135,161 | |
Distribution and service plan fees payable | 96,729 | |
Other affiliated payables | 67,528 | |
Proxy fees payable | 50,389 | |
Other payables and accrued expenses | 26,812 | |
Total liabilities | 1,426,380 | |
Net Assets | $298,520,129 | |
Net Assets consist of: | ||
Paid in capital | $238,664,508 | |
Distributions in excess of net investment income | (356,767) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (20,114) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 60,232,502 | |
Net Assets | $298,520,129 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($154,055,922 ÷ 5,287,076 shares) | $29.14 | |
Maximum offering price per share (100/94.25 of $29.14) | $30.92 | |
Class M: | ||
Net Asset Value and redemption price per share ($45,732,040 ÷ 1,565,256 shares) | $29.22 | |
Maximum offering price per share (100/96.50 of $29.22) | $30.28 | |
Class C: | ||
Net Asset Value and offering price per share ($54,291,328 ÷ 1,900,420 shares)(a) | $28.57 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($44,440,839 ÷ 1,495,521 shares) | $29.72 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $4,244,018 | |
Income from Fidelity Central Funds (including $1,557 from security lending) | 18,636 | |
Total income | 4,262,654 | |
Expenses | ||
Management fee | $853,090 | |
Transfer agent fees | 358,934 | |
Distribution and service plan fees | 606,094 | |
Accounting and security lending fees | 61,319 | |
Custodian fees and expenses | 2,999 | |
Independent trustees' fees and expenses | 3,445 | |
Registration fees | 45,999 | |
Audit | 22,982 | |
Legal | 2,698 | |
Miscellaneous | 52,231 | |
Total expenses before reductions | 2,009,791 | |
Expense reductions | (26,984) | 1,982,807 |
Net investment income (loss) | 2,279,847 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,633,706 | |
Fidelity Central Funds | 211 | |
Foreign currency transactions | 1,938 | |
Total net realized gain (loss) | 9,635,855 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (7,604,282) | |
Assets and liabilities in foreign currencies | 1,170 | |
Total change in net unrealized appreciation (depreciation) | (7,603,112) | |
Net gain (loss) | 2,032,743 | |
Net increase (decrease) in net assets resulting from operations | $4,312,590 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,279,847 | $5,298,095 |
Net realized gain (loss) | 9,635,855 | 8,737,250 |
Change in net unrealized appreciation (depreciation) | (7,603,112) | 9,995,559 |
Net increase (decrease) in net assets resulting from operations | 4,312,590 | 24,030,904 |
Distributions to shareholders from net investment income | (4,657,531) | (5,090,651) |
Distributions to shareholders from net realized gain | (6,020,444) | – |
Total distributions | (10,677,975) | (5,090,651) |
Share transactions - net increase (decrease) | (7,214,043) | (74,927,988) |
Redemption fees | – | 11,601 |
Total increase (decrease) in net assets | (13,579,428) | (55,976,134) |
Net Assets | ||
Beginning of period | 312,099,557 | 368,075,691 |
End of period | $298,520,129 | $312,099,557 |
Other Information | ||
Undistributed net investment income end of period | $– | $2,020,917 |
Distributions in excess of net investment income end of period | $(356,767) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Utilities Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.74 | $27.59 | $25.48 | $26.77 | $23.48 | $21.20 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .50 | .44 | .44 | .41 | .47 |
Net realized and unrealized gain (loss) | .23 | 2.14 | 2.75 | .18 | 3.35 | 2.24 |
Total from investment operations | .47 | 2.64 | 3.19 | .62 | 3.76 | 2.71 |
Distributions from net investment income | (.49) | (.49) | (.46) | (.38) | (.46) | (.43) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) | – |
Total distributions | (1.07) | (.49) | (1.08)B | (1.91)C | (.47) | (.43) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D | –D |
Net asset value, end of period | $29.14 | $29.74 | $27.59 | $25.48 | $26.77 | $23.48 |
Total ReturnE,F,G | 1.48% | 9.87% | 13.49% | 2.01% | 16.38% | 13.09% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.14%J | 1.12% | 1.13% | 1.13% | 1.16% | 1.20% |
Expenses net of fee waivers, if any | 1.14%J | 1.12% | 1.13% | 1.13% | 1.16% | 1.20% |
Expenses net of all reductions | 1.12%J | 1.11% | 1.12% | 1.11% | 1.15% | 1.16% |
Net investment income (loss) | 1.59%J | 1.87% | 1.78% | 1.65% | 1.64% | 2.16% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $154,056 | $160,040 | $178,116 | $140,148 | $154,134 | $106,851 |
Portfolio turnover rateK | 76%J | 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 for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.77 | $27.62 | $25.49 | $26.78 | $23.50 | $21.21 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .19 | .42 | .36 | .36 | .34 | .41 |
Net realized and unrealized gain (loss) | .24 | 2.14 | 2.77 | .18 | 3.35 | 2.25 |
Total from investment operations | .43 | 2.56 | 3.13 | .54 | 3.69 | 2.66 |
Distributions from net investment income | (.40) | (.41) | (.39) | (.31) | (.40) | (.37) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.98) | (.41) | (1.00) | (1.83) | (.41) | (.37) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B | –B |
Net asset value, end of period | $29.22 | $29.77 | $27.62 | $25.49 | $26.78 | $23.50 |
Total ReturnC,D,E | 1.35% | 9.51% | 13.19% | 1.72% | 15.99% | 12.81% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.43%H | 1.41% | 1.43% | 1.42% | 1.45% | 1.47% |
Expenses net of fee waivers, if any | 1.43%H | 1.41% | 1.43% | 1.42% | 1.45% | 1.47% |
Expenses net of all reductions | 1.42%H | 1.41% | 1.42% | 1.41% | 1.44% | 1.43% |
Net investment income (loss) | 1.29%H | 1.57% | 1.47% | 1.35% | 1.35% | 1.89% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $45,732 | $48,152 | $56,403 | $46,366 | $49,272 | $41,239 |
Portfolio turnover rateI | 76%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.07 | $26.98 | $24.91 | $26.23 | $23.03 | $20.80 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .29 | .25 | .23 | .23 | .31 |
Net realized and unrealized gain (loss) | .23 | 2.09 | 2.70 | .19 | 3.29 | 2.20 |
Total from investment operations | .35 | 2.38 | 2.95 | .42 | 3.52 | 2.51 |
Distributions from net investment income | (.27) | (.29) | (.27) | (.22) | (.31) | (.28) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) | – |
Total distributions | (.85) | (.29) | (.88) | (1.74) | (.32) | (.28) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B | –B |
Net asset value, end of period | $28.57 | $29.07 | $26.98 | $24.91 | $26.23 | $23.03 |
Total ReturnC,D,E | 1.11% | 9.01% | 12.64% | 1.29% | 15.52% | 12.27% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.90%H | 1.87% | 1.88% | 1.88% | 1.89% | 1.93% |
Expenses net of fee waivers, if any | 1.89%H | 1.87% | 1.88% | 1.88% | 1.89% | 1.93% |
Expenses net of all reductions | 1.88%H | 1.86% | 1.88% | 1.86% | 1.88% | 1.89% |
Net investment income (loss) | .83%H | 1.11% | 1.02% | .89% | .91% | 1.43% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $54,291 | $56,964 | $70,957 | $52,172 | $54,810 | $35,457 |
Portfolio turnover rateI | 76%H | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.35 | $28.14 | $25.97 | $27.24 | $23.87 | $21.56 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .29 | .59 | .53 | .52 | .51 | .55 |
Net realized and unrealized gain (loss) | .24 | 2.17 | 2.78 | .20 | 3.39 | 2.26 |
Total from investment operations | .53 | 2.76 | 3.31 | .72 | 3.90 | 2.81 |
Distributions from net investment income | (.58) | (.55) | (.53) | (.46) | (.52) | (.50) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) | – |
Total distributions | (1.16) | (.55) | (1.14) | (1.99)B | (.53) | (.50) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C | –C |
Net asset value, end of period | $29.72 | $30.35 | $28.14 | $25.97 | $27.24 | $23.87 |
Total ReturnD,E | 1.62% | 10.17% | 13.81% | 2.35% | 16.74% | 13.40% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .87%H | .85% | .84% | .83% | .85% | .89% |
Expenses net of fee waivers, if any | .87%H | .85% | .84% | .83% | .85% | .89% |
Expenses net of all reductions | .85%H | .84% | .84% | .81% | .84% | .85% |
Net investment income (loss) | 1.86%H | 2.14% | 2.06% | 1.94% | 1.95% | 2.46% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $44,441 | $46,943 | $62,600 | $31,710 | $46,135 | $19,562 |
Portfolio turnover rateI | 76%H | 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 for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2018
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, 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, 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 Funds invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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 | $60,689,183 | Market approach | Transaction price | $13.88 | Increase |
Market comparable | Transaction price | $1.98 - $150.00 / $34.36 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 4.7 | Increase | |||
Premium rate | 2.0% - 15.0% / 10.7% | Increase | |||
Proxy premium | 28.2% - 117.3% / 52.7% | Increase | |||
Recovery value | Recovery value | 0.0% | Increase | ||
Discount cash flow | Discount rate | 8.0% - 12.2% / 10.7% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Probability rate | 6.3% - 68.9% / 7.3% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Fidelity Advisor Technology Fund:
Asset Type | Fair Value | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $28,039,140 | Market approach | Transaction price | $5.59- $48.77 / $21.47 | Increase |
Recovery value | Recovery value | 0.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2018, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of each applicable Fund's Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes 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. During the period, dividend income has been reduced $779,765 for Fidelity Advisor Semiconductors Fund, with a corresponding increase to net unrealized appreciation (depreciation) as a result of a change in the prior period estimate, which had no impact on the total net assets or total return of the Fund. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Advisor Energy Fund and Fidelity Advisor Technology Fund, independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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 each applicable Fund's Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due 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.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
Fidelity Advisor Biotechnology Fund | $2,196,438,223 | $1,013,309,086 | $(204,857,277) | $808,451,809 |
Fidelity Advisor Communications Equipment Fund | 11,985,452 | 4,218,987 | (439,793) | 3,779,194 |
Fidelity Advisor Consumer Discretionary Fund | 226,983,040 | 108,790,999 | (2,301,912) | 106,489,087 |
Fidelity Advisor Energy Fund | 794,890,927 | 203,161,397 | (36,342,284) | 166,819,113 |
Fidelity Advisor Financial Services Fund | 429,354,276 | 103,873,112 | (1,736,282) | 102,136,830 |
Fidelity Advisor Health Care Fund | 2,231,331,605 | 858,909,998 | (49,864,997) | 809,045,001 |
Fidelity Advisor Industrials Fund | 685,200,679 | 265,240,369 | (7,360,695) | 257,879,674 |
Fidelity Advisor Semiconductors Fund | 239,103,451 | 70,139,283 | (2,990,168) | 67,149,115 |
Fidelity Advisor Technology Fund | 1,494,147,529 | 657,216,224 | (21,351,058) | 635,865,166 |
Fidelity Advisor Utilities Fund | 235,877,909 | 61,612,286 | (2,135,567) | 59,476,719 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |||
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 |
Short-Term Trading (Redemption) Fees. Shares held by investors in Fidelity Advisor Communications Equipment Fund and Fidelity Advisor Semiconductors Fund 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 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
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, the Fund held an investment of $15,278,898 in this Subsidiary, representing .54% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Biotechnology Fund | 389,615,840 | 580,160,763 |
Fidelity Advisor Communications Equipment Fund | 3,723,018 | 8,092,137 |
Fidelity Advisor Consumer Discretionary Fund | 161,532,547 | 162,872,430 |
Fidelity Advisor Energy Fund | 153,100,342 | 222,359,709 |
Fidelity Advisor Financial Services Fund | 155,015,681 | 77,126,144 |
Fidelity Advisor Health Care Fund | 1,125,894,897 | 1,202,864,947 |
Fidelity Advisor Industrials Fund | 296,649,602 | 320,301,645 |
Fidelity Advisor Semiconductors Fund | 147,500,503 | 131,453,278 |
Fidelity Advisor Technology Fund | 712,984,637 | 632,271,606 |
Fidelity Advisor Utilities Fund | 118,053,797 | 139,834,627 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, each Fund's annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Fidelity Advisor Biotechnology Fund | .30% | .24% | .54% |
Fidelity Advisor Communications Equipment Fund | .30% | .24% | .54% |
Fidelity Advisor Consumer Discretionary Fund | .30% | .24% | .54% |
Fidelity Advisor Energy Fund | .30% | .24% | .54% |
Fidelity Advisor Financial Services Fund | .30% | .24% | .54% |
Fidelity Advisor Health Care Fund | .30% | .24% | .54% |
Fidelity Advisor Industrials Fund | .30% | .24% | .54% |
Fidelity Advisor Semiconductors Fund | .30% | .24% | .54% |
Fidelity Advisor Technology Fund | .30% | .24% | .54% |
Fidelity Advisor Utilities Fund | .30% | .24% | .54% |
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 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% | $966,549 | $21,302 |
Class M | .25% | .25% | 318,114 | – |
Class C | .75% | .25% | 2,904,997 | 260,860 |
$4,189,660 | $282,162 | |||
Fidelity Advisor Communications Equipment Fund | ||||
Class A | -% | .25% | $7,361 | $149 |
Class M | .25% | .25% | 10,636 | – |
Class C | .75% | .25% | 14,437 | 1,262 |
$32,434 | $1,411 | |||
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | -% | .25% | $132,528 | $1,483 |
Class M | .25% | .25% | 68,675 | – |
Class C | .75% | .25% | 295,497 | 21,083 |
$496,700 | $22,566 | |||
Fidelity Advisor Energy Fund | ||||
Class A | -% | .25% | $341,610 | $6,057 |
Class M | .25% | .25% | 314,782 | 220,634 |
Class C | .75% | .25% | 1,018,907 | 154,111 |
$1,675,299 | $380,802 | |||
Fidelity Advisor Financial Services Fund | ||||
Class A | -% | .25% | $193,583 | $10,664 |
Class M | .25% | .25% | 119,826 | – |
Class C | .75% | .25% | 496,804 | 135,315 |
$810,213 | $145,979 | |||
Fidelity Advisor Health Care Fund | ||||
Class A | -% | .25% | $1,087,091 | $13,582 |
Class M | .25% | .25% | 668,234 | – |
Class C | .75% | .25% | 3,081,685 | 272,330 |
$4,837,010 | $285,912 | |||
Fidelity Advisor Industrials Fund | ||||
Class A | -% | .25% | $398,059 | $17,503 |
Class M | .25% | .25% | 211,186 | – |
Class C | .75% | .25% | 705,312 | 135,768 |
$1,314,557 | $153,271 | |||
Fidelity Advisor Semiconductors Fund | ||||
Class A | -% | .25% | $99,790 | $2,365 |
Class M | .25% | .25% | 46,008 | 608 |
Class C | .75% | .25% | 241,301 | 56,409 |
$387,099 | $59,382 | |||
Fidelity Advisor Technology Fund | ||||
Class A | -% | .25% | $862,786 | $21,618 |
Class M | .25% | .25% | 737,926 | 64 |
Class C | .75% | .25% | 1,326,551 | 238,655 |
$2,927,263 | $260,337 | |||
Fidelity Advisor Utilities Fund | ||||
Class A | -% | .25% | $200,417 | $2,898 |
Class M | .25% | .25% | 119,762 | 88 |
Class C | .75% | .25% | 285,915 | 22,249 |
$606,094 | $25,235 |
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 | $176,935 |
Class M | 15,703 |
Class C(a) | 25,165 |
$217,803 | |
Fidelity Advisor Communications Equipment Fund | |
Class A | $609 |
Class M | 372 |
Class C(a) | 34 |
$1,015 | |
Fidelity Advisor Consumer Discretionary Fund | |
Class A | $30,987 |
Class M | 3,409 |
Class C(a) | 1,686 |
$36,082 | |
Fidelity Advisor Energy Fund | |
Class A | $45,689 |
Class M | 7,698 |
Class C(a) | 18,506 |
$71,893 | |
Fidelity Advisor Financial Services Fund | |
Class A | $62,353 |
Class M | 7,648 |
Class C(a) | 9,000 |
$79,001 | |
Fidelity Advisor Health Care Fund | |
Class A | $180,009 |
Class M | 19,532 |
Class C(a) | 17,453 |
$216,994 | |
Fidelity Advisor Industrials Fund | |
Class A | $66,814 |
Class M | 10,303 |
Class C(a) | 9,623 |
$86,740 | |
Fidelity Advisor Semiconductors Fund | |
Class A | $64,153 |
Class M | 4,645 |
Class C(a) | 4,717 |
$73,515 | |
Fidelity Advisor Technology Fund | |
Class A | $190,558 |
Class M | 23,092 |
Class C(a) | 15,772 |
$229,422 | |
Fidelity Advisor Utilities Fund | |
Class A | $39,688 |
Class M | 5,555 |
Class C(a) | 2,438 |
$47,681 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Fidelity Advisor Biotechnology Fund | ||
Class A | $768,888 | .20 |
Class M | 171,772 | .27 |
Class C | 555,062 | .19 |
Class I | 1,082,155 | .18 |
$2,577,877 | ||
Fidelity Advisor Communications Equipment Fund | ||
Class A | $8,758 | .30 |
Class M | 7,601 | .36 |
Class C | 4,466 | .31 |
Class I | 2,011 | .16 |
$22,836 | ||
Fidelity Advisor Consumer Discretionary Fund | ||
Class A | $109,581 | .21 |
Class M | 30,581 | .22 |
Class C | 62,338 | .21 |
Class I | 75,641 | .18 |
$278,141 | ||
Fidelity Advisor Energy Fund | ||
Class A | $321,622 | .24 |
Class M | 161,198 | .26 |
Class C | 210,913 | .21 |
Class I | 281,461 | .20 |
$975,194 | ||
Fidelity Advisor Financial Services Fund | ||
Class A | $163,262 | .21 |
Class M | 54,817 | .23 |
Class C | 105,526 | .21 |
Class I | 108,005 | .18 |
$431,610 | ||
Fidelity Advisor Health Care Fund | ||
Class A | $854,233 | .20 |
Class M | 284,603 | .21 |
Class C | 594,317 | .19 |
Class I | 879,986 | .18 |
$2,613,139 | ||
Fidelity Advisor Industrials Fund | ||
Class A | $306,745 | .19 |
Class M | 84,752 | .20 |
Class C | 139,937 | .20 |
Class I | 270,311 | .18 |
$801,745 | ||
Fidelity Advisor Semiconductors Fund | ||
Class A | $86,719 | .22 |
Class M | 28,024 | .31 |
Class C | 56,896 | .24 |
Class I | 98,388 | .18 |
$270,027 | ||
Fidelity Advisor Technology Fund | ||
Class A | $671,791 | .19 |
Class M | 299,456 | .20 |
Class C | 268,809 | .20 |
Class I | 433,763 | .18 |
$1,673,819 | ||
Fidelity Advisor Utilities Fund | ||
Class A | $178,823 | .22 |
Class M | 64,318 | .27 |
Class C | 66,116 | .23 |
Class I | 49,677 | .20 |
$358,934 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Advisor Biotechnology Fund | $27,577 |
Fidelity Advisor Communications Equipment Fund | 185 |
Fidelity Advisor Consumer Discretionary Fund | 3,300 |
Fidelity Advisor Energy Fund | 5,405 |
Fidelity Advisor Financial Services Fund | 2,207 |
Fidelity Advisor Health Care Fund | 32,316 |
Fidelity Advisor Industrials Fund | 8,055 |
Fidelity Advisor Semiconductors Fund | 6,865 |
Fidelity Advisor Technology Fund | 21,234 |
Fidelity Advisor Utilities Fund | 3,386 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Advisor Energy Fund | Borrower | $5,406,500 | 1.31% | $1,179 |
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.
Prior Fiscal Year Redemptions In-Kind. During the prior 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 Fund had a net realized gain of $120,776,424 on investments delivered through in-kind redemptions. 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 Fidelity Advisor Technology Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Advisor Biotechnology Fund | $3,839 |
Fidelity Advisor Communications Equipment Fund | 24 |
Fidelity Advisor Consumer Discretionary Fund | 393 |
Fidelity Advisor Energy Fund | 1,260 |
Fidelity Advisor Financial Services Fund | 566 |
Fidelity Advisor Health Care Fund | 3,895 |
Fidelity Advisor Industrials Fund | 1,196 |
Fidelity Advisor Semiconductors Fund | 346 |
Fidelity Advisor Technology Fund | 2,394 |
Fidelity Advisor Utilities Fund | 457 |
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 the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
Expense Limitations | Reimbursement | |
Fidelity Advisor Communications Equipment Fund | ||
Class A | 1.40% | $27,775 |
Class M | 1.65% | 21,191 |
Class C | 2.15% | 13,724 |
Class I | 1.15% | 8,319 |
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 | $– | $137 |
Fidelity Advisor Communications Equipment Fund | 211 | – |
Fidelity Advisor Consumer Discretionary Fund | 8,790 | – |
Fidelity Advisor Energy Fund | – | 1,502 |
Fidelity Advisor Financial Services Fund | 5,273 | 17 |
Fidelity Advisor Health Care Fund | 91,703 | 736 |
Fidelity Advisor Industrials Fund | 14,863 | 141 |
Fidelity Advisor Semiconductors Fund | 10,847 | – |
Fidelity Advisor Technology Fund | 12,654 | 605 |
Fidelity Advisor Utilities Fund | 25,570 | – |
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 | $11,627 |
Fidelity Advisor Communications Equipment Fund | 65 |
Fidelity Advisor Consumer Discretionary Fund | 1,287 |
Fidelity Advisor Energy Fund | 3,993 |
Fidelity Advisor Financial Services Fund | 2,011 |
Fidelity Advisor Health Care Fund | 12,071 |
Fidelity Advisor Industrials Fund | 3,898 |
Fidelity Advisor Semiconductors Fund | 1,223 |
Fidelity Advisor Technology Fund | 8,044 |
Fidelity Advisor Utilities Fund | 1,414 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2018 | Year ended July 31, 2017 | |
Fidelity Advisor Communications Equipment Fund | ||
From net investment income | ||
Class A | $38,076 | $22,884 |
Class M | 19,926 | 7,287 |
Class I | 13,164 | 40,465 |
Total | $71,166 | $70,636 |
From net realized gain | ||
Class A | $213,875 | $76,855 |
Class M | 164,386 | 56,397 |
Class C | 120,141 | 45,429 |
Class I | 52,657 | 91,174 |
Total | $551,059 | $269,855 |
Fidelity Advisor Consumer Discretionary Fund | ||
From net investment income | ||
Class A | $– | $574,093 |
Class M | – | 128,898 |
Class I | – | 364,076 |
Total | $– | $1,067,067 |
Fidelity Advisor Energy Fund | ||
From net investment income | ||
Class A | $3,962,830 | $– |
Class M | 1,446,529 | – |
Class C | 1,622,304 | – |
Class I | 4,670,175 | 574,320 |
Total | $11,701,838 | $574,320 |
From net realized gain | ||
Class A | $33,167 | $877,435 |
Class M | 15,002 | – |
Class C | 26,596 | – |
Class I | 31,987 | 689,184 |
Total | $106,752 | $1,566,619 |
Fidelity Advisor Financial Services Fund | ||
From net investment income | ||
Class A | $506,031 | $277,513 |
Class M | 39,368 | 40,519 |
Class C | – | 7,495 |
Class I | 717,028 | 176,633 |
Total | $1,262,427 | $502,160 |
From net realized gain | ||
Class A | $96,397 | $– |
Class M | 30,104 | – |
Class I | 73,976 | – |
Total | $200,477 | $– |
Fidelity Advisor Health Care Fund | ||
From net realized gain | ||
Class I | $585,048 | $– |
Total | $585,048 | $– |
Fidelity Advisor Industrials Fund | ||
From net investment income | ||
Class A | $780,661 | $1,317,451 |
Class M | – | 189,934 |
Class I | 1,507,510 | 1,253,589 |
Total | $2,288,171 | $2,760,974 |
From net realized gain | ||
Class A | $8,925,909 | $15,952,070 |
Class M | 2,317,134 | 4,629,029 |
Class C | 4,255,330 | 6,747,943 |
Class I | 8,233,065 | 9,382,176 |
Total | $23,731,438 | $36,711,218 |
Fidelity Advisor Semiconductors Fund | ||
From net investment income | ||
Class A | $377,109 | $125,591 |
Class M | 33,991 | – |
Class C | – | – |
Class I | 840,453 | 266,839 |
Total | $1,251,553 | $392,430 |
From net realized gain | ||
Class A | $6,966,938 | $63,188 |
Class M | 1,691,362 | 16,965 |
Class C | 4,823,957 | 39,995 |
Class I | 9,774,835 | 70,633 |
Total | $23,257,092 | $190,781 |
Fidelity Advisor Technology Fund | ||
From net realized gain | ||
Class A | $53,381,117 | $7,901,048 |
Class M | 23,208,398 | 3,251,710 |
Class C | 22,813,583 | 2,523,567 |
Class I | 37,898,870 | 3,206,959 |
Total | $137,301,968 | $16,883,284 |
Fidelity Advisor Utilities Fund | ||
From net investment income | ||
Class A | $2,587,464 | $2,833,535 |
Class M | 623,640 | 721,535 |
Class C | 518,387 | 680,072 |
Class I | 928,040 | 855,509 |
Total | $4,657,531 | $5,090,651 |
From net realized gain | ||
Class A | $3,055,346 | $– |
Class M | 907,882 | – |
Class C | 1,119,492 | – |
Class I | 937,724 | – |
Total | $6,020,444 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2018 | Year ended July 31, 2017 | Six months ended January 31, 2018 | Year ended July 31, 2017 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | ||||
Shares sold | 2,559,441 | 7,653,403 | $65,192,154 | $167,894,976 |
Shares redeemed | (5,320,709) | (25,942,034) | (133,939,022) | (575,800,593) |
Net increase (decrease) | (2,761,268) | (18,288,631) | $(68,746,868) | $(407,905,617) |
Class M | ||||
Shares sold | 472,900 | 1,036,607 | $11,413,227 | $21,755,495 |
Shares redeemed | (767,238) | (2,006,142) | (18,503,222) | (41,093,048) |
Net increase (decrease) | (294,338) | (969,535) | $(7,089,995) | $(19,337,553) |
Class C | ||||
Shares sold | 1,207,282 | 4,574,019 | $26,647,948 | $87,561,745 |
Shares redeemed | (4,014,950) | (12,148,694) | (87,515,983) | (229,492,656) |
Net increase (decrease) | (2,807,668) | (7,574,675) | $(60,868,035) | $(141,930,911) |
Class I | ||||
Shares sold | 7,616,773 | 24,415,611 | $203,846,797 | $579,987,789 |
Shares redeemed | (8,053,616) | (19,929,416) | (213,482,067) | (453,166,656) |
Net increase (decrease) | (436,843) | 4,486,195 | $(9,635,270) | $126,821,133 |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | ||||
Shares sold | 10,227 | 196,585 | $141,435 | $2,537,011 |
Reinvestment of distributions | 18,307 | 7,376 | 249,703 | 96,328 |
Shares redeemed | (74,675) | (122,799) | (1,029,671) | (1,616,350) |
Net increase (decrease) | (46,141) | 81,162 | $(638,533) | $1,016,989 |
Class M | ||||
Shares sold | 17,385 | 45,088 | $229,789 | $566,811 |
Reinvestment of distributions | 14,023 | 5,034 | 184,116 | 63,422 |
Shares redeemed | (25,866) | (44,106) | (343,276) | (560,530) |
Net increase (decrease) | 5,542 | 6,016 | $70,629 | $69,703 |
Class C | ||||
Shares sold | 13,101 | 86,903 | $158,698 | $1,000,007 |
Reinvestment of distributions | 9,839 | 3,816 | 118,456 | 44,267 |
Shares redeemed | (42,990) | (68,095) | (519,309) | (804,053) |
Net increase (decrease) | (20,050) | 22,624 | $(242,155) | $240,221 |
Class I | ||||
Shares sold | 34,044 | 696,847 | $479,550 | $9,244,140 |
Reinvestment of distributions | 4,027 | 9,441 | 57,058 | 127,920 |
Shares redeemed | (270,595) | (469,873) | (3,871,043) | (6,487,593) |
Net increase (decrease) | (232,524) | 236,415 | $(3,334,435) | $2,884,467 |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | ||||
Shares sold | 690,018 | 1,563,667 | $17,335,208 | $33,991,245 |
Reinvestment of distributions | – | 25,062 | – | 533,815 |
Shares redeemed | (1,159,953) | (3,724,571) | (28,033,792) | (80,253,124) |
Net increase (decrease) | (469,935) | (2,135,842) | $(10,698,584) | $(45,728,064) |
Class M | ||||
Shares sold | 452,521 | 504,914 | $10,846,840 | $9,997,379 |
Reinvestment of distributions | – | 6,315 | – | 126,233 |
Shares redeemed | (174,349) | (719,118) | (3,859,281) | (14,255,751) |
Net increase (decrease) | 278,172 | (207,889) | $6,987,559 | $(4,132,139) |
Class C | ||||
Shares sold | 253,624 | 557,081 | $5,199,411 | $9,835,047 |
Shares redeemed | (500,138) | (1,276,483) | (9,772,402) | (22,490,171) |
Net increase (decrease) | (246,514) | (719,402) | $(4,572,991) | $(12,655,124) |
Class I | ||||
Shares sold | 1,463,492 | 2,729,213 | $38,708,493 | $63,547,711 |
Reinvestment of distributions | – | 13,622 | – | 311,266 |
Shares redeemed | (1,213,224) | (2,775,350) | (31,331,941) | (63,782,352) |
Net increase (decrease) | 250,268 | (32,515) | $7,376,552 | $76,625 |
Fidelity Advisor Energy Fund | ||||
Class A | ||||
Shares sold | 1,095,047 | 3,731,782 | $36,080,320 | $126,063,464 |
Reinvestment of distributions | 122,986 | 22,919 | 3,904,805 | 837,681 |
Shares redeemed | (1,849,880) | (5,899,065) | (59,179,391) | (197,164,038) |
Net increase (decrease) | (631,847) | (2,144,364) | $(19,194,266) | $(70,262,893) |
Class M | ||||
Shares sold | 280,647 | 633,035 | $9,655,142 | $21,820,862 |
Reinvestment of distributions | 43,874 | – | 1,426,357 | – |
Shares redeemed | (569,655) | (1,516,413) | (18,789,207) | (51,021,698) |
Net increase (decrease) | (245,134) | (883,378) | $(7,707,708) | $(29,200,836) |
Class C | ||||
Shares sold | 361,609 | 2,155,681 | $10,681,846 | $67,036,181 |
Reinvestment of distributions | 54,288 | – | 1,586,846 | – |
Shares redeemed | (1,591,485) | (3,021,436) | (46,924,291) | (91,933,200) |
Net increase (decrease) | (1,175,588) | (865,755) | $(34,655,599) | $(24,897,019) |
Class I | ||||
Shares sold | 2,850,476 | 7,723,732 | $96,879,928 | $275,440,495 |
Reinvestment of distributions | 125,558 | 27,291 | 4,196,161 | 1,049,878 |
Shares redeemed | (3,009,895) | (5,087,252) | (100,285,295) | (176,495,073) |
Net increase (decrease) | (33,861) | 2,663,771 | $790,794 | $99,995,300 |
Fidelity Advisor Financial Services Fund | ||||
Class A | ||||
Shares sold | 1,646,816 | 4,464,580 | $35,598,699 | $79,656,792 |
Reinvestment of distributions | 26,593 | 14,068 | 580,794 | 258,984 |
Shares redeemed | (913,779) | (3,395,590) | (18,832,195) | (61,313,608) |
Net increase (decrease) | 759,630 | 1,083,058 | $17,347,298 | $18,602,168 |
Class M | ||||
Shares sold | 395,767 | 882,368 | $8,451,148 | $15,952,818 |
Reinvestment of distributions | 3,172 | 2,145 | 68,610 | 39,121 |
Shares redeemed | (319,388) | (475,808) | (6,479,883) | (8,428,160) |
Net increase (decrease) | 79,551 | 408,705 | $2,039,875 | $7,563,779 |
Class C | ||||
Shares sold | 1,353,529 | 3,210,445 | $27,751,133 | $55,106,415 |
Reinvestment of distributions | – | 381 | – | 6,602 |
Shares redeemed | (602,565) | (1,427,464) | (11,613,631) | (24,008,233) |
Net increase (decrease) | 750,964 | 1,783,362 | $16,137,502 | $31,104,784 |
Class I | ||||
Shares sold | 2,955,681 | 6,135,135 | $64,982,401 | $113,873,501 |
Reinvestment of distributions | 33,129 | 8,203 | 743,087 | 155,027 |
Shares redeemed | (1,107,879) | (2,631,101) | (23,913,753) | (49,234,487) |
Net increase (decrease) | 1,880,931 | 3,512,237 | $41,811,735 | $64,794,041 |
Fidelity Advisor Health Care Fund | ||||
Class A | ||||
Shares sold | 1,716,030 | 4,544,454 | $74,355,735 | $169,771,747 |
Shares redeemed | (2,768,233) | (13,969,231) | (118,658,560) | (524,686,394) |
Net increase (decrease) | (1,052,203) | (9,424,777) | $(44,302,825) | $(354,914,647) |
Class M | ||||
Shares sold | 225,377 | 700,958 | $9,149,429 | $24,882,156 |
Shares redeemed | (622,032) | (2,005,513) | (25,085,396) | (69,983,106) |
Net increase (decrease) | (396,655) | (1,304,555) | $(15,935,967) | $(45,100,950) |
Class C | ||||
Shares sold | 908,621 | 3,257,257 | $31,602,999 | $99,280,372 |
Shares redeemed | (1,974,039) | (7,269,106) | (68,413,399) | (219,465,705) |
Net increase (decrease) | (1,065,418) | (4,011,849) | $(36,810,400) | $(120,185,333) |
Class I | ||||
Shares sold | 3,618,458 | 12,916,139 | $168,772,150 | $530,550,261 |
Reinvestment of distributions | 10,985 | – | 509,045 | – |
Shares redeemed | (2,936,811) | (8,776,012) | (137,892,630) | (352,865,687) |
Net increase (decrease) | 692,632 | 4,140,127 | $31,388,565 | $177,684,574 |
Fidelity Advisor Industrials Fund | ||||
Class A | ||||
Shares sold | 850,221 | 3,473,128 | $34,886,696 | $129,731,002 |
Reinvestment of distributions | 226,148 | 435,669 | 9,283,388 | 16,089,246 |
Shares redeemed | (1,358,376) | (3,604,639) | (54,856,535) | (134,343,693) |
Net increase (decrease) | (282,007) | 304,158 | $(10,686,451) | $11,476,555 |
Class M | ||||
Shares sold | 171,613 | 687,232 | $6,917,487 | $25,114,383 |
Reinvestment of distributions | 57,090 | 129,732 | 2,293,883 | 4,689,810 |
Shares redeemed | (544,150) | (738,370) | (21,445,386) | (27,015,212) |
Net increase (decrease) | (315,447) | 78,594 | $(12,234,016) | $2,788,981 |
Class C | ||||
Shares sold | 313,879 | 1,417,937 | $11,518,322 | $47,806,010 |
Reinvestment of distributions | 107,042 | 173,011 | 3,945,569 | 5,776,837 |
Shares redeemed | (484,804) | (1,132,989) | (17,655,678) | (37,861,806) |
Net increase (decrease) | (63,883) | 457,959 | $(2,191,787) | $15,721,041 |
Class I | ||||
Shares sold | 1,486,155 | 6,108,219 | $63,693,106 | $239,674,929 |
Reinvestment of distributions | 205,495 | 241,469 | 8,860,965 | 9,349,688 |
Shares redeemed | (1,404,463) | (2,774,981) | (59,026,156) | (107,749,101) |
Net increase (decrease) | 287,187 | 3,574,707 | $13,527,915 | $141,275,516 |
Fidelity Advisor Semiconductors Fund | ||||
Class A | ||||
Shares sold | 858,922 | 2,867,916 | $20,511,863 | $55,505,336 |
Reinvestment of distributions | 305,588 | 9,674 | 7,166,032 | 176,700 |
Shares redeemed | (883,477) | (1,601,800) | (21,132,958) | (31,487,416) |
Net increase (decrease) | 281,033 | 1,275,790 | $6,544,937 | $24,194,620 |
Class M | ||||
Shares sold | 166,292 | 423,364 | $3,842,237 | $7,881,848 |
Reinvestment of distributions | 76,374 | 903 | 1,722,235 | 15,741 |
Shares redeemed | (116,467) | (261,715) | (2,659,431) | (5,068,409) |
Net increase (decrease) | 126,199 | 162,552 | $2,905,041 | $2,829,180 |
Class C | ||||
Shares sold | 375,297 | 1,355,856 | $8,015,136 | $23,363,381 |
Reinvestment of distributions | 227,503 | 2,356 | 4,682,008 | 37,856 |
Shares redeemed | (270,041) | (558,596) | (5,615,701) | (9,836,334) |
Net increase (decrease) | 332,759 | 799,616 | $7,081,443 | $13,564,903 |
Class I | ||||
Shares sold | 1,505,297 | 4,699,271 | $38,306,111 | $93,678,192 |
Reinvestment of distributions | 411,599 | 16,678 | 10,121,229 | 316,449 |
Shares redeemed | (945,025) | (2,177,251) | (22,866,735) | (44,325,079) |
Net increase (decrease) | 971,871 | 2,538,698 | $25,560,605 | $49,669,562 |
Fidelity Advisor Technology Fund | ||||
Class A | ||||
Shares sold | 1,792,529 | 3,055,890 | $100,618,421 | $135,662,012 |
Reinvestment of distributions | 960,123 | 188,871 | 51,174,544 | 7,435,860 |
Shares redeemed | (1,647,313) | (3,709,517) | (91,091,583) | (163,600,241) |
Net increase (decrease) | 1,105,339 | (464,756) | $60,701,382 | $(20,502,369) |
Class M | ||||
Shares sold | 516,794 | 921,794 | $27,672,087 | $39,317,522 |
Reinvestment of distributions | 451,463 | 84,422 | 22,848,534 | 3,170,901 |
Shares redeemed | (602,651) | (1,104,127) | (31,787,095) | (45,466,739) |
Net increase (decrease) | 365,606 | (97,911) | $18,733,526 | $(2,978,316) |
Class C | ||||
Shares sold | 874,392 | 1,894,715 | $42,255,634 | $72,854,963 |
Reinvestment of distributions | 474,337 | 66,095 | 21,534,908 | 2,251,207 |
Shares redeemed | (534,612) | (1,274,568) | (25,427,094) | (49,720,750) |
Net increase (decrease) | 814,117 | 686,242 | $38,363,448 | $25,385,420 |
Class I | ||||
Shares sold | 2,988,316 | 4,625,431 | $178,610,635 | $221,194,715 |
Reinvestment of distributions | 621,718 | 71,165 | 35,543,634 | 2,988,203 |
Shares redeemed | (1,669,849) | (14,076,328)(a) | (98,978,089) | (592,265,064)(a) |
Net increase (decrease) | 1,940,185 | (9,379,732) | $115,176,180 | $(368,082,146) |
Fidelity Advisor Utilities Fund | ||||
Class A | ||||
Shares sold | 370,069 | 1,163,884 | $11,132,099 | $31,313,776 |
Reinvestment of distributions | 180,859 | 105,052 | 5,431,210 | 2,653,670 |
Shares redeemed | (645,626) | (2,342,072) | (19,289,616) | (62,630,474) |
Net increase (decrease) | (94,698) | (1,073,136) | $(2,726,307) | $(28,663,028) |
Class M | ||||
Shares sold | 81,054 | 188,461 | $2,446,308 | $5,062,955 |
Reinvestment of distributions | 50,196 | 26,982 | 1,511,910 | 683,792 |
Shares redeemed | (183,495) | (640,220) | (5,474,207) | (17,005,411) |
Net increase (decrease) | (52,245) | (424,777) | $(1,515,989) | $(11,258,664) |
Class C | ||||
Shares sold | 118,813 | 395,852 | $3,506,135 | $10,347,902 |
Reinvestment of distributions | 52,739 | 24,717 | 1,554,219 | 613,397 |
Shares redeemed | (230,589) | (1,091,078) | (6,718,188) | (28,375,968) |
Net increase (decrease) | (59,037) | (670,509) | $(1,657,834) | $(17,414,669) |
Class I | ||||
Shares sold | 424,147 | 1,075,499 | $13,159,681 | $29,795,613 |
Reinvestment of distributions | 56,328 | 29,368 | 1,724,201 | 755,627 |
Shares redeemed | (531,921) | (1,782,322) | (16,197,795) | (48,142,867) |
Net increase (decrease) | (51,446) | (677,455) | $(1,313,913) | $(17,591,627) |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Redemption 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.
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, 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 (August 1, 2017 to January 31, 2018).
Actual Expenses
The first line of the accompanying table for each Class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a Class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each Class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value August 1, 2017 | Ending Account Value January 31, 2018 | Expenses Paid During Period-B August 1, 2017 to January 31, 2018 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | 1.06% | |||
Actual | $1,000.00 | $1,123.10 | $5.67 | |
Hypothetical-C | $1,000.00 | $1,019.86 | $5.40 | |
Class M | 1.38% | |||
Actual | $1,000.00 | $1,121.40 | $7.38 | |
Hypothetical-C | $1,000.00 | $1,018.25 | $7.02 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,119.20 | $9.61 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,125.20 | $4.23 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | 1.40% | |||
Actual | $1,000.00 | $1,091.40 | $7.38 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12 | |
Class M | 1.65% | |||
Actual | $1,000.00 | $1,091.10 | $8.70 | |
Hypothetical-C | $1,000.00 | $1,016.89 | $8.39 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,087.70 | $11.31 | |
Hypothetical-C | $1,000.00 | $1,014.37 | $10.92 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,092.90 | $6.07 | |
Hypothetical-C | $1,000.00 | $1,019.41 | $5.85 | |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | 1.13% | |||
Actual | $1,000.00 | $1,206.80 | $6.29 | |
Hypothetical-C | $1,000.00 | $1,019.51 | $5.75 | |
Class M | 1.39% | |||
Actual | $1,000.00 | $1,204.90 | $7.73 | |
Hypothetical-C | $1,000.00 | $1,018.20 | $7.07 | |
Class C | 1.88% | |||
Actual | $1,000.00 | $1,202.20 | $10.44 | |
Hypothetical-C | $1,000.00 | $1,015.73 | $9.55 | |
Class I | .85% | |||
Actual | $1,000.00 | $1,208.20 | $4.73 | |
Hypothetical-C | $1,000.00 | $1,020.92 | $4.33 | |
Fidelity Advisor Energy Fund | ||||
Class A | 1.13% | |||
Actual | $1,000.00 | $1,155.10 | $6.14 | |
Hypothetical-C | $1,000.00 | $1,019.51 | $5.75 | |
Class M | 1.40% | |||
Actual | $1,000.00 | $1,153.60 | $7.60 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,151.00 | $10.03 | |
Hypothetical-C | $1,000.00 | $1,015.88 | $9.40 | |
Class I | .84% | |||
Actual | $1,000.00 | $1,156.90 | $4.57 | |
Hypothetical-C | $1,000.00 | $1,020.97 | $4.28 | |
Fidelity Advisor Financial Services Fund | ||||
Class A | 1.12% | |||
Actual | $1,000.00 | $1,191.60 | $6.19 | |
Hypothetical-C | $1,000.00 | $1,019.56 | $5.70 | |
Class M | 1.39% | |||
Actual | $1,000.00 | $1,189.90 | $7.67 | |
Hypothetical-C | $1,000.00 | $1,018.20 | $7.07 | |
Class C | 1.87% | |||
Actual | $1,000.00 | $1,186.50 | $10.31 | |
Hypothetical-C | $1,000.00 | $1,015.78 | $9.50 | |
Class I | .85% | |||
Actual | $1,000.00 | $1,193.30 | $4.70 | |
Hypothetical-C | $1,000.00 | $1,020.92 | $4.33 | |
Fidelity Advisor Health Care Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $1,107.30 | $5.58 | |
Hypothetical-C | $1,000.00 | $1,019.91 | $5.35 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,105.70 | $7.01 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.72 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,102.90 | $9.54 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,108.70 | $4.20 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Fidelity Advisor Industrials Fund | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $1,194.50 | $5.97 | |
Hypothetical-C | $1,000.00 | $1,019.76 | $5.50 | |
Class M | 1.34% | |||
Actual | $1,000.00 | $1,193.10 | $7.41 | |
Hypothetical-C | $1,000.00 | $1,018.45 | $6.82 | |
Class C | 1.83% | |||
Actual | $1,000.00 | $1,190.20 | $10.10 | |
Hypothetical-C | $1,000.00 | $1,015.98 | $9.30 | |
Class I | .81% | |||
Actual | $1,000.00 | $1,196.20 | $4.48 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Fidelity Advisor Semiconductors Fund | ||||
Class A | 1.17% | |||
Actual | $1,000.00 | $1,253.70 | $6.65 | |
Hypothetical-C | $1,000.00 | $1,019.31 | $5.96 | |
Class M | 1.51% | |||
Actual | $1,000.00 | $1,252.10 | $8.57 | |
Hypothetical-C | $1,000.00 | $1,017.59 | $7.68 | |
Class C | 1.94% | |||
Actual | $1,000.00 | $1,248.80 | $11.00 | |
Hypothetical-C | $1,000.00 | $1,015.43 | $9.86 | |
Class I | .88% | |||
Actual | $1,000.00 | $1,255.60 | $5.00 | |
Hypothetical-C | $1,000.00 | $1,020.77 | $4.48 | |
Fidelity Advisor Technology Fund | ||||
Class A | 1.06% | |||
Actual | $1,000.00 | $1,215.20 | $5.92 | |
Hypothetical-C | $1,000.00 | $1,019.86 | $5.40 | |
Class M | 1.32% | |||
Actual | $1,000.00 | $1,213.50 | $7.36 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.72 | |
Class C | 1.82% | |||
Actual | $1,000.00 | $1,210.50 | $10.14 | |
Hypothetical-C | $1,000.00 | $1,016.03 | $9.25 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,216.80 | $4.41 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Fidelity Advisor Utilities Fund | ||||
Class A | 1.14% | |||
Actual | $1,000.00 | $1,014.80 | $5.79 | |
Hypothetical-C | $1,000.00 | $1,019.46 | $5.80 | |
Class M | 1.43% | |||
Actual | $1,000.00 | $1,013.50 | $7.26 | |
Hypothetical-C | $1,000.00 | $1,018.00 | $7.27 | |
Class C | 1.89% | |||
Actual | $1,000.00 | $1,011.10 | $9.58 | |
Hypothetical-C | $1,000.00 | $1,015.68 | $9.60 | |
Class I | .87% | |||
Actual | $1,000.00 | $1,016.20 | $4.42 | |
Hypothetical-C | $1,000.00 | $1,020.82 | $4.43 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Focus Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for each fund. SelectCo and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) — Operations, Audit, Fair Valuation, and Governance and Nominating — each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2018 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also ratified an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, which was effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates to the extent that assets under management that are included in group fee calculations increase above the new breakpoint.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of the Investment Advisers as it relates to the funds, including the backgrounds of investment personnel of SelectCo, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staffs, including their size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of SelectCo about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund for different time periods, measured against a securities market index ("benchmark index"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance. Each of Advisor Biotechnology Portfolio, Advisor Consumer Discretionary Portfolio, Advisor Financial Services Portfolio, and Advisor Industrials Portfolio underperformed its benchmark for the one-, three-, and five-year periods ended June 30, 2017, and as a result, the Board will continue to discuss with SelectCo the steps it is taking to address each such fund's performance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors, including the following: general market conditions; issuer-specific information; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for each fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended June 30, 2017.Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. For this purpose, all sector focused equity funds are grouped in the same mapped group. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods ended June 30 shown in basis points (BP) in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates (i.e., sector equities), regardless of whether their management fee structures also are comparable. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s and the number of funds in the Total Mapped Group are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the charts and considered by the Board.Fidelity Advisor Biotechnology Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933522.jpg)
Fidelity Advisor Communications Equipment Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933631.jpg)
Fidelity Advisor Consumer Discretionary Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933721.jpg)
Fidelity Advisor Energy Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933811.jpg)
Fidelity Advisor Financial Services Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933901.jpg)
Fidelity Advisor Health Care Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352933992.jpg)
Fidelity Advisor Industrials Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352934082.jpg)
Fidelity Advisor Semiconductors Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352934173.jpg)
Fidelity Advisor Technology Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352934312.jpg)
Fidelity Advisor Utilities Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352934402.jpg)
Proxy Voting Results
A special meeting of shareholders was held on February 9, 2018. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
James C. Curvey | ||
Affirmative | 6,025,729,824.47 | 96.273 |
Withheld | 233,275,796.83 | 3.727 |
TOTAL | 6,259,005,621.30 | 100.000 |
Dennis J. Dirks | ||
Affirmative | 6,037,341,288.16 | 96.459 |
Withheld | 221,664,333.14 | 3.541 |
TOTAL | 6,259,005,621.30 | 100.000 |
Donald F. Donahue | ||
Affirmative | 6,037,036,802.91 | 96.454 |
Withheld | 221,968,818.39 | 3.546 |
TOTAL | 6,259,005,621.30 | 100.000 |
Alan J. Lacy | ||
Affirmative | 6,035,009,671.49 | 96.422 |
Withheld | 223,995,949.81 | 3.578 |
TOTAL | 6,259,005,621.30 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 6,030,484,320.39 | 96.349 |
Withheld | 228,521,300.91 | 3.651 |
TOTAL | 6,259,005,621.30 | 100.000 |
Joseph Mauriello | ||
Affirmative | 6,033,180,718.55 | 96.393 |
Withheld | 225,824,902.75 | 3.607 |
TOTAL | 6,259,005,621.30 | 100.000 |
Charles S. Morrison | ||
Affirmative | 6,036,762,658.89 | 96.450 |
Withheld | 222,242,962.41 | 3.550 |
TOTAL | 6,259,005,621.30 | 100.000 |
Cornelia M. Small | ||
Affirmative | 6,038,934,439.57 | 96.484 |
Withheld | 220,071,181.73 | 3.516 |
TOTAL | 6,259,005,621.30 | 100.000 |
Garnett A. Smith | ||
Affirmative | 6,035,382,805.96 | 96.428 |
Withheld | 223,622,815.34 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
David M. Thomas | ||
Affirmative | 6,035,686,101.98 | 96.433 |
Withheld | 223,319,519.32 | 3.567 |
TOTAL | 6,259,005,621.30 | 100.000 |
Michael E. Wiley | ||
Affirmative | 6,035,431,517.12 | 96.428 |
Withheld | 223,574,104.18 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Biotechnology Fund.
# of Votes | % of Votes | |
Affirmative | 1,088,428,293.47 | 68.374 |
Against | 96,128,847.36 | 6.039 |
Abstain | 81,413,694.38 | 5.114 |
Broker Non - Votes | 325,908,127.20 | 20.473 |
TOTAL | 1,591,878,962.41 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Communications Equipment Fund.
# of Votes | % of Votes | |
Affirmative | 7,157,367.22 | 69.167 |
Against | 640,184.41 | 6.187 |
Abstain | 785,164.84 | 7.587 |
Broker Non - Votes | 1,765,365.66 | 17.059 |
TOTAL | 10,348,082.13 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Consumer Discretionary Fund.
# of Votes | % of Votes | |
Affirmative | 103,516,914.38 | 67.840 |
Against | 9,922,037.09 | 6.502 |
Abstain | 9,850,373.18 | 6.455 |
Broker Non - Votes | 29,302,612.51 | 19.203 |
TOTAL | 152,591,937.16 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Energy Fund.
# of Votes | % of Votes | |
Affirmative | 331,415,218.78 | 63.404 |
Against | 38,917,310.42 | 7.446 |
Abstain | 39,173,860.49 | 7.494 |
Broker Non - Votes | 113,202,116.87 | 21.656 |
TOTAL | 522,708,506.56 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Financial Services Fund.
# of Votes | % of Votes | |
Affirmative | 150,018,249.68 | 62.781 |
Against | 23,892,674.21 | 9.999 |
Abstain | 14,837,815.06 | 6.209 |
Broker Non - Votes | 50,207,090.93 | 21.011 |
TOTAL | 238,955,829.88 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy For Fidelity Advisor Health Care Fund.
# of Votes | % of Votes | |
Affirmative | 1,087,028,777.71 | 66.516 |
Against | 136,261,424.17 | 8.338 |
Abstain | 85,588,919.75 | 5.238 |
Broker Non - Votes | 325,360,608.71 | 19.908 |
TOTAL | 1,634,239,730.34 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Industrials Fund.
# of Votes | % of Votes | |
Affirmative | 323,246,069.33 | 68.186 |
Against | 36,821,713.48 | 7.768 |
Abstain | 27,241,238.13 | 5.746 |
Broker Non - Votes | 86,756,190.02 | 18.300 |
TOTAL | 474,065,210.96 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Semiconductors Fund.
# of Votes | % of Votes | |
Affirmative | 96,550,968.64 | 62.474 |
Against | 8,752,115.24 | 5.663 |
Abstain | 12,379,424.65 | 8.010 |
Broker Non - Votes | 36,864,374.22 | 23.853 |
TOTAL | 154,546,882.75 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Technology Fund.
# of Votes | % of Votes | |
Affirmative | 592,485,952.32 | 65.335 |
Against | 78,056,100.92 | 8.608 |
Abstain | 57,125,114.32 | 6.299 |
Broker Non - Votes | 179,178,756.85 | 19.758 |
TOTAL | 906,845,924.41 | 100.000 |
PROPOSAL 2
To eliminate a fundamental investment policy for Fidelity Advisor Utilities Fund.
# of Votes | % of Votes | |
Affirmative | 133,130,707.32 | 69.150 |
Against | 14,135,441.19 | 7.343 |
Abstain | 12,806,113.68 | 6.651 |
Broker Non - Votes | 32,453,522.95 | 16.856 |
TOTAL | 192,525,785.14 | 100.000 |
PROPOSAL 3
To modify Fidelity Advisor Biotechnology Fund's fundamental concentration policy.
# of Votes | % of Votes | |
Affirmative | 1,107,933,658.33 | 69.600 |
Against | 75,430,508.33 | 4.738 |
Abstain | 82,606,671.36 | 5.189 |
Broker Non - Votes | 325,908,124.39 | 20.473 |
TOTAL | 1,591,878,962.41 | 100.000 |
PROPOSAL 3
To modify Fidelity Advisor Semiconductors Fund's fundamental concentration policy.
# of Votes | % of Votes | |
Affirmative | 99,896,127.68 | 64.639 |
Against | 5,989,467.05 | 3.875 |
Abstain | 11,796,913.80 | 7.633 |
Broker Non - Votes | 36,864,374.22 | 23.853 |
TOTAL | 154,546,882.75 | 100.000 |
PROPOSAL 4
To change Fidelity Advisor Financial Services Fund from a diversified fund to a non-diversified fund.
# of Votes | % of Votes | |
Affirmative | 147,310,891.12 | 61.648 |
Against | 25,040,153.33 | 10.479 |
Abstain | 16,397,694.50 | 6.862 |
Broker Non - Votes | 50,207,090.93 | 21.011 |
TOTAL | 238,955,829.88 | 100.000 |
PROPOSAL 4
To change Fidelity Advisor Health Care Fund from a diversified fund to a non-diversified fund.
# of Votes | % of Votes | |
Affirmative | 1,069,166,100.87 | 65.423 |
Against | 160,307,707.62 | 9.810 |
Abstain | 79,405,320.97 | 4.859 |
Broker Non - Votes | 325,360,600.88 | 19.908 |
TOTAL | 1,634,239,730.34 | 100.000 |
Proposal 1 reflects trust-wide proposal and voting results.
Proposal 2 was not approved by shareholders for Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Semiconductors Fund, and Fidelity Advisor Technology Fund.
Proposal 3 was not approved by shareholders for Fidelity Advisor Semiconductors Fund.
Proposal 4 was not approved by shareholders for Fidelity Advisor Financials Services Fund and Fidelity Advisor Health Care Fund.
AFOC-SANN-0318
1.700839.121
Fidelity Advisor® Global Real Estate Fund Semi-Annual Report January 31, 2018 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2018
% of fund's net assets | |
Mitsui Fudosan Co. Ltd. | 3.6 |
Prologis, Inc. | 3.6 |
UDR, Inc. | 2.6 |
Simon Property Group, Inc. | 2.5 |
Sun Hung Kai Properties Ltd. | 2.4 |
Boston Properties, Inc. | 2.3 |
Duke Realty Corp. | 2.3 |
Hibernia (REIT) PLC | 2.2 |
Unibail-Rodamco | 2.2 |
Mitsubishi Estate Co. Ltd. | 2.2 |
25.9 |
Top Five Countries as of January 31, 2018
(excluding cash equivalents) | % of fund's net assets |
United States of America | 44.4 |
Japan | 12.6 |
United Kingdom | 7.6 |
Australia | 5.9 |
Germany | 5.0 |
Top Five REIT Sectors as of January 31, 2018
% of fund's net assets | |
REITs - Apartments | 9.8 |
REITs - Diversified | 9.2 |
REITs - Office Property | 8.1 |
REITs - Management/Investment | 7.6 |
REITs - Health Care | 6.3 |
Asset Allocation (% of fund's net assets)
As of January 31, 2018 * | ||
Stocks | 96.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.7% |
* Foreign investments - 51.9%
Schedule of Investments January 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% | |||
Shares | Value | ||
Australia - 5.9% | |||
Abacus Property Group unit | 6,869 | $20,037 | |
Arena (REIT) unit | 9,320 | 17,198 | |
Goodman Group unit | 4,687 | 30,554 | |
Ingenia Communities Group unit | 16,151 | 35,530 | |
National Storage (REIT) unit | 20,567 | 24,859 | |
Propertylink Group unit | 28,900 | 22,473 | |
The GPT Group unit | 8,272 | 33,528 | |
TOTAL AUSTRALIA | 184,179 | ||
Austria - 1.9% | |||
BUWOG AG | 1,172 | 42,052 | |
CA Immobilien Anlagen AG | 580 | 17,815 | |
TOTAL AUSTRIA | 59,867 | ||
Bermuda - 1.6% | |||
Hongkong Land Holdings Ltd. | 6,750 | 48,600 | |
Canada - 0.9% | |||
Smart (REIT) | 1,107 | 27,225 | |
France - 4.1% | |||
Accor SA | 410 | 23,339 | |
Gecina SA | 190 | 37,083 | |
Unibail-Rodamco | 269 | 69,000 | |
TOTAL FRANCE | 129,422 | ||
Germany - 5.0% | |||
Aroundtown SA | 2,829 | 22,778 | |
LEG Immobilien AG | 599 | 67,542 | |
Vonovia SE | 1,320 | 65,079 | |
TOTAL GERMANY | 155,399 | ||
Hong Kong - 3.2% | |||
Sino Land Ltd. | 14,105 | 26,001 | |
Sun Hung Kai Properties Ltd. | 4,280 | 74,355 | |
TOTAL HONG KONG | 100,356 | ||
Ireland - 3.2% | |||
Hibernia (REIT) PLC | 36,300 | 69,045 | |
Irish Residential Properties REIT PLC | 15,700 | 29,239 | |
TOTAL IRELAND | 98,284 | ||
Italy - 0.6% | |||
COIMA RES SpA (a) | 1,800 | 19,711 | |
Japan - 12.6% | |||
Advance Residence Investment Corp. | 13 | 33,476 | |
Ichigo, Inc. | 8,200 | 34,026 | |
Japan Senior Living Investment Corp. | 11 | 16,085 | |
Kenedix Office Investment Corp. | 6 | 37,793 | |
Kenedix, Inc. | 2,100 | 13,381 | |
Mitsubishi Estate Co. Ltd. | 3,540 | 68,091 | |
Mitsui Fudosan Co. Ltd. | 4,260 | 112,185 | |
NTT Urban Development Co. | 2,300 | 30,207 | |
ORIX JREIT, Inc. | 23 | 35,482 | |
Star Asia Investment Corp. | 14 | 13,995 | |
TOTAL JAPAN | 394,721 | ||
Mexico - 0.5% | |||
Concentradora Fibra Hotelera Mexicana SA de CV | 14,000 | 8,380 | |
Terrafina | 4,600 | 7,027 | |
TOTAL MEXICO | 15,407 | ||
Singapore - 4.4% | |||
Mapletree Commercial Trust | 25,600 | 32,981 | |
Parkway Life REIT | 23,800 | 54,792 | |
UOL Group Ltd. | 7,300 | 50,919 | |
TOTAL SINGAPORE | 138,692 | ||
Sweden - 0.4% | |||
Victoria Park AB | 2,900 | 11,078 | |
United Kingdom - 7.6% | |||
Assura PLC | 8,800 | 7,697 | |
British Land Co. PLC | 3,571 | 33,900 | |
Derwent London PLC | 1,127 | 46,821 | |
Land Securities Group PLC | 2,679 | 38,106 | |
Londonmetric Properity PLC | 16,325 | 41,537 | |
Tritax Big Box REIT PLC | 14,927 | 31,600 | |
U & I Group PLC | 8,403 | 24,220 | |
Workspace Group PLC | 1,010 | 14,842 | |
TOTAL UNITED KINGDOM | 238,723 | ||
United States of America - 44.4% | |||
American Homes 4 Rent Class A | 1,317 | 27,380 | |
Apartment Investment & Management Co. Class A | 751 | 31,422 | |
Ashford Hospitality Prime, Inc. | 300 | 2,706 | |
AvalonBay Communities, Inc. | 308 | 52,483 | |
Boston Properties, Inc. | 586 | 72,494 | |
Brandywine Realty Trust (SBI) | 1,725 | 30,947 | |
Brixmor Property Group, Inc. | 1,027 | 16,668 | |
Camden Property Trust (SBI) | 189 | 16,360 | |
CoStar Group, Inc. (b) | 31 | 10,729 | |
DCT Industrial Trust, Inc. | 963 | 57,000 | |
DiamondRock Hospitality Co. | 1,755 | 20,639 | |
Digital Realty Trust, Inc. | 447 | 50,042 | |
Duke Realty Corp. | 2,716 | 71,730 | |
Equity Lifestyle Properties, Inc. | 699 | 60,338 | |
Equity Residential (SBI) | 446 | 27,478 | |
Essex Property Trust, Inc. | 150 | 34,947 | |
Extra Space Storage, Inc. | 533 | 44,495 | |
Gaming & Leisure Properties | 620 | 22,593 | |
General Growth Properties, Inc. | 1,586 | 36,526 | |
Gramercy Property Trust | 1,185 | 29,909 | |
Host Hotels & Resorts, Inc. | 2,277 | 47,271 | |
Hudson Pacific Properties, Inc. | 754 | 24,105 | |
Kimco Realty Corp. | 1,174 | 18,678 | |
Prologis, Inc. | 1,719 | 111,924 | |
Public Storage | 137 | 26,819 | |
Regency Centers Corp. | 439 | 27,617 | |
Sabra Health Care REIT, Inc. | 360 | 6,516 | |
Simon Property Group, Inc. | 472 | 77,111 | |
SL Green Realty Corp. | 305 | 30,659 | |
Spirit Realty Capital, Inc. | 2,000 | 16,340 | |
Sun Communities, Inc. | 446 | 39,623 | |
UDR, Inc. | 2,228 | 81,389 | |
Urban Edge Properties | 480 | 11,222 | |
Ventas, Inc. | 1,176 | 65,821 | |
VEREIT, Inc. | 4,586 | 33,019 | |
Welltower, Inc. | 827 | 49,595 | |
TOTAL UNITED STATES OF AMERICA | 1,384,595 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,845,381) | 3,006,259 | ||
Money Market Funds - 1.0% | |||
Fidelity Cash Central Fund, 1.39% (c) | |||
(Cost $29,788) | 29,782 | 29,788 | |
TOTAL INVESTMENT IN SECURITIES - 97.3% | |||
(Cost $2,875,169) | 3,036,047 | ||
NET OTHER ASSETS (LIABILITIES) - 2.7% | 85,326 | ||
NET ASSETS - 100% | $3,121,373 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $19,711 or 0.6% of net assets.
(b) Non-income producing
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
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 | $497 |
Total | $497 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $23,339 | $23,339 | $-- | $-- |
Financials | 36,468 | 22,473 | 13,995 | -- |
Information Technology | 10,729 | 10,729 | -- | -- |
Real Estate | 2,935,723 | 2,554,997 | 380,726 | -- |
Money Market Funds | 29,788 | 29,788 | -- | -- |
Total Investments in Securities: | $3,036,047 | $2,641,326 | $394,721 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $280,652 |
Level 2 to Level 1 | $0 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $2,845,381) | $3,006,259 | |
Fidelity Central Funds (cost $29,788) | 29,788 | |
Total Investment in Securities (cost $2,875,169) | $3,036,047 | |
Cash | 33,753 | |
Receivable for investments sold | 62,136 | |
Receivable for fund shares sold | 55,183 | |
Dividends receivable | 6,222 | |
Distributions receivable from Fidelity Central Funds | 40 | |
Prepaid expenses | 11 | |
Receivable from investment adviser for expense reductions | 5,369 | |
Other receivables | 83 | |
Total assets | 3,198,844 | |
Liabilities | ||
Payable for investments purchased | $41,079 | |
Accrued management fee | 1,753 | |
Distribution and service plan fees payable | 1,012 | |
Audit fees payable | 27,682 | |
Custody fees payable | 4,908 | |
Other affiliated payables | 485 | |
Other payables and accrued expenses | 552 | |
Total liabilities | 77,471 | |
Net Assets | $3,121,373 | |
Net Assets consist of: | ||
Paid in capital | $3,082,951 | |
Distributions in excess of net investment income | (6,343) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (116,274) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 161,039 | |
Net Assets | $3,121,373 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($844,518 ÷ 84,342 shares) | $10.01 | |
Maximum offering price per share (100/94.25 of $10.01) | $10.62 | |
Class M: | ||
Net Asset Value and redemption price per share ($584,121 ÷ 58,349 shares) | $10.01 | |
Maximum offering price per share (100/96.50 of $10.01) | $10.37 | |
Class C: | ||
Net Asset Value and offering price per share ($775,546 ÷ 77,518 shares)(a) | $10.00 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($917,188 ÷ 91,543 shares) | $10.02 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $34,530 | |
Income from Fidelity Central Funds | 497 | |
Income before foreign taxes withheld | 35,027 | |
Less foreign taxes withheld | (2,369) | |
Total income | 32,658 | |
Expenses | ||
Management fee | $10,095 | |
Transfer agent fees | 2,419 | |
Distribution and service plan fees | 5,924 | |
Accounting fees and expenses | 567 | |
Custodian fees and expenses | 8,922 | |
Independent trustees' fees and expenses | 31 | |
Registration fees | 18,179 | |
Audit | 24,804 | |
Legal | 21 | |
Miscellaneous | 694 | |
Total expenses before reductions | 71,656 | |
Expense reductions | (49,207) | 22,449 |
Net investment income (loss) | 10,209 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 10,331 | |
Foreign currency transactions | 350 | |
Total net realized gain (loss) | 10,681 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 117,937 | |
Assets and liabilities in foreign currencies | (26) | |
Total change in net unrealized appreciation (depreciation) | 117,911 | |
Net gain (loss) | 128,592 | |
Net increase (decrease) in net assets resulting from operations | $138,801 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2018 (Unaudited) | For the period August 11, 2016 (commencement of operations) to July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,209 | $35,722 |
Net realized gain (loss) | 10,681 | (82,716) |
Change in net unrealized appreciation (depreciation) | 117,911 | 43,128 |
Net increase (decrease) in net assets resulting from operations | 138,801 | (3,866) |
Distributions to shareholders from net investment income | (34,616) | (17,656) |
Distributions to shareholders from net realized gain | (41,912) | (2,329) |
Total distributions | (76,528) | (19,985) |
Share transactions - net increase (decrease) | 251,853 | 2,831,098 |
Total increase (decrease) in net assets | 314,126 | 2,807,247 |
Net Assets | ||
Beginning of period | 2,807,247 | – |
End of period | $3,121,373 | $2,807,247 |
Other Information | ||
Undistributed net investment income end of period | $– | $18,064 |
Distributions in excess of net investment income end of period | $(6,343) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Global Real Estate Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |
2018 | 2017 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.81 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .04 | .15 |
Net realized and unrealized gain (loss) | .44 | (.26) |
Total from investment operations | .48 | (.11) |
Distributions from net investment income | (.13) | (.07) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.28)C | (.08) |
Net asset value, end of period | $10.01 | $9.81 |
Total ReturnD,E,F | 4.90% | (1.00)% |
Ratios to Average Net AssetsG,H | ||
Expenses before reductions | 4.80%I | 8.94%I |
Expenses net of fee waivers, if any | 1.40%I | 1.40%I |
Expenses net of all reductions | 1.38%I | 1.39%I |
Net investment income (loss) | .86%I | 1.65%I |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $845 | $657 |
Portfolio turnover rateJ | 35%I | 59%I |
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 distributions of $.28 per share is comprised of distributions from net investment income of $.134 and distributions from net realized gain of $.142 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Global Real Estate Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |
2018 | 2017 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.79 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .03 | .13 |
Net realized and unrealized gain (loss) | .44 | (.27) |
Total from investment operations | .47 | (.14) |
Distributions from net investment income | (.11) | (.06) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.25) | (.07) |
Net asset value, end of period | $10.01 | $9.79 |
Total ReturnC,D,E | 4.86% | (1.30)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | 5.03%H | 9.20%H |
Expenses net of fee waivers, if any | 1.65%H | 1.65%H |
Expenses net of all reductions | 1.63%H | 1.64%H |
Net investment income (loss) | .61%H | 1.40%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $584 | $550 |
Portfolio turnover rateI | 35%H | 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.
Fidelity Advisor Global Real Estate Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |
2018 | 2017 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.76 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .01 | .08 |
Net realized and unrealized gain (loss) | .43 | (.26) |
Total from investment operations | .44 | (.18) |
Distributions from net investment income | (.06) | (.05) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.20) | (.06) |
Net asset value, end of period | $10.00 | $9.76 |
Total ReturnC,D,E | 4.54% | (1.77)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | 5.50%H | 9.75%H |
Expenses net of fee waivers, if any | 2.15%H | 2.15%H |
Expenses net of all reductions | 2.14%H | 2.14%H |
Net investment income (loss) | .11%H | .90%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $776 | $737 |
Portfolio turnover rateI | 35%H | 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.
Fidelity Advisor Global Real Estate Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |
2018 | 2017 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.82 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .06 | .17 |
Net realized and unrealized gain (loss) | .44 | (.26) |
Total from investment operations | .50 | (.09) |
Distributions from net investment income | (.16) | (.08) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.30) | (.09) |
Net asset value, end of period | $10.02 | $9.82 |
Total ReturnC,D | 5.12% | (.80)% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | 4.48%G | 8.74%G |
Expenses net of fee waivers, if any | 1.15%G | 1.15%G |
Expenses net of all reductions | 1.13%G | 1.14%G |
Net investment income (loss) | 1.11%G | 1.90%G |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $917 | $863 |
Portfolio turnover rateH | 35%G | 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 (Unaudited)
For the period ended January 31, 2018
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, 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 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. The aggregate value of investments by input level as of January 31, 2018, including information on transfers between Levels 1 and 2, 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to 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.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $272,932 |
Gross unrealized depreciation | (141,173) |
Net unrealized appreciation (depreciation) | $131,759 |
Tax cost | $2,904,288 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(81,834) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $680,619 and $492,296, 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 .24% 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 .69% 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% | $934 | $448 |
Class M | .25% | .25% | 1,414 | 1,072 |
Class C | .75% | .25% | 3,576 | 2,850 |
$5,924 | $4,370 |
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, no sales charge amounts were retained by FDC.
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 | $831 | .22 |
Class M | 520 | .18 |
Class C | 466 | .13 |
Class I | 602 | .14 |
$2,419 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $18 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. 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 $4 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. 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 the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.40% | $12,671 |
Class M | 1.65% | 9,543 |
Class C | 2.15% | 11,967 |
Class I | 1.15% | 14,805 |
$48,986 |
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 $133 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $75.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $13.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2018 | Year ended July 31, 2017(a) | |
From net investment income | ||
Class A | $10,565 | $4,562 |
Class M | 6,191 | 3,316 |
Class C | 4,104 | 3,067 |
Class I | 13,756 | 6,711 |
Total | $34,616 | $17,656 |
From net realized gain | ||
Class A | $11,196 | $562 |
Class M | 8,065 | 466 |
Class C | 10,049 | 563 |
Class I | 12,602 | 738 |
Total | $41,912 | $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 | Shares | Dollars | Dollars | |
Six months ended January 31, 2018 | Year ended July 31, 2017 (a) | Six months ended January 31, 2018 | Year ended July 31, 2017(a) | |
Class A | ||||
Shares sold | 24,097 | 81,755 | $238,977 | $803,455 |
Reinvestment of distributions | 2,212 | 575 | 21,761 | 5,124 |
Shares redeemed | (8,960) | (15,337) | (88,243) | (141,193) |
Net increase (decrease) | 17,349 | 66,993 | $172,495 | $667,386 |
Class M | ||||
Shares sold | 3,663 | 55,940 | $36,231 | $555,479 |
Reinvestment of distributions | 1,449 | 424 | 14,256 | 3,782 |
Shares redeemed | (2,905) | (222) | (28,512) | (2,000) |
Net increase (decrease) | 2,207 | 56,142 | $21,975 | $557,261 |
Class C | ||||
Shares sold | 5,698 | 75,177 | $57,013 | $736,227 |
Reinvestment of distributions | 1,438 | 335 | 14,153 | 2,984 |
Shares redeemed | (5,117) | (13) | (49,965) | (118) |
Net increase (decrease) | 2,019 | 75,499 | $21,201 | $739,093 |
Class I | ||||
Shares sold | 5,684 | 89,258 | $56,071 | $880,092 |
Reinvestment of distributions | 2,624 | 835 | 25,818 | 7,448 |
Shares redeemed | (4,644) | (2,214) | (45,707) | (20,182) |
Net increase (decrease) | 3,664 | 87,879 | $36,182 | $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 63% of the total outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2017 to January 31, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value August 1, 2017 | Ending Account Value January 31, 2018 | Expenses Paid During Period-B August 1, 2017 to January 31, 2018 | |
Class A | 1.40% | |||
Actual | $1,000.00 | $1,049.00 | $7.23 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12 | |
Class M | 1.65% | |||
Actual | $1,000.00 | $1,048.60 | $8.52 | |
Hypothetical-C | $1,000.00 | $1,016.89 | $8.39 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,045.40 | $11.08 | |
Hypothetical-C | $1,000.00 | $1,014.37 | $10.92 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,051.20 | $5.95 | |
Hypothetical-C | $1,000.00 | $1,019.41 | $5.85 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Global Real Estate Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity SelectCo, LLC (SelectCo), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. SelectCo and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) — Operations, Audit, Fair Valuation, and Governance and Nominating — each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2018 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also ratified an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, which was effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates to the extent that assets under management that are included in group fee calculations increase above the new breakpoint.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing of the Investment Advisers as it relates to the fund, including the backgrounds of investment personnel of SelectCo, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staffs, including their size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. As the fund recently commenced operations, the Board did not believe that it was appropriate to assign significant weight to its limited investment performance.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. For this purpose, all sector focused equity funds are grouped in the same mapped group. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the period of the fund's operations shown in basis points (BP) in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates (i.e., sector equities), regardless of whether their management fee structures also are comparable. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s and the number of funds in the Total Mapped Group are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee rate ranked, is also included in the chart and considered by the Board.Fidelity Advisor Global Real Estate Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001242/img352938168.jpg)
Proxy Voting Results
A special meeting of shareholders was held on February 9, 2018. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
James C. Curvey | ||
Affirmative | 6,025,729,824.47 | 96.273 |
Withheld | 233,275,796.83 | 3.727 |
TOTAL | 6,259,005,621.30 | 100.000 |
Dennis J. Dirks | ||
Affirmative | 6,037,341,288.16 | 96.459 |
Withheld | 221,664,333.14 | 3.541 |
TOTAL | 6,259,005,621.30 | 100.000 |
Donald F. Donahue | ||
Affirmative | 6,037,036,802.91 | 96.454 |
Withheld | 221,968,818.39 | 3.546 |
TOTAL | 6,259,005,621.30 | 100.000 |
Alan J. Lacy | ||
Affirmative | 6,035,009,671.49 | 96.422 |
Withheld | 223,995,949.81 | 3.578 |
TOTAL | 6,259,005,621.30 | 100.00 |
Ned C. Lautenbach | ||
Affirmative | 6,030,484,320.39 | 96.349 |
Withheld | 228,521,300.91 | 3.651 |
TOTAL | 6,259,005,621.30 | 100.000 |
Joseph Mauriello | ||
Affirmative | 6,033,180,718.55 | 96.393 |
Withheld | 225,824,902.75 | 3.607 |
TOTAL | 6,259,005,621.30 | 100.000 |
Charles S. Morrison | ||
Affirmative | 6,036,762,658.89 | 96.450 |
Withheld | 222,242,962.41 | 3.550 |
TOTAL | 6,259,005,621.30 | 100.000 |
Cornelia M. Small | ||
Affirmative | 6,038,934,439.57 | 96.484 |
Withheld | 220,071,181.73 | 3.516 |
TOTAL | 6,259,005,621.30 | 100.000 |
Garnett A. Smith | ||
Affirmative | 6,035,382,805.96 | 96.428 |
Withheld | 223,622,815.34 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
David M. Thomas | ||
Affirmative | 6,035,686,101.98 | 96.433 |
Withheld | 223,319,519.32 | 3.567 |
TOTAL | 6,259,005,621.30 | 100.000 |
Michael E. Wiley | ||
Affirmative | 6,035,431,517.12 | 96.428 |
Withheld | 223,574,104.18 | 3.572 |
TOTAL | 6,259,005,621.30 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
AGRE-SANN-0318
1.9881281.101
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series VII’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series VII’s (the “Trust”) disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series VII
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | March 26, 2018 |
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/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | March 26, 2018 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | March 26, 2018 |