UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3010
Fidelity Advisor Series VII
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
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Date of reporting period: | July 31, 2018 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Real Estate Fund Class A, Class M, Class C and Class I Annual Report July 31, 2018 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (3.34)% | 5.87% | 6.72% |
Class M (incl. 3.50% sales charge) | (1.25)% | 6.13% | 6.72% |
Class C (incl. contingent deferred sales charge) | 0.81% | 6.32% | 6.55% |
Class I | 2.84% | 7.42% | 7.63% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Real Estate Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405573614_740.jpg)
Period Ending Values | ||
$19,160 | Fidelity Advisor® Real Estate Fund - Class A | |
$27,551 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Samuel Wald: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 2% to 3%, trailing the 3.85% return of the Dow Jones U.S. Select Real Estate Securities Index℠ and significantly lagging the S&P 500®. Versus the Dow Jones real estate index, security selection was the primary detractor, especially in the hotels and diversified segments. An underweighting in hotels also hurt, as did overweighting the lagging residential category, where a stake in apartment REIT Avalon Bay Communities detracted. Despite the underperformance in hotels, a non-index position in Marriott International, later sold for valuation reasons, contributed. Security selection in retail contributed versus the sector index, as not owning index component and shopping-center REIT Kimco Realty helped. Overweighting another shopping-center REIT, however, Urban Edge Properties, detracted. Industry positioning was favorable, thanks primarily to an underweighting in health care. Here, an overweighting in Ventas – one of the fund's largest holdings – was detrimental, although it was partly counterbalanced by not owning poor-performing index component HCP. Elsewhere, self-storage REIT Extra Space contributed, while lack of exposure to two competitors and index components, Life Storage and CubeSmart, detracted. Another top relative contributor was DCT Industrial Trust, an owner of warehouse properties that agreed to be acquired by Prologis, another large fund holding, as well as a relative detractor.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Simon Property Group, Inc. | 8.0 |
Public Storage | 7.1 |
AvalonBay Communities, Inc. | 5.9 |
Boston Properties, Inc. | 5.5 |
Equity Residential (SBI) | 4.9 |
Ventas, Inc. | 4.4 |
Essex Property Trust, Inc. | 3.9 |
Prologis, Inc. | 3.5 |
SL Green Realty Corp. | 3.5 |
Duke Realty Corp. | 3.1 |
49.8 |
Top Five REIT Sectors as of July 31, 2018
% of fund's net assets | |
REITs - Apartments | 17.6 |
REITs - Office Property | 16.2 |
REITs - Regional Malls | 10.8 |
REITs - Diversified | 9.6 |
REITs - Health Care | 9.4 |
Asset Allocation (% of fund's net assets)
As of July 31, 2018 | ||
Stocks | 98.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
Equity Real Estate Investment Trusts (REITs) - 97.5% | |||
REITs - Apartments - 17.6% | |||
American Homes 4 Rent Class A | 384,200 | $8,506,188 | |
AvalonBay Communities, Inc. | 205,940 | 36,420,489 | |
Equity Residential (SBI) | 459,909 | 30,091,846 | |
Essex Property Trust, Inc. | 101,247 | 24,344,841 | |
UDR, Inc. | 234,100 | 9,008,168 | |
108,371,532 | |||
REITs - Diversified - 9.6% | |||
Clipper Realty, Inc. | 65,100 | 692,664 | |
Digital Realty Trust, Inc. | 38,200 | 4,638,244 | |
Duke Realty Corp. | 659,700 | 19,210,464 | |
Equinix, Inc. | 40,500 | 17,790,840 | |
Vornado Realty Trust | 53,600 | 3,854,912 | |
Washington REIT (SBI) | 438,300 | 13,363,767 | |
59,550,891 | |||
REITs - Health Care - 9.4% | |||
Healthcare Realty Trust, Inc. | 410,200 | 12,187,042 | |
Ventas, Inc. | 486,105 | 27,406,600 | |
Welltower, Inc. | 293,719 | 18,386,809 | |
57,980,451 | |||
REITs - Hotels - 7.4% | |||
Braemar Hotels & Resorts, Inc. | 182,500 | 2,085,975 | |
DiamondRock Hospitality Co. | 910,050 | 10,847,796 | |
Host Hotels & Resorts, Inc. | 871,734 | 18,254,110 | |
Sunstone Hotel Investors, Inc. | 895,200 | 14,564,904 | |
45,752,785 | |||
REITs - Management/Investment - 1.1% | |||
American Tower Corp. | 20,200 | 2,994,448 | |
Retail Properties America, Inc. | 320,800 | 4,026,040 | |
7,020,488 | |||
REITs - Manufactured Homes - 2.7% | |||
Equity Lifestyle Properties, Inc. | 183,803 | 16,724,235 | |
REITs - Office Property - 16.2% | |||
Boston Properties, Inc. | 268,447 | 33,698,152 | |
Corporate Office Properties Trust (SBI) | 388,900 | 11,565,886 | |
Douglas Emmett, Inc. | 467,600 | 18,161,584 | |
Highwoods Properties, Inc. (SBI) | 304,100 | 14,934,351 | |
SL Green Realty Corp. | 209,600 | 21,611,856 | |
99,971,829 | |||
REITs - Regional Malls - 10.8% | |||
Simon Property Group, Inc. | 281,050 | 49,523,820 | |
Taubman Centers, Inc. | 143,700 | 8,916,585 | |
The Macerich Co. | 135,900 | 8,026,254 | |
66,466,659 | |||
REITs - Shopping Centers - 6.5% | |||
Acadia Realty Trust (SBI) | 398,571 | 10,793,303 | |
Cedar Realty Trust, Inc. | 838,570 | 3,991,593 | |
DDR Corp. | 383,150 | 5,249,155 | |
Urban Edge Properties | 690,541 | 15,661,470 | |
Weingarten Realty Investors (SBI) | 137,100 | 4,143,162 | |
39,838,683 | |||
REITs - Storage - 8.3% | |||
Extra Space Storage, Inc. | 74,900 | 7,038,353 | |
Public Storage | 201,550 | 43,903,637 | |
50,941,990 | |||
REITs - Warehouse/Industrial - 7.9% | |||
Americold Realty Trust | 170,600 | 3,669,606 | |
DCT Industrial Trust, Inc. | 265,566 | 17,758,398 | |
Prologis, Inc. | 333,977 | 21,915,571 | |
Rexford Industrial Realty, Inc. | 180,100 | 5,518,264 | |
48,861,839 | |||
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 601,481,382 | ||
Hotels, Restaurants & Leisure - 0.6% | |||
Hotels, Resorts & Cruise Lines - 0.6% | |||
Hilton Grand Vacations, Inc. (a) | 112,300 | 3,884,457 | |
Real Estate Management & Development - 0.6% | |||
Real Estate Development - 0.6% | |||
Howard Hughes Corp. (a) | 26,400 | 3,578,520 | |
TOTAL COMMON STOCKS | |||
(Cost $467,881,769) | 608,944,359 | ||
Money Market Funds - 1.6% | |||
Fidelity Cash Central Fund, 1.96% (b) | |||
(Cost $9,952,957) | 9,950,967 | 9,952,957 | |
TOTAL INVESTMENT IN SECURITIES - 100.3% | |||
(Cost $477,834,726) | 618,897,316 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (1,741,957) | ||
NET ASSETS - 100% | $617,155,359 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $87,804 |
Fidelity Securities Lending Cash Central Fund | 1,116 |
Total | $88,920 |
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
July 31, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $467,881,769) | $608,944,359 | |
Fidelity Central Funds (cost $9,952,957) | 9,952,957 | |
Total Investment in Securities (cost $477,834,726) | $618,897,316 | |
Cash | 3,561 | |
Receivable for investments sold | 1,092,294 | |
Receivable for fund shares sold | 269,059 | |
Distributions receivable from Fidelity Central Funds | 13,507 | |
Prepaid expenses | 6,744 | |
Other receivables | 77,727 | |
Total assets | 620,360,208 | |
Liabilities | ||
Payable for investments purchased | $1,190,981 | |
Payable for fund shares redeemed | 1,359,252 | |
Accrued management fee | 281,706 | |
Distribution and service plan fees payable | 124,022 | |
Other affiliated payables | 137,258 | |
Other payables and accrued expenses | 111,630 | |
Total liabilities | 3,204,849 | |
Net Assets | $617,155,359 | |
Net Assets consist of: | ||
Paid in capital | $461,117,515 | |
Undistributed net investment income | 2,818,971 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 12,156,283 | |
Net unrealized appreciation (depreciation) on investments | 141,062,590 | |
Net Assets | $617,155,359 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($161,570,462 ÷ 7,319,955 shares) | $22.07 | |
Maximum offering price per share (100/94.25 of $22.07) | $23.42 | |
Class M: | ||
Net Asset Value and redemption price per share ($127,037,714 ÷ 5,761,274 shares) | $22.05 | |
Maximum offering price per share (100/96.50 of $22.05) | $22.85 | |
Class C: | ||
Net Asset Value and offering price per share ($43,690,040 ÷ 2,028,347 shares)(a) | $21.54 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($284,857,143 ÷ 12,784,057 shares) | $22.28 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $20,455,820 | |
Income from Fidelity Central Funds | 88,920 | |
Total income | 20,544,740 | |
Expenses | ||
Management fee | $3,978,421 | |
Transfer agent fees | 1,642,249 | |
Distribution and service plan fees | 1,658,150 | |
Accounting and security lending fees | 259,285 | |
Custodian fees and expenses | 30,685 | |
Independent trustees' fees and expenses | 11,542 | |
Registration fees | 72,200 | |
Audit | 50,793 | |
Legal | 12,345 | |
Interest | 5,430 | |
Miscellaneous | 82,598 | |
Total expenses before reductions | 7,803,698 | |
Expense reductions | (52,616) | |
Total expenses after reductions | 7,751,082 | |
Net investment income (loss) | 12,793,658 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 33,473,211 | |
Fidelity Central Funds | 295 | |
Foreign currency transactions | 3,485 | |
Total net realized gain (loss) | 33,476,991 | |
Change in net unrealized appreciation (depreciation) on investment securities | (35,357,635) | |
Net gain (loss) | (1,880,644) | |
Net increase (decrease) in net assets resulting from operations | $10,913,014 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,793,658 | $12,983,654 |
Net realized gain (loss) | 33,476,991 | 50,441,686 |
Change in net unrealized appreciation (depreciation) | (35,357,635) | (127,656,753) |
Net increase (decrease) in net assets resulting from operations | 10,913,014 | (64,231,413) |
Distributions to shareholders from net investment income | (12,752,889) | (12,016,018) |
Distributions to shareholders from net realized gain | (37,943,280) | (47,681,990) |
Total distributions | (50,696,169) | (59,698,008) |
Share transactions - net increase (decrease) | (207,917,506) | (90,656,092) |
Total increase (decrease) in net assets | (247,700,661) | (214,585,513) |
Net Assets | ||
Beginning of period | 864,856,020 | 1,079,441,533 |
End of period | $617,155,359 | $864,856,020 |
Other Information | ||
Undistributed net investment income end of period | $2,818,971 | $3,115,350 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Real Estate Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.96 | $25.93 | $22.90 | $22.57 | $20.92 |
Income from Investment Operations | |||||
Net investment income (loss)A | .37 | .33 | .37 | .30 | .31 |
Net realized and unrealized gain (loss) | .21B | (1.82) | 3.61 | 1.82 | 2.13 |
Total from investment operations | .58 | (1.49) | 3.98 | 2.12 | 2.44 |
Distributions from net investment income | (.36) | (.30) | (.36) | (.30) | (.27) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) |
Total distributions | (1.47) | (1.48) | (.95) | (1.79) | (.79) |
Net asset value, end of period | $22.07 | $22.96 | $25.93 | $22.90 | $22.57 |
Total ReturnC,D | 2.55% | (5.63)% | 18.33% | 9.70% | 12.34% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.10% | 1.09% | 1.09% | 1.10% | 1.16% |
Expenses net of fee waivers, if any | 1.10% | 1.09% | 1.09% | 1.10% | 1.16% |
Expenses net of all reductions | 1.10% | 1.08% | 1.08% | 1.09% | 1.15% |
Net investment income (loss) | 1.70% | 1.42% | 1.62% | 1.32% | 1.47% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $161,570 | $249,442 | $370,408 | $327,489 | $274,136 |
Portfolio turnover rateG | 41% | 69% | 62% | 57% | 83% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.94 | $25.90 | $22.88 | $22.55 | $20.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | .32 | .27 | .32 | .25 | .26 |
Net realized and unrealized gain (loss) | .21B | (1.81) | 3.60 | 1.82 | 2.13 |
Total from investment operations | .53 | (1.54) | 3.92 | 2.07 | 2.39 |
Distributions from net investment income | (.31) | (.24) | (.30) | (.25) | (.23) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) |
Total distributions | (1.42) | (1.42) | (.90)C | (1.74) | (.75) |
Net asset value, end of period | $22.05 | $22.94 | $25.90 | $22.88 | $22.55 |
Total ReturnD,E | 2.34% | (5.83)% | 18.02% | 9.46% | 12.07% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.33% | 1.33% | 1.33% | 1.34% | 1.37% |
Expenses net of fee waivers, if any | 1.33% | 1.33% | 1.33% | 1.34% | 1.37% |
Expenses net of all reductions | 1.32% | 1.32% | 1.32% | 1.33% | 1.36% |
Net investment income (loss) | 1.47% | 1.18% | 1.38% | 1.09% | 1.26% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $127,038 | $153,285 | $199,431 | $168,375 | $138,783 |
Portfolio turnover rateH | 41% | 69% | 62% | 57% | 83% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C 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.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.46 | $25.43 | $22.49 | $22.23 | $20.61 |
Income from Investment Operations | |||||
Net investment income (loss)A | .20 | .15 | .19 | .13 | .15 |
Net realized and unrealized gain (loss) | .20B | (1.78) | 3.54 | 1.78 | 2.10 |
Total from investment operations | .40 | (1.63) | 3.73 | 1.91 | 2.25 |
Distributions from net investment income | (.21) | (.16) | (.20) | (.16) | (.11) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) |
Total distributions | (1.32) | (1.34) | (.79) | (1.65) | (.63) |
Net asset value, end of period | $21.54 | $22.46 | $25.43 | $22.49 | $22.23 |
Total ReturnC,D | 1.77% | (6.34)% | 17.40% | 8.85% | 11.52% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.88% | 1.86% | 1.86% | 1.87% | 1.90% |
Expenses net of fee waivers, if any | 1.88% | 1.86% | 1.86% | 1.87% | 1.90% |
Expenses net of all reductions | 1.87% | 1.86% | 1.85% | 1.86% | 1.89% |
Net investment income (loss) | .92% | .65% | .85% | .56% | .73% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $43,690 | $62,551 | $86,755 | $79,291 | $64,822 |
Portfolio turnover rateG | 41% | 69% | 62% | 57% | 83% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Real Estate Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $23.17 | $26.15 | $23.09 | $22.74 | $21.07 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .39 | .43 | .36 | .36 |
Net realized and unrealized gain (loss) | .21B | (1.83) | 3.64 | 1.83 | 2.15 |
Total from investment operations | .64 | (1.44) | 4.07 | 2.19 | 2.51 |
Distributions from net investment income | (.42) | (.36) | (.41) | (.35) | (.32) |
Distributions from net realized gain | (1.11) | (1.18) | (.59) | (1.49) | (.52) |
Total distributions | (1.53) | (1.54) | (1.01)C | (1.84) | (.84) |
Net asset value, end of period | $22.28 | $23.17 | $26.15 | $23.09 | $22.74 |
Total ReturnD | 2.84% | (5.36)% | 18.61% | 9.99% | 12.64% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .82% | .82% | .84% | .85% | .89% |
Expenses net of fee waivers, if any | .82% | .82% | .83% | .85% | .89% |
Expenses net of all reductions | .81% | .81% | .83% | .84% | .88% |
Net investment income (loss) | 1.98% | 1.69% | 1.87% | 1.57% | 1.74% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $284,857 | $399,578 | $422,848 | $349,301 | $298,932 |
Portfolio turnover rateG | 41% | 69% | 62% | 57% | 83% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C 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.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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), certain independent Trustees have elected 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 of $61,635 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation and losses deferred due to wash sales.
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 | $147,393,130 |
Gross unrealized depreciation | (9,440,615) |
Net unrealized appreciation (depreciation) | $137,952,515 |
Tax Cost | $480,944,801 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $2,880,606 |
Undistributed long-term capital gain | $15,266,358 |
Net unrealized appreciation (depreciation) on securities and other investments | $137,952,515 |
The tax character of distributions paid was as follows:
July 31, 2018 | July 31, 2017 | |
Ordinary Income | $12,752,889 | $ 12,016,018 |
Long-term Capital Gains | 37,943,280 | 47,681,990 |
Total | $50,696,169 | $ 59,698,008 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $297,842,480 and $531,092,154, 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 annual 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% | $491,687 | $– |
Class M | .25% | .25% | 662,374 | – |
Class C | .75% | .25% | 504,089 | – |
$1,658,150 | $– |
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 | $23,020 |
Class M | 4,603 |
Class C(a) | 2,159 |
$29,782 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $475,047 | .24 |
Class M | 290,848 | .22 |
Class C | 134,314 | .27 |
Class I | 742,040 | .21 |
$1,642,249 |
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. For the period, the fees were equivalent to an annual rate of .04%.
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 $6,726 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with 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. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $25,039,750 | 1.95% | $5,430 |
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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $4,339.
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 $2,172 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,116.
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 $45,521 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7,095.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 31, 2018 | Year ended July 31, 2017 | |
From net investment income | ||
Class A | $3,331,946 | $4,093,430 |
Class M | 1,886,568 | 1,850,037 |
Class C | 517,055 | 523,780 |
Class I | 7,017,320 | 5,548,771 |
Total | $12,752,889 | $12,016,018 |
From net realized gain | ||
Class A | $10,241,885 | $16,499,323 |
Class M | 6,686,045 | 8,976,938 |
Class C | 2,729,897 | 3,942,806 |
Class I | 18,285,453 | 18,262,923 |
Total | $37,943,280 | $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 | |
Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2018 | Year ended July 31, 2017 | |
Class A | ||||
Shares sold | 1,262,391 | 2,873,672 | $27,206,084 | $66,336,642 |
Reinvestment of distributions | 589,388 | 875,188 | 13,010,989 | 19,973,289 |
Shares redeemed | (5,396,386) | (7,171,585) | (116,593,147) | (163,182,157) |
Net increase (decrease) | (3,544,607) | (3,422,725) | $(76,376,074) | $(76,872,226) |
Class M | ||||
Shares sold | 571,538 | 1,097,966 | $12,280,331 | $25,270,280 |
Reinvestment of distributions | 382,137 | 466,802 | 8,433,594 | 10,646,212 |
Shares redeemed | (1,874,375) | (2,581,646) | (40,727,468) | (58,846,191) |
Net increase (decrease) | (920,700) | (1,016,878) | $(20,013,543) | $(22,929,699) |
Class C | ||||
Shares sold | 121,070 | 434,716 | $2,559,474 | $9,891,189 |
Reinvestment of distributions | 144,584 | 186,230 | 3,123,837 | 4,173,962 |
Shares redeemed | (1,022,590) | (1,247,114) | (21,460,230) | (27,771,413) |
Net increase (decrease) | (756,936) | (626,168) | $(15,776,919) | $(13,706,262) |
Class I | ||||
Shares sold | 3,744,282 | 9,790,992 | $80,976,845 | $223,594,423 |
Reinvestment of distributions�� | 1,104,959 | 869,513 | 24,571,000 | 20,031,574 |
Shares redeemed | (9,312,160) | (9,584,158) | (201,298,815) | (220,773,902) |
Net increase (decrease) | (4,462,919) | 1,076,347 | $(95,750,970) | $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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and Shareholders of Fidelity Advisor Real Estate Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Real Estate Fund (the "Fund"), a fund of Fidelity Advisor Series VII, including the schedule of investments, as of July 31, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 12, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 286 funds. Mr. Wiley oversees 197 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through SelectCo, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2018
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2018
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trusts or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2018
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2018
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2018
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2018
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as a Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2018
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2018 to July 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 February 1, 2018 | Ending Account Value July 31, 2018 | Expenses Paid During Period-B February 1, 2018 to July 31, 2018 | |
Class A | 1.12% | |||
Actual | $1,000.00 | $1,054.60 | $5.71 | |
Hypothetical-C | $1,000.00 | $1,019.24 | $5.61 | |
Class M | 1.34% | |||
Actual | $1,000.00 | $1,053.70 | $6.82 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $6.71 | |
Class C | 1.89% | |||
Actual | $1,000.00 | $1,050.50 | $9.61 | |
Hypothetical-C | $1,000.00 | $1,015.42 | $9.44 | |
Class I | .83% | |||
Actual | $1,000.00 | $1,056.30 | $4.23 | |
Hypothetical-C | $1,000.00 | $1,020.68 | $4.16 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2018, $33,178,465, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.07% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
ARE-ANN-0918
1.789690.115
Fidelity Advisor Focus Funds® Fidelity Advisor® Biotechnology Fund Fidelity Advisor® Communications Equipment Fund Fidelity Advisor® Consumer Discretionary Fund Fidelity Advisor® Energy Fund Fidelity Advisor® Financial Services Fund Fidelity Advisor® Health Care Fund Fidelity Advisor® Industrials Fund Fidelity Advisor® Semiconductors Fund Fidelity Advisor® Technology Fund Fidelity Advisor® Utilities Fund Annual Report July 31, 2018 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 7.16% | 10.40% | 14.39% |
Class M (incl. 3.50% sales charge) | 9.38% | 10.56% | 14.31% |
Class C (incl. contingent deferred sales charge) | 11.86% | 10.90% | 14.22% |
Class I | 14.03% | 12.02% | 15.40% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Biotechnology Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405573444_740.jpg)
Period Ending Values | ||
$38,367 | Fidelity Advisor® Biotechnology Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Biotechnology Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Lead Portfolio Manager Rajiv Kaul: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained about 13% to 14%, comfortably ahead of the 11.68% return of the MSCI U.S. IMI Biotechnology 25/50 Index, but trailing the S&P 500®. Versus the MSCI index, stock selection in biotechnology and out-of-benchmark exposure to pharmaceuticals drove the fund’s excess return. Celgene was our top contributor versus the MSCI index. Underweighting the stock proved timely, given its roughly -33% return. The company announced in October 2017 that it would cease trials for mongersen, its candidate compound to treat Crohn’s disease. Gilead Sciences was another large-cap stock I underweighted that worked to the fund’s relative benefit. An out-of-index position in MyoKardia also lifted relative results, with our position in the stock returning about 271%. Overweighting Loxo Oncology also proved timely. Conversely, the fund’s largest relative detractor by far was strong-performing index heavyweight AbbVie, where we carried a sizable underweighting. AbbVie was our second-largest holding by period end, though still a meaningful underweighting. Radius Health, where the fund had an overweighting, also detracted.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to Shareholders: On July 14, 2018, Eirene Kontopoulos assumed co-management responsibilities, joining Rajiv Kaul. The two will manage together until later this year, when Eirene becomes sole manager. On February 9, 2018, shareholders approved proposals from the Board of Trustees to eliminate certain sector/industry funds’ fundamental “invests primarily” policies and to modify the fundamental concentration policies for certain funds. The changes took effect on March 1, 2018, and do not impact how the funds are managed.Fidelity Advisor® Biotechnology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Amgen, Inc. | 10.1 |
AbbVie, Inc. | 6.8 |
Vertex Pharmaceuticals, Inc. | 5.3 |
Celgene Corp. | 5.1 |
Biogen, Inc. | 5.0 |
Alexion Pharmaceuticals, Inc. | 4.9 |
Regeneron Pharmaceuticals, Inc. | 4.3 |
Gilead Sciences, Inc. | 3.7 |
Neurocrine Biosciences, Inc. | 2.8 |
Sarepta Therapeutics, Inc. | 1.8 |
49.8 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Biotechnology | 90.3% | |
Pharmaceuticals | 5.4% | |
Life Sciences Tools & Services | 0.5% | |
Health Care Providers & Services | 0.4% | |
Textiles, Apparel & Luxury Goods | 0.4% | |
All Others* | 3.0% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Biotechnology Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 96.5% | |||
Shares | Value | ||
Biotechnology - 89.3% | |||
Biotechnology - 89.3% | |||
AbbVie, Inc. | 2,047,996 | $188,886,671 | |
Abeona Therapeutics, Inc. (a)(b) | 367,928 | 5,316,560 | |
ACADIA Pharmaceuticals, Inc. (a) | 468,186 | 7,064,927 | |
Acceleron Pharma, Inc. (a) | 109,841 | 4,784,674 | |
Acorda Therapeutics, Inc. (a) | 311,253 | 7,765,762 | |
Adamas Pharmaceuticals, Inc. (a) | 89,093 | 2,118,632 | |
Adaptimmune Therapeutics PLC sponsored ADR (a) | 288,752 | 2,823,995 | |
Adverum Biotechnologies, Inc. (a) | 215,248 | 1,011,666 | |
Agenus, Inc. (a)(b) | 213,523 | 390,747 | |
Agios Pharmaceuticals, Inc. (a) | 81,571 | 7,048,550 | |
Aimmune Therapeutics, Inc. (a) | 98,402 | 2,845,786 | |
Akebia Therapeutics, Inc. (a) | 120,290 | 1,238,987 | |
Albireo Pharma, Inc. (a) | 131,103 | 4,136,300 | |
Alder Biopharmaceuticals, Inc. (a) | 230,838 | 4,374,380 | |
Aldeyra Therapeutics, Inc. (a) | 480,978 | 3,342,797 | |
Alexion Pharmaceuticals, Inc. (a) | 1,022,645 | 135,970,879 | |
Alkermes PLC (a) | 383,603 | 16,820,992 | |
Allena Pharmaceuticals, Inc. (a) | 292,411 | 3,131,722 | |
Alnylam Pharmaceuticals, Inc. (a) | 319,110 | 30,315,450 | |
AMAG Pharmaceuticals, Inc. (a) | 105,591 | 2,328,282 | |
Amgen, Inc. | 1,422,257 | 279,544,609 | |
Amicus Therapeutics, Inc. (a) | 930,970 | 13,545,614 | |
AnaptysBio, Inc. (a) | 128,393 | 10,055,740 | |
Apellis Pharmaceuticals, Inc. (a) | 176,901 | 3,254,978 | |
Arena Pharmaceuticals, Inc. (a) | 378,928 | 14,622,832 | |
Argenx SE ADR (a) | 239,800 | 21,761,850 | |
Array BioPharma, Inc. (a) | 1,465,554 | 22,554,876 | |
Arrowhead Pharmaceuticals, Inc. (a)(b) | 194,852 | 2,838,994 | |
Arsanis, Inc. (a) | 108,934 | 274,514 | |
Ascendis Pharma A/S sponsored ADR (a) | 310,218 | 21,076,211 | |
Atara Biotherapeutics, Inc. (a) | 492,224 | 18,483,011 | |
aTyr Pharma, Inc. (a) | 144,313 | 111,915 | |
Audentes Therapeutics, Inc. (a) | 403,400 | 15,188,010 | |
Bellicum Pharmaceuticals, Inc. (a)(b) | 241,936 | 1,538,713 | |
BioCryst Pharmaceuticals, Inc. (a) | 827,539 | 4,882,480 | |
Biogen, Inc. (a) | 415,311 | 138,867,539 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 159,943 | 5,521,232 | |
BioMarin Pharmaceutical, Inc. (a) | 265,181 | 26,666,601 | |
bluebird bio, Inc. (a) | 88,995 | 13,785,326 | |
Blueprint Medicines Corp. (a) | 531,661 | 31,655,096 | |
Cara Therapeutics, Inc. (a)(b) | 157,060 | 2,816,086 | |
Celgene Corp. (a) | 1,579,153 | 142,265,894 | |
Chimerix, Inc. (a) | 345,675 | 1,545,167 | |
Cidara Therapeutics, Inc. (a) | 258,767 | 1,086,821 | |
Clovis Oncology, Inc. (a) | 204,825 | 9,040,976 | |
Coherus BioSciences, Inc. (a) | 131,949 | 2,513,628 | |
Corbus Pharmaceuticals Holdings, Inc. (a)(b) | 177,119 | 894,451 | |
Corvus Pharmaceuticals, Inc. (a) | 530,555 | 5,236,578 | |
CRISPR Therapeutics AG (a) | 39,672 | 1,893,941 | |
CTI BioPharma Corp. (a)(b) | 257,031 | 570,609 | |
Cytokinetics, Inc. (a) | 223,653 | 1,643,850 | |
CytomX Therapeutics, Inc. (a)(c) | 64,961 | 1,711,073 | |
Deciphera Pharmaceuticals, Inc. (a) | 50,459 | 1,735,790 | |
Dicerna Pharmaceuticals, Inc. (a) | 120,565 | 1,519,119 | |
Dynavax Technologies Corp. (a)(b) | 348,919 | 4,710,407 | |
Eagle Pharmaceuticals, Inc. (a) | 58,481 | 4,634,619 | |
Editas Medicine, Inc. (a) | 82,557 | 2,455,245 | |
Emergent BioSolutions, Inc. (a) | 65,850 | 3,578,948 | |
Enanta Pharmaceuticals, Inc. (a) | 58,725 | 5,726,862 | |
Epizyme, Inc. (a) | 431,500 | 5,566,350 | |
Evelo Biosciences, Inc. (b) | 14,636 | 184,999 | |
Exact Sciences Corp. (a) | 397,545 | 23,236,505 | |
Exelixis, Inc. (a) | 908,232 | 18,800,402 | |
Fate Therapeutics, Inc. (a)(b) | 312,696 | 2,792,375 | |
FibroGen, Inc. (a) | 615,586 | 38,843,477 | |
Five Prime Therapeutics, Inc. (a) | 177,200 | 2,640,280 | |
Galapagos Genomics NV sponsored ADR (a) | 127,312 | 13,943,210 | |
Genmab A/S (a) | 35,683 | 6,114,638 | |
Genomic Health, Inc. (a) | 84,238 | 4,521,896 | |
GenSight Biologics SA (a)(b)(c) | 27,754 | 69,776 | |
Geron Corp. (a)(b) | 2,308,854 | 8,288,786 | |
Gilead Sciences, Inc. | 1,317,767 | 102,561,806 | |
Global Blood Therapeutics, Inc. (a) | 326,318 | 13,640,092 | |
GTx, Inc. (a)(b) | 236,468 | 3,859,158 | |
Halozyme Therapeutics, Inc. (a) | 301,931 | 5,464,951 | |
Heron Therapeutics, Inc. (a) | 536,392 | 20,087,880 | |
Histogenics Corp. (a) | 500,668 | 1,106,476 | |
Idera Pharmaceuticals, Inc. (a) | 105,502 | 602,416 | |
Immune Design Corp. (a) | 162,335 | 616,873 | |
ImmunoGen, Inc. (a) | 951,156 | 8,845,751 | |
Immunomedics, Inc. (a)(b) | 822,480 | 19,681,946 | |
Incyte Corp. (a) | 265,499 | 17,666,303 | |
Inovio Pharmaceuticals, Inc. (a) | 198,392 | 795,552 | |
Insmed, Inc. (a) | 24,900 | 619,263 | |
Intellia Therapeutics, Inc. (a)(b) | 18,058 | 480,704 | |
Intercept Pharmaceuticals, Inc. (a) | 168,404 | 15,348,341 | |
Intrexon Corp. (a)(b) | 75,089 | 1,100,805 | |
Ionis Pharmaceuticals, Inc. (a) | 403,938 | 17,644,012 | |
Iovance Biotherapeutics, Inc. (a) | 164,014 | 2,328,999 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 723,714 | 13,953,206 | |
Jounce Therapeutics, Inc. (a)(b) | 222,551 | 1,571,210 | |
Karyopharm Therapeutics, Inc. (a) | 333,930 | 5,937,275 | |
Keryx Biopharmaceuticals, Inc. (a)(b) | 383,900 | 1,627,736 | |
Kiniksa Pharmaceuticals Ltd. | 44,100 | 616,959 | |
Krystal Biotech, Inc. | 188,103 | 3,094,294 | |
Kura Oncology, Inc. (a) | 325,932 | 6,616,420 | |
La Jolla Pharmaceutical Co. (a)(b) | 549,413 | 18,169,088 | |
Leap Therapeutics, Inc. (a) | 249,883 | 1,869,125 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 264,328 | 3,166,649 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 80,012 | 17,469,020 | |
Loxo Oncology, Inc. (a) | 223,130 | 37,394,357 | |
Macrogenics, Inc. (a) | 384,680 | 7,943,642 | |
Madrigal Pharmaceuticals, Inc. (a) | 10,500 | 2,698,815 | |
MannKind Corp. (a)(b) | 355,879 | 548,054 | |
Minerva Neurosciences, Inc. (a) | 1,357,162 | 10,925,154 | |
Miragen Therapeutics, Inc. (a)(b) | 1,292,230 | 8,709,630 | |
Mirati Therapeutics, Inc. (a) | 262,667 | 16,127,754 | |
Momenta Pharmaceuticals, Inc. (a) | 165,625 | 4,902,500 | |
Myriad Genetics, Inc. (a) | 171,500 | 7,503,125 | |
Natera, Inc. (a) | 15,072 | 346,053 | |
Neurocrine Biosciences, Inc. (a) | 761,252 | 76,498,213 | |
Novavax, Inc. (a)(b) | 995,321 | 1,264,058 | |
Oragenics, Inc. (a) | 10,861 | 6,299 | |
Ovid Therapeutics, Inc. (a) | 99,907 | 997,072 | |
PDL BioPharma, Inc. (a) | 208,093 | 522,313 | |
Pharming Group NV (a)(b) | 6,009,781 | 9,107,689 | |
Portola Pharmaceuticals, Inc. (a) | 243,624 | 8,721,739 | |
Progenics Pharmaceuticals, Inc. (a) | 373,381 | 2,981,447 | |
Protagonist Therapeutics, Inc. (a) | 174,423 | 1,207,007 | |
Prothena Corp. PLC (a) | 140,434 | 2,086,849 | |
PTC Therapeutics, Inc. (a) | 127,909 | 4,869,496 | |
Puma Biotechnology, Inc. (a) | 226,287 | 10,895,719 | |
Ra Pharmaceuticals, Inc. (a) | 9,200 | 101,200 | |
Radius Health, Inc. (a)(b) | 312,952 | 7,510,848 | |
Regeneron Pharmaceuticals, Inc. (a) | 319,862 | 117,712,415 | |
REGENXBIO, Inc. (a) | 196,499 | 13,813,880 | |
Repligen Corp. (a) | 155,648 | 7,522,468 | |
Retrophin, Inc. (a) | 174,308 | 4,817,873 | |
Rigel Pharmaceuticals, Inc. (a) | 268,408 | 756,911 | |
Sage Therapeutics, Inc. (a) | 260,215 | 37,554,229 | |
Sangamo Therapeutics, Inc. (a) | 491,556 | 6,709,739 | |
Sarepta Therapeutics, Inc. (a)(b) | 434,181 | 50,469,199 | |
Seattle Genetics, Inc. (a) | 262,955 | 18,512,032 | |
Seres Therapeutics, Inc. (a)(c) | 352,270 | 2,666,684 | |
Sienna Biopharmaceuticals, Inc. (b) | 63,193 | 956,742 | |
Sorrento Therapeutics, Inc. (a)(b) | 71,373 | 399,689 | |
Spark Therapeutics, Inc. (a) | 391,033 | 30,000,052 | |
Spectrum Pharmaceuticals, Inc. (a) | 640,896 | 13,644,676 | |
Stemline Therapeutics, Inc. (a) | 49,622 | 764,179 | |
Surface Oncology, Inc. | 353,101 | 3,905,297 | |
Syndax Pharmaceuticals, Inc. (a) | 21,727 | 146,440 | |
Syros Pharmaceuticals, Inc. (a) | 170,750 | 1,727,990 | |
Syros Pharmaceuticals, Inc. (a)(c) | 62,568 | 633,188 | |
TESARO, Inc. (a)(b) | 356,789 | 12,426,961 | |
TG Therapeutics, Inc. (a)(b) | 524,684 | 6,165,037 | |
Tocagen, Inc. (a)(b) | 99,419 | 919,626 | |
Translate Bio, Inc. | 417,684 | 4,138,831 | |
Trevena, Inc. (a) | 286,634 | 441,416 | |
Ultragenyx Pharmaceutical, Inc. (a) | 292,187 | 23,114,914 | |
uniQure B.V. (a) | 72,930 | 2,252,808 | |
United Therapeutics Corp. (a) | 51,280 | 6,302,825 | |
Vanda Pharmaceuticals, Inc. (a) | 186,304 | 3,884,438 | |
Verastem, Inc. (a)(b) | 636,057 | 4,897,639 | |
Vertex Pharmaceuticals, Inc. (a) | 834,500 | 146,079,225 | |
Voyager Therapeutics, Inc. (a) | 81,300 | 1,533,318 | |
Xencor, Inc. (a) | 375,526 | 13,977,078 | |
Zafgen, Inc. (a) | 389,226 | 4,047,950 | |
ZIOPHARM Oncology, Inc. (a)(b) | 98,729 | 255,708 | |
2,472,093,458 | |||
Capital Markets - 0.1% | |||
Asset Management & Custody Banks - 0.1% | |||
Arix Bioscience PLC (a)(c) | 606,284 | 1,380,675 | |
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
Allakos, Inc. (a) | 151,900 | 6,192,963 | |
Health Care Equipment & Supplies - 0.2% | |||
Health Care Equipment - 0.2% | |||
Bellerophon Therapeutics, Inc. (a)(b) | 54,826 | 137,065 | |
Novocure Ltd. (a) | 155,553 | 5,288,802 | |
Vermillion, Inc. (a) | 173,891 | 101,761 | |
5,527,628 | |||
Health Care Providers & Services - 0.4% | |||
Health Care Services - 0.4% | |||
G1 Therapeutics, Inc. (a) | 219,900 | 11,291,865 | |
Precipio, Inc. (a)(d) | 450 | 178 | |
11,292,043 | |||
Life Sciences Tools & Services - 0.5% | |||
Life Sciences Tools & Services - 0.5% | |||
Morphosys AG sponsored ADR | 397,244 | 12,985,906 | |
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
MYOS Corp. (a) | 6,666 | 8,266 | |
Pharmaceuticals - 5.4% | |||
Pharmaceuticals - 5.4% | |||
AcelRx Pharmaceuticals, Inc. (a) | 71,800 | 201,040 | |
Adimab LLC (d)(e)(f) | 398,401 | 16,187,033 | |
Aerie Pharmaceuticals, Inc. (a) | 39,900 | 2,695,245 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 (a)(f) | 1,915,787 | 2,739,575 | |
Akcea Therapeutics, Inc. | 171,000 | 5,407,020 | |
Aradigm Corp. (a) | 8,241 | 11,702 | |
Assembly Biosciences, Inc. (a) | 14,979 | 662,521 | |
Axsome Therapeutics, Inc. (a)(b) | 215,263 | 565,065 | |
BioXcel Therapeutics, Inc. (a) | 333,386 | 3,350,529 | |
Chiasma, Inc. (a) | 331,092 | 463,529 | |
Chiasma, Inc. warrants 12/16/24 (a) | 81,298 | 12,302 | |
Clearside Biomedical, Inc. (a) | 41,899 | 373,320 | |
CymaBay Therapeutics, Inc. (a) | 246,875 | 2,762,531 | |
Dova Pharmaceuticals, Inc. (a)(b) | 99,075 | 2,137,048 | |
Endocyte, Inc. (a) | 207,915 | 3,185,258 | |
GW Pharmaceuticals PLC ADR (a)(b) | 17,775 | 2,400,869 | |
Horizon Pharma PLC (a) | 170,256 | 3,001,613 | |
Kala Pharmaceuticals, Inc. | 67,483 | 856,359 | |
Kolltan Pharmaceuticals, Inc. rights (a)(f) | 1,610,391 | 16 | |
Melinta Therapeutics, Inc. (a) | 951,387 | 5,042,351 | |
MyoKardia, Inc. (a) | 390,446 | 22,411,600 | |
Nektar Therapeutics (a) | 410,998 | 21,618,495 | |
NeurogesX, Inc. (a)(f) | 150,000 | 2 | |
Ocular Therapeutix, Inc. (a) | 406,686 | 2,257,107 | |
Revance Therapeutics, Inc. (a) | 18,283 | 525,636 | |
Rhythm Pharmaceuticals, Inc. | 31,736 | 985,085 | |
RPI International Holdings LP (a)(d)(f) | 12,210 | 1,744,504 | |
Spero Therapeutics, Inc. (a)(b) | 102,852 | 1,184,855 | |
Stemcentrx, Inc. rights 12/31/21 (a)(f) | 208,907 | 382,300 | |
The Medicines Company (a)(b) | 422,235 | 16,775,397 | |
TherapeuticsMD, Inc. (a)(b) | 306,400 | 1,599,408 | |
Theravance Biopharma, Inc. (a)(b) | 181,130 | 4,338,064 | |
UroGen Pharma Ltd. (a) | 54,766 | 2,475,423 | |
Verrica Pharmaceuticals, Inc. (a) | 243,854 | 4,206,482 | |
WAVE Life Sciences (a)(b) | 49,324 | 1,992,690 | |
Xeris Pharmaceuticals, Inc. | 339,749 | 6,183,432 | |
Zogenix, Inc. (a) | 171,949 | 9,758,106 | |
150,493,512 | |||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Textiles - 0.4% | |||
Crinetics Pharmaceuticals, Inc. (a) | 112,059 | 2,757,772 | |
Homology Medicines, Inc. (a)(b) | 48,443 | 853,081 | |
Kezar Life Sciences, Inc. | 122,900 | 2,004,499 | |
Scholar Rock Holding Corp. | 12,100 | 196,504 | |
Scholar Rock Holding Corp. | 379,709 | 5,549,827 | |
11,361,683 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,936,230,773) | 2,671,336,134 | ||
Preferred Stocks - 1.1% | |||
Convertible Preferred Stocks - 1.1% | |||
Biotechnology - 1.0% | |||
Biotechnology - 1.0% | |||
23andMe, Inc. Series E (a)(d)(f) | 341,730 | 5,929,016 | |
Axcella Health, Inc. Series C (a)(d)(f) | 341,857 | 4,416,792 | |
Immunocore Ltd. Series A (a)(d)(f) | 17,149 | 2,282,179 | |
Moderna Therapeutics, Inc.: | |||
Series D (a)(d)(f) | 269,180 | 2,707,951 | |
Series E (a)(d)(f) | 544,100 | 5,473,646 | |
Twist Bioscience Corp.: | |||
Series C (a)(d)(f) | 1,866,791 | 4,013,601 | |
Series D (a)(d)(f) | 453,587 | 975,212 | |
25,798,397 | |||
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Codiak Biosciences, Inc.: | |||
Series A 8.00% (a)(d)(f) | 213,402 | 808,281 | |
Series B 8.00% (a)(d)(f) | 693,558 | 2,626,920 | |
3,435,201 | |||
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Afferent Pharmaceuticals, Inc. Series C (a)(d)(f) | 1,915,787 | 19 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 29,233,617 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
Biotechnology - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC Class A (a)(d)(f) | 151,084 | 1,264,573 | |
TOTAL PREFERRED STOCKS | |||
(Cost $21,391,102) | 30,498,190 | ||
Money Market Funds - 6.4% | |||
Fidelity Cash Central Fund, 1.96% (g) | 72,202,802 | 72,217,242 | |
Fidelity Securities Lending Cash Central Fund 1.97% (g)(h) | 104,987,155 | 104,997,654 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $177,205,616) | 177,214,896 | ||
TOTAL INVESTMENT IN SECURITIES - 104.0% | |||
(Cost $2,134,827,491) | 2,879,049,220 | ||
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (110,614,037) | ||
NET ASSETS - 100% | $2,768,435,183 |
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 $6,461,396 or 0.2% 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 $48,429,905 or 1.7% of net assets.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Level 3 security
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 | $0 |
Axcella Health, Inc. Series C | 1/30/15 | $3,445,919 |
Codiak Biosciences, Inc. Series A 8.00% | 11/12/15 | $213,402 |
Codiak Biosciences, Inc. Series B 8.00% | 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 |
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 | $489,026 |
Fidelity Securities Lending Cash Central Fund | 3,278,893 |
Total | $3,767,919 |
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 July 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 | $2,671,336,134 | $2,640,581,744 | $9,700,960 | $21,053,430 |
Preferred Stocks | 30,498,190 | -- | -- | 30,498,190 |
Money Market Funds | 177,214,896 | 177,214,896 | -- | -- |
Total Investments in Securities: | $2,879,049,220 | $2,817,796,640 | $9,700,960 | $51,551,620 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Preferred Stocks | |
Beginning Balance | $43,160,615 |
Total Realized Gain (Loss) | 183,400 |
Total Unrealized Gain (Loss) | (1,143,482) |
Cost of Purchases | -- |
Proceeds of Sales | (11,702,343) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $30,498,190 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2018 | $1,265,410 |
Other Investments in Securities | |
Beginning Balance | $18,025,736 |
Total Realized Gain (Loss) | 1,250,957 |
Total Unrealized Gain (Loss) | 4,774,098 |
Cost of Purchases | 16,120 |
Proceeds of Sales | (3,013,481) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $21,053,430 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2018 | $4,774,098 |
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. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $105,660,603) — See accompanying schedule: Unaffiliated issuers (cost $1,957,621,875) | $2,701,834,324 | |
Fidelity Central Funds (cost $177,205,616) | 177,214,896 | |
Total Investment in Securities (cost $2,134,827,491) | $2,879,049,220 | |
Cash | 3,159,759 | |
Restricted cash | 220 | |
Receivable for investments sold | 40,300,749 | |
Receivable for fund shares sold | 2,994,496 | |
Dividends receivable | 1,211,986 | |
Distributions receivable from Fidelity Central Funds | 396,955 | |
Prepaid expenses | 28,244 | |
Other receivables | 37,239 | |
Total assets | 2,927,178,868 | |
Liabilities | ||
Payable for investments purchased | $44,630,176 | |
Payable for fund shares redeemed | 6,588,726 | |
Accrued management fee | 1,271,411 | |
Distribution and service plan fees payable | 698,873 | |
Other affiliated payables | 505,773 | |
Other payables and accrued expenses | 83,980 | |
Collateral on securities loaned | 104,964,746 | |
Total liabilities | 158,743,685 | |
Net Assets | $2,768,435,183 | |
Net Assets consist of: | ||
Paid in capital | $2,101,806,680 | |
Accumulated net investment loss | (8,149,824) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (69,443,411) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 744,221,738 | |
Net Assets | $2,768,435,183 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($766,302,988 ÷ 27,562,489 shares) | $27.80 | |
Maximum offering price per share (100/94.25 of $27.80) | $29.50 | |
Class M: | ||
Net Asset Value and redemption price per share ($135,879,382 ÷ 5,161,677 shares) | $26.32 | |
Maximum offering price per share (100/96.50 of $26.32) | $27.27 | |
Class C: | ||
Net Asset Value and offering price per share ($558,419,978 ÷ 23,305,420 shares)(a) | $23.96 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,307,832,835 ÷ 44,449,130 shares) | $29.42 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $10,565,764 | |
Income from Fidelity Central Funds (including $3,278,893 from security lending) | 3,767,919 | |
Total income | 14,333,683 | |
Expenses | ||
Management fee | $14,590,300 | |
Transfer agent fees | 5,184,288 | |
Distribution and service plan fees | 8,286,200 | |
Accounting and security lending fees | 843,494 | |
Custodian fees and expenses | 70,970 | |
Independent trustees' fees and expenses | 38,563 | |
Registration fees | 104,295 | |
Audit | 83,813 | |
Legal | 38,178 | |
Miscellaneous | 737,330 | |
Total expenses before reductions | 29,977,431 | |
Expense reductions | (84,222) | |
Total expenses after reductions | 29,893,209 | |
Net investment income (loss) | (15,559,526) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 147,748,318 | |
Fidelity Central Funds | 14,341 | |
Foreign currency transactions | 776 | |
Total net realized gain (loss) | 147,763,435 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 208,120,478 | |
Fidelity Central Funds | (7,514) | |
Assets and liabilities in foreign currencies | (363) | |
Total change in net unrealized appreciation (depreciation) | 208,112,601 | |
Net gain (loss) | 355,876,036 | |
Net increase (decrease) in net assets resulting from operations | $340,316,510 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(15,559,526) | $(20,027,138) |
Net realized gain (loss) | 147,763,435 | 518,045 |
Change in net unrealized appreciation (depreciation) | 208,112,601 | 341,266,027 |
Net increase (decrease) in net assets resulting from operations | 340,316,510 | 321,756,934 |
Share transactions - net increase (decrease) | (237,264,870) | (442,352,948) |
Redemption fees | – | 48,144 |
Total increase (decrease) in net assets | 103,051,640 | (120,547,870) |
Net Assets | ||
Beginning of period | 2,665,383,543 | 2,785,931,413 |
End of period | $2,768,435,183 | $2,665,383,543 |
Other Information | ||
Accumulated net investment loss end of period | $(8,149,824) | $(10,028,125) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Biotechnology Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.45 | $21.39 | $31.43 | $20.19 | $17.25 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.14) | (.15)B | (.16) | (.20) | (.13) |
Net realized and unrealized gain (loss) | 3.49 | 3.21 | (8.48) | 12.04 | 3.12 |
Total from investment operations | 3.35 | 3.06 | (8.64) | 11.84 | 2.99 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | – | (1.40) | (.60) | (.05) |
Total distributions | – | – | (1.40) | (.60) | (.05) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $27.80 | $24.45 | $21.39 | $31.43 | $20.19 |
Total ReturnD,E | 13.70% | 14.31% | (28.55)% | 59.66% | 17.38% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.06% | 1.05% | 1.05% | 1.04% | 1.08% |
Expenses net of fee waivers, if any | 1.06% | 1.05% | 1.05% | 1.04% | 1.08% |
Expenses net of all reductions | 1.06% | 1.04% | 1.04% | 1.04% | 1.08% |
Net investment income (loss) | (.53)% | (.69)%B | (.69)% | (.75)% | (.68)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $766,303 | $787,802 | $1,080,733 | $1,560,528 | $602,625 |
Portfolio turnover rateH | 45% | 30% | 29% | 26% | 50% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.71) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $23.22 | $20.39 | $30.06 | $19.39 | $16.63 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.21) | (.21)B | (.22) | (.27) | (.19) |
Net realized and unrealized gain (loss) | 3.31 | 3.04 | (8.10) | 11.54 | 3.00 |
Total from investment operations | 3.10 | 2.83 | (8.32) | 11.27 | 2.81 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | – | (1.35) | (.60) | (.05) |
Total distributions | – | – | (1.35) | (.60) | (.05) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $26.32 | $23.22 | $20.39 | $30.06 | $19.39 |
Total ReturnD,E | 13.35% | 13.88% | (28.75)% | 59.17% | 16.95% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.38% | 1.38% | 1.37% | 1.35% | 1.41% |
Expenses net of fee waivers, if any | 1.38% | 1.38% | 1.37% | 1.35% | 1.41% |
Expenses net of all reductions | 1.38% | 1.38% | 1.37% | 1.34% | 1.40% |
Net investment income (loss) | (.84)% | (1.02)%B | (1.01)% | (1.05)% | (1.01)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $135,879 | $127,734 | $131,928 | $196,393 | $95,945 |
Portfolio turnover rateH | 45% | 30% | 29% | 26% | 50% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.05) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.23 | $18.71 | $27.78 | $18.04 | $15.53 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.29) | (.27)B | (.29) | (.35) | (.25) |
Net realized and unrealized gain (loss) | 3.02 | 2.79 | (7.46) | 10.69 | 2.81 |
Total from investment operations | 2.73 | 2.52 | (7.75) | 10.34 | 2.56 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | – | (1.32) | (.60) | (.05) |
Total distributions | – | – | (1.32) | (.60) | (.05) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $23.96 | $21.23 | $18.71 | $27.78 | $18.04 |
Total ReturnD,E | 12.86% | 13.47% | (29.06)% | 58.43% | 16.54% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.80% | 1.79% | 1.80% | 1.79% | 1.83% |
Expenses net of fee waivers, if any | 1.80% | 1.79% | 1.80% | 1.79% | 1.83% |
Expenses net of all reductions | 1.80% | 1.79% | 1.79% | 1.79% | 1.83% |
Net investment income (loss) | (1.27)% | (1.43)%B | (1.44)% | (1.49)% | (1.43)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $558,420 | $593,489 | $665,036 | $956,495 | $359,967 |
Portfolio turnover rateH | 45% | 30% | 29% | 26% | 50% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.46) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Biotechnology Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.80 | $22.52 | $32.95 | $21.10 | $17.97 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | (.10)B | (.10) | (.14) | (.08) |
Net realized and unrealized gain (loss) | 3.69 | 3.38 | (8.89) | 12.60 | 3.26 |
Total from investment operations | 3.62 | 3.28 | (8.99) | 12.46 | 3.18 |
Distributions from net investment income | – | – | – | –C | – |
Distributions from net realized gain | – | – | (1.44) | (.60) | (.05) |
Total distributions | – | – | (1.44) | (.61)D | (.05) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $29.42 | $25.80 | $22.52 | $32.95 | $21.10 |
Total ReturnE | 14.03% | 14.56% | (28.32)% | 60.00% | 17.74% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .79% | .78% | .78% | .78% | .81% |
Expenses net of fee waivers, if any | .79% | .78% | .78% | .78% | .81% |
Expenses net of all reductions | .79% | .77% | .78% | .77% | .80% |
Net investment income (loss) | (.26)% | (.42)%B | (.42)% | (.48)% | (.41)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,307,833 | $1,156,358 | $908,234 | $1,403,666 | $465,889 |
Portfolio turnover rateH | 45% | 30% | 29% | 26% | 50% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.44) %.
C Amount represents less than $.005 per share.
D Total distributions of $.61 per share is comprised of distributions from net investment income of $.003 and distributions from net realized gain of $.604 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 9.20% | 9.07% | 7.53% |
Class M (incl. 3.50% sales charge) | 11.64% | 9.31% | 7.51% |
Class C (incl. contingent deferred sales charge) | 14.06% | 9.55% | 7.36% |
Class I | 16.21% | 10.64% | 8.43% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Communications Equipment Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405572679_740.jpg)
Period Ending Values | ||
$20,664 | Fidelity Advisor® Communications Equipment Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Communications Equipment Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Lead Portfolio Manager Colin Anderson: For the year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 15% to 16%, trailing the 16.51% return of the MSCI North America IMI + ADR Custom Communications Equipment 25/50 Linked Index, and also lagging the S&P 500®. Versus the MSCI index, CommScope Holding was our largest detractor. Although first-quarter earnings beat expectations, the maker of cables, antennas and other network-infrastructure equipment disappointed on revenue and operating income, and lowered its guidance for the remainder of the year. Elsewhere, several of our largest relative detractors were strong-performing index names we underweighted. One of these was Arista Networks, which supplies networking solutions for cloud-service providers and other customers. An overweighting in optical-component supplier Finisar also detracted. Conversely, our top relative contributor was an underweighting in weak-performing index name Sierra Wireless. The company provides modules enabling wireless connectivity for cars and industrial equipment. It also helped to overweight F5 Networks, an application-delivery services provider, as well as military communications provider Harris Corp. Harris was reclassified from communications equipment to aerospace & defense during the period. The stock was removed from the MSCI index at the end of 2017, and I significantly reduced the fund’s position.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to Shareholders: On July 31, 2018, Caroline Tall assumed co-management responsibilities for the fund, joining Colin Anderson.On February 9, 2018, shareholders approved proposals from the Board of Trustees to eliminate certain sector/industry funds’ fundamental “invests primarily” policies and to modify the fundamental concentration policies for certain funds. The changes took effect on March 1, 2018, and do not impact how the funds are managed.
Fidelity Advisor® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Cisco Systems, Inc. | 22.8 |
Nokia Corp. sponsored ADR | 6.5 |
CommScope Holding Co., Inc. | 6.0 |
F5 Networks, Inc. | 5.6 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 5.1 |
Juniper Networks, Inc. | 4.2 |
Palo Alto Networks, Inc. | 3.7 |
Arista Networks, Inc. | 2.5 |
Motorola Solutions, Inc. | 2.3 |
Viavi Solutions, Inc. | 2.0 |
60.7 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Communications Equipment | 82.8% | |
Semiconductors & Semiconductor Equipment | 5.0% | |
Electronic Equipment & Components | 3.3% | |
Internet Software & Services | 2.6% | |
Software | 2.2% | |
All Others* | 4.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Communications Equipment Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Aerospace & Defense - 0.5% | |||
Aerospace & Defense - 0.5% | |||
Harris Corp. | 700 | $115,465 | |
Communications Equipment - 82.8% | |||
Communications Equipment - 82.8% | |||
ADTRAN, Inc. | 23,480 | 381,550 | |
Arista Networks, Inc. (a) | 2,100 | 537,033 | |
Arris International PLC (a) | 14,270 | 360,460 | |
Calix Networks, Inc. (a) | 5,240 | 36,942 | |
Ciena Corp. (a) | 2,890 | 73,406 | |
Cisco Systems, Inc. | 114,714 | 4,851,253 | |
CommScope Holding Co., Inc. (a) | 39,770 | 1,277,015 | |
Comtech Telecommunications Corp. | 2,200 | 73,920 | |
EchoStar Holding Corp. Class A (a) | 3,820 | 171,862 | |
Extreme Networks, Inc. (a) | 3,020 | 25,670 | |
F5 Networks, Inc. (a) | 6,985 | 1,197,089 | |
Finisar Corp. (a) | 22,400 | 377,440 | |
Infinera Corp. (a) | 23,257 | 193,498 | |
InterDigital, Inc. | 4,530 | 373,499 | |
Juniper Networks, Inc. | 33,828 | 891,030 | |
Lumentum Holdings, Inc. (a) | 7,700 | 402,325 | |
Mitel Networks Corp. (a) | 35,100 | 385,047 | |
Motorola Solutions, Inc. | 3,979 | 482,653 | |
NETGEAR, Inc. (a) | 2,700 | 177,795 | |
NetScout Systems, Inc. (a) | 7,600 | 203,680 | |
Nokia Corp. sponsored ADR (b) | 255,070 | 1,377,378 | |
Oclaro, Inc. (a) | 44,250 | 374,355 | |
Palo Alto Networks, Inc. (a) | 3,910 | 775,197 | |
Plantronics, Inc. | 3,690 | 253,355 | |
Quantenna Communications, Inc. (a) | 17,620 | 280,687 | |
Radware Ltd. (a) | 2,730 | 72,127 | |
Sierra Wireless, Inc. (a) | 3,200 | 51,905 | |
Sonus Networks, Inc. (a) | 40,030 | 271,604 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 137,930 | 1,084,130 | |
ViaSat, Inc. (a)(b) | 2,180 | 153,341 | |
Viavi Solutions, Inc. (a) | 42,840 | 433,541 | |
17,600,787 | |||
Electronic Equipment & Components - 3.3% | |||
Electronic Components - 0.4% | |||
Corning, Inc. | 2,300 | 76,314 | |
Electronic Manufacturing Services - 2.0% | |||
Fabrinet | 5,280 | 206,554 | |
IPG Photonics Corp. (a) | 130 | 21,325 | |
Jabil, Inc. | 4,190 | 118,032 | |
TE Connectivity Ltd. | 880 | 82,342 | |
428,253 | |||
Technology Distributors - 0.9% | |||
CDW Corp. | 1,110 | 93,340 | |
Dell Technologies, Inc. (a) | 1,044 | 96,591 | |
189,931 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 694,498 | ||
Internet Software & Services - 2.6% | |||
Internet Software & Services - 2.6% | |||
Alphabet, Inc.: | |||
Class A (a) | 259 | 317,850 | |
Class C (a) | 108 | 131,464 | |
LogMeIn, Inc. | 1,330 | 107,797 | |
557,111 | |||
IT Services - 1.7% | |||
Data Processing & Outsourced Services - 0.4% | |||
WNS Holdings Ltd. sponsored ADR (a) | 1,670 | 81,262 | |
IT Consulting & Other Services - 1.3% | |||
Amdocs Ltd. | 1,630 | 110,155 | |
Cognizant Technology Solutions Corp. Class A | 730 | 59,495 | |
Presidio, Inc. (a) | 7,810 | 109,028 | |
278,678 | |||
TOTAL IT SERVICES | 359,940 | ||
Media - 0.6% | |||
Cable & Satellite - 0.6% | |||
Comcast Corp. Class A | 3,450 | 123,441 | |
Semiconductors & Semiconductor Equipment - 5.0% | |||
Semiconductors - 5.0% | |||
Acacia Communications, Inc. (a)(b) | 10,610 | 341,005 | |
Analog Devices, Inc. | 680 | 65,375 | |
Broadcom, Inc. | 475 | 105,341 | |
Marvell Technology Group Ltd. | 362 | 7,714 | |
Maxim Integrated Products, Inc. | 560 | 34,238 | |
NXP Semiconductors NV (a) | 1,210 | 115,361 | |
ON Semiconductor Corp. (a) | 3,060 | 67,473 | |
Qualcomm, Inc. | 5,171 | 331,409 | |
1,067,916 | |||
Software - 2.2% | |||
Application Software - 0.9% | |||
Citrix Systems, Inc. (a) | 860 | 94,574 | |
Micro Focus International PLC | 5,900 | 96,273 | |
SailPoint Technologies Holding, Inc. (a) | 230 | 5,541 | |
196,388 | |||
Systems Software - 1.3% | |||
Check Point Software Technologies Ltd. (a) | 970 | 109,290 | |
Oracle Corp. | 3,180 | 151,622 | |
260,912 | |||
TOTAL SOFTWARE | 457,300 | ||
Technology Hardware, Storage & Peripherals - 0.7% | |||
Technology Hardware, Storage & Peripherals - 0.7% | |||
HP, Inc. | 4,220 | 97,398 | |
Samsung Electronics Co. Ltd. | 1,300 | 53,998 | |
151,396 | |||
TOTAL COMMON STOCKS | |||
(Cost $16,583,363) | 21,127,854 | ||
Money Market Funds - 8.5% | |||
Fidelity Cash Central Fund, 1.96% (c) | 253,152 | 253,202 | |
Fidelity Securities Lending Cash Central Fund 1.97% (c)(d) | 1,557,928 | 1,558,084 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,811,286) | 1,811,286 | ||
TOTAL INVESTMENT IN SECURITIES - 107.9% | |||
(Cost $18,394,649) | 22,939,140 | ||
NET OTHER ASSETS (LIABILITIES) - (7.9)% | (1,679,729) | ||
NET ASSETS - 100% | $21,259,411 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $3,486 |
Fidelity Securities Lending Cash Central Fund | 22,196 |
Total | $25,682 |
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 July 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 | $21,127,854 | $21,031,581 | $96,273 | $-- |
Money Market Funds | 1,811,286 | 1,811,286 | -- | -- |
Total Investments in Securities: | $22,939,140 | $22,842,867 | $96,273 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 80.3% |
Finland | 6.5% |
Sweden | 5.1% |
United Kingdom | 2.2% |
Canada | 2.0% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,486,248) — See accompanying schedule: Unaffiliated issuers (cost $16,583,363) | $21,127,854 | |
Fidelity Central Funds (cost $1,811,286) | 1,811,286 | |
Total Investment in Securities (cost $18,394,649) | $22,939,140 | |
Receivable for investments sold | 61,091 | |
Receivable for fund shares sold | 11,402 | |
Dividends receivable | 2,678 | |
Distributions receivable from Fidelity Central Funds | 1,048 | |
Prepaid expenses | 179 | |
Other receivables | 534 | |
Total assets | 23,016,072 | |
Liabilities | ||
Payable for investments purchased | $60,621 | |
Payable for fund shares redeemed | 74,931 | |
Accrued management fee | 10,055 | |
Distribution and service plan fees payable | 8,080 | |
Other affiliated payables | 5,541 | |
Other payables and accrued expenses | 39,358 | |
Collateral on securities loaned | 1,558,075 | |
Total liabilities | 1,756,661 | |
Net Assets | $21,259,411 | |
Net Assets consist of: | ||
Paid in capital | $15,976,159 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 738,759 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 4,544,493 | |
Net Assets | $21,259,411 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($8,860,485 ÷ 583,985 shares) | $15.17 | |
Maximum offering price per share (100/94.25 of $15.17) | $16.10 | |
Class M: | ||
Net Asset Value and redemption price per share ($4,942,595 ÷ 338,879 shares) | $14.59 | |
Maximum offering price per share (100/96.50 of $14.59) | $15.12 | |
Class C: | ||
Net Asset Value and offering price per share ($4,683,543 ÷ 351,210 shares)(a) | $13.34 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,772,788 ÷ 175,635 shares) | $15.79 |
(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
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $248,709 | |
Income from Fidelity Central Funds (including $22,196 from security lending) | 25,682 | |
Total income | 274,391 | |
Expenses | ||
Management fee | $92,576 | |
Transfer agent fees | 50,084 | |
Distribution and service plan fees | 73,669 | |
Accounting and security lending fees | 6,886 | |
Custodian fees and expenses | 8,197 | |
Independent trustees' fees and expenses | 238 | |
Registration fees | 51,160 | |
Audit | 46,354 | |
Legal | 2,443 | |
Miscellaneous | 4,183 | |
Total expenses before reductions | 335,790 | |
Expense reductions | (66,919) | |
Total expenses after reductions | 268,871 | |
Net investment income (loss) | 5,520 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,373,879 | |
Fidelity Central Funds | 9 | |
Foreign currency transactions | (725) | |
Total net realized gain (loss) | 1,373,163 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 757,728 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | 757,729 | |
Net gain (loss) | 2,130,892 | |
Net increase (decrease) in net assets resulting from operations | $2,136,412 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,520 | $81,778 |
Net realized gain (loss) | 1,373,163 | 316,784 |
Change in net unrealized appreciation (depreciation) | 757,729 | 2,113,533 |
Net increase (decrease) in net assets resulting from operations | 2,136,412 | 2,512,095 |
Distributions to shareholders from net investment income | (27,072) | (70,636) |
Distributions to shareholders from net realized gain | (595,291) | (269,855) |
Total distributions | (622,363) | (340,491) |
Share transactions - net increase (decrease) | 1,462,219 | 4,211,380 |
Redemption fees | 967 | 684 |
Total increase (decrease) in net assets | 2,977,235 | 6,383,668 |
Net Assets | ||
Beginning of period | 18,282,176 | 11,898,508 |
End of period | $21,259,411 | $18,282,176 |
Other Information | ||
Undistributed net investment income end of period | $– | $71,090 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Communications Equipment Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $13.69 | $12.09 | $12.57 | $11.94 | $10.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03 | .07 | .09 | .02 | .04B |
Net realized and unrealized gain (loss) | 2.08 | 1.76 | (.20) | .64 | 1.68 |
Total from investment operations | 2.11 | 1.83 | (.11) | .66 | 1.72 |
Distributions from net investment income | (.04)C | (.05) | – | (.03) | – |
Distributions from net realized gain | (.59)C | (.18) | (.37) | – | – |
Total distributions | (.63) | (.23) | (.37) | (.03) | – |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $15.17 | $13.69 | $12.09 | $12.57 | $11.94 |
Total ReturnE,F | 15.86% | 15.24% | (.53)% | 5.54% | 16.83% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.76% | 1.78% | 2.10% | 1.90% | 1.96% |
Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% | 1.39% | 1.40% | 1.39% | 1.39% |
Net investment income (loss) | .21% | .56% | .81% | .16% | .40%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $8,860 | $6,247 | $4,536 | $4,806 | $4,725 |
Portfolio turnover rateI | 60% | 71% | 29% | 60% | 160% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $13.18 | $11.65 | $12.15 | $11.55 | $9.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | – | .04 | .06 | (.01) | .02B |
Net realized and unrealized gain (loss) | 2.00 | 1.69 | (.20) | .62 | 1.62 |
Total from investment operations | 2.00 | 1.73 | (.14) | .61 | 1.64 |
Distributions from net investment income | (.02)C | (.02) | – | (.01) | – |
Distributions from net realized gain | (.57)C | (.18) | (.36) | – | – |
Total distributions | (.59) | (.20) | (.36) | (.01) | – |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $14.59 | $13.18 | $11.65 | $12.15 | $11.55 |
Total ReturnE,F | 15.69% | 14.94% | (.83)% | 5.24% | 16.55% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 2.11% | 2.11% | 2.41% | 2.19% | 2.25% |
Expenses net of fee waivers, if any | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% | 1.64% | 1.65% | 1.64% | 1.64% |
Net investment income (loss) | (.04)% | .31% | .56% | (.09)% | .14%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $4,943 | $4,236 | $3,674 | $4,029 | $3,995 |
Portfolio turnover rateI | 60% | 71% | 29% | 60% | 160% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $12.10 | $10.74 | $11.27 | $10.76 | $9.28 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | (.02) | .01 | (.07) | (.04)B |
Net realized and unrealized gain (loss) | 1.84 | 1.56 | (.19) | .58 | 1.52 |
Total from investment operations | 1.77 | 1.54 | (.18) | .51 | 1.48 |
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 | $13.34 | $12.10 | $10.74 | $11.27 | $10.76 |
Total ReturnD,E | 15.06% | 14.39% | (1.29)% | 4.74% | 15.95% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 2.54% | 2.55% | 2.86% | 2.65% | 2.73% |
Expenses net of fee waivers, if any | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% | 2.14% | 2.15% | 2.14% | 2.14% |
Net investment income (loss) | (.54)% | (.19)% | .06% | (.59)% | (.35)%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $4,684 | $3,066 | $2,479 | $2,966 | $2,744 |
Portfolio turnover rateH | 60% | 71% | 29% | 60% | 160% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Communications Equipment Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $14.22 | $12.54 | $13.01 | $12.35 | $10.55 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | .11 | .12 | .05 | .08B |
Net realized and unrealized gain (loss) | 2.16 | 1.83 | (.20) | .67 | 1.72 |
Total from investment operations | 2.23 | 1.94 | (.08) | .72 | 1.80 |
Distributions from net investment income | (.05)C | (.08) | – | (.06) | – |
Distributions from net realized gain | (.61)C | (.18) | (.39) | – | – |
Total distributions | (.66) | (.26) | (.39) | (.06) | – |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $15.79 | $14.22 | $12.54 | $13.01 | $12.35 |
Total ReturnE | 16.21% | 15.55% | (.33)% | 5.83% | 17.06% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.42% | 1.46% | 1.69% | 1.57% | 1.45% |
Expenses net of fee waivers, if any | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.14% | 1.14% | 1.14% | 1.14% | 1.14% |
Net investment income (loss) | .47% | .81% | 1.06% | .41% | .65%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $2,773 | $4,733 | $1,209 | $1,024 | $2,592 |
Portfolio turnover rateH | 60% | 71% | 29% | 60% | 160% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 16.04% | 11.17% | 13.17% |
Class M (incl. 3.50% sales charge) | 18.48% | 11.37% | 13.12% |
Class C (incl. contingent deferred sales charge) | 21.20% | 11.65% | 12.99% |
Class I | 23.46% | 12.81% | 14.18% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Consumer Discretionary Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405572084_740.jpg)
Period Ending Values | ||
$34,453 | Fidelity Advisor® Consumer Discretionary Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Consumer Discretionary Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Katherine Shaw: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) advanced between 22% and 23%, outpacing the 21.44% advance of the MSCI U.S. IMI Consumer Discretionary 25/50 Index, as well as the broad-market S&P 500® index. The sector benefited from positive business and consumer sentiment. Jobs data trended positive and investors remained confident that the sweeping $1.5 trillion U.S. tax reform plan was passed in December could boost consumers' discretionary spending in 2018. Versus the MSCI sector index, industry positioning overall contributed to the fund’s performance. The fund avoided or underweighted some industries that fared poorly, including housewares & specialties, broadcasting, automobile manufacturers and advertising. Amazon.com was our biggest holding and largest individual contributor this period. Shares of Amazon gained 80%, rising largely due to the firm’s sustained dominance in its core e-commerce and cloud markets. It also helped to avoid index component Newell Brands (-49%). Conversely, overweighting the hotels, resorts & cruise lines industry group held back the fund’s relative result, as returns here were positive but, on average, lagged the sector index. An overweighting in Charter Communications was the fund’s biggest individual detractor. The stock returned about -22%, weighed down by concerns over consumers' trend toward cord cutting. Largely avoiding media & entertainment company Twenty-First Century Fox (+57%) also detracted; we did not own the stock at period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On February 9, 2018, shareholders approved proposals from the Board of Trustees to eliminate certain sector/industry funds’ fundamental “invests primarily” policies and to modify the fundamental concentration policies for certain funds. The changes took effect on March 1, 2018, and do not impact how the funds are managed.Fidelity Advisor® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Amazon.com, Inc. | 19.4 |
Home Depot, Inc. | 7.0 |
The Walt Disney Co. | 3.8 |
Netflix, Inc. | 3.8 |
McDonald's Corp. | 3.6 |
Comcast Corp. Class A | 3.1 |
Lowe's Companies, Inc. | 2.9 |
Charter Communications, Inc. Class A | 2.6 |
The Booking Holdings, Inc. | 2.6 |
NIKE, Inc. Class B | 2.3 |
51.1 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Internet & Direct Marketing Retail | 26.3% | |
Hotels, Restaurants & Leisure | 21.9% | |
Specialty Retail | 18.1% | |
Media | 10.5% | |
Textiles, Apparel & Luxury Goods | 5.4% | |
All Others* | 17.8% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Consumer Discretionary Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
Air Freight & Logistics - 0.1% | |||
Air Freight & Logistics - 0.1% | |||
XPO Logistics, Inc. (a) | 3,500 | $349,020 | |
Auto Components - 0.2% | |||
Auto Parts & Equipment - 0.2% | |||
Aptiv PLC | 7,300 | 715,911 | |
Lear Corp. | 1,000 | 180,130 | |
Tenneco, Inc. | 400 | 18,440 | |
914,481 | |||
Automobiles - 2.2% | |||
Automobile Manufacturers - 2.2% | |||
Ferrari NV (b) | 5,100 | 676,362 | |
General Motors Co. | 52,300 | 1,982,693 | |
Tesla, Inc. (a) | 16,246 | 4,843,582 | |
Thor Industries, Inc. | 13,600 | 1,289,960 | |
8,792,597 | |||
Beverages - 0.7% | |||
Distillers & Vintners - 0.5% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 10,500 | 2,207,415 | |
Soft Drinks - 0.2% | |||
Monster Beverage Corp. (a) | 11,716 | 703,194 | |
TOTAL BEVERAGES | 2,910,609 | ||
Building Products - 0.1% | |||
Building Products - 0.1% | |||
Masco Corp. | 11,900 | 479,927 | |
Chemicals - 0.1% | |||
Specialty Chemicals - 0.1% | |||
Sherwin-Williams Co. | 800 | 352,584 | |
Commercial Services & Supplies - 0.2% | |||
Diversified Support Services - 0.2% | |||
Copart, Inc. (a) | 12,688 | 728,164 | |
Distributors - 0.6% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 54,597 | 1,830,091 | |
Pool Corp. | 4,151 | 636,141 | |
2,466,232 | |||
Diversified Consumer Services - 1.0% | |||
Education Services - 0.6% | |||
Adtalem Global Education, Inc. (a) | 8,900 | 485,495 | |
Grand Canyon Education, Inc. (a) | 14,036 | 1,635,615 | |
New Oriental Education & Technology Group, Inc. sponsored ADR | 3,900 | 335,556 | |
2,456,666 | |||
Specialized Consumer Services - 0.4% | |||
Service Corp. International | 4,200 | 165,270 | |
ServiceMaster Global Holdings, Inc. (a) | 5,700 | 324,843 | |
Weight Watchers International, Inc. (a) | 14,443 | 1,293,082 | |
1,783,195 | |||
TOTAL DIVERSIFIED CONSUMER SERVICES | 4,239,861 | ||
Electronic Equipment & Components - 0.1% | |||
Electronic Equipment & Instruments - 0.1% | |||
ADT, Inc. (b) | 28,000 | 252,280 | |
Food & Staples Retailing - 1.1% | |||
Food Distributors - 0.7% | |||
Performance Food Group Co. (a) | 75,500 | 2,706,675 | |
Hypermarkets & Super Centers - 0.4% | |||
BJ's Wholesale Club Holdings, Inc. | 28,700 | 711,473 | |
Costco Wholesale Corp. | 1,000 | 218,710 | |
Walmart, Inc. | 7,300 | 651,379 | |
1,581,562 | |||
TOTAL FOOD & STAPLES RETAILING | 4,288,237 | ||
Health Care Providers & Services - 0.0% | |||
Health Care Services - 0.0% | |||
National Vision Holdings, Inc. | 4,200 | 170,772 | |
Hotels, Restaurants & Leisure - 21.9% | |||
Casinos & Gaming - 3.3% | |||
Boyd Gaming Corp. | 17,100 | 638,685 | |
Caesars Entertainment Corp. (a) | 85,200 | 962,760 | |
Churchill Downs, Inc. | 1,600 | 457,520 | |
Eldorado Resorts, Inc. (a) | 49,191 | 2,107,834 | |
Las Vegas Sands Corp. | 73,680 | 5,297,592 | |
Melco Crown Entertainment Ltd. sponsored ADR | 8,800 | 227,568 | |
MGM Mirage, Inc. | 78,400 | 2,459,408 | |
Penn National Gaming, Inc. (a) | 28,796 | 922,912 | |
PlayAGS, Inc. (a) | 7,100 | 202,705 | |
Wynn Resorts Ltd. | 1,091 | 181,957 | |
13,458,941 | |||
Hotels, Resorts & Cruise Lines - 8.0% | |||
Accor SA | 4,800 | 247,416 | |
Bluegreen Vacations Corp. | 25,000 | 642,750 | |
Carnival Corp. | 53,500 | 3,169,340 | |
Hilton Grand Vacations, Inc. (a) | 46,300 | 1,601,517 | |
Hilton Worldwide Holdings, Inc. | 79,600 | 6,261,336 | |
Hyatt Hotels Corp. Class A | 11,100 | 868,353 | |
Marriott International, Inc. Class A | 50,575 | 6,465,508 | |
Marriott Vacations Worldwide Corp. | 19,600 | 2,334,556 | |
Royal Caribbean Cruises Ltd. | 60,900 | 6,867,084 | |
Wyndham Destinations, Inc. | 37,320 | 1,721,198 | |
Wyndham Hotels & Resorts, Inc. | 38,680 | 2,243,440 | |
32,422,498 | |||
Leisure Facilities - 1.5% | |||
Cedar Fair LP (depositary unit) | 8,900 | 508,546 | |
Drive Shack, Inc. (a) | 60,400 | 374,480 | |
Planet Fitness, Inc. (a) | 35,300 | 1,677,456 | |
Vail Resorts, Inc. | 12,240 | 3,388,889 | |
5,949,371 | |||
Restaurants - 9.1% | |||
ARAMARK Holdings Corp. | 45,800 | 1,841,618 | |
Chipotle Mexican Grill, Inc. (a) | 1,400 | 607,124 | |
Compass Group PLC | 10,100 | 217,345 | |
Darden Restaurants, Inc. | 16,161 | 1,728,257 | |
Del Frisco's Restaurant Group, Inc. (a) | 19,000 | 162,450 | |
Dine Brands Global, Inc. | 3,000 | 213,090 | |
Domino's Pizza, Inc. | 7,000 | 1,838,620 | |
Dunkin' Brands Group, Inc. | 20,000 | 1,392,600 | |
Jack in the Box, Inc. | 5,100 | 429,624 | |
McDonald's Corp. | 92,300 | 14,540,942 | |
Papa John's International, Inc. (b) | 8,200 | 344,072 | |
Restaurant Brands International, Inc. | 28,800 | 1,837,346 | |
Ruth's Hospitality Group, Inc. | 9,654 | 279,483 | |
Shake Shack, Inc. Class A (a) | 2,600 | 162,058 | |
Starbucks Corp. | 139,638 | 7,315,635 | |
Texas Roadhouse, Inc. Class A | 10,000 | 628,400 | |
U.S. Foods Holding Corp. (a) | 58,100 | 1,964,361 | |
Wendy's Co. | 10,900 | 181,812 | |
Wingstop, Inc. | 7,500 | 370,125 | |
Yum! Brands, Inc. | 13,000 | 1,030,770 | |
37,085,732 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 88,916,542 | ||
Household Durables - 2.6% | |||
Home Furnishings - 0.2% | |||
Mohawk Industries, Inc. (a) | 5,000 | 941,800 | |
Homebuilding - 2.3% | |||
Cavco Industries, Inc. (a) | 3,167 | 672,829 | |
D.R. Horton, Inc. | 70,000 | 3,059,000 | |
Lennar Corp.: | |||
Class A | 45,700 | 2,388,739 | |
Class B | 446 | 19,267 | |
LGI Homes, Inc. (a)(b) | 3,000 | 155,070 | |
New Home Co. LLC (a) | 12,500 | 115,250 | |
NVR, Inc. (a) | 720 | 1,986,790 | |
Taylor Morrison Home Corp. (a) | 9,200 | 179,676 | |
TRI Pointe Homes, Inc. (a) | 41,500 | 588,055 | |
9,164,676 | |||
Household Appliances - 0.1% | |||
Techtronic Industries Co. Ltd. | 77,000 | 428,702 | |
TOTAL HOUSEHOLD DURABLES | 10,535,178 | ||
Internet & Direct Marketing Retail - 26.3% | |||
Internet & Direct Marketing Retail - 26.3% | |||
Amazon.com, Inc. (a) | 44,258 | 78,665,942 | |
Boohoo.Com PLC (a) | 54,000 | 142,606 | |
Liberty Interactive Corp. QVC Group Series A (a) | 73,616 | 1,567,285 | |
Netflix, Inc. (a) | 44,970 | 15,175,127 | |
Start Today Co. Ltd. | 3,300 | 132,366 | |
The Booking Holdings, Inc. (a) | 5,190 | 10,529,057 | |
Wayfair LLC Class A (a) | 1,261 | 137,222 | |
Zalando SE (a) | 1,600 | 91,789 | |
106,441,394 | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
2U, Inc. (a) | 10,485 | 793,295 | |
Alphabet, Inc. Class A (a) | 1,600 | 1,963,552 | |
MINDBODY, Inc. (a) | 2,800 | 104,580 | |
2,861,427 | |||
IT Services - 0.4% | |||
Data Processing & Outsourced Services - 0.4% | |||
Adyen BV (c) | 100 | 63,893 | |
Global Payments, Inc. | 4,400 | 495,308 | |
PayPal Holdings, Inc. (a) | 11,166 | 917,175 | |
1,476,376 | |||
Leisure Products - 0.5% | |||
Leisure Products - 0.5% | |||
Mattel, Inc. (b) | 124,870 | 1,981,687 | |
Media - 10.5% | |||
Advertising - 0.0% | |||
Interpublic Group of Companies, Inc. | 4,500 | 101,475 | |
Broadcasting - 0.2% | |||
CBS Corp. Class B | 13,619 | 717,313 | |
Cable & Satellite - 5.9% | |||
Charter Communications, Inc. Class A (a) | 35,049 | 10,675,224 | |
Comcast Corp. Class A | 346,971 | 12,414,622 | |
Naspers Ltd. Class N | 3,300 | 812,500 | |
23,902,346 | |||
Movies & Entertainment - 4.4% | |||
Cinemark Holdings, Inc. | 37,700 | 1,354,184 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 8,500 | 299,625 | |
Lions Gate Entertainment Corp. Class B | 1,800 | 41,166 | |
Live Nation Entertainment, Inc. (a) | 14,900 | 734,272 | |
The Walt Disney Co. | 135,006 | 15,331,281 | |
17,760,528 | |||
TOTAL MEDIA | 42,481,662 | ||
Multiline Retail - 4.3% | |||
Department Stores - 0.5% | |||
Future Retail Ltd. | 35,755 | 279,209 | |
Macy's, Inc. | 44,800 | 1,779,904 | |
2,059,113 | |||
General Merchandise Stores - 3.8% | |||
B&M European Value Retail S.A. | 71,554 | 387,600 | |
Dollar General Corp. | 50,700 | 4,976,205 | |
Dollar Tree, Inc. (a) | 96,560 | 8,813,997 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 4,600 | 319,700 | |
Target Corp. | 10,300 | 831,004 | |
15,328,506 | |||
TOTAL MULTILINE RETAIL | 17,387,619 | ||
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
Estee Lauder Companies, Inc. Class A | 1,100 | 148,434 | |
Real Estate Management & Development - 0.1% | |||
Real Estate Services - 0.1% | |||
Redfin Corp. (b) | 12,800 | 313,600 | |
Software - 0.2% | |||
Application Software - 0.1% | |||
Adobe Systems, Inc. (a) | 1,200 | 293,616 | |
Home Entertainment Software - 0.1% | |||
Activision Blizzard, Inc. | 5,009 | 367,761 | |
TOTAL SOFTWARE | 661,377 | ||
Specialty Retail - 18.1% | |||
Apparel Retail - 5.4% | |||
Burlington Stores, Inc. (a) | 45,400 | 6,937,574 | |
Inditex SA | 10,638 | 348,614 | |
Ross Stores, Inc. | 69,891 | 6,110,570 | |
The Children's Place Retail Stores, Inc. | 6,100 | 749,690 | |
TJX Companies, Inc. | 80,811 | 7,859,678 | |
22,006,126 | |||
Automotive Retail - 2.0% | |||
AutoZone, Inc. (a) | 4,300 | 3,033,779 | |
Monro, Inc. | 8,200 | 553,090 | |
O'Reilly Automotive, Inc. (a) | 15,397 | 4,711,482 | |
8,298,351 | |||
Computer & Electronics Retail - 0.1% | |||
Best Buy Co., Inc. | 5,100 | 382,653 | |
Home Improvement Retail - 10.0% | |||
Floor & Decor Holdings, Inc. Class A (a) | 8,811 | 420,725 | |
Home Depot, Inc. | 143,920 | 28,427,078 | |
Lowe's Companies, Inc. | 116,400 | 11,563,176 | |
40,410,979 | |||
Specialty Stores - 0.6% | |||
Five Below, Inc. (a) | 500 | 48,580 | |
Tiffany & Co., Inc. | 3,100 | 426,436 | |
Ulta Beauty, Inc. (a) | 7,804 | 1,907,220 | |
2,382,236 | |||
TOTAL SPECIALTY RETAIL | 73,480,345 | ||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Apple, Inc. | 5,000 | 951,450 | |
Textiles, Apparel & Luxury Goods - 5.4% | |||
Apparel, Accessories & Luxury Goods - 3.1% | |||
adidas AG | 3,328 | 736,096 | |
Canada Goose Holdings, Inc. (a) | 5,600 | 321,445 | |
Carter's, Inc. | 9,600 | 1,006,368 | |
G-III Apparel Group Ltd. (a) | 8,993 | 410,980 | |
Kering SA | 1,378 | 734,782 | |
lululemon athletica, Inc. (a) | 2,200 | 263,890 | |
LVMH Moet Hennessy - Louis Vuitton SA | 3,399 | 1,184,511 | |
Michael Kors Holdings Ltd. (a) | 5,200 | 346,996 | |
Prada SpA | 64,300 | 305,974 | |
PVH Corp. | 37,599 | 5,772,198 | |
Swatch Group AG (Bearer) | 620 | 278,582 | |
Tapestry, Inc. | 15,200 | 716,224 | |
VF Corp. | 4,300 | 395,901 | |
12,473,947 | |||
Footwear - 2.3% | |||
NIKE, Inc. Class B | 123,534 | 9,501,000 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 21,974,947 | ||
Tobacco - 0.2% | |||
Tobacco - 0.2% | |||
Philip Morris International, Inc. | 7,500 | 647,250 | |
TOTAL COMMON STOCKS | |||
(Cost $282,372,805) | 396,204,052 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund, 1.96% (d) | 8,039,106 | 8,040,714 | |
Fidelity Securities Lending Cash Central Fund 1.97% (d)(e) | 3,545,503 | 3,545,857 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,586,571) | 11,586,571 | ||
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $293,959,376) | 407,790,623 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (2,736,216) | ||
NET ASSETS - 100% | $405,054,407 |
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 $63,893 or 0.0% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $44,798 |
Fidelity Securities Lending Cash Central Fund | 25,270 |
Total | $70,068 |
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 July 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 | $396,204,052 | $394,670,927 | $1,533,125 | $-- |
Money Market Funds | 11,586,571 | 11,586,571 | -- | -- |
Total Investments in Securities: | $407,790,623 | $406,257,498 | $1,533,125 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $3,456,906) — See accompanying schedule: Unaffiliated issuers (cost $282,372,805) | $396,204,052 | |
Fidelity Central Funds (cost $11,586,571) | 11,586,571 | |
Total Investment in Securities (cost $293,959,376) | $407,790,623 | |
Receivable for fund shares sold | 1,778,663 | |
Dividends receivable | 100,173 | |
Distributions receivable from Fidelity Central Funds | 8,308 | |
Prepaid expenses | 3,664 | |
Other receivables | 5,478 | |
Total assets | 409,686,909 | |
Liabilities | ||
Payable to custodian bank | $1,633 | |
Payable for investments purchased | 171,026 | |
Payable for fund shares redeemed | 517,483 | |
Accrued management fee | 178,172 | |
Distribution and service plan fees payable | 103,165 | |
Other affiliated payables | 75,525 | |
Other payables and accrued expenses | 41,343 | |
Collateral on securities loaned | 3,544,155 | |
Total liabilities | 4,632,502 | |
Net Assets | $405,054,407 | |
Net Assets consist of: | ||
Paid in capital | $288,288,033 | |
Distributions in excess of net investment income | (96,301) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 3,032,342 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 113,830,333 | |
Net Assets | $405,054,407 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($146,605,198 ÷ 5,195,466 shares) | $28.22 | |
Maximum offering price per share (100/94.25 of $28.22) | $29.94 | |
Class M: | ||
Net Asset Value and redemption price per share ($34,621,944 ÷ 1,313,203 shares) | $26.36 | |
Maximum offering price per share (100/96.50 of $26.36) | $27.32 | |
Class C: | ||
Net Asset Value and offering price per share ($71,116,446 ÷ 3,105,582 shares)(a) | $22.90 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($152,710,819 ÷ 5,020,762 shares) | $30.42 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $3,203,460 | |
Interest | 869 | |
Income from Fidelity Central Funds (including $25,270 from security lending) | 70,068 | |
Total income | 3,274,397 | |
Expenses | ||
Management fee | $1,718,416 | |
Transfer agent fees | 635,260 | |
Distribution and service plan fees | 1,074,238 | |
Accounting and security lending fees | 124,180 | |
Custodian fees and expenses | 15,993 | |
Independent trustees' fees and expenses | 4,140 | |
Registration fees | 87,481 | |
Audit | 53,604 | |
Legal | 3,896 | |
Miscellaneous | 80,275 | |
Total expenses before reductions | 3,797,483 | |
Expense reductions | (12,887) | |
Total expenses after reductions | 3,784,596 | |
Net investment income (loss) | (510,199) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,172,748 | |
Fidelity Central Funds | 456 | |
Foreign currency transactions | (13,363) | |
Total net realized gain (loss) | 5,159,841 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 58,200,769 | |
Fidelity Central Funds | (201) | |
Assets and liabilities in foreign currencies | (988) | |
Total change in net unrealized appreciation (depreciation) | 58,199,580 | |
Net gain (loss) | 63,359,421 | |
Net increase (decrease) in net assets resulting from operations | $62,849,222 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(510,199) | $423,702 |
Net realized gain (loss) | 5,159,841 | 13,394,770 |
Change in net unrealized appreciation (depreciation) | 58,199,580 | 11,650,274 |
Net increase (decrease) in net assets resulting from operations | 62,849,222 | 25,468,746 |
Distributions to shareholders from net investment income | – | (1,067,067) |
Share transactions - net increase (decrease) | 64,351,041 | (62,438,702) |
Redemption fees | – | 5,343 |
Total increase (decrease) in net assets | 127,200,263 | (38,031,680) |
Net Assets | ||
Beginning of period | 277,854,144 | 315,885,824 |
End of period | $405,054,407 | $277,854,144 |
Other Information | ||
Distributions in excess of net investment income end of period | $(96,301) | $(1) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Consumer Discretionary Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.92 | $20.94 | $21.51 | $19.75 | $19.59 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.02) | .06 | .10B | .05 | (.04) |
Net realized and unrealized gain (loss) | 5.32 | 2.01 | (.21) | 3.99 | 1.75 |
Total from investment operations | 5.30 | 2.07 | (.11) | 4.04 | 1.71 |
Distributions from net investment income | – | (.09) | (.02) | – | – |
Distributions from net realized gain | – | – | (.44) | (2.28) | (1.55) |
Total distributions | – | (.09) | (.46) | (2.28) | (1.55) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $28.22 | $22.92 | $20.94 | $21.51 | $19.75 |
Total ReturnD,E | 23.12% | 9.93% | (.38)% | 22.26% | 9.28% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.12% | 1.10% | 1.10% | 1.15% | 1.20% |
Expenses net of fee waivers, if any | 1.12% | 1.10% | 1.10% | 1.15% | 1.20% |
Expenses net of all reductions | 1.11% | 1.10% | 1.09% | 1.14% | 1.19% |
Net investment income (loss) | (.08)% | .26% | .49%B | .27% | (.21)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $146,605 | $109,303 | $144,578 | $115,027 | $59,089 |
Portfolio turnover rateH | 60% | 47% | 59% | 71% | 171% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .33%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.47 | $19.66 | $20.26 | $18.75 | $18.68 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.08) | –B | .03C | (.01) | (.10) |
Net realized and unrealized gain (loss) | 4.97 | 1.89 | (.19) | 3.77 | 1.67 |
Total from investment operations | 4.89 | 1.89 | (.16) | 3.76 | 1.57 |
Distributions from net investment income | – | (.08) | – | – | – |
Distributions from net realized gain | – | – | (.44) | (2.25) | (1.50) |
Total distributions | – | (.08) | (.44) | (2.25) | (1.50) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $26.36 | $21.47 | $19.66 | $20.26 | $18.75 |
Total ReturnD,E | 22.78% | 9.62% | (.68)% | 21.92% | 8.94% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.38% | 1.39% | 1.40% | 1.46% | 1.50% |
Expenses net of fee waivers, if any | 1.38% | 1.39% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.38% | 1.39% | 1.39% | 1.45% | 1.49% |
Net investment income (loss) | (.35)% | (.02)% | .19%C | (.03)% | (.51)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $34,622 | $26,398 | $28,259 | $25,948 | $18,779 |
Portfolio turnover rateH | 60% | 47% | 59% | 71% | 171% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.74 | $17.18 | $17.84 | $16.79 | $16.90 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.17) | (.09) | (.04)B | (.08) | (.16) |
Net realized and unrealized gain (loss) | 4.33 | 1.65 | (.18) | 3.34 | 1.49 |
Total from investment operations | 4.16 | 1.56 | (.22) | 3.26 | 1.33 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | – | – | (.44) | (2.21) | (1.44) |
Total distributions | – | – | (.44) | (2.21) | (1.44) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $22.90 | $18.74 | $17.18 | $17.84 | $16.79 |
Total ReturnD,E | 22.20% | 9.08% | (1.11)% | 21.37% | 8.44% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.87% | 1.85% | 1.86% | 1.91% | 1.97% |
Expenses net of fee waivers, if any | 1.87% | 1.85% | 1.86% | 1.91% | 1.97% |
Expenses net of all reductions | 1.86% | 1.85% | 1.85% | 1.90% | 1.96% |
Net investment income (loss) | (.83)% | (.49)% | (.27)%B | (.49)% | (.97)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $71,116 | $59,958 | $67,306 | $43,999 | $20,726 |
Portfolio turnover rateH | 60% | 47% | 59% | 71% | 171% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.42) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Consumer Discretionary Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.64 | $22.48 | $23.06 | $21.00 | $20.72 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .12 | .16B | .12 | .02 |
Net realized and unrealized gain (loss) | 5.72 | 2.18 | (.22) | 4.26 | 1.85 |
Total from investment operations | 5.78 | 2.30 | (.06) | 4.38 | 1.87 |
Distributions from net investment income | – | (.14) | (.08) | – | – |
Distributions from net realized gain | – | – | (.44) | (2.32) | (1.59) |
Total distributions | – | (.14) | (.52) | (2.32) | (1.59) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $30.42 | $24.64 | $22.48 | $23.06 | $21.00 |
Total ReturnD | 23.46% | 10.27% | (.13)% | 22.60% | 9.61% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .84% | .83% | .84% | .87% | .91% |
Expenses net of fee waivers, if any | .83% | .83% | .84% | .87% | .91% |
Expenses net of all reductions | .83% | .83% | .83% | .87% | .91% |
Net investment income (loss) | .20% | .54% | .75%B | .55% | .08% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $152,711 | $82,195 | $75,742 | $48,329 | $21,708 |
Portfolio turnover rateG | 60% | 47% | 59% | 71% | 171% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 16.94% | (0.29)% | (0.41)% |
Class M (incl. 3.50% sales charge) | 19.42% | (0.07)% | (0.41)% |
Class C (incl. contingent deferred sales charge) | 22.16% | 0.16% | (0.55)% |
Class I | 24.43% | 1.18% | 0.47% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Energy Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405572934_740.jpg)
Period Ending Values | ||
$9,600 | Fidelity Advisor® Energy Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Energy Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager John Dowd: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 23% to 24%, outpacing the 20.93% return of the MSCI U.S. IMI Energy 25/50 Index, as well as the broad-market S&P 500 index. Versus the MSCI sector index, positioning in the integrated oil & gas and oil & gas exploration & production (E&P) industries contributed most. Here, our long-standing strategy of overweighting the E&P group worked out well, as we favored companies in this strong industry given what we believe are more-attractive long-term growth prospects relative to integrated oil & gas companies, a group that lagged the sector and in which the fund was significantly underweighted the past year. Stock selection in oil & gas refining & marketing also contributed to the fund's relative result. The top individual relative contributor by a wide margin was a sizable underweighting in integrated oil & gas company Exxon Mobil, which significantly lagged the MSCI sector index this period. A large position in refining firm Delek US Holdings also added value, as crude-oil pipeline bottlenecks in the Permian Basin of Texas helped contain oil prices, boosting the company's profit margins. Conversely, stock selection in oil & gas drilling held back the fund's return versus the sector index. The biggest individual relative detractor was a large underweighting in E&P company ConocoPhillips, which rallied on improving operational excellence and shareholder-friendly capital-allocation policies. Untimely ownership of refining firm Valero Energy also detracted. I bought this stock in January, and therefore missed out on its strong gain earlier in the period. Valero was an overweighting and among our largest holdings as of July 31.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Chevron Corp. | 8.6 |
EOG Resources, Inc. | 7.2 |
Valero Energy Corp. | 4.8 |
Delek U.S. Holdings, Inc. | 4.8 |
Phillips 66 Co. | 4.3 |
Pioneer Natural Resources Co. | 4.2 |
Anadarko Petroleum Corp. | 3.9 |
Occidental Petroleum Corp. | 3.5 |
Baker Hughes, a GE Co. Class A | 3.4 |
Diamondback Energy, Inc. | 3.3 |
48.0 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Oil, Gas & Consumable Fuels | 86.3% | |
Energy Equipment & Services | 9.8% | |
Chemicals | 1.5% | |
Machinery | 0.5% | |
Diversified Consumer Services | 0.4% | |
All Others* | 1.5% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Energy Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value | ||
Capital Markets - 0.3% | |||
Investment Banking & Brokerage - 0.3% | |||
TPG Pace Energy Holdings Corp. (a) | 232,200 | $2,856,060 | |
Chemicals - 1.5% | |||
Commodity Chemicals - 1.5% | |||
LG Chemical Ltd. | 5,775 | 1,944,933 | |
LyondellBasell Industries NV Class A | 110,500 | 12,242,295 | |
14,187,228 | |||
Diversified Consumer Services - 0.4% | |||
Specialized Consumer Services - 0.4% | |||
Berry Petroleum Corp. | 326,300 | 4,486,625 | |
Energy Equipment & Services - 9.8% | |||
Oil & Gas Drilling - 1.7% | |||
Nabors Industries Ltd. | 681,252 | 4,073,887 | |
Odfjell Drilling Ltd. | 564,256 | 2,168,712 | |
Precision Drilling Corp. (a) | 899,100 | 3,255,380 | |
Shelf Drilling Ltd. (a)(b) | 656,169 | 4,823,536 | |
Trinidad Drilling Ltd. (a) | 843,400 | 1,011,419 | |
Xtreme Drilling & Coil Services Corp. (a) | 975,802 | 1,485,250 | |
16,818,184 | |||
Oil & Gas Equipment & Services - 8.1% | |||
Baker Hughes, a GE Co. Class A | 943,800 | 32,636,604 | |
Dril-Quip, Inc. (a) | 60,191 | 3,102,846 | |
Halliburton Co. | 455,600 | 19,326,552 | |
Liberty Oilfield Services, Inc. Class A (c) | 199,800 | 3,916,080 | |
NCS Multistage Holdings, Inc. (a) | 113,069 | 1,793,274 | |
RigNet, Inc. (a) | 274,950 | 3,381,885 | |
Schlumberger Ltd. | 173,018 | 11,682,175 | |
Smart Sand, Inc. (a)(c) | 113,800 | 660,040 | |
TechnipFMC PLC | 59,400 | 1,933,470 | |
78,432,926 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 95,251,110 | ||
Gas Utilities - 0.2% | |||
Gas Utilities - 0.2% | |||
Indraprastha Gas Ltd. | 411,560 | 1,827,252 | |
Machinery - 0.5% | |||
Industrial Machinery - 0.5% | |||
Cactus, Inc. (a) | 58,400 | 1,910,848 | |
Gardner Denver Holdings, Inc. (a) | 73,700 | 2,108,557 | |
ProPetro Holding Corp. (a) | 38,800 | 637,872 | |
4,657,277 | |||
Oil, Gas & Consumable Fuels - 86.3% | |||
Coal & Consumable Fuels - 0.2% | |||
Peabody Energy Corp. | 57,500 | 2,443,175 | |
Integrated Oil & Gas - 17.5% | |||
Cenovus Energy, Inc. | 2,500 | 25,080 | |
Chevron Corp. | 656,209 | 82,859,513 | |
Exxon Mobil Corp. | 374,361 | 30,514,165 | |
Occidental Petroleum Corp. | 405,800 | 34,058,794 | |
Suncor Energy, Inc. | 530,400 | 22,335,636 | |
169,793,188 | |||
Oil & Gas Exploration & Production - 46.2% | |||
Aker Bp ASA | 25,500 | 911,624 | |
Anadarko Petroleum Corp. | 518,883 | 37,956,291 | |
Cabot Oil & Gas Corp. | 837,400 | 19,678,900 | |
California Resources Corp. (a) | 46,898 | 1,707,556 | |
Centennial Resource Development, Inc.: | |||
Class A (a) | 45,200 | 811,792 | |
Class A (a) | 315,300 | 5,662,788 | |
Concho Resources, Inc. (a) | 191,872 | 27,984,531 | |
ConocoPhillips Co. | 162,300 | 11,713,191 | |
Continental Resources, Inc. (a) | 420,900 | 26,882,883 | |
Denbury Resources, Inc. (a) | 629,400 | 2,838,594 | |
Devon Energy Corp. | 622,100 | 28,000,721 | |
Diamondback Energy, Inc. | 245,700 | 32,420,115 | |
Encana Corp. | 2,020,400 | 27,878,833 | |
EOG Resources, Inc. | 542,986 | 70,012,615 | |
Extraction Oil & Gas, Inc. (a) | 381,662 | 5,770,729 | |
Gran Tierra Energy, Inc. (U.S.) (a) | 905,400 | 3,014,982 | |
Hess Corp. | 188,700 | 12,384,381 | |
Magnolia Oil & Gas Corp. (d) | 424,000 | 4,693,680 | |
Noble Energy, Inc. | 384,500 | 13,876,605 | |
Parex Resources, Inc. (a) | 492,100 | 8,685,564 | |
Parsley Energy, Inc. Class A (a) | 681,200 | 21,410,116 | |
PDC Energy, Inc. (a) | 135,388 | 8,526,736 | |
Penn Virginia Corp. (a) | 10,300 | 870,556 | |
Pioneer Natural Resources Co. | 216,016 | 40,885,348 | |
Ring Energy, Inc. (a) | 178,932 | 2,211,600 | |
Viper Energy Partners LP | 381,800 | 12,209,964 | |
W&T Offshore, Inc. (a) | 111,600 | 774,504 | |
Whiting Petroleum Corp. (a) | 267,600 | 13,286,340 | |
WPX Energy, Inc. (a) | 215,421 | 4,043,452 | |
447,104,991 | |||
Oil & Gas Refining & Marketing - 18.6% | |||
Andeavor | 123,600 | 18,547,416 | |
Delek U.S. Holdings, Inc. | 861,900 | 45,956,508 | |
HollyFrontier Corp. | 102,800 | 7,666,824 | |
Marathon Petroleum Corp. | 177,500 | 14,347,325 | |
Phillips 66 Co. | 340,118 | 41,950,154 | |
Reliance Industries Ltd. | 290,335 | 5,029,759 | |
Valero Energy Corp. | 390,500 | 46,215,675 | |
179,713,661 | |||
Oil & Gas Storage & Transport - 3.8% | |||
Cheniere Energy, Inc. (a) | 177,400 | 11,264,900 | |
Enterprise Products Partners LP | 268,800 | 7,795,200 | |
Euronav NV | 444,980 | 3,760,081 | |
Golar LNG Ltd. | 196,500 | 5,110,965 | |
Noble Midstream Partners LP (a)(d) | 48,372 | 2,566,135 | |
Teekay LNG Partners LP | 38,300 | 612,800 | |
The Williams Companies, Inc. | 200,500 | 5,964,875 | |
37,074,956 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 836,129,971 | ||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Semiconductor Equipment - 0.1% | |||
SolarEdge Technologies, Inc. (a) | 12,000 | 639,000 | |
TOTAL COMMON STOCKS | |||
(Cost $737,316,945) | 960,034,523 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund, 1.96% (e) | 10,083,538 | 10,085,555 | |
Fidelity Securities Lending Cash Central Fund 1.97% (e)(f) | 4,093,070 | 4,093,479 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,179,034) | 14,179,034 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $751,495,979) | 974,213,557 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (5,595,295) | ||
NET ASSETS - 100% | $968,618,262 |
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 $4,823,536 or 0.5% 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 $7,259,815 or 0.7% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 |
Magnolia Oil & Gas Corp. | 7/30/18 | $4,240,000 |
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 | $90,192 |
Fidelity Securities Lending Cash Central Fund | 96,644 |
Total | $186,836 |
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 July 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 | $960,034,523 | $955,340,843 | $4,693,680 | $-- |
Money Market Funds | 14,179,034 | 14,179,034 | -- | -- |
Total Investments in Securities: | $974,213,557 | $969,519,877 | $4,693,680 | $-- |
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 | 6.7% |
Netherlands | 1.3% |
Curacao | 1.2% |
Bermuda | 1.1% |
Others (Individually Less Than 1%) | 2.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,132,414) — See accompanying schedule: Unaffiliated issuers (cost $737,316,945) | $960,034,523 | |
Fidelity Central Funds (cost $14,179,034) | 14,179,034 | |
Total Investment in Securities (cost $751,495,979) | $974,213,557 | |
Foreign currency held at value (cost $1,483,565) | 1,483,565 | |
Receivable for investments sold | 2,095,411 | |
Receivable for fund shares sold | 1,330,859 | |
Dividends receivable | 161,840 | |
Distributions receivable from Fidelity Central Funds | 26,254 | |
Prepaid expenses | 8,899 | |
Other receivables | 155,889 | |
Total assets | 979,476,274 | |
Liabilities | ||
Payable for investments purchased | $4,350,189 | |
Payable for fund shares redeemed | 949,886 | |
Accrued management fee | 426,311 | |
Distribution and service plan fees payable | 260,784 | |
Other affiliated payables | 195,809 | |
Other payables and accrued expenses | 588,675 | |
Collateral on securities loaned | 4,086,358 | |
Total liabilities | 10,858,012 | |
Net Assets | $968,618,262 | |
Net Assets consist of: | ||
Paid in capital | $919,827,305 | |
Distributions in excess of net investment income | (558,139) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (172,888,651) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 222,237,747 | |
Net Assets | $968,618,262 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($278,555,031 ÷ 7,424,364 shares) | $37.52 | |
Maximum offering price per share (100/94.25 of $37.52) | $39.81 | |
Class M: | ||
Net Asset Value and redemption price per share ($136,827,845 ÷ 3,566,793 shares) | $38.36 | |
Maximum offering price per share (100/96.50 of $38.36) | $39.75 | |
Class C: | ||
Net Asset Value and offering price per share ($179,521,360 ÷ 5,219,677 shares)(a) | $34.39 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($373,714,026 ÷ 9,444,351 shares) | $39.57 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $12,913,218 | |
Income from Fidelity Central Funds (including $96,644 from security lending) | 186,836 | |
Total income | 13,100,054 | |
Expenses | ||
Management fee | $4,852,020 | |
Transfer agent fees | 1,978,278 | |
Distribution and service plan fees | 3,247,518 | |
Accounting and security lending fees | 308,824 | |
Custodian fees and expenses | 32,412 | |
Independent trustees' fees and expenses | 12,788 | |
Registration fees | 105,331 | |
Audit | 52,130 | |
Legal | 13,043 | |
Interest | 1,570 | |
Miscellaneous | 238,275 | |
Total expenses before reductions | 10,842,189 | |
Expense reductions | (66,841) | |
Total expenses after reductions | 10,775,348 | |
Net investment income (loss) | 2,324,706 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,405,158) | |
Fidelity Central Funds | 4,741 | |
Foreign currency transactions | (69,532) | |
Total net realized gain (loss) | (1,469,949) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $117,069) | 188,030,149 | |
Fidelity Central Funds | (1,394) | |
Assets and liabilities in foreign currencies | (5,040) | |
Total change in net unrealized appreciation (depreciation) | 188,023,715 | |
Net gain (loss) | 186,553,766 | |
Net increase (decrease) in net assets resulting from operations | $188,878,472 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,324,706 | $10,286,493 |
Net realized gain (loss) | (1,469,949) | 14,559,379 |
Change in net unrealized appreciation (depreciation) | 188,023,715 | (43,915,461) |
Net increase (decrease) in net assets resulting from operations | 188,878,472 | (19,069,589) |
Distributions to shareholders from net investment income | (11,701,838) | (574,320) |
Distributions to shareholders from net realized gain | (106,751) | (1,566,619) |
Total distributions | (11,808,589) | (2,140,939) |
Share transactions - net increase (decrease) | (101,270,438) | (24,365,448) |
Redemption fees | – | 21,760 |
Total increase (decrease) in net assets | 75,799,445 | (45,554,216) |
Net Assets | ||
Beginning of period | 892,818,817 | 938,373,033 |
End of period | $968,618,262 | $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 | $(558,139) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Energy Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.70 | $31.12 | $30.96 | $45.71 | $40.59 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .38B | .16 | .28 | .15 |
Net realized and unrealized gain (loss) | 7.18 | (.72) | .20 | (12.89) | 7.06 |
Total from investment operations | 7.30 | (.34) | .36 | (12.61) | 7.21 |
Distributions from net investment income | (.48) | – | (.20) | (.18)C | (.17) |
Distributions from net realized gain | –D | (.08) | – | (1.96)C | (1.93) |
Total distributions | (.48) | (.08) | (.20) | (2.14) | (2.09)E |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
Net asset value, end of period | $37.52 | $30.70 | $31.12 | $30.96 | $45.71 |
Total ReturnF,G | 24.07% | (1.14)% | 1.25% | (28.92)% | 18.46% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.11% | 1.09% | 1.12% | 1.12% | 1.12% |
Expenses net of fee waivers, if any | 1.11% | 1.09% | 1.12% | 1.12% | 1.12% |
Expenses net of all reductions | 1.10% | 1.08% | 1.11% | 1.11% | 1.12% |
Net investment income (loss) | .36% | 1.15%B | .54% | .76% | .36% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $278,555 | $277,378 | $347,885 | $292,288 | $369,400 |
Portfolio turnover rateJ | 56% | 90% | 85% | 61% | 112% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $31.37 | $31.82 | $31.63 | $46.64 | $41.38 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03 | .30B | .08 | .20 | .06 |
Net realized and unrealized gain (loss) | 7.35 | (.75) | .22 | (13.18) | 7.21 |
Total from investment operations | 7.38 | (.45) | .30 | (12.98) | 7.27 |
Distributions from net investment income | (.39) | – | (.11) | (.08)C | (.08) |
Distributions from net realized gain | –D | – | – | (1.95)C | (1.93) |
Total distributions | (.39) | – | (.11) | (2.03) | (2.01) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
Net asset value, end of period | $38.36 | $31.37 | $31.82 | $31.63 | $46.64 |
Total ReturnE,F | 23.75% | (1.41)% | .98% | (29.09)% | 18.19% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.38% | 1.36% | 1.38% | 1.36% | 1.34% |
Expenses net of fee waivers, if any | 1.38% | 1.36% | 1.38% | 1.35% | 1.34% |
Expenses net of all reductions | 1.37% | 1.35% | 1.37% | 1.35% | 1.34% |
Net investment income (loss) | .09% | .88%B | .28% | .52% | .14% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $136,828 | $125,951 | $155,856 | $164,848 | $245,828 |
Portfolio turnover rateI | 56% | 90% | 85% | 61% | 112% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.35 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.16) %.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.16 | $28.69 | $28.58 | $42.40 | $37.92 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.11) | .13B | (.05) | .01 | (.15) |
Net realized and unrealized gain (loss) | 6.59 | (.66) | .19 | (11.93) | 6.57 |
Total from investment operations | 6.48 | (.53) | .14 | (11.92) | 6.42 |
Distributions from net investment income | (.24) | – | (.03) | (.03)C | (.01) |
Distributions from net realized gain | –D | – | – | (1.88)C | (1.93) |
Total distributions | (.25)E | – | (.03) | (1.90)F | (1.94) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
Net asset value, end of period | $34.39 | $28.16 | $28.69 | $28.58 | $42.40 |
Total ReturnG,H | 23.16% | (1.85)% | .52% | (29.44)% | 17.57% |
Ratios to Average Net AssetsI,J | |||||
Expenses before reductions | 1.84% | 1.82% | 1.84% | 1.85% | 1.86% |
Expenses net of fee waivers, if any | 1.83% | 1.81% | 1.84% | 1.85% | 1.86% |
Expenses net of all reductions | 1.83% | 1.80% | 1.83% | 1.85% | 1.86% |
Net investment income (loss) | (.37)% | .42%B | (.18)% | .02% | (.38)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $179,521 | $212,105 | $240,949 | $162,322 | $130,881 |
Portfolio turnover rateK | 56% | 90% | 85% | 61% | 112% |
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 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 contingent deferred sales charge.
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 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
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $32.36 | $32.78 | $32.62 | $48.05 | $42.55 |
Income from Investment Operations | |||||
Net investment income (loss)A | .23 | .50B | .25 | .39 | .28 |
Net realized and unrealized gain (loss) | 7.57 | (.75) | .20 | (13.56) | 7.42 |
Total from investment operations | 7.80 | (.25) | .45 | (13.17) | 7.70 |
Distributions from net investment income | (.58) | (.08) | (.29) | (.30)C | (.27) |
Distributions from net realized gain | –D | (.09) | – | (1.96)C | (1.93) |
Total distributions | (.59)E | (.17) | (.29) | (2.26) | (2.20) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
Net asset value, end of period | $39.57 | $32.36 | $32.78 | $32.62 | $48.05 |
Total ReturnF | 24.43% | (.86)% | 1.50% | (28.73)% | 18.80% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .83% | .81% | .85% | .85% | .85% |
Expenses net of fee waivers, if any | .83% | .81% | .85% | .85% | .85% |
Expenses net of all reductions | .82% | .80% | .83% | .85% | .85% |
Net investment income (loss) | .64% | 1.43%B | .82% | 1.02% | .63% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $373,714 | $277,385 | $193,683 | $130,308 | $110,795 |
Portfolio turnover rateI | 56% | 90% | 85% | 61% | 112% |
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 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 5.68% | 9.51% | 5.30% |
Class M (incl. 3.50% sales charge) | 7.93% | 9.73% | 5.28% |
Class C (incl. contingent deferred sales charge) | 10.29% | 10.01% | 5.15% |
Class I | 12.43% | 11.16% | 6.25% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Financial Services Fund - Class A on July 31, 2018, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405571659_740.jpg)
Period Ending Values | ||
$16,765 | Fidelity Advisor® Financial Services Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Financial Services Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Christopher Lee: For the year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 11% to 12%, in line with the 12.16% return of the MSCI U.S. IMI Financials 5% Capped Linked Index but trailing the 16.24% advance of the broad-based S&P 500®. Financials outperformed the broader market in the first half of the period, but then lagged in the second half amid rising inflation expectations and growing worries that the U.S. economy might slow. Security selection in investment banking & brokerage and in data processing & outsourced services, a group that is not in the MSCI sector index, helped relative performance. Top fund contributors included online broker E*TRADE Financial (+46%), which benefited from increased market volatility, rising interest rates and optimism the company might be sold. A non-index stake in fleet card company Wex returned 74%, helped by improved economic growth and higher oil prices that bolstered transaction volumes. By contrast, stock picks in the financial exchanges & data, property & casualty (P&C) insurance and consumer finance industries hindered relative performance. Individual detractors included the fund’s stake in P&C insurer Chubb (-9%), which was pressured by rising inflation expectations and higher catastrophe losses. Shares of private label credit card company Synchrony Financial (-3%) retreated ahead of Walmart’s July decision to sever ties with the company. E*TRADE, Chubb and Synchrony were sizable overweightings for the fund, on average. We eliminated Chubb from the portfolio before period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Citigroup, Inc. | 5.5 |
Bank of America Corp. | 5.4 |
Capital One Financial Corp. | 5.1 |
Huntington Bancshares, Inc. | 4.6 |
TD Ameritrade Holding Corp. | 4.4 |
Goldman Sachs Group, Inc. | 3.6 |
The Travelers Companies, Inc. | 3.6 |
PNC Financial Services Group, Inc. | 3.6 |
Hartford Financial Services Group, Inc. | 3.5 |
E*TRADE Financial Corp. | 3.3 |
42.6 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Banks | 34.9% | |
Capital Markets | 23.0% | |
Insurance | 21.3% | |
Consumer Finance | 10.4% | |
Diversified Financial Services | 3.2% | |
All Others* | 7.2% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Financial Services Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
Banks - 34.9% | |||
Diversified Banks - 16.2% | |||
Bank of America Corp. | 894,356 | $27,617,713 | |
Citigroup, Inc. | 391,605 | 28,152,482 | |
JPMorgan Chase & Co. | 116,131 | 13,349,258 | |
Wells Fargo & Co. | 238,578 | 13,668,134 | |
82,787,587 | |||
Regional Banks - 18.7% | |||
Bank of the Ozarks, Inc. | 117,800 | 4,818,020 | |
CoBiz, Inc. | 149,991 | 3,284,803 | |
East West Bancorp, Inc. | 100,000 | 6,474,000 | |
First Citizen Bancshares, Inc. | 6,100 | 2,481,602 | |
First Hawaiian, Inc. | 71,300 | 2,014,938 | |
First Horizon National Corp. | 428,400 | 7,664,076 | |
Huntington Bancshares, Inc. | 1,536,720 | 23,726,957 | |
M&T Bank Corp. | 53,600 | 9,291,560 | |
PNC Financial Services Group, Inc. | 128,031 | 18,542,730 | |
Popular, Inc. | 88,917 | 4,412,951 | |
Preferred Bank, Los Angeles | 21,300 | 1,325,712 | |
Signature Bank | 45,900 | 5,035,689 | |
SunTrust Banks, Inc. | 64,200 | 4,626,894 | |
United Community Bank, Inc. | 18,400 | 552,552 | |
Wintrust Financial Corp. | 17,700 | 1,552,821 | |
95,805,305 | |||
TOTAL BANKS | 178,592,892 | ||
Capital Markets - 23.0% | |||
Asset Management & Custody Banks - 6.4% | |||
Apollo Global Management LLC Class A | 142,900 | 5,072,950 | |
BlackRock, Inc. Class A | 22,300 | 11,211,548 | |
Northern Trust Corp. | 129,700 | 14,165,834 | |
Oaktree Capital Group LLC Class A | 46,000 | 1,952,700 | |
32,403,032 | |||
Financial Exchanges & Data - 2.8% | |||
Cboe Global Markets, Inc. | 80,973 | 7,864,907 | |
IntercontinentalExchange, Inc. | 89,320 | 6,601,641 | |
14,466,548 | |||
Investment Banking & Brokerage - 13.8% | |||
E*TRADE Financial Corp. (a) | 285,680 | 17,086,521 | |
Goldman Sachs Group, Inc. | 78,540 | 18,647,752 | |
Greenhill & Co., Inc. (b) | 19,200 | 627,840 | |
Hamilton Lane, Inc. Class A | 64,300 | 3,148,771 | |
Investment Technology Group, Inc. | 142,875 | 3,164,681 | |
Lazard Ltd. Class A | 53,600 | 2,910,480 | |
PJT Partners, Inc. | 46,400 | 2,793,744 | |
TD Ameritrade Holding Corp. | 390,300 | 22,305,645 | |
70,685,434 | |||
TOTAL CAPITAL MARKETS | 117,555,014 | ||
Consumer Finance - 10.4% | |||
Consumer Finance - 10.4% | |||
Capital One Financial Corp. | 278,438 | 26,262,272 | |
OneMain Holdings, Inc. (a) | 166,900 | 5,549,425 | |
SLM Corp. (a) | 808,200 | 9,124,578 | |
Synchrony Financial | 427,300 | 12,366,062 | |
53,302,337 | |||
Diversified Financial Services - 3.2% | |||
Multi-Sector Holdings - 3.2% | |||
Berkshire Hathaway, Inc. Class B (a) | 82,819 | 16,387,396 | |
Insurance - 21.3% | |||
Life & Health Insurance - 5.2% | |||
MetLife, Inc. | 323,700 | 14,806,038 | |
Torchmark Corp. | 132,080 | 11,632,286 | |
26,438,324 | |||
Multi-Line Insurance - 6.0% | |||
American International Group, Inc. | 232,100 | 12,814,241 | |
Hartford Financial Services Group, Inc. | 337,300 | 17,775,710 | |
30,589,951 | |||
Property & Casualty Insurance - 7.7% | |||
Aspen Insurance Holdings Ltd. | 13,400 | 542,030 | |
Axis Capital Holdings Ltd. | 53,500 | 3,025,960 | |
Beazley PLC | 357,000 | 2,628,736 | |
FNF Group | 206,850 | 8,377,425 | |
Hiscox Ltd. | 160,700 | 3,370,610 | |
RSA Insurance Group PLC | 350,400 | 2,962,789 | |
The Travelers Companies, Inc. | 143,000 | 18,610,020 | |
39,517,570 | |||
Reinsurance - 2.4% | |||
Reinsurance Group of America, Inc. | 86,400 | 12,225,600 | |
TOTAL INSURANCE | 108,771,445 | ||
IT Services - 2.2% | |||
Data Processing & Outsourced Services - 2.2% | |||
Adyen BV (c) | 300 | 191,680 | |
Visa, Inc. Class A | 42,820 | 5,855,207 | |
WEX, Inc. (a) | 28,600 | 5,428,852 | |
11,475,739 | |||
Mortgage Real Estate Investment Trusts - 1.0% | |||
Mortgage REITs - 1.0% | |||
AGNC Investment Corp. | 142,800 | 2,780,316 | |
MFA Financial, Inc. | 321,400 | 2,587,270 | |
5,367,586 | |||
Software - 0.7% | |||
Application Software - 0.7% | |||
Black Knight, Inc. (a) | 66,683 | 3,444,177 | |
Thrifts & Mortgage Finance - 1.4% | |||
Thrifts & Mortgage Finance - 1.4% | |||
MGIC Investment Corp. (a) | 404,000 | 5,041,920 | |
NMI Holdings, Inc. (a) | 40,600 | 848,540 | |
Radian Group, Inc. | 66,700 | 1,277,305 | |
7,167,765 | |||
TOTAL COMMON STOCKS | |||
(Cost $450,263,152) | 502,064,351 | ||
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund, 1.96% (d) | 11,801,752 | 11,804,112 | |
Fidelity Securities Lending Cash Central Fund 1.97% (d)(e) | 265,355 | 265,381 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $12,069,493) | 12,069,493 | ||
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $462,332,645) | 514,133,844 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (2,497,918) | ||
NET ASSETS - 100% | $511,635,926 |
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 $191,680 or 0.0% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $125,037 |
Fidelity Securities Lending Cash Central Fund | 1,145 |
Total | $126,182 |
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
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $264,870) — See accompanying schedule: Unaffiliated issuers (cost $450,263,152) | $502,064,351 | |
Fidelity Central Funds (cost $12,069,493) | 12,069,493 | |
Total Investment in Securities (cost $462,332,645) | $514,133,844 | |
Cash | 50,469 | |
Receivable for investments sold | 1,002,283 | |
Receivable for fund shares sold | 918,158 | |
Dividends receivable | 232,170 | |
Distributions receivable from Fidelity Central Funds | 17,984 | |
Prepaid expenses | 5,485 | |
Other receivables | 12,816 | |
Total assets | 516,373,209 | |
Liabilities | ||
Payable for investments purchased | $1,926,283 | |
Payable for fund shares redeemed | 2,009,921 | |
Accrued management fee | 228,989 | |
Distribution and service plan fees payable | 159,420 | |
Other affiliated payables | 103,663 | |
Other payables and accrued expenses | 43,732 | |
Collateral on securities loaned | 265,275 | |
Total liabilities | 4,737,283 | |
Net Assets | $511,635,926 | |
Net Assets consist of: | ||
Paid in capital | $450,540,198 | |
Undistributed net investment income | 817,591 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 8,476,938 | |
Net unrealized appreciation (depreciation) on investments | 51,801,199 | |
Net Assets | $511,635,926 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($174,786,078 ÷ 8,002,411 shares) | $21.84 | |
Maximum offering price per share (100/94.25 of $21.84) | $23.17 | |
Class M: | ||
Net Asset Value and redemption price per share ($53,178,448 ÷ 2,462,088 shares) | $21.60 | |
Maximum offering price per share (100/96.50 of $21.60) | $22.38 | |
Class C: | ||
Net Asset Value and offering price per share ($120,947,428 ÷ 5,926,321 shares)(a) | $20.41 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($162,723,972 ÷ 7,240,435 shares) | $22.47 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $7,586,877 | |
Income from Fidelity Central Funds (including $1,145 from security lending) | 126,182 | |
Total income | 7,713,059 | |
Expenses | ||
Management fee | $2,539,396 | |
Transfer agent fees | 963,492 | |
Distribution and service plan fees | 1,780,652 | |
Accounting and security lending fees | 181,564 | |
Custodian fees and expenses | 10,227 | |
Independent trustees' fees and expenses | 6,094 | |
Registration fees | 87,654 | |
Audit | 48,840 | |
Legal | 7,529 | |
Miscellaneous | 123,890 | |
Total expenses before reductions | 5,749,338 | |
Expense reductions | (32,570) | |
Total expenses after reductions | 5,716,768 | |
Net investment income (loss) | 1,996,291 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 33,134,302 | |
Fidelity Central Funds | (148) | |
Foreign currency transactions | 3,679 | |
Total net realized gain (loss) | 33,137,833 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 8,327,717 | |
Assets and liabilities in foreign currencies | 121 | |
Total change in net unrealized appreciation (depreciation) | 8,327,838 | |
Net gain (loss) | 41,465,671 | |
Net increase (decrease) in net assets resulting from operations | $43,461,962 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,996,291 | $974,795 |
Net realized gain (loss) | 33,137,833 | 22,817,692 |
Change in net unrealized appreciation (depreciation) | 8,327,838 | 38,934,675 |
Net increase (decrease) in net assets resulting from operations | 43,461,962 | 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) | 90,190,966 | 122,064,772 |
Redemption fees | – | 8,334 |
Total increase (decrease) in net assets | 132,190,024 | 184,298,108 |
Net Assets | ||
Beginning of period | 379,445,902 | 195,147,794 |
End of period | $511,635,926 | $379,445,902 |
Other Information | ||
Undistributed net investment income end of period | $817,591 | $357,795 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Financial Services Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.55 | $15.43 | $16.53 | $14.97 | $13.41 |
Income from Investment Operations | |||||
Net investment income (loss)A | .12 | .08 | .11 | .10 | .10 |
Net realized and unrealized gain (loss) | 2.25 | 4.08 | (1.13) | 1.59B | 1.55 |
Total from investment operations | 2.37 | 4.16 | (1.02) | 1.69 | 1.65 |
Distributions from net investment income | (.07) | (.04) | (.07) | (.13) | (.08) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) |
Total distributions | (.08) | (.04) | (.08) | (.13) | (.09) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $21.84 | $19.55 | $15.43 | $16.53 | $14.97 |
Total ReturnD,E | 12.13% | 26.97% | (6.15)% | 11.29%B | 12.39% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.10% | 1.12% | 1.15% | 1.17% | 1.22% |
Expenses net of fee waivers, if any | 1.10% | 1.12% | 1.15% | 1.17% | 1.22% |
Expenses net of all reductions | 1.09% | 1.12% | 1.15% | 1.17% | 1.22% |
Net investment income (loss) | .55% | .48% | .77% | .61% | .68% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $174,786 | $144,144 | $97,011 | $102,983 | $77,674 |
Portfolio turnover rateH | 46% | 81% | 63% | 44% | 49% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.97%
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.34 | $15.29 | $16.41 | $14.86 | $13.31 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .04 | .07 | .05 | .06 |
Net realized and unrealized gain (loss) | 2.23 | 4.03 | (1.13) | 1.58B | 1.55 |
Total from investment operations | 2.29 | 4.07 | (1.06) | 1.63 | 1.61 |
Distributions from net investment income | (.02) | (.02) | (.05) | (.08) | (.05) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) |
Total distributions | (.03) | (.02) | (.06) | (.08) | (.06) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $21.60 | $19.34 | $15.29 | $16.41 | $14.86 |
Total ReturnD,E | 11.84% | 26.63% | (6.43)% | 10.98%B | 12.10% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.37% | 1.40% | 1.45% | 1.45% | 1.48% |
Expenses net of fee waivers, if any | 1.37% | 1.40% | 1.45% | 1.45% | 1.48% |
Expenses net of all reductions | 1.36% | 1.40% | 1.44% | 1.45% | 1.48% |
Net investment income (loss) | .28% | .20% | .47% | .33% | .42% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $53,178 | $45,920 | $30,044 | $34,314 | $31,596 |
Portfolio turnover rateH | 46% | 81% | 63% | 44% | 49% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.66%
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.34 | $14.55 | $15.67 | $14.22 | $12.75 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.04) | (.05) | –B | (.02) | –B |
Net realized and unrealized gain (loss) | 2.11 | 3.84 | (1.08) | 1.51C | 1.48 |
Total from investment operations | 2.07 | 3.79 | (1.08) | 1.49 | 1.48 |
Distributions from net investment income | – | –B | (.03) | (.04) | (.01) |
Distributions from net realized gain | – | – | (.01) | – | – |
Total distributions | – | –B | (.04) | (.04) | (.01) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $20.41 | $18.34 | $14.55 | $15.67 | $14.22 |
Total ReturnD,E | 11.29% | 26.06% | (6.88)% | 10.45%C | 11.65% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.86% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of fee waivers, if any | 1.85% | 1.87% | 1.90% | 1.90% | 1.94% |
Expenses net of all reductions | 1.85% | 1.87% | 1.89% | 1.90% | 1.93% |
Net investment income (loss) | (.20)% | (.27)% | .02% | (.12)% | (.03)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $120,947 | $92,593 | $47,505 | $50,206 | $36,740 |
Portfolio turnover rateH | 46% | 81% | 63% | 44% | 49% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.13%
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.11 | $15.84 | $16.94 | $15.34 | $13.73 |
Income from Investment Operations | |||||
Net investment income (loss)A | .18 | .14 | .17 | .15 | .15 |
Net realized and unrealized gain (loss) | 2.32 | 4.19 | (1.17) | 1.62B | 1.60 |
Total from investment operations | 2.50 | 4.33 | (1.00) | 1.77 | 1.75 |
Distributions from net investment income | (.13) | (.06) | (.09) | (.17) | (.13) |
Distributions from net realized gain | (.01) | – | (.01) | – | (.01) |
Total distributions | (.14) | (.06) | (.10) | (.17) | (.14) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $22.47 | $20.11 | $15.84 | $16.94 | $15.34 |
Total ReturnD | 12.43% | 27.36% | (5.89)% | 11.61%B | 12.85% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .83% | .84% | .85% | .84% | .87% |
Expenses net of fee waivers, if any | .83% | .84% | .85% | .84% | .87% |
Expenses net of all reductions | .82% | .83% | .84% | .84% | .86% |
Net investment income (loss) | .83% | .76% | 1.07% | .94% | 1.04% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $162,724 | $96,789 | $20,588 | $42,443 | $16,164 |
Portfolio turnover rateG | 46% | 81% | 63% | 44% | 49% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 11.29%
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 12.92% | 15.04% | 15.14% |
Class M (incl. 3.50% sales charge) | 15.28% | 15.28% | 15.10% |
Class C (incl. contingent deferred sales charge) | 17.89% | 15.54% | 14.96% |
Class I | 20.09% | 16.71% | 16.12% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Health Care Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405571999_740.jpg)
Period Ending Values | ||
$40,936 | Fidelity Advisor® Health Care Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Health Care Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Eddie Yoon: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) advanced in a range roughly between 19% and 20%, comfortably outpacing the 15.46% result of the MSCI U.S. IMI Health Care 25/50 Index, as well as the broad-market S&P 500® index. Health care companies generally benefited from continued strong demand for products and services, strong fundamentals and financial results, among other factors. Versus the MSCI sector index, the fund generally benefited from owning more-opportunistic stocks and avoiding some more-defensive index names. From an industry standpoint, our stock picks in biotechnology made the biggest contribution to the fund’s relative result. Our positioning in the health care equipment and health care distributors industries also added value. Meanwhile, stock picking in pharmaceuticals held back fund performance this period, as did a significant underweighting in the strong-performing life sciences tools & services group. Among individual stocks, the fund’s out-of-index stake in Belgium-based biotech firm Ablynx (+264%) was its biggest relative contributor. We sold our position in Ablynx during the period. It also helped to avoid lagging index components Celgene (-33%), a biotech firm, and diversified health care products company Johnson & Johnson (+2%). Conversely, an overweighting in pharmaceutical firm Allergan (-26%) was the fund’s biggest individual detractor. An large stake in bio/pharma company Tesaro (-73%) also hurt.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Health Care Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
UnitedHealth Group, Inc. | 9.9 |
Becton, Dickinson & Co. | 7.6 |
Boston Scientific Corp. | 6.9 |
Humana, Inc. | 4.8 |
Amgen, Inc. | 4.0 |
AstraZeneca PLC (United Kingdom) | 3.5 |
HCA Holdings, Inc. | 3.1 |
Baxter International, Inc. | 2.8 |
Alexion Pharmaceuticals, Inc. | 2.5 |
Cigna Corp. | 2.5 |
47.6 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Health Care Equipment & Supplies | 30.4% | |
Health Care Providers & Services | 25.6% | |
Biotechnology | 23.6% | |
Pharmaceuticals | 14.7% | |
Health Care Technology | 1.3% | |
All Others* | 4.4% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Health Care Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
Biotechnology - 23.4% | |||
Biotechnology - 23.4% | |||
Abeona Therapeutics, Inc. (a)(b) | 760,000 | $10,982,000 | |
AC Immune SA (a) | 410,460 | 3,960,939 | |
Acceleron Pharma, Inc. (a) | 260,000 | 11,325,600 | |
Acorda Therapeutics, Inc. (a) | 440,000 | 10,978,000 | |
Alexion Pharmaceuticals, Inc. (a) | 620,000 | 82,435,200 | |
Alnylam Pharmaceuticals, Inc. (a) | 242,700 | 23,056,500 | |
Amgen, Inc. | 664,000 | 130,509,200 | |
AnaptysBio, Inc. (a) | 192,300 | 15,060,936 | |
Argenx SE ADR (a) | 238,200 | 21,616,650 | |
Ascendis Pharma A/S sponsored ADR (a) | 295,144 | 20,052,083 | |
Atara Biotherapeutics, Inc. (a) | 500,000 | 18,775,000 | |
Audentes Therapeutics, Inc. (a) | 130,200 | 4,902,030 | |
BeiGene Ltd. ADR (a) | 200,000 | 37,932,000 | |
Biogen, Inc. (a) | 62,000 | 20,730,940 | |
bluebird bio, Inc. (a) | 110,730 | 17,152,077 | |
Blueprint Medicines Corp. (a) | 356,500 | 21,226,010 | |
Cellectis SA sponsored ADR (a) | 256,226 | 7,404,931 | |
CytomX Therapeutics, Inc. (a) | 195,231 | 5,142,385 | |
FibroGen, Inc. (a) | 150,000 | 9,465,000 | |
Five Prime Therapeutics, Inc. (a) | 260,000 | 3,874,000 | |
GlycoMimetics, Inc. (a) | 500,000 | 7,345,000 | |
GTx, Inc. (a) | 55,802 | 910,689 | |
Insmed, Inc. (a) | 1,052,800 | 26,183,136 | |
Intercept Pharmaceuticals, Inc. (a) | 119,144 | 10,858,784 | |
La Jolla Pharmaceutical Co. (a)(b) | 240,000 | 7,936,800 | |
Neurocrine Biosciences, Inc. (a) | 520,000 | 52,254,800 | |
Sage Therapeutics, Inc. (a) | 7,600 | 1,096,832 | |
Sarepta Therapeutics, Inc. (a) | 604,300 | 70,243,832 | |
Spark Therapeutics, Inc. (a) | 42,810 | 3,284,383 | |
TESARO, Inc. (a)(b) | 290,000 | 10,100,700 | |
uniQure B.V. (a) | 234,682 | 7,249,327 | |
Vertex Pharmaceuticals, Inc. (a) | 408,000 | 71,420,400 | |
Xencor, Inc. (a) | 459,700 | 17,110,034 | |
Zai Lab Ltd. ADR (b) | 303,700 | 6,657,104 | |
769,233,302 | |||
Diversified Consumer Services - 0.2% | |||
Specialized Consumer Services - 0.2% | |||
Carriage Services, Inc. | 240,000 | 5,997,600 | |
Health Care Equipment & Supplies - 30.4% | |||
Health Care Equipment - 29.2% | |||
Atricure, Inc. (a) | 650,000 | 18,622,500 | |
Baxter International, Inc. | 1,290,000 | 93,460,500 | |
Becton, Dickinson & Co. | 1,000,000 | 250,370,000 | |
Boston Scientific Corp. (a) | 6,750,000 | 226,867,500 | |
Danaher Corp. | 200,000 | 20,516,000 | |
DexCom, Inc. (a) | 190,000 | 18,074,700 | |
Edwards Lifesciences Corp. (a) | 22,000 | 3,133,900 | |
Fisher & Paykel Healthcare Corp. | 1,000,000 | 10,087,680 | |
Insulet Corp. (a) | 472,700 | 39,309,732 | |
Integra LifeSciences Holdings Corp. (a) | 760,000 | 47,370,800 | |
Intuitive Surgical, Inc. (a) | 160,000 | 81,310,400 | |
Penumbra, Inc. (a) | 240,000 | 34,140,000 | |
Stryker Corp. | 480,000 | 78,360,000 | |
Wright Medical Group NV (a) | 1,500,000 | 38,145,000 | |
959,768,712 | |||
Health Care Supplies - 1.2% | |||
Align Technology, Inc. (a) | 108,000 | 38,518,200 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 998,286,912 | ||
Health Care Providers & Services - 25.5% | |||
Health Care Distributors & Services - 2.5% | |||
Amplifon SpA | 400,000 | 8,961,898 | |
EBOS Group Ltd. | 1,274,589 | 17,548,949 | |
Henry Schein, Inc. (a) | 680,000 | 53,998,800 | |
80,509,647 | |||
Health Care Facilities - 3.1% | |||
HCA Holdings, Inc. | 830,000 | 103,110,900 | |
Health Care Services - 1.6% | |||
Diplomat Pharmacy, Inc. (a) | 500,000 | 10,390,000 | |
G1 Therapeutics, Inc. (a) | 327,200 | 16,801,720 | |
Premier, Inc. (a) | 280,000 | 10,472,000 | |
United Drug PLC (United Kingdom) | 1,280,000 | 14,112,538 | |
51,776,258 | |||
Managed Health Care - 18.3% | |||
Cigna Corp. | 455,000 | 81,636,100 | |
Humana, Inc. | 508,000 | 159,603,440 | |
Molina Healthcare, Inc. (a) | 220,000 | 22,899,800 | |
Notre Dame Intermedica Participacoes SA | 1,900,000 | 12,402,419 | |
UnitedHealth Group, Inc. | 1,290,000 | 326,653,801 | |
603,195,560 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 838,592,365 | ||
Health Care Technology - 1.3% | |||
Health Care Technology - 1.3% | |||
Castlight Health, Inc. (a) | 336,800 | 1,111,440 | |
Castlight Health, Inc. Class B (a) | 551,100 | 1,818,630 | |
Teladoc, Inc. (a)(b) | 690,000 | 41,296,500 | |
44,226,570 | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
Benefitfocus, Inc. (a) | 722,015 | 21,732,652 | |
Life Sciences Tools & Services - 1.2% | |||
Life Sciences Tools & Services - 1.2% | |||
Lonza Group AG | 80,000 | 24,666,970 | |
Morphosys AG (a) | 107,300 | 14,102,969 | |
38,769,939 | |||
Pharmaceuticals - 14.7% | |||
Pharmaceuticals - 14.7% | |||
Allergan PLC | 155,000 | 28,533,950 | |
Amneal Pharmaceuticals, Inc. (a) | 200,000 | 3,834,000 | |
Amneal Pharmaceuticals, Inc. (c) | 675,676 | 12,952,709 | |
AstraZeneca PLC (United Kingdom) | 1,511,000 | 116,311,154 | |
Bristol-Myers Squibb Co. | 180,000 | 10,575,000 | |
Dechra Pharmaceuticals PLC | 960,000 | 37,625,033 | |
Indivior PLC (a) | 2,700,000 | 10,837,200 | |
Jazz Pharmaceuticals PLC (a) | 90,000 | 15,577,200 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 1,800,000 | 18,196,310 | |
Mylan NV (a) | 580,000 | 21,639,800 | |
MyoKardia, Inc. (a) | 142,400 | 8,173,760 | |
Nektar Therapeutics (a) | 860,000 | 45,236,000 | |
Perrigo Co. PLC | 540,000 | 43,480,800 | |
Recordati SpA | 241,324 | 9,024,507 | |
Roche Holding AG (participation certificate) | 220,000 | 54,042,232 | |
RPI International Holdings LP (a)(c)(d) | 61,683 | 8,812,959 | |
The Medicines Company (a) | 454,652 | 18,063,324 | |
Theravance Biopharma, Inc. (a)(b) | 543,635 | 13,020,058 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 2,800,000 | 8,955,627 | |
484,891,623 | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Textiles - 0.0% | |||
Scholar Rock Holding Corp. | 17,200 | 279,328 | |
TOTAL COMMON STOCKS | |||
(Cost $2,293,992,150) | 3,202,010,291 | ||
Convertible Preferred Stocks - 0.5% | |||
Biotechnology - 0.2% | |||
Biotechnology - 0.2% | |||
BioNTech AG Series A (c)(d) | 27,793 | 5,932,178 | |
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
1Life Healthcare, Inc. Series G (a)(c)(d) | 322,145 | 2,461,188 | |
Software - 0.1% | |||
Application Software - 0.1% | |||
Outset Medical, Inc. Series C (a)(c)(d) | 1,003,280 | 3,120,201 | |
Textiles, Apparel & Luxury Goods - 0.1% | |||
Textiles - 0.1% | |||
Generation Bio Series B (c)(d) | 52,700 | 481,978 | |
Harmony Biosciences II, Inc. Series A (c)(d) | 4,262,580 | 4,262,580 | |
4,744,558 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $15,553,048) | 16,258,125 | ||
Money Market Funds - 2.2% | |||
Fidelity Cash Central Fund, 1.96% (e) | 57,137,636 | 57,149,063 | |
Fidelity Securities Lending Cash Central Fund 1.97% (e)(f) | 15,817,040 | 15,818,622 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $72,967,685) | 72,967,685 | ||
TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
(Cost $2,382,512,883) | 3,291,236,101 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (3,302,597) | ||
NET ASSETS - 100% | $3,287,933,504 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $38,023,793 or 1.2% of net assets.
(d) Level 3 security
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(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 |
Amneal Pharmaceuticals, Inc. | 5/4/18 | $12,331,087 |
BioNTech AG Series A | 12/29/17 | $6,086,907 |
Generation Bio Series B | 2/21/18 | $481,978 |
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 | $714,389 |
Fidelity Securities Lending Cash Central Fund | 739,949 |
Total | $1,454,338 |
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 July 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 | $3,202,010,291 | $3,022,843,946 | $170,353,386 | $8,812,959 |
Convertible Preferred Stocks | 16,258,125 | -- | -- | 16,258,125 |
Money Market Funds | 72,967,685 | 72,967,685 | -- | -- |
Total Investments in Securities: | $3,291,236,101 | $3,095,811,631 | $170,353,386 | $25,071,084 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 80.4% |
United Kingdom | 4.9% |
Ireland | 3.2% |
Netherlands | 2.8% |
Switzerland | 2.5% |
Cayman Islands | 2.1% |
Others (Individually Less Than 1%) | 4.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $15,652,293) — See accompanying schedule: Unaffiliated issuers (cost $2,309,545,198) | $3,218,268,416 | |
Fidelity Central Funds (cost $72,967,685) | 72,967,685 | |
Total Investment in Securities (cost $2,382,512,883) | $3,291,236,101 | |
Receivable for investments sold | 24,986,011 | |
Receivable for fund shares sold | 6,380,084 | |
Dividends receivable | 713,787 | |
Distributions receivable from Fidelity Central Funds | 112,691 | |
Prepaid expenses | 29,901 | |
Other receivables | 119,767 | |
Total assets | 3,323,578,342 | |
Liabilities | ||
Payable for investments purchased | $14,800,021 | |
Payable for fund shares redeemed | 2,033,554 | |
Accrued management fee | 1,463,561 | |
Distribution and service plan fees payable | 890,010 | |
Other affiliated payables | 571,023 | |
Other payables and accrued expenses | 74,244 | |
Collateral on securities loaned | 15,812,425 | |
Total liabilities | 35,644,838 | |
Net Assets | $3,287,933,504 | |
Net Assets consist of: | ||
Paid in capital | $2,266,875,195 | |
Accumulated net investment loss | (7,538,744) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 119,892,834 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 908,704,219 | |
Net Assets | $3,287,933,504 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,003,429,857 ÷ 20,013,993 shares) | $50.14 | |
Maximum offering price per share (100/94.25 of $50.14) | $53.20 | |
Class M: | ||
Net Asset Value and redemption price per share ($298,060,752 ÷ 6,356,039 shares) | $46.89 | |
Maximum offering price per share (100/96.50 of $46.89) | $48.59 | |
Class C: | ||
Net Asset Value and offering price per share ($669,638,713 ÷ 16,653,444 shares)(a) | $40.21 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,316,804,182 ÷ 24,190,604 shares) | $54.43 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $23,544,607 | |
Income from Fidelity Central Funds (including $739,949 from security lending) | 1,454,338 | |
Total income | 24,998,945 | |
Expenses | ||
Management fee | $15,403,120 | |
Transfer agent fees | 5,439,708 | |
Distribution and service plan fees | 9,860,024 | |
Accounting and security lending fees | 855,684 | |
Custodian fees and expenses | 78,154 | |
Independent trustees' fees and expenses | 39,401 | |
Registration fees | 126,042 | |
Audit | 50,573 | |
Legal | 36,323 | |
Miscellaneous | 688,712 | |
Total expenses before reductions | 32,577,741 | |
Expense reductions | (325,369) | |
Total expenses after reductions | 32,252,372 | |
Net investment income (loss) | (7,253,427) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 188,602,511 | |
Fidelity Central Funds | 4,960 | |
Foreign currency transactions | (138,459) | |
Total net realized gain (loss) | 188,469,012 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 338,724,135 | |
Fidelity Central Funds | (3,898) | |
Assets and liabilities in foreign currencies | (19,965) | |
Total change in net unrealized appreciation (depreciation) | 338,700,272 | |
Net gain (loss) | 527,169,284 | |
Net increase (decrease) in net assets resulting from operations | $519,915,857 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(7,253,427) | $(5,993,802) |
Net realized gain (loss) | 188,469,012 | 38,032,674 |
Change in net unrealized appreciation (depreciation) | 338,700,272 | 178,567,888 |
Net increase (decrease) in net assets resulting from operations | 519,915,857 | 210,606,760 |
Distributions to shareholders from net realized gain | (585,049) | – |
Share transactions - net increase (decrease) | 93,098,490 | (342,516,356) |
Redemption fees | – | 20,759 |
Total increase (decrease) in net assets | 612,429,298 | (131,888,837) |
Net Assets | ||
Beginning of period | 2,675,504,206 | 2,807,393,043 |
End of period | $3,287,933,504 | $2,675,504,206 |
Other Information | ||
Accumulated net investment loss end of period | $(7,538,744) | $(17) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Health Care Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.85 | $38.23 | $45.17 | $37.72 | $31.29 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | (.04) | (.09) | (.19) | (.18) |
Net realized and unrealized gain (loss) | 8.36 | 3.66 | (4.30) | 12.03 | 10.13 |
Total from investment operations | 8.29 | 3.62 | (4.39) | 11.84 | 9.95 |
Distributions from net realized gain | – | – | (2.55) | (4.39) | (3.52) |
Total distributions | – | – | (2.55) | (4.39) | (3.52) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $50.14 | $41.85 | $38.23 | $45.17 | $37.72 |
Total ReturnC,D | 19.81% | 9.47% | (9.82)% | 34.07% | 34.79% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.05% | 1.04% | 1.04% | 1.04% | 1.08% |
Expenses net of fee waivers, if any | 1.05% | 1.04% | 1.04% | 1.04% | 1.08% |
Expenses net of all reductions | 1.04% | 1.04% | 1.04% | 1.04% | 1.07% |
Net investment income (loss) | (.16)% | (.10)% | (.25)% | (.45)% | (.54)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,003,430 | $875,176 | $1,159,614 | $1,374,654 | $613,995 |
Portfolio turnover rateG | 81% | 64% | 67% | 80% | 111% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.25 | $35.95 | $42.68 | $35.87 | $29.91 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.18) | (.13) | (.18) | (.28) | (.26) |
Net realized and unrealized gain (loss) | 7.82 | 3.43 | (4.06) | 11.39 | 9.67 |
Total from investment operations | 7.64 | 3.30 | (4.24) | 11.11 | 9.41 |
Distributions from net realized gain | – | – | (2.49) | (4.30) | (3.45) |
Total distributions | – | – | (2.49) | (4.30) | (3.45) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $46.89 | $39.25 | $35.95 | $42.68 | $35.87 |
Total ReturnC,D | 19.46% | 9.18% | (10.05)% | 33.69% | 34.49% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.32% | 1.31% | 1.31% | 1.31% | 1.34% |
Expenses net of fee waivers, if any | 1.32% | 1.31% | 1.31% | 1.31% | 1.34% |
Expenses net of all reductions | 1.31% | 1.31% | 1.31% | 1.30% | 1.34% |
Net investment income (loss) | (.43)% | (.37)% | (.52)% | (.72)% | (.80)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $298,061 | $269,332 | $293,556 | $348,886 | $216,973 |
Portfolio turnover rateG | 81% | 64% | 67% | 80% | 111% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $33.82 | $31.12 | $37.45 | $32.03 | $27.11 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.33) | (.26) | (.30) | (.41) | (.38) |
Net realized and unrealized gain (loss) | 6.72 | 2.96 | (3.57) | 10.05 | 8.68 |
Total from investment operations | 6.39 | 2.70 | (3.87) | 9.64 | 8.30 |
Distributions from net realized gain | – | – | (2.46) | (4.22) | (3.38) |
Total distributions | – | – | (2.46) | (4.22) | (3.38) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $40.21 | $33.82 | $31.12 | $37.45 | $32.03 |
Total ReturnC,D | 18.89% | 8.68% | (10.50)% | 33.04% | 33.83% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.80% | 1.79% | 1.79% | 1.79% | 1.83% |
Expenses net of fee waivers, if any | 1.80% | 1.79% | 1.79% | 1.79% | 1.83% |
Expenses net of all reductions | 1.79% | 1.79% | 1.79% | 1.79% | 1.82% |
Net investment income (loss) | (.91)% | (.85)% | (1.00)% | (1.20)% | (1.29)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $669,639 | $619,991 | $695,374 | $761,070 | $257,859 |
Portfolio turnover rateG | 81% | 64% | 67% | 80% | 111% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $45.35 | $41.31 | $48.53 | $40.22 | $33.12 |
Income from Investment Operations | |||||
Net investment income (loss)A | .05 | .07 | –B | (.09) | (.10) |
Net realized and unrealized gain (loss) | 9.06 | 3.97 | (4.62) | 12.88 | 10.80 |
Total from investment operations | 9.11 | 4.04 | (4.62) | 12.79 | 10.70 |
Distributions from net realized gain | (.03) | – | (2.60) | (4.48) | (3.60) |
Total distributions | (.03) | – | (2.60) | (4.48) | (3.60) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $54.43 | $45.35 | $41.31 | $48.53 | $40.22 |
Total ReturnC | 20.09% | 9.78% | (9.60)% | 34.40% | 35.21% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .79% | .78% | .78% | .79% | .81% |
Expenses net of fee waivers, if any | .79% | .78% | .78% | .79% | .81% |
Expenses net of all reductions | .78% | .78% | .78% | .78% | .81% |
Net investment income (loss) | .10% | .16% | .01% | (.20)% | (.27)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,316,804 | $911,005 | $658,848 | $832,415 | $292,654 |
Portfolio turnover rateF | 81% | 64% | 67% | 80% | 111% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 9.30% | 9.49% | 9.90% |
Class M (incl. 3.50% sales charge) | 11.65% | 9.73% | 9.88% |
Class C (incl. contingent deferred sales charge) | 14.13% | 9.97% | 9.72% |
Class I | 16.30% | 11.10% | 10.85% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Industrials Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405571489_740.jpg)
Period Ending Values | ||
$25,693 | Fidelity Advisor® Industrials Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Industrials Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Tobias Welo: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 15% to 16%, outpacing the 14.67% return of the MSCI U.S. IMI Industrials 25/50 Index, but mostly trailing the S&P 500®. Versus the MSCI index, a sizable underweighting in industrial conglomerates – mainly due to relatively less exposure to weak-performing General Electric (-45%) – provided a meaningful performance boost for the fund. GE’s shares had a sizable meltdown amid a change of leadership, its first dividend cut since 2009 and, in the third quarter of 2017, its largest quarterly earnings miss in roughly 17 years. Positioning in construction machinery & heavy trucks also helped, as did our picks in construction & engineering. In the former category, the major boost came from our overweighted stake in Caterpillar (+29%). An out-of-index position in Canada-based commercial jet manufacturer Bombardier (+65%) – which I purchased in January – also aided our relative result. Conversely, positioning in trading companies & distributors, as well as in security & alarm services, detracted. Choices in aerospace & defense and research & consulting services were additional negatives. Among individual stocks, an underweighting in the strong-performing shares of aircraft manufacturer and defense contractor Boeing (+50%) was the fund’s largest relative detractor. Rail-freight hauler CSX (+45%), where we had an underweighting, also worked against us and I exited the position. Home security provider ADT (-11%) – a non-index position I bought and then sold off entirely during the period – detracted as well.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On February 9, 2018, shareholders approved proposals from the Board of Trustees to eliminate certain sector/industry funds’ fundamental “invests primarily” policies and to modify the fundamental concentration policies for certain funds. The changes took effect on March 1, 2018, and do not impact how the funds are managed.Fidelity Advisor® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
United Technologies Corp. | 6.6 |
Honeywell International, Inc. | 5.7 |
Union Pacific Corp. | 5.3 |
General Electric Co. | 5.0 |
Northrop Grumman Corp. | 4.7 |
The Boeing Co. | 3.9 |
General Dynamics Corp. | 3.7 |
Ingersoll-Rand PLC | 3.2 |
Fortive Corp. | 3.0 |
Caterpillar, Inc. | 2.6 |
43.7 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Aerospace & Defense | 28.5% | |
Machinery | 20.3% | |
Industrial Conglomerates | 12.0% | |
Road & Rail | 9.5% | |
Electrical Equipment | 7.1% | |
All Others* | 22.6% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Industrials Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 100.0% | |||
Shares | Value | ||
Aerospace & Defense - 28.5% | |||
Aerospace & Defense - 28.5% | |||
Bombardier, Inc. Class B (sub. vtg.) (a) | 2,759,700 | $10,395,149 | |
General Dynamics Corp. | 153,862 | 30,735,473 | |
Huntington Ingalls Industries, Inc. | 64,600 | 15,055,030 | |
Moog, Inc. Class A | 60,500 | 4,538,105 | |
Northrop Grumman Corp. | 129,200 | 38,823,308 | |
Raytheon Co. | 100,300 | 19,862,409 | |
Spirit AeroSystems Holdings, Inc. Class A | 76,700 | 7,152,275 | |
Teledyne Technologies, Inc. (a) | 30,765 | 6,750,456 | |
Textron, Inc. | 134,400 | 9,175,488 | |
The Boeing Co. | 91,900 | 32,743,970 | |
TransDigm Group, Inc. | 19,900 | 7,473,246 | |
United Technologies Corp. | 404,051 | 54,845,883 | |
237,550,792 | |||
Air Freight & Logistics - 3.6% | |||
Air Freight & Logistics - 3.6% | |||
FedEx Corp. | 79,100 | 19,448,317 | |
XPO Logistics, Inc. (a) | 102,500 | 10,221,300 | |
29,669,617 | |||
Airlines - 4.5% | |||
Airlines - 4.5% | |||
Delta Air Lines, Inc. | 226,500 | 12,326,130 | |
Southwest Airlines Co. | 287,700 | 16,732,632 | |
Spirit Airlines, Inc. (a) | 195,800 | 8,505,552 | |
37,564,314 | |||
Building Products - 2.0% | |||
Building Products - 2.0% | |||
A.O. Smith Corp. | 76,784 | 4,570,952 | |
Masco Corp. | 309,200 | 12,470,036 | |
17,040,988 | |||
Commercial Services & Supplies - 3.5% | |||
Diversified Support Services - 1.8% | |||
Cintas Corp. | 72,100 | 14,743,008 | |
Environmental & Facility Services - 1.7% | |||
Waste Connection, Inc. (United States) | 185,100 | 14,365,611 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 29,108,619 | ||
Construction & Engineering - 3.9% | |||
Construction & Engineering - 3.9% | |||
Fluor Corp. | 212,500 | 10,890,625 | |
Jacobs Engineering Group, Inc. | 215,900 | 14,601,317 | |
KBR, Inc. | 346,600 | 6,925,068 | |
32,417,010 | |||
Electrical Equipment - 7.1% | |||
Electrical Components & Equipment - 6.7% | |||
Acuity Brands, Inc. | 30,900 | 4,296,027 | |
AMETEK, Inc. | 118,226 | 9,197,983 | |
Emerson Electric Co. | 238,700 | 17,253,236 | |
Fortive Corp. | 304,166 | 24,965,945 | |
55,713,191 | |||
Heavy Electrical Equipment - 0.4% | |||
Melrose Industries PLC | 1,235,402 | 3,500,877 | |
TOTAL ELECTRICAL EQUIPMENT | 59,214,068 | ||
Industrial Conglomerates - 12.0% | |||
Industrial Conglomerates - 12.0% | |||
3M Co. | 4,300 | 912,976 | |
General Electric Co. | 3,043,748 | 41,486,285 | |
Honeywell International, Inc. | 298,933 | 47,724,653 | |
ITT, Inc. | 180,200 | 10,211,934 | |
100,335,848 | |||
Machinery - 20.3% | |||
Agricultural & Farm Machinery - 1.5% | |||
Deere & Co. | 85,400 | 12,365,066 | |
Construction Machinery & Heavy Trucks - 7.4% | |||
Allison Transmission Holdings, Inc. | 452,800 | 21,281,600 | |
Caterpillar, Inc. | 153,900 | 22,130,820 | |
PACCAR, Inc. | 95,900 | 6,302,548 | |
WABCO Holdings, Inc. (a) | 47,100 | 5,919,528 | |
Wabtec Corp. (b) | 61,100 | 6,740,552 | |
62,375,048 | |||
Industrial Machinery - 11.4% | |||
Flowserve Corp. | 142,000 | 6,294,860 | |
Gardner Denver Holdings, Inc. (a) | 449,600 | 12,863,056 | |
IDEX Corp. | 37,429 | 5,748,346 | |
Ingersoll-Rand PLC | 268,500 | 26,449,935 | |
Lincoln Electric Holdings, Inc. | 61,400 | 5,767,916 | |
Parker Hannifin Corp. | 50,200 | 8,486,310 | |
Snap-On, Inc. | 113,900 | 19,316,301 | |
The Weir Group PLC | 145,600 | 3,723,725 | |
Xylem, Inc. | 81,900 | 6,270,264 | |
94,920,713 | |||
TOTAL MACHINERY | 169,660,827 | ||
Professional Services - 2.8% | |||
Research & Consulting Services - 2.8% | |||
Equifax, Inc. | 6,400 | 803,200 | |
IHS Markit Ltd. (a) | 263,600 | 13,978,708 | |
Nielsen Holdings PLC | 359,500 | 8,469,820 | |
23,251,728 | |||
Road & Rail - 9.5% | |||
Railroads - 8.1% | |||
Genesee & Wyoming, Inc. Class A (a) | 63,900 | 5,495,400 | |
Norfolk Southern Corp. | 106,000 | 17,914,000 | |
Union Pacific Corp. | 293,400 | 43,977,726 | |
67,387,126 | |||
Trucking - 1.4% | |||
J.B. Hunt Transport Services, Inc. | 44,884 | 5,381,592 | |
Knight-Swift Transportation Holdings, Inc. Class A | 187,800 | 6,112,890 | |
11,494,482 | |||
TOTAL ROAD & RAIL | 78,881,608 | ||
Specialty Retail - 1.0% | |||
Home Improvement Retail - 1.0% | |||
Lowe's Companies, Inc. | 85,500 | 8,493,570 | |
Trading Companies & Distributors - 1.3% | |||
Trading Companies & Distributors - 1.3% | |||
Bunzl PLC | 134,700 | 4,004,531 | |
Univar, Inc. (a) | 258,900 | 7,117,161 | |
11,121,692 | |||
TOTAL COMMON STOCKS | |||
(Cost $631,570,508) | 834,310,681 | ||
Money Market Funds - 0.9% | |||
Fidelity Cash Central Fund, 1.96% (c) | 1,369,709 | 1,369,983 | |
Fidelity Securities Lending Cash Central Fund 1.97% (c)(d) | 6,407,358 | 6,407,999 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,777,982) | 7,777,982 | ||
TOTAL INVESTMENT IN SECURITIES - 100.9% | |||
(Cost $639,348,490) | 842,088,663 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (7,594,256) | ||
NET ASSETS - 100% | $834,494,407 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $76,571 |
Fidelity Securities Lending Cash Central Fund | 34,062 |
Total | $110,633 |
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 | 89.9% |
Ireland | 3.2% |
Canada | 2.9% |
United Kingdom | 2.3% |
Bermuda | 1.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,354,432) — See accompanying schedule: Unaffiliated issuers (cost $631,570,508) | $834,310,681 | |
Fidelity Central Funds (cost $7,777,982) | 7,777,982 | |
Total Investment in Securities (cost $639,348,490) | $842,088,663 | |
Receivable for investments sold | 1,512,303 | |
Receivable for fund shares sold | 755,003 | |
Dividends receivable | 620,776 | |
Distributions receivable from Fidelity Central Funds | 10,843 | |
Prepaid expenses | 9,089 | |
Other receivables | 18,905 | |
Total assets | 845,015,582 | |
Liabilities | ||
Payable for investments purchased | $1,497,018 | |
Payable for fund shares redeemed | 1,846,411 | |
Accrued management fee | 366,771 | |
Distribution and service plan fees payable | 203,965 | |
Other affiliated payables | 154,632 | |
Other payables and accrued expenses | 44,378 | |
Collateral on securities loaned | 6,408,000 | |
Total liabilities | 10,521,175 | |
Net Assets | $834,494,407 | |
Net Assets consist of: | ||
Paid in capital | $578,400,440 | |
Undistributed net investment income | 889,880 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 52,463,914 | |
Net unrealized appreciation (depreciation) on investments | 202,740,173 | |
Net Assets | $834,494,407 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($303,200,684 ÷ 7,113,290 shares) | $42.62 | |
Maximum offering price per share (100/94.25 of $42.62) | $45.22 | |
Class M: | ||
Net Asset Value and redemption price per share ($72,142,754 ÷ 1,732,199 shares) | $41.65 | |
Maximum offering price per share (100/96.50 of $41.65) | $43.16 | |
Class C: | ||
Net Asset Value and offering price per share ($138,249,138 ÷ 3,629,677 shares)(a) | $38.09 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($320,901,831 ÷ 7,155,770 shares) | $44.85 |
(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
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $11,586,541 | |
Income from Fidelity Central Funds (including $34,062 from security lending) | 110,633 | |
Total income | 11,697,174 | |
Expenses | ||
Management fee | $4,597,331 | |
Transfer agent fees | 1,616,308 | |
Distribution and service plan fees | 2,599,570 | |
Accounting and security lending fees | 292,320 | |
Custodian fees and expenses | 15,259 | |
Independent trustees' fees and expenses | 12,142 | |
Registration fees | 83,660 | |
Audit | 46,887 | |
Legal | 13,189 | |
Miscellaneous | 180,730 | |
Total expenses before reductions | 9,457,396 | |
Expense reductions | (63,979) | |
Total expenses after reductions | 9,393,417 | |
Net investment income (loss) | 2,303,757 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 70,292,101 | |
Fidelity Central Funds | (1,719) | |
Foreign currency transactions | (45,024) | |
Total net realized gain (loss) | 70,245,358 | |
Change in net unrealized appreciation (depreciation) on investment securities | 49,664,575 | |
Net gain (loss) | 119,909,933 | |
Net increase (decrease) in net assets resulting from operations | $122,213,690 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,303,757 | $3,272,070 |
Net realized gain (loss) | 70,245,358 | 32,815,156 |
Change in net unrealized appreciation (depreciation) | 49,664,575 | 43,945,008 |
Net increase (decrease) in net assets resulting from operations | 122,213,690 | 80,032,234 |
Distributions to shareholders from net investment income | (2,287,828) | (2,760,974) |
Distributions to shareholders from net realized gain | (23,731,779) | (36,711,218) |
Total distributions | (26,019,607) | (39,472,192) |
Share transactions - net increase (decrease) | (77,388,887) | 171,262,093 |
Redemption fees | – | 14,879 |
Total increase (decrease) in net assets | 18,805,196 | 211,837,014 |
Net Assets | ||
Beginning of period | 815,689,211 | 603,852,197 |
End of period | $834,494,407 | $815,689,211 |
Other Information | ||
Undistributed net investment income end of period | $889,880 | $1,058,375 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Industrials Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.89 | $35.52 | $37.06 | $36.92 | $34.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | .13 | .19 | .15 | .17 | .13 |
Net realized and unrealized gain (loss) | 5.87 | 4.24 | 1.34 | 2.76 | 4.01 |
Total from investment operations | 6.00 | 4.43 | 1.49 | 2.93 | 4.14 |
Distributions from net investment income | (.10) | (.16) | (.14) | (.11) | (.15) |
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 |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $42.62 | $37.89 | $35.52 | $37.06 | $36.92 |
Total ReturnD,E | 15.97% | 12.62% | 5.04% | 8.17% | 12.52% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.06% | 1.06% | 1.06% | 1.06% | 1.09% |
Expenses net of fee waivers, if any | 1.06% | 1.06% | 1.06% | 1.06% | 1.09% |
Expenses net of all reductions | 1.05% | 1.06% | 1.06% | 1.06% | 1.09% |
Net investment income (loss) | .32% | .53% | .45% | .46% | .37% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $303,201 | $309,204 | $279,055 | $333,405 | $378,826 |
Portfolio turnover rateH | 61% | 57% | 53% | 70% | 57% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.72 per share is comprised of distributions from net investment income of $.146 and distributions from net realized gain of $1.577 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.03 | $34.77 | $36.35 | $36.29 | $33.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03 | .10 | .06 | .07 | .04 |
Net realized and unrealized gain (loss) | 5.74 | 4.14 | 1.31 | 2.71 | 3.95 |
Total from investment operations | 5.77 | 4.24 | 1.37 | 2.78 | 3.99 |
Distributions from net investment income | – | (.08) | (.06) | (.05) | (.06) |
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 |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $41.65 | $37.03 | $34.77 | $36.35 | $36.29 |
Total ReturnD,E | 15.70% | 12.33% | 4.74% | 7.88% | 12.27% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.32% | 1.32% | 1.33% | 1.33% | 1.33% |
Expenses net of fee waivers, if any | 1.32% | 1.32% | 1.33% | 1.32% | 1.33% |
Expenses net of all reductions | 1.31% | 1.32% | 1.32% | 1.32% | 1.33% |
Net investment income (loss) | .07% | .27% | .19% | .20% | .12% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $72,143 | $87,253 | $79,196 | $88,116 | $90,509 |
Portfolio turnover rateH | 61% | 57% | 53% | 70% | 57% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.63 per share is comprised of distributions from net investment income of $.057 and distributions from net realized gain of $1.577 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $34.09 | $32.24 | $34.02 | $34.13 | $32.08 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.16) | (.08) | (.09) | (.10) | (.13) |
Net realized and unrealized gain (loss) | 5.28 | 3.83 | 1.20 | 2.54 | 3.73 |
Total from investment operations | 5.12 | 3.75 | 1.11 | 2.44 | 3.60 |
Distributions from net investment income | – | – | – | – | – |
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) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $38.09 | $34.09 | $32.24 | $34.02 | $34.13 |
Total ReturnC,D | 15.13% | 11.76% | 4.25% | 7.36% | 11.71% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.82% | 1.82% | 1.82% | 1.82% | 1.83% |
Expenses net of fee waivers, if any | 1.82% | 1.82% | 1.82% | 1.82% | 1.83% |
Expenses net of all reductions | 1.81% | 1.81% | 1.81% | 1.81% | 1.83% |
Net investment income (loss) | (.43)% | (.23)% | (.30)% | (.30)% | (.38)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $138,249 | $134,505 | $112,425 | $141,494 | $147,749 |
Portfolio turnover rateG | 61% | 57% | 53% | 70% | 57% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Industrials Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $39.80 | $37.21 | $38.67 | $38.42 | $35.83 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25 | .31 | .25 | .28 | .25 |
Net realized and unrealized gain (loss) | 6.18 | 4.44 | 1.42 | 2.87 | 4.16 |
Total from investment operations | 6.43 | 4.75 | 1.67 | 3.15 | 4.41 |
Distributions from net investment income | (.21) | (.25) | (.24) | (.22) | (.24) |
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) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $44.85 | $39.80 | $37.21 | $38.67 | $38.42 |
Total ReturnD | 16.30% | 12.91% | 5.33% | 8.45% | 12.82% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .80% | .80% | .80% | .80% | .81% |
Expenses net of fee waivers, if any | .80% | .80% | .80% | .80% | .81% |
Expenses net of all reductions | .79% | .80% | .79% | .79% | .81% |
Net investment income (loss) | .59% | .79% | .72% | .72% | .64% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $320,902 | $284,727 | $133,176 | $207,462 | $242,772 |
Portfolio turnover rateG | 61% | 57% | 53% | 70% | 57% |
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 $.254 and distributions from net realized gain of $1.901 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 20.03% | 23.06% | 15.73% |
Class M (incl. 3.50% sales charge) | 22.51% | 23.24% | 15.68% |
Class C (incl. contingent deferred sales charge) | 25.38% | 23.59% | 15.54% |
Class I | 27.74% | 24.90% | 16.74% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Semiconductors Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405572764_740.jpg)
Period Ending Values | ||
$43,086 | Fidelity Advisor® Semiconductors Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Semiconductors Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Portfolio Manager Stephen Barwikowski: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 26% to 28%, topping the 25.79% return of the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index, and well ahead of the S&P 500®. Versus the MSCI industry index, stock selection in semiconductors and a sizable underweighting in semiconductor equipment both added measurably to the fund’s performance. ON Semiconductor finished the period as our top relative contributor. The company, a specialist in chips for power management, imaging and analog solutions, enjoyed continued strong demand from the automotive industry, which accounts for more than a third of its revenue. DRAM memory supplier Micron Technology and wireless chipmaker Qualcomm also worked in our favor. Lam Research and Applied Materials, two semiconductor equipment stocks, both underperformed this period, so our fairly large underweightings in these stocks, on average, made them relative contributors. However, we carried overweightings here by period end. Conversely, a cash position of roughly 3%, on average, was the biggest drag on relative performance. Non-index exposure to communications equipment and electronic manufacturing services also detracted. At the stock level, largely avoiding Texas Instruments was the fund’s largest relative detractor. I eliminated our small position in January, but the stock rode a strong overall semiconductor environment. Underweighting graphics chipmaker Nvidia – where I significantly increased the fund’s stake – also hurt, as did overweighting Inphi, a provider of optical components and data-transmission semiconductors.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Semiconductors Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Intel Corp. | 18.4 |
Broadcom, Inc. | 11.5 |
Qualcomm, Inc. | 9.3 |
NVIDIA Corp. | 8.6 |
Lam Research Corp. | 4.9 |
Marvell Technology Group Ltd. | 4.9 |
Applied Materials, Inc. | 4.9 |
Micron Technology, Inc. | 4.9 |
Analog Devices, Inc. | 4.2 |
NXP Semiconductors NV | 3.3 |
74.9 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Semiconductors & Semiconductor Equipment | 90.3% | |
Electronic Equipment & Components | 4.3% | |
Communications Equipment | 1.4% | |
Technology Hardware, Storage & Peripherals | 1.3% | |
All Others* | 2.7% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Semiconductors Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
Communications Equipment - 1.4% | |||
Communications Equipment - 1.4% | |||
Finisar Corp. (a) | 139,600 | $2,352,260 | |
Quantenna Communications, Inc. (a) | 125,144 | 1,993,544 | |
4,345,804 | |||
Electronic Equipment & Components - 4.3% | |||
Electronic Manufacturing Services - 4.2% | |||
Flextronics International Ltd. (a) | 144,300 | 2,014,428 | |
Jabil, Inc. | 264,676 | 7,455,923 | |
TTM Technologies, Inc. (a) | 216,100 | 3,751,496 | |
13,221,847 | |||
Technology Distributors - 0.1% | |||
SYNNEX Corp. | 4,900 | 472,703 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 13,694,550 | ||
Semiconductors & Semiconductor Equipment - 90.3% | |||
Semiconductor Equipment - 11.3% | |||
Advanced Energy Industries, Inc. (a) | 13,000 | 796,120 | |
Applied Materials, Inc. | 320,800 | 15,600,504 | |
Ichor Holdings Ltd. (a) | 37,400 | 785,400 | |
Lam Research Corp. | 82,081 | 15,647,922 | |
MKS Instruments, Inc. | 18,900 | 1,782,270 | |
PDF Solutions, Inc. (a) | 60,795 | 638,348 | |
Xperi Corp. | 40,900 | 680,985 | |
35,931,549 | |||
Semiconductors - 79.0% | |||
Acacia Communications, Inc. (a)(b) | 73,000 | 2,346,220 | |
Advanced Micro Devices, Inc. (a) | 121,500 | 2,227,095 | |
Alpha & Omega Semiconductor Ltd. (a) | 69,500 | 928,520 | |
Ambarella, Inc. (a)(b) | 13,100 | 513,258 | |
Analog Devices, Inc. | 139,170 | 13,379,804 | |
Broadcom, Inc. | 165,600 | 36,725,112 | |
Cirrus Logic, Inc. (a) | 36,500 | 1,578,990 | |
Dialog Semiconductor PLC (a) | 137,300 | 2,381,785 | |
Inphi Corp. (a)(b) | 139,538 | 4,387,075 | |
Intel Corp. | 1,213,375 | 58,363,337 | |
MACOM Technology Solutions Holdings, Inc. (a)(b) | 237,000 | 4,936,710 | |
Marvell Technology Group Ltd. | 733,604 | 15,633,101 | |
MaxLinear, Inc. Class A (a) | 321,549 | 5,566,013 | |
Microchip Technology, Inc. | 67,800 | 6,334,554 | |
Micron Technology, Inc. (a) | 295,212 | 15,584,241 | |
NVIDIA Corp. | 111,623 | 27,332,008 | |
NXP Semiconductors NV (a) | 108,499 | 10,344,295 | |
O2Micro International Ltd. sponsored ADR (a) | 60,600 | 112,110 | |
ON Semiconductor Corp. (a) | 338,800 | 7,470,540 | |
Qorvo, Inc. (a) | 18,746 | 1,532,673 | |
Qualcomm, Inc. | 460,326 | 29,502,293 | |
Renesas Electronics Corp. (a) | 117,300 | 1,044,858 | |
Synaptics, Inc. (a) | 37,200 | 1,864,092 | |
Tower Semiconductor Ltd. (a) | 54,100 | 1,117,165 | |
251,205,849 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 287,137,398 | ||
Technology Hardware, Storage & Peripherals - 1.3% | |||
Technology Hardware, Storage & Peripherals - 1.3% | |||
Samsung Electronics Co. Ltd. | 100,134 | 4,159,248 | |
TOTAL COMMON STOCKS | |||
(Cost $258,542,498) | 309,337,000 | ||
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund, 1.96% (c) | 8,960,191 | 8,961,983 | |
Fidelity Securities Lending Cash Central Fund 1.97% (c)(d) | 6,502,724 | 6,503,374 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,465,156) | 15,465,357 | ||
TOTAL INVESTMENT IN SECURITIES - 102.1% | |||
(Cost $274,007,654) | 324,802,357 | ||
NET OTHER ASSETS (LIABILITIES) - (2.1)% | (6,812,351) | ||
NET ASSETS - 100% | $317,990,006 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $129,173 |
Fidelity Securities Lending Cash Central Fund | 177,446 |
Total | $306,619 |
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 | 87.8% |
Bermuda | 5.2% |
Netherlands | 3.3% |
Korea (South) | 1.3% |
Others (Individually Less Than 1%) | 2.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Semiconductors Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,316,535) — See accompanying schedule: Unaffiliated issuers (cost $258,542,498) | $309,337,000 | |
Fidelity Central Funds (cost $15,465,156) | 15,465,357 | |
Total Investment in Securities (cost $274,007,654) | $324,802,357 | |
Cash | 251,037 | |
Foreign currency held at value (cost $9) | 9 | |
Receivable for investments sold | 4,498,481 | |
Receivable for fund shares sold | 261,710 | |
Dividends receivable | 16,010 | |
Distributions receivable from Fidelity Central Funds | 14,645 | |
Prepaid expenses | 3,187 | |
Other receivables | 22,705 | |
Total assets | 329,870,141 | |
Liabilities | ||
Payable for investments purchased | $4,432,612 | |
Payable for fund shares redeemed | 603,538 | |
Accrued management fee | 143,907 | |
Distribution and service plan fees payable | 78,181 | |
Other affiliated payables | 65,319 | |
Other payables and accrued expenses | 53,528 | |
Collateral on securities loaned | 6,503,050 | |
Total liabilities | 11,880,135 | |
Net Assets | $317,990,006 | |
Net Assets consist of: | ||
Paid in capital | $240,425,776 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 26,769,312 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 50,794,918 | |
Net Assets | $317,990,006 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($97,882,868 ÷ 3,905,983 shares) | $25.06 | |
Maximum offering price per share (100/94.25 of $25.06) | $26.59 | |
Class M: | ||
Net Asset Value and redemption price per share ($21,829,795 ÷ 907,909 shares) | $24.04 | |
Maximum offering price per share (100/96.50 of $24.04) | $24.91 | |
Class C: | ||
Net Asset Value and offering price per share ($57,915,115 ÷ 2,646,734 shares)(a) | $21.88 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($140,362,228 ÷ 5,331,701 shares) | $26.33 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $3,109,969 | |
Interest | 3,084 | |
Income from Fidelity Central Funds (including $177,446 from security lending) | 306,619 | |
Total income | 3,419,672 | |
Expenses | ||
Management fee | $1,517,178 | |
Transfer agent fees | 590,805 | |
Distribution and service plan fees | 841,269 | |
Accounting and security lending fees | 110,724 | |
Custodian fees and expenses | 46,894 | |
Independent trustees' fees and expenses | 3,664 | |
Registration fees | 77,130 | |
Audit | 46,445 | |
Legal | 6,807 | |
Miscellaneous | 94,204 | |
Total expenses before reductions | 3,335,120 | |
Expense reductions | (56,139) | |
Total expenses after reductions | 3,278,981 | |
Net investment income (loss) | 140,691 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 38,499,853 | |
Fidelity Central Funds | 223 | |
Foreign currency transactions | (18,464) | |
Total net realized gain (loss) | 38,481,612 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,918,927 | |
Fidelity Central Funds | (308) | |
Assets and liabilities in foreign currencies | 197 | |
Total change in net unrealized appreciation (depreciation) | 21,918,816 | |
Net gain (loss) | 60,400,428 | |
Net increase (decrease) in net assets resulting from operations | $60,541,119 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $140,691 | $836,854 |
Net realized gain (loss) | 38,481,612 | 23,781,922 |
Change in net unrealized appreciation (depreciation) | 21,918,816 | 16,843,356 |
Net increase (decrease) in net assets resulting from operations | 60,541,119 | 41,462,132 |
Distributions to shareholders from net investment income | (641,765) | (392,430) |
Distributions to shareholders from net realized gain | (23,866,944) | (190,781) |
Total distributions | (24,508,709) | (583,211) |
Share transactions - net increase (decrease) | 60,021,575 | 90,258,265 |
Redemption fees | 32,964 | 17,812 |
Total increase (decrease) in net assets | 96,086,949 | 131,154,998 |
Net Assets | ||
Beginning of period | 221,903,057 | 90,748,059 |
End of period | $317,990,006 | $221,903,057 |
Other Information | ||
Undistributed net investment income end of period | $– | $459,047 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Semiconductors Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.57 | $16.50 | $15.29 | $13.86 | $10.33 |
Income from Investment Operations | |||||
Net investment income (loss)A | .02 | .11 | .09 | .03 | (.02) |
Net realized and unrealized gain (loss) | 5.73 | 5.03 | 2.67 | 1.48 | 3.55 |
Total from investment operations | 5.75 | 5.14 | 2.76 | 1.51 | 3.53 |
Distributions from net investment income | (.05)B | (.05) | (.05) | (.01) | – |
Distributions from net realized gain | (2.21)B | (.02) | (1.49) | (.07) | – |
Total distributions | (2.26) | (.07) | (1.55)C | (.08) | – |
Redemption fees added to paid in capitalA,D | – | – | – | – | – |
Net asset value, end of period | $25.06 | $21.57 | $16.50 | $15.29 | $13.86 |
Total ReturnE,F | 27.35% | 31.21% | 20.46% | 10.85% | 34.17% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.15% | 1.17% | 1.31% | 1.28% | 1.84% |
Expenses net of fee waivers, if any | 1.15% | 1.17% | 1.31% | 1.28% | 1.40% |
Expenses net of all reductions | 1.13% | 1.16% | 1.28% | 1.27% | 1.39% |
Net investment income (loss) | .09% | .55% | .61% | .20% | (.16)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $97,883 | $72,040 | $34,066 | $38,237 | $16,542 |
Portfolio turnover rateI | 133% | 99% | 185% | 156% | 156% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $1.55 per share is comprised of distributions from net investment income of $.053 and distributions from net realized gain of $1.494 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.77 | $15.91 | $14.81 | $13.45 | $10.05 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.05) | .04 | .04 | (.02) | (.05) |
Net realized and unrealized gain (loss) | 5.50 | 4.84 | 2.57 | 1.44 | 3.45 |
Total from investment operations | 5.45 | 4.88 | 2.61 | 1.42 | 3.40 |
Distributions from net investment income | –B | – | (.04) | – | – |
Distributions from net realized gain | (2.18)B | (.02) | (1.47) | (.06) | – |
Total distributions | (2.18) | (.02) | (1.51) | (.06) | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $24.04 | $20.77 | $15.91 | $14.81 | $13.45 |
Total ReturnD,E | 26.95% | 30.72% | 20.01% | 10.55% | 33.83% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.48% | 1.53% | 1.65% | 1.62% | 2.19% |
Expenses net of fee waivers, if any | 1.47% | 1.53% | 1.65% | 1.62% | 1.65% |
Expenses net of all reductions | 1.46% | 1.52% | 1.62% | 1.61% | 1.64% |
Net investment income (loss) | (.23)% | .20% | .27% | (.14)% | (.42)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $21,830 | $16,127 | $9,766 | $10,826 | $7,144 |
Portfolio turnover rateH | 133% | 99% | 185% | 156% | 156% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.10 | $14.69 | $13.80 | $12.58 | $9.44 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.14) | (.04) | (.02) | (.08) | (.10) |
Net realized and unrealized gain (loss) | 5.05 | 4.47 | 2.37 | 1.34 | 3.24 |
Total from investment operations | 4.91 | 4.43 | 2.35 | 1.26 | 3.14 |
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 | $21.88 | $19.10 | $14.69 | $13.80 | $12.58 |
Total ReturnC,D | 26.38% | 30.21% | 19.48% | 10.03% | 33.26% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.91% | 1.95% | 2.08% | 2.06% | 2.60% |
Expenses net of fee waivers, if any | 1.91% | 1.95% | 2.08% | 2.06% | 2.15% |
Expenses net of all reductions | 1.89% | 1.94% | 2.05% | 2.05% | 2.14% |
Net investment income (loss) | (.67)% | (.23)% | (.16)% | (.58)% | (.91)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $57,915 | $42,684 | $21,088 | $20,864 | $7,381 |
Portfolio turnover rateG | 133% | 99% | 185% | 156% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Semiconductors Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $22.56 | $17.24 | $15.89 | $14.37 | $10.68 |
Income from Investment Operations | |||||
Net investment income (loss)A | .10 | .17 | .14 | .08 | .01 |
Net realized and unrealized gain (loss) | 5.99 | 5.26 | 2.79 | 1.53 | 3.68 |
Total from investment operations | 6.09 | 5.43 | 2.93 | 1.61 | 3.69 |
Distributions from net investment income | (.11)B | (.09) | (.09) | (.02) | – |
Distributions from net realized gain | (2.21)B | (.02) | (1.49) | (.07) | – |
Total distributions | (2.32) | (.11) | (1.58) | (.09) | – |
Redemption fees added to paid in capitalA,C | – | – | – | – | – |
Net asset value, end of period | $26.33 | $22.56 | $17.24 | $15.89 | $14.37 |
Total ReturnD | 27.74% | 31.62% | 20.85% | 11.17% | 34.55% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .86% | .88% | .98% | .98% | 1.34% |
Expenses net of fee waivers, if any | .86% | .88% | .98% | .98% | 1.15% |
Expenses net of all reductions | .84% | .87% | .95% | .96% | 1.14% |
Net investment income (loss) | .38% | .84% | .94% | .51% | .10% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $140,362 | $91,052 | $25,827 | $35,943 | $25,050 |
Portfolio turnover rateG | 133% | 99% | 185% | 156% | 156% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 18.22% | 19.30% | 15.54% |
Class M (incl. 3.50% sales charge) | 20.71% | 19.56% | 15.52% |
Class C (incl. contingent deferred sales charge) | 23.48% | 19.82% | 15.36% |
Class I | 25.75% | 21.10% | 16.58% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Technology Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405571744_740.jpg)
Period Ending Values | ||
$42,404 | Fidelity Advisor® Technology Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Technology Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Lead Portfolio Manager Charlie Chai: For the year, the fund’s share classes (excluding sales charges, if applicable) gained about 25% to 26%, trailing the 28.08% return of the MSCI U.S. IMI Information Technology 25/50 Index but handily outpacing the S&P 500®. Versus the MSCI index, stock selection in semiconductors and a large non-index position in electric vehicle maker Tesla were the two biggest detractors from fund performance. Tesla shares took a particularly steep drop in March after reports of a fatal crash in California. Within semiconductors, Taiwan-based Himax Technologies was a significant detractor, as was Austria-based AMS. Both companies supply components for the 3D sensors used in smartphones. Untimely ownership of wireless infrastructure provider Qualcomm also hurt us. Conversely, a large overweighting in application software and stock picking in semiconductor equipment added the most value. Choices in systems software also contributed. An out-of-benchmark stake in GlobalWafers – a Taiwan-based firm that produces silicon wafers for semiconductor manufacturers – was our top relative contributor. We also owned shares of the parent company of GlobalWafers, Sino-American Silicon Products – another non-index holding that strongly contributed. Chip demand rose overall this period, which translated into strong demand for both companies’ products. An underweighting in Facebook also bolstered our relative result.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On July 14, 2018, Nidhi Gupta became Co-Portfolio Manager of the fund, joining Charlie Chai. The two will manage the fund together until December 31, 2018, at which point Charlie plans to retire and Nidhi will become sole Portfolio Manager.Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Microsoft Corp. | 12.4 |
NVIDIA Corp. | 5.5 |
Facebook, Inc. Class A | 3.8 |
Salesforce.com, Inc. | 3.4 |
Adobe Systems, Inc. | 3.0 |
Qualcomm, Inc. | 2.9 |
Parametric Technology Corp. | 2.9 |
Alibaba Group Holding Ltd. sponsored ADR | 2.7 |
Electronic Arts, Inc. | 2.7 |
PayPal Holdings, Inc. | 2.5 |
41.8 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Software | 39.3% | |
Semiconductors & Semiconductor Equipment | 20.7% | |
Internet Software & Services | 15.7% | |
IT Services | 5.9% | |
Electronic Equipment & Components | 5.3% | |
All Others* | 13.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Technology Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 96.5% | |||
Shares | Value | ||
Air Freight & Logistics - 0.1% | |||
Air Freight & Logistics - 0.1% | |||
Best, Inc. ADR | 312,800 | $3,012,264 | |
Automobiles - 2.0% | |||
Automobile Manufacturers - 2.0% | |||
Tesla, Inc. (a)(b) | 150,409 | 44,842,939 | |
Biotechnology - 0.3% | |||
Biotechnology - 0.3% | |||
BeiGene Ltd. ADR (a) | 38,700 | 7,339,842 | |
Communications Equipment - 0.8% | |||
Communications Equipment - 0.8% | |||
CommScope Holding Co., Inc. (a) | 241,600 | 7,757,776 | |
Hytera Communications Corp. Ltd. Class A | 1,379,554 | 1,931,825 | |
Lumentum Holdings, Inc. (a) | 36,000 | 1,881,000 | |
Palo Alto Networks, Inc. (a) | 27,100 | 5,372,846 | |
16,943,447 | |||
Consumer Finance - 0.1% | |||
Consumer Finance - 0.1% | |||
51 Credit Card, Inc. | 824,500 | 865,567 | |
Diversified Consumer Services - 1.2% | |||
Education Services - 1.2% | |||
China Online Education Group sponsored ADR (a)(b) | 2,563 | 25,630 | |
TAL Education Group ADR (a) | 807,142 | 25,820,473 | |
25,846,103 | |||
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Jianpu Technology, Inc. ADR (a)(b) | 559,600 | 2,887,536 | |
Electrical Equipment - 0.1% | |||
Electrical Components & Equipment - 0.1% | |||
BizLink Holding, Inc. | 386,010 | 2,461,396 | |
Electronic Equipment & Components - 5.3% | |||
Electronic Components - 2.6% | |||
E Ink Holdings, Inc. | 4,675,000 | 6,000,253 | |
Ledlink Optics, Inc. | 608,609 | 728,396 | |
LG Innotek Co. Ltd. | 130,522 | 19,107,013 | |
Murata Manufacturing Co. Ltd. | 78,700 | 13,724,903 | |
Samsung Electro-Mechanics Co. Ltd. | 81,809 | 11,277,970 | |
Taiyo Yuden Co. Ltd. | 78,000 | 2,332,843 | |
Yageo Corp. | 165,000 | 4,213,891 | |
57,385,269 | |||
Electronic Equipment & Instruments - 1.8% | |||
Chroma ATE, Inc. | 2,752,173 | 15,524,340 | |
Hitachi High-Technologies Corp. | 156,500 | 6,382,328 | |
Trimble, Inc. (a) | 498,196 | 17,586,319 | |
39,492,987 | |||
Technology Distributors - 0.9% | |||
Dell Technologies, Inc. (a) | 226,560 | 20,961,331 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 117,839,587 | ||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
Diversified REITs - 0.4% | |||
Ant International Co. Ltd. (c)(d) | 1,469,829 | 8,245,741 | |
Internet & Direct Marketing Retail - 1.6% | |||
Internet & Direct Marketing Retail - 1.6% | |||
Amazon.com, Inc. (a) | 10,600 | 18,840,864 | |
Netflix, Inc. (a) | 46,500 | 15,691,425 | |
34,532,289 | |||
Internet Software & Services - 15.0% | |||
Internet Software & Services - 15.0% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 319,700 | 59,857,431 | |
Alphabet, Inc.: | |||
Class A (a) | 27,087 | 33,241,708 | |
Class C (a) | 27,155 | 33,054,695 | |
eBay, Inc. (a) | 120,300 | 4,024,035 | |
Envestnet, Inc. (a) | 145 | 8,497 | |
Facebook, Inc. Class A (a) | 486,411 | 83,944,810 | |
GoDaddy, Inc. (a) | 173,400 | 12,765,708 | |
MercadoLibre, Inc. | 37,700 | 12,927,707 | |
NetEase, Inc. ADR | 120,500 | 31,089,000 | |
New Relic, Inc. (a) | 52,100 | 5,090,170 | |
Nutanix, Inc.: | |||
Class A (a) | 242,200 | 11,841,158 | |
Class B (a)(e) | 39,963 | 1,953,791 | |
Okta, Inc. (a) | 50,900 | 2,527,185 | |
SMS Co., Ltd. | 624,800 | 12,684,309 | |
Tencent Holdings Ltd. | 116,100 | 5,284,222 | |
Xunlei Ltd. sponsored ADR (a) | 747,844 | 7,882,276 | |
Yandex NV Series A (a) | 340,400 | 12,240,784 | |
330,417,486 | |||
IT Services - 5.9% | |||
Data Processing & Outsourced Services - 4.7% | |||
Adyen BV (e) | 1,200 | 766,719 | |
FleetCor Technologies, Inc. (a) | 105,900 | 22,980,300 | |
Global Payments, Inc. | 68,300 | 7,688,531 | |
PayPal Holdings, Inc. (a) | 671,200 | 55,132,368 | |
Square, Inc. (a) | 220,500 | 14,255,325 | |
Total System Services, Inc. | 38,153 | 3,492,526 | |
104,315,769 | |||
IT Consulting & Other Services - 1.2% | |||
Cognizant Technology Solutions Corp. Class A | 234,209 | 19,088,034 | |
DXC Technology Co. | 86,400 | 7,321,536 | |
26,409,570 | |||
TOTAL IT SERVICES | 130,725,339 | ||
Life Sciences Tools & Services - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
JHL Biotech, Inc. (a)(c) | 387,462 | 623,365 | |
Machinery - 0.8% | |||
Industrial Machinery - 0.8% | |||
Minebea Mitsumi, Inc. | 1,010,700 | 18,139,159 | |
Professional Services - 0.1% | |||
Human Resource & Employment Services - 0.1% | |||
WageWorks, Inc. (a) | 28,744 | 1,517,683 | |
Semiconductors & Semiconductor Equipment - 20.7% | |||
Semiconductor Equipment - 3.4% | |||
ASM Pacific Technology Ltd. | 1,181,400 | 14,216,145 | |
ASML Holding NV | 44,600 | 9,544,400 | |
ASML Holding NV (Netherlands) | 29,000 | 6,210,884 | |
Ferrotec Holdings Corp. | 205,900 | 3,069,671 | |
Lam Research Corp. | 83,000 | 15,823,120 | |
Screen Holdings Co. Ltd. | 76,400 | 5,573,847 | |
Sino-American Silicon Products, Inc. | 6,239,000 | 21,421,634 | |
SunEdison, Inc. (a)(c) | 500 | 0 | |
75,859,701 | |||
Semiconductors - 17.3% | |||
Advanced Micro Devices, Inc. (a) | 1,358,900 | 24,908,637 | |
ams AG | 297,644 | 21,481,230 | |
ChipMOS TECHNOLOGIES, Inc. sponsored ADR | 107,627 | 1,569,202 | |
Cree, Inc. (a) | 137,700 | 6,492,555 | |
Global Unichip Corp. | 14,000 | 151,761 | |
Himax Technologies, Inc. sponsored ADR (b) | 2,132,645 | 14,096,783 | |
Inphi Corp. (a)(b) | 146,800 | 4,615,392 | |
International Quantum Epitaxy PLC (a)(b) | 4,508,942 | 5,853,111 | |
MACOM Technology Solutions Holdings, Inc. (a) | 341,200 | 7,107,196 | |
Marvell Technology Group Ltd. | 2,343,561 | 49,941,285 | |
Monolithic Power Systems, Inc. | 25,201 | 3,343,669 | |
Nanya Technology Corp. | 9,767,000 | 25,103,371 | |
NVIDIA Corp. | 497,150 | 121,732,149 | |
NXP Semiconductors NV (a) | 214,100 | 20,412,294 | |
Qorvo, Inc. (a) | 55,864 | 4,567,441 | |
Qualcomm, Inc. | 992,750 | 63,625,348 | |
Semtech Corp. (a) | 110,998 | 5,266,855 | |
Silicon Laboratories, Inc. (a) | 21,100 | 2,009,775 | |
Win Semiconductors Corp. | 24,000 | 116,151 | |
382,394,205 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 458,253,906 | ||
Software - 39.3% | |||
Application Software - 18.2% | |||
Adobe Systems, Inc. (a) | 266,116 | 65,113,263 | |
Atlassian Corp. PLC (a) | 33,300 | 2,411,253 | |
Autodesk, Inc. (a) | 350,900 | 45,069,596 | |
Citrix Systems, Inc. (a) | 300,892 | 33,089,093 | |
Ellie Mae, Inc. (a) | 63,400 | 6,290,548 | |
HubSpot, Inc. (a) | 6,900 | 856,290 | |
Intuit, Inc. | 118,400 | 24,182,016 | |
Kingsoft Corp. Ltd. | 818,000 | 1,980,112 | |
Parametric Technology Corp. (a) | 685,340 | 62,989,599 | |
RealPage, Inc. (a) | 5,800 | 319,580 | |
SailPoint Technologies Holding, Inc. (a) | 10,800 | 260,172 | |
Salesforce.com, Inc. (a) | 538,519 | 73,857,881 | |
SAP SE | 93,366 | 10,866,498 | |
Snap, Inc. Class A (a)(b) | 345,000 | 4,312,500 | |
Splunk, Inc. (a) | 55,300 | 5,314,330 | |
SS&C Technologies Holdings, Inc. | 79,200 | 4,203,144 | |
Ultimate Software Group, Inc. (a) | 152,244 | 42,154,841 | |
Workday, Inc. Class A (a) | 60,600 | 7,515,612 | |
Zendesk, Inc. (a) | 211,700 | 11,531,299 | |
402,317,627 | |||
Home Entertainment Software - 6.9% | |||
Activision Blizzard, Inc. | 726,670 | 53,352,111 | |
Electronic Arts, Inc. (a) | 455,400 | 58,632,750 | |
Nintendo Co. Ltd. | 54,800 | 18,532,651 | |
Nintendo Co. Ltd. ADR | 185,900 | 7,932,353 | |
Take-Two Interactive Software, Inc. (a) | 113,500 | 12,827,770 | |
151,277,635 | |||
Systems Software - 14.2% | |||
Microsoft Corp. | 2,588,400 | 274,577,474 | |
Oracle Corp. | 235,900 | 11,247,712 | |
Red Hat, Inc. (a) | 150,400 | 21,240,992 | |
ServiceNow, Inc. (a) | 41,300 | 7,267,148 | |
314,333,326 | |||
TOTAL SOFTWARE | 867,928,588 | ||
Technology Hardware, Storage & Peripherals - 2.4% | |||
Technology Hardware, Storage & Peripherals - 2.4% | |||
Apple, Inc. | 281,629 | 53,591,182 | |
Textiles, Apparel & Luxury Goods - 0.3% | |||
Textiles - 0.3% | |||
Pinduoduo, Inc. ADR | 321,300 | 7,258,167 | |
TOTAL COMMON STOCKS | |||
(Cost $1,646,895,292) | 2,133,271,586 | ||
Convertible Preferred Stocks - 1.5% | |||
Internet& Direct Marketing Retail - 0.8% | |||
Internet & Direct Marketing Retail - 0.8% | |||
China Internet Plus Holdings Ltd.: | |||
Series A-11 (a)(c)(d) | 1,516,912 | 7,584,560 | |
Series B (a)(c)(d) | 2,042,487 | 10,212,435 | |
17,796,995 | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
Lyft, Inc. Series I (c)(d) | 116,442 | 5,513,983 | |
Uber Technologies, Inc. Series D, 8.00% (a)(c)(d) | 232,064 | 9,282,560 | |
14,796,543 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $21,794,164) | 32,593,538 | ||
Money Market Funds - 5.2% | |||
Fidelity Cash Central Fund, 1.96% (f) | 65,787,133 | 65,800,290 | |
Fidelity Securities Lending Cash Central Fund 1.97% (f)(g) | 49,796,129 | 49,801,109 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $115,601,399) | 115,601,399 | ||
TOTAL INVESTMENT IN SECURITIES - 103.2% | |||
(Cost $1,784,290,855) | 2,281,466,523 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (71,363,250) | ||
NET ASSETS - 100% | $2,210,103,273 |
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 $40,839,279 or 1.8% of net assets.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,720,510 or 0.1% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Ant International Co. Ltd. | 5/16/18 | $8,245,741 |
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 |
Lyft, Inc. Series I | 6/27/18 | $5,513,983 |
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 | $410,994 |
Fidelity Securities Lending Cash Central Fund | 2,696,875 |
Total | $3,107,869 |
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 July 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 | $2,133,271,586 | $2,057,462,376 | $66,940,104 | $8,869,106 |
Convertible Preferred Stocks | 32,593,538 | -- | -- | 32,593,538 |
Money Market Funds | 115,601,399 | 115,601,399 | -- | -- |
Total Investments in Securities: | $2,281,466,523 | $2,173,063,775 | $66,940,104 | $41,462,644 |
The following is a reconciliation of Investments in Securities and Derivative Instruments 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) | (4,384,921) |
Cost of Purchases | 5,513,983 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $32,593,538 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2018 | $(4,384,921) |
Other Investments in Securities | |
Beginning Balance | $-- |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | (182,355) |
Cost of Purchases | 8,245,741 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | 805,720 |
Transfers out of Level 3 | -- |
Ending Balance | $8,869,106 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2018 | $(182,355) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
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 | 75.6% |
Cayman Islands | 9.0% |
Japan | 4.0% |
Taiwan | 3.4% |
Bermuda | 2.3% |
Netherlands | 2.2% |
Korea (South) | 1.4% |
Austria | 1.0% |
Others (Individually Less Than 1%) | 1.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Financial Statements
Statement of Assets and Liabilities
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $47,995,273) — See accompanying schedule: Unaffiliated issuers (cost $1,668,689,456) | $2,165,865,124 | |
Fidelity Central Funds (cost $115,601,399) | 115,601,399 | |
Total Investment in Securities (cost $1,784,290,855) | $2,281,466,523 | |
Cash | 7,027 | |
Receivable for investments sold | 23,455,421 | |
Receivable for fund shares sold | 3,394,804 | |
Dividends receivable | 945,487 | |
Distributions receivable from Fidelity Central Funds | 270,130 | |
Prepaid expenses | 21,426 | |
Other receivables | 213,882 | |
Total assets | 2,309,774,700 | |
Liabilities | ||
Payable for investments purchased | $42,905,737 | |
Payable for fund shares redeemed | 4,792,024 | |
Accrued management fee | 1,007,136 | |
Distribution and service plan fees payable | 586,604 | |
Other affiliated payables | 400,082 | |
Other payables and accrued expenses | 192,054 | |
Collateral on securities loaned | 49,787,790 | |
Total liabilities | 99,671,427 | |
Net Assets | $2,210,103,273 | |
Net Assets consist of: | ||
Paid in capital | $1,381,217,007 | |
Accumulated net investment loss | (98,578) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 331,809,685 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 497,175,159 | |
Net Assets | $2,210,103,273 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($825,117,701 ÷ 13,668,277 shares) | $60.37 | |
Maximum offering price per share (100/94.25 of $60.37) | $64.05 | |
Class M: | ||
Net Asset Value and redemption price per share ($328,708,871 ÷ 5,743,603 shares) | $57.23 | |
Maximum offering price per share (100/96.50 of $57.23) | $59.31 | |
Class C: | ||
Net Asset Value and offering price per share ($321,615,945 ÷ 6,284,543 shares)(a) | $51.18 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($734,660,756 ÷ 11,326,315 shares) | $64.86 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $12,244,702 | |
Income from Fidelity Central Funds (including $2,696,875 from security lending) | 3,107,869 | |
Total income | 15,352,571 | |
Expenses | ||
Management fee | $10,314,188 | |
Transfer agent fees | 3,648,960 | |
Distribution and service plan fees | 6,267,323 | |
Accounting and security lending fees | 607,942 | |
Custodian fees and expenses | 122,026 | |
Independent trustees' fees and expenses | 25,040 | |
Registration fees | 128,779 | |
Audit | 64,703 | |
Legal | 23,782 | |
Interest | 1,255 | |
Miscellaneous | 268,343 | |
Total expenses before reductions | 21,472,341 | |
Expense reductions | (216,921) | |
Total expenses after reductions | 21,255,420 | |
Net investment income (loss) | (5,902,849) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 407,662,954 | |
Fidelity Central Funds | 6,578 | |
Foreign currency transactions | (158,798) | |
Total net realized gain (loss) | 407,510,734 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,431,153 | |
Fidelity Central Funds | (2,328) | |
Assets and liabilities in foreign currencies | (2,561) | |
Total change in net unrealized appreciation (depreciation) | 2,426,264 | |
Net gain (loss) | 409,936,998 | |
Net increase (decrease) in net assets resulting from operations | $404,034,149 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(5,902,849) | $(3,129,929) |
Net realized gain (loss) | 407,510,734 | 237,775,079 |
Change in net unrealized appreciation (depreciation) | 2,426,264 | 196,019,117 |
Net increase (decrease) in net assets resulting from operations | 404,034,149 | 430,664,267 |
Distributions to shareholders from net realized gain | (137,302,162) | (16,883,284) |
Share transactions - net increase (decrease) | 390,532,086 | (366,177,411) |
Redemption fees | – | 16,813 |
Total increase (decrease) in net assets | 657,264,073 | 47,620,385 |
Net Assets | ||
Beginning of period | 1,552,839,200 | 1,505,218,815 |
End of period | $2,210,103,273 | $1,552,839,200 |
Other Information | ||
Accumulated net investment loss end of period | $(98,578) | $(64,088) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Technology Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $52.11 | $37.86 | $36.83 | $36.06 | $29.90 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.13) | (.07) | (.10) | (.02)B | (.12) |
Net realized and unrealized gain (loss) | 12.80 | 14.95 | 2.74 | 3.75 | 6.70 |
Total from investment operations | 12.67 | 14.88 | 2.64 | 3.73 | 6.58 |
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 |
Net asset value, end of period | $60.37 | $52.11 | $37.86 | $36.83 | $36.06 |
Total ReturnD,E | 25.43% | 39.85% | 7.86% | 10.94% | 22.15% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.05% | 1.07% | 1.09% | 1.09% | 1.14% |
Expenses net of fee waivers, if any | 1.05% | 1.07% | 1.09% | 1.09% | 1.14% |
Expenses net of all reductions | 1.04% | 1.07% | 1.07% | 1.08% | 1.12% |
Net investment income (loss) | (.23)% | (.17)% | (.28)% | (.05)%B | (.35)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $825,118 | $637,315 | $480,573 | $468,819 | $408,687 |
Portfolio turnover rateH,I | 84% | 73%I | 102% | 142%I | 186% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $49.63 | $36.14 | $35.26 | $34.66 | $28.79 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.27) | (.18) | (.18) | (.11)B | (.19) |
Net realized and unrealized gain (loss) | 12.16 | 14.26 | 2.61 | 3.60 | 6.45 |
Total from investment operations | 11.89 | 14.08 | 2.43 | 3.49 | 6.26 |
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 |
Net asset value, end of period | $57.23 | $49.63 | $36.14 | $35.26 | $34.66 |
Total ReturnD,E | 25.09% | 39.50% | 7.60% | 10.63% | 21.89% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.31% | 1.33% | 1.35% | 1.35% | 1.38% |
Expenses net of fee waivers, if any | 1.31% | 1.33% | 1.35% | 1.35% | 1.38% |
Expenses net of all reductions | 1.30% | 1.33% | 1.34% | 1.34% | 1.37% |
Net investment income (loss) | (.49)% | (.43)% | (.54)% | (.31)%B | (.60)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $328,709 | $274,918 | $203,727 | $208,192 | $196,067 |
Portfolio turnover rateH,I | 84% | 73%I | 102% | 142%I | 186% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.51) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $44.86 | $32.83 | $32.27 | $31.99 | $26.68 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.49) | (.35) | (.31) | (.25)B | (.33) |
Net realized and unrealized gain (loss) | 10.95 | 12.92 | 2.37 | 3.29 | 5.98 |
Total from investment operations | 10.46 | 12.57 | 2.06 | 3.04 | 5.65 |
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 |
Net asset value, end of period | $51.18 | $44.86 | $32.83 | $32.27 | $31.99 |
Total ReturnD,E | 24.48% | 38.79% | 7.08% | 10.07% | 21.31% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.81% | 1.83% | 1.85% | 1.84% | 1.87% |
Expenses net of fee waivers, if any | 1.81% | 1.83% | 1.85% | 1.84% | 1.87% |
Expenses net of all reductions | 1.80% | 1.82% | 1.83% | 1.83% | 1.86% |
Net investment income (loss) | (.99)% | (.93)% | (1.04)% | (.80)%B | (1.09)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $321,616 | $237,583 | $151,321 | $138,205 | $105,499 |
Portfolio turnover rateH,I | 84% | 73%I | 102% | 142%I | 186% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.00) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Technology Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $55.69 | $40.30 | $39.03 | $38.06 | $31.47 |
Income from Investment Operations | |||||
Net investment income (loss)A | .02 | .06 | .02 | .11B | (.02) |
Net realized and unrealized gain (loss) | 13.71 | 15.96 | 2.92 | 3.96 | 7.06 |
Total from investment operations | 13.73 | 16.02 | 2.94 | 4.07 | 7.04 |
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 |
Net asset value, end of period | $64.86 | $55.69 | $40.30 | $39.03 | $38.06 |
Total ReturnD | 25.75% | 40.26% | 8.24% | 11.30% | 22.55% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .78% | .77% | .75% | .75% | .83% |
Expenses net of fee waivers, if any | .78% | .77% | .75% | .75% | .83% |
Expenses net of all reductions | .77% | .77% | .74% | .74% | .82% |
Net investment income (loss) | .03% | .13% | .06% | .29%B | (.05)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $734,661 | $403,024 | $669,599 | $783,945 | $455,612 |
Portfolio turnover rateG,H | 84% | 73%H | 102% | 142%H | 186% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .09%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 3.53% | 8.92% | 7.04% |
Class M (incl. 3.50% sales charge) | 5.70% | 9.10% | 6.99% |
Class C (incl. contingent deferred sales charge) | 8.04% | 9.39% | 6.88% |
Class I | 10.14% | 10.53% | 7.98% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Utilities Fund - Class A on July 31, 2008, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405571149_740.jpg)
Period Ending Values | ||
$19,736 | Fidelity Advisor® Utilities Fund - Class A | |
$27,551 | S&P 500® Index |
Fidelity Advisor® Utilities Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 16.24% for the 12 months ending July 31, 2018, despite a resurgence in volatility that challenged the multiyear bull market. Stocks maintained their steady growth until a sharp reversal in February, as volatility spiked amid fear that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. The index posted its first negative monthly result since October 2016, and then lost further ground in March on fear of a global trade war. The market stabilized in April and turned upward through mid-June, when escalating trade tension between the U.S. and China soured investor sentiment. The resulting uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 3.72% that month to cap the period. For the full one-year period, growth handily topped value, while small-caps bested large-caps. By sector, information technology (+28%) led the way, boosted by strong earnings growth from several major index constituents. Consumer discretionary rose roughly 24%, driven by retailers (+49%). Energy (+20%) gained alongside higher oil prices. Laggards were telecommunication services (-2%), consumer staples (0%) and utilities (+3%), defensive groups that struggled amid rising interest rates and a general preference for risk. Real estate (+5%) fared a bit better but still lagged, as did financials, industrials, health care (each up 13%) and materials (+11%).Comments from Lead Portfolio Manager Douglas Simmons: For the fiscal year, the fund's share classes gained roughly 10%, far exceeding the 4.01% result of the sector benchmark, the MSCI U.S. IMI Utilities 25/50 Index, but trailing the S&P® 500 index. In a rising policy interest rate environment, investors shifted their focus to utility stocks valued for their dividend growth and business fundamentals, a number of which were owned by the fund and contributed to fund performance. Versus the MSCI index, a significant overweighting and choices among independent power producers and energy traders – led by the fund's stakes in NRG Energy, AES and Vistra Energy – delivered the biggest boost to the fund's result. As interest rates and commodity prices increased, shares of these stocks rose strongly. Stock selection in electric utilities, including Florida-based NextEra Energy, also added to the fund's relative result. Conversely, choices in multi-utilities detracted. However, the fund's biggest detractor was California-based electric utility PG&E, which was hampered by the potential of litigation relating to the state's October wildfires. I continued to hold a stake in this utility at period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On February 9, 2018, shareholders approved proposals from the Board of Trustees to eliminate certain sector/industry funds' fundamental “invests primarily” policies and to modify the fundamental concentration policies for certain funds. The changes took effect on March 1, 2018, and do not impact how the funds are managed.Fidelity Advisor® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
NextEra Energy, Inc. | 8.8 |
Evergy, Inc. | 6.8 |
Exelon Corp. | 6.6 |
Dominion Resources, Inc. | 6.6 |
FirstEnergy Corp. | 6.1 |
American Electric Power Co., Inc. | 6.0 |
Public Service Enterprise Group, Inc. | 5.6 |
Entergy Corp. | 4.6 |
Sempra Energy | 4.2 |
Comcast Corp. Class A | 3.4 |
58.7 |
Top Industries (% of fund's net assets)
As of July 31, 2018 | ||
Electric Utilities | 55.5% | |
Multi-Utilities | 21.2% | |
Independent Power and Renewable Electricity Producers | 7.4% | |
Media | 4.8% | |
Diversified Telecommunication Services | 3.4% | |
All Others* | 7.7% |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Utilities Fund
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Diversified Telecommunication Services - 3.4% | |||
Integrated Telecommunication Services - 3.4% | |||
AT&T, Inc. | 351,272 | $11,230,166 | |
Electric Utilities - 55.5% | |||
Electric Utilities - 55.5% | |||
American Electric Power Co., Inc. | 277,600 | 19,748,464 | |
Duke Energy Corp. | 104,837 | 8,556,796 | |
Edison International | 90,200 | 6,010,026 | |
El Paso Electric Co. | 61,200 | 3,812,760 | |
Entergy Corp. | 185,100 | 15,044,928 | |
Evergy, Inc. | 400,423 | 22,459,726 | |
Eversource Energy | 182,700 | 11,093,544 | |
Exelon Corp. | 515,591 | 21,912,618 | |
FirstEnergy Corp. | 565,360 | 20,030,705 | |
NextEra Energy, Inc. | 172,350 | 28,875,517 | |
PG&E Corp. | 127,871 | 5,508,683 | |
PPL Corp. | 362,623 | 10,432,664 | |
Vistra Energy Corp. (a) | 405,588 | 9,166,289 | |
182,652,720 | |||
Equity Real Estate Investment Trusts (REITs) - 2.1% | |||
Specialized REITs - 2.1% | |||
InfraReit, Inc. | 327,695 | 6,865,210 | |
Gas Utilities - 2.6% | |||
Gas Utilities - 2.6% | |||
AltaGas Ltd. | 32,300 | 657,248 | |
South Jersey Industries, Inc. | 235,804 | 8,000,830 | |
8,658,078 | |||
Independent Power and Renewable Electricity Producers - 7.4% | |||
Independent Power Producers & Energy Traders - 5.0% | |||
NRG Energy, Inc. | 123,872 | 3,923,026 | |
NRG Yield, Inc. Class C | 138,500 | 2,576,100 | |
The AES Corp. | 743,020 | 9,926,747 | |
16,425,873 | |||
Renewable Electricity - 2.4% | |||
NextEra Energy Partners LP | 155,618 | 7,324,939 | |
Pattern Energy Group, Inc. (b) | 27,424 | 509,264 | |
7,834,203 | |||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 24,260,076 | ||
Media - 4.8% | |||
Cable & Satellite - 3.4% | |||
Comcast Corp. Class A | 314,200 | 11,242,076 | |
Movies & Entertainment - 1.4% | |||
Twenty-First Century Fox, Inc. Class A | 103,400 | 4,653,000 | |
TOTAL MEDIA | 15,895,076 | ||
Multi-Utilities - 21.2% | |||
Multi-Utilities - 21.2% | |||
Ameren Corp. | 16,200 | 1,005,372 | |
Avangrid, Inc. | 108,194 | 5,416,192 | |
Dominion Resources, Inc. | 304,800 | 21,857,208 | |
Public Service Enterprise Group, Inc. | 355,338 | 18,321,227 | |
SCANA Corp. | 236,863 | 9,472,151 | |
Sempra Energy | 119,668 | 13,832,424 | |
69,904,574 | |||
Oil, Gas & Consumable Fuels - 2.3% | |||
Oil & Gas Storage & Transport - 2.3% | |||
Cheniere Energy Partners LP Holdings LLC | 135,097 | 4,150,180 | |
Cheniere Energy, Inc. (a) | 52,566 | 3,337,941 | |
7,488,121 | |||
TOTAL COMMON STOCKS | |||
(Cost $274,192,271) | 326,954,021 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund, 1.96% (c) | 4,484,800 | 4,485,697 | |
Fidelity Securities Lending Cash Central Fund 1.97% (c)(d) | 527,397 | 527,450 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $5,013,147) | 5,013,147 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $279,205,418) | 331,967,168 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (2,738,728) | ||
NET ASSETS - 100% | $329,228,440 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $62,125 |
Fidelity Securities Lending Cash Central Fund | 2,201 |
Total | $64,326 |
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
July 31, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $508,818) — See accompanying schedule: Unaffiliated issuers (cost $274,192,271) | $326,954,021 | |
Fidelity Central Funds (cost $5,013,147) | 5,013,147 | |
Total Investment in Securities (cost $279,205,418) | $331,967,168 | |
Receivable for fund shares sold | 586,097 | |
Dividends receivable | 175,018 | |
Distributions receivable from Fidelity Central Funds | 12,986 | |
Prepaid expenses | 2,975 | |
Other receivables | 19,862 | |
Total assets | 332,764,106 | |
Liabilities | ||
Payable for investments purchased | $2,266,746 | |
Payable for fund shares redeemed | 388,265 | |
Accrued management fee | 146,517 | |
Distribution and service plan fees payable | 99,689 | |
Other affiliated payables | 67,909 | |
Other payables and accrued expenses | 39,090 | |
Collateral on securities loaned | 527,450 | |
Total liabilities | 3,535,666 | |
Net Assets | $329,228,440 | |
Net Assets consist of: | ||
Paid in capital | $245,283,380 | |
Undistributed net investment income | 1,958,037 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 29,225,212 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 52,761,811 | |
Net Assets | $329,228,440 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($173,998,638 ÷ 5,515,940 shares) | $31.54 | |
Maximum offering price per share (100/94.25 of $31.54) | $33.46 | |
Class M: | ||
Net Asset Value and redemption price per share ($46,668,564 ÷ 1,477,654 shares) | $31.58 | |
Maximum offering price per share (100/96.50 of $31.58) | $32.73 | |
Class C: | ||
Net Asset Value and offering price per share ($53,099,459 ÷ 1,723,430 shares)(a) | $30.81 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($55,461,779 ÷ 1,721,656 shares) | $32.21 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $8,432,476 | |
Income from Fidelity Central Funds (including $2,201 from security lending) | 64,326 | |
Total income | 8,496,802 | |
Expenses | ||
Management fee | $1,671,023 | |
Transfer agent fees | 698,158 | |
Distribution and service plan fees | 1,176,191 | |
Accounting and security lending fees | 120,286 | |
Custodian fees and expenses | 6,482 | |
Independent trustees' fees and expenses | 4,478 | |
Registration fees | 65,253 | |
Audit | 45,695 | |
Legal | 4,702 | |
Miscellaneous | 74,973 | |
Total expenses before reductions | 3,867,241 | |
Expense reductions | (65,623) | |
Total expenses after reductions | 3,801,618 | |
Net investment income (loss) | 4,695,184 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 38,777,223 | |
Fidelity Central Funds | 275 | |
Foreign currency transactions | 3,222 | |
Total net realized gain (loss) | 38,780,720 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (15,073,640) | |
Assets and liabilities in foreign currencies | (163) | |
Total change in net unrealized appreciation (depreciation) | (15,073,803) | |
Net gain (loss) | 23,706,917 | |
Net increase (decrease) in net assets resulting from operations | $28,402,101 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,695,184 | $5,298,095 |
Net realized gain (loss) | 38,780,720 | 8,737,250 |
Change in net unrealized appreciation (depreciation) | (15,073,803) | 9,995,559 |
Net increase (decrease) in net assets resulting from operations | 28,402,101 | 24,030,904 |
Distributions to shareholders from net investment income | (4,657,557) | (5,090,651) |
Distributions to shareholders from net realized gain | (6,020,491) | – |
Total distributions | (10,678,048) | (5,090,651) |
Share transactions - net increase (decrease) | (595,170) | (74,927,988) |
Redemption fees | – | 11,601 |
Total increase (decrease) in net assets | 17,128,883 | (55,976,134) |
Net Assets | ||
Beginning of period | 312,099,557 | 368,075,691 |
End of period | $329,228,440 | $312,099,557 |
Other Information | ||
Undistributed net investment income end of period | $1,958,037 | $2,020,917 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Utilities Fund Class A
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.74 | $27.59 | $25.48 | $26.77 | $23.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | .49 | .50 | .44 | .44 | .41 |
Net realized and unrealized gain (loss) | 2.38 | 2.14 | 2.75 | .18 | 3.35 |
Total from investment operations | 2.87 | 2.64 | 3.19 | .62 | 3.76 |
Distributions from net investment income | (.49) | (.49) | (.46) | (.38) | (.46) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) |
Total distributions | (1.07) | (.49) | (1.08)B | (1.91)C | (.47) |
Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
Net asset value, end of period | $31.54 | $29.74 | $27.59 | $25.48 | $26.77 |
Total ReturnE,F | 9.84% | 9.87% | 13.49% | 2.01% | 16.38% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.12% | 1.12% | 1.13% | 1.13% | 1.16% |
Expenses net of fee waivers, if any | 1.11% | 1.12% | 1.13% | 1.13% | 1.16% |
Expenses net of all reductions | 1.09% | 1.11% | 1.12% | 1.11% | 1.15% |
Net investment income (loss) | 1.66% | 1.87% | 1.78% | 1.65% | 1.64% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $173,999 | $160,040 | $178,116 | $140,148 | $154,134 |
Portfolio turnover rateI | 106% | 37% | 73% | 105% | 112% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.08 per share is comprised of distributions from net investment income of $.462 and distributions from net realized gain of $.613 per share.
C Total distributions of $1.91 per share is comprised of distributions from net investment income of $.384 and distributions from net realized gain of $1.524 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class M
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.77 | $27.62 | $25.49 | $26.78 | $23.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | .41 | .42 | .36 | .36 | .34 |
Net realized and unrealized gain (loss) | 2.38 | 2.14 | 2.77 | .18 | 3.35 |
Total from investment operations | 2.79 | 2.56 | 3.13 | .54 | 3.69 |
Distributions from net investment income | (.40) | (.41) | (.39) | (.31) | (.40) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) |
Total distributions | (.98) | (.41) | (1.00) | (1.83) | (.41) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $31.58 | $29.77 | $27.62 | $25.49 | $26.78 |
Total ReturnC,D | 9.53% | 9.51% | 13.19% | 1.72% | 15.99% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.41% | 1.41% | 1.43% | 1.42% | 1.45% |
Expenses net of fee waivers, if any | 1.41% | 1.41% | 1.43% | 1.42% | 1.45% |
Expenses net of all reductions | 1.39% | 1.41% | 1.42% | 1.41% | 1.44% |
Net investment income (loss) | 1.36% | 1.57% | 1.47% | 1.35% | 1.35% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $46,669 | $48,152 | $56,403 | $46,366 | $49,272 |
Portfolio turnover rateG | 106% | 37% | 73% | 105% | 112% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class C
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $29.07 | $26.98 | $24.91 | $26.23 | $23.03 |
Income from Investment Operations | |||||
Net investment income (loss)A | .26 | .29 | .25 | .23 | .23 |
Net realized and unrealized gain (loss) | 2.33 | 2.09 | 2.70 | .19 | 3.29 |
Total from investment operations | 2.59 | 2.38 | 2.95 | .42 | 3.52 |
Distributions from net investment income | (.27) | (.29) | (.27) | (.22) | (.31) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) |
Total distributions | (.85) | (.29) | (.88) | (1.74) | (.32) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
Net asset value, end of period | $30.81 | $29.07 | $26.98 | $24.91 | $26.23 |
Total ReturnC,D | 9.04% | 9.01% | 12.64% | 1.29% | 15.52% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.87% | 1.87% | 1.88% | 1.88% | 1.89% |
Expenses net of fee waivers, if any | 1.87% | 1.87% | 1.88% | 1.88% | 1.89% |
Expenses net of all reductions | 1.85% | 1.86% | 1.88% | 1.86% | 1.88% |
Net investment income (loss) | .90% | 1.11% | 1.02% | .89% | .91% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $53,099 | $56,964 | $70,957 | $52,172 | $54,810 |
Portfolio turnover rateG | 106% | 37% | 73% | 105% | 112% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class I
Years ended July 31, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $30.35 | $28.14 | $25.97 | $27.24 | $23.87 |
Income from Investment Operations | |||||
Net investment income (loss)A | .59 | .59 | .53 | .52 | .51 |
Net realized and unrealized gain (loss) | 2.43 | 2.17 | 2.78 | .20 | 3.39 |
Total from investment operations | 3.02 | 2.76 | 3.31 | .72 | 3.90 |
Distributions from net investment income | (.58) | (.55) | (.53) | (.46) | (.52) |
Distributions from net realized gain | (.58) | – | (.61) | (1.52) | (.01) |
Total distributions | (1.16) | (.55) | (1.14) | (1.99)B | (.53) |
Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
Net asset value, end of period | $32.21 | $30.35 | $28.14 | $25.97 | $27.24 |
Total ReturnD | 10.14% | 10.17% | 13.81% | 2.35% | 16.74% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .84% | .85% | .84% | .83% | .85% |
Expenses net of fee waivers, if any | .84% | .85% | .84% | .83% | .85% |
Expenses net of all reductions | .82% | .84% | .84% | .81% | .84% |
Net investment income (loss) | 1.93% | 2.14% | 2.06% | 1.94% | 1.95% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $55,462 | $46,943 | $62,600 | $31,710 | $46,135 |
Portfolio turnover rateG | 106% | 37% | 73% | 105% | 112% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.99 per share is comprised of distributions from net investment income of $.463 and distributions from net realized gain of $1.524 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 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, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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.
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 | $51,551,620 | Market Comparable | Transaction price | $3.79 - $132.95 / $23.18 | Increase |
Proxy premium | 28.2% | Increase | |||
Market approach | Transaction price | $2.15 - $142.88 / $35.37 | Increase | ||
Discount cash flow | Discount rate | 8.0% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
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.
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 | $41,462,644 | Market Comparable | Enterprise value/Gross Profit multiple (EV/GP) | 4.3 | Increase |
Discount rate | 57.0% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Market approach | Transaction price | $5.61 - $47.35 / $29.45 | Increase | ||
Discount for the lack of marketability | 20.0% | Decrease | |||
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 July 31, 2018, 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 for certain Funds include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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, certain independent Trustees have elected 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 of $60,806 for Fidelity Advisor Energy Fund and $97,328 for Fidelity Advisor Technology Fund are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2018, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Fidelity Advisor Energy Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on each applicable Fund's Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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. These differences resulted in distribution reclassifications. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation, net operating losses, capital loss carryforwards, partnerships, losses deferred due to wash sales and excise tax regulations.
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 | $2,140,477,411 | $ 835,631,622 | $(97,059,813) | $ 738,571,809 |
Fidelity Advisor Communications Equipment Fund | 18,538,705 | 4,970,202 | (569,767) | 4,400,435 |
Fidelity Advisor Consumer Discretionary Fund | 294,793,939 | 120,804,416 | (7,807,732) | 112,996,684 |
Fidelity Advisor Energy Fund | 754,338,932 | 236,330,149 | (16,455,524) | 219,874,625 |
Fidelity Advisor Financial Services Fund | 462,417,032 | 65,500,113 | (13,783,301) | 51,716,812 |
Fidelity Advisor Health Care Fund | 2,391,616,703 | 959,254,304 | (59,634,906) | 899,619,398 |
Fidelity Advisor Industrials Fund | 640,968,485 | 219,134,730 | (18,014,552) | 201,120,178 |
Fidelity Advisor Semiconductors Fund | 275,754,683 | 58,175,269 | (9,127,595) | 49,047,674 |
Fidelity Advisor Technology Fund | 1,787,403,129 | 539,902,673 | (45,839,279) | 494,063,394 |
Fidelity Advisor Utilities Fund | 281,870,121 | 52,622,410 | (2,525,363) | 50,097,047 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income | Undistributed long-term capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) on securities and other investments | |
Fidelity Advisor Biotechnology Fund | $– | $– | $(63,793,493) | $ 738,571,818 |
Fidelity Advisor Communications Equipment Fund | – | 882,814 | – | 4,400,437 |
Fidelity Advisor Consumer Discretionary Fund | – | 3,866,906 | – | 112,995,770 |
Fidelity Advisor Energy Fund | 811,508 | – | (170,118,670) | 218,633,621 |
Fidelity Advisor Financial Services Fund | 817,591 | 8,561,326 | – | 51,716,812 |
Fidelity Advisor Health Care Fund | – | 128,996,655 | – | 899,600,399 |
Fidelity Advisor Industrials Fund | 889,880 | 54,083,909 | – | 201,120,178 |
Fidelity Advisor Semiconductors Fund | 12,515,505 | 16,000,835 | – | 49,047,889 |
Fidelity Advisor Technology Fund | 61,547,674 | 273,374,287 | – | 494,061,634 |
Fidelity Advisor Utilities Fund | 2,893,520 | 30,954,431 | – | 50,097,107 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | ||||
Short-term | Long-term | Total no expiration | Total capital loss carryfoward | |
Fidelity Advisor Biotechnology Fund | $(63,793,493) | $– | $(63,793,493) | $(63,793,493) |
Fidelity Advisor Energy Fund | $(104,186,750) | $(65,931,921) | $(170,118,671) | $(170,118,671) |
Certain of the Funds intend to elect to defer to the next fiscal year ordinary losses recognized during the period January 1, 2018 to July 31, 2018. Loss deferrals were as follows:
Ordinary losses | |
Fidelity Advisor Biotechnology Fund | $8,149,824 |
Fidelity Advisor Consumer Discretionary Fund | 96,300 |
Fidelity Advisor Health Care Fund | 7,538,744 |
The tax character of distributions paid was as follows:
July 31, 2018 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Fidelity Advisor Communications Equipment Fund | 235,802 | 386,561 | 622,363 |
Fidelity Advisor Consumer Discretionary Fund | – | – | – |
Fidelity Advisor Energy Fund | 11,808,589 | – | 11,808,589 |
Fidelity Advisor Financial Services Fund | 1,462,904 | – | 1,462,904 |
Fidelity Advisor Health Care Fund | 585,049 | – | 585,049 |
Fidelity Advisor Industrials Fund | 3,086,519 | 22,933,088 | 26,019,607 |
Fidelity Advisor Semiconductors Fund | 9,653,263 | 14,855,446 | 24,508,709 |
Fidelity Advisor Technology Fund | 66,899,337 | 70,402,825 | 137,302,162 |
Fidelity Advisor Utilities Fund | 4,657,557 | 6,020,491 | 10,678,048 |
July 31, 2017 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Fidelity Advisor Communications Equipment Fund | 70,636 | 269,855 | 340,491 |
Fidelity Advisor Consumer Discretionary Fund | 1,067,067 | – | 1,067,067 |
Fidelity Advisor Energy Fund | 2,140,939 | – | 2,140,939 |
Fidelity Advisor Financial Services Fund | 502,160 | – | 502,160 |
Fidelity Advisor Health Care Fund | – | – | – |
Fidelity Advisor Industrials Fund | 2,760,974 | 36,711,218 | 39,472,192 |
Fidelity Advisor Semiconductors Fund | 392,430 | 190,781 | 583,211 |
Fidelity Advisor Technology Fund | 4,575,606 | 12,307,678 | 16,883,284 |
Fidelity Advisor Utilities Fund | 5,090,651 | – | 5,090,651 |
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 $16,187,253 in this Subsidiary, representing .58% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Advisor Biotechnology Fund | 1,190,350,985 | 1,491,426,455 |
Fidelity Advisor Communications Equipment Fund | 11,625,430 | 10,329,177 |
Fidelity Advisor Consumer Discretionary Fund | 248,006,866 | 191,044,868 |
Fidelity Advisor Energy Fund | 497,849,377 | 607,607,980 |
Fidelity Advisor Financial Services Fund | 298,289,065 | 208,880,229 |
Fidelity Advisor Health Care Fund | 2,299,283,671 | 2,258,545,011 |
Fidelity Advisor Industrials Fund | 516,448,346 | 602,482,482 |
Fidelity Advisor Semiconductors Fund | 394,592,396 | 357,089,294 |
Fidelity Advisor Technology Fund | 1,778,076,275 | 1,561,699,935 |
Fidelity Advisor Utilities Fund | 324,428,501 | 333,444,521 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Fidelity Advisor Biotechnology Fund | .30% | .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 the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | -% | .25% | $1,927,093 | $45,207 |
Class M | .25% | .25% | 648,020 | 438 |
Class C | .75% | .25% | 5,711,087 | 486,015 |
$8,286,200 | $531,660 | |||
Fidelity Advisor Communications Equipment Fund | ||||
Class A | -% | .25% | $17,012 | $1,147 |
Class M | .25% | .25% | 23,334 | 128 |
Class C | .75% | .25% | 33,323 | 4,236 |
$73,669 | $5,511 | |||
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | -% | .25% | $290,648 | $9,158 |
Class M | .25% | .25% | 154,894 | 7,004 |
Class C | .75% | .25% | 628,696 | 59,686 |
$1,074,238 | $75,848 | |||
Fidelity Advisor Energy Fund | ||||
Class A | -% | .25% | $691,405 | $11,488 |
Class M | .25% | .25% | 639,064 | 520,448 |
Class C | .75% | .25% | 1,917,049 | 216,738 |
$3,247,518 | $748,674 | |||
Fidelity Advisor Financial Services Fund | ||||
Class A | -% | .25% | $419,231 | $42,214 |
Class M | .25% | .25% | 254,864 | 2,196 |
Class C | .75% | .25% | 1,106,557 | 310,946 |
$1,780,652 | $355,356 | |||
Fidelity Advisor Health Care Fund | ||||
Class A | -% | .25% | $2,253,946 | $74,053 |
Class M | .25% | .25% | 1,369,042 | 13,728 |
Class C | .75% | .25% | 6,237,036 | 588,333 |
$9,860,024 | $676,114 | |||
Fidelity Advisor Industrials Fund | ||||
Class A | -% | .25% | $791,962 | $38,190 |
Class M | .25% | .25% | 402,588 | – |
Class C | .75% | .25% | 1,405,020 | 247,538 |
$2,599,570 | $285,728 | |||
Fidelity Advisor Semiconductors Fund | ||||
Class A | -% | .25% | $217,298 | $18,492 |
Class M | .25% | .25% | 100,904 | 5,066 |
Class C | .75% | .25% | 523,067 | 133,562 |
$841,269 | $157,120 | |||
Fidelity Advisor Technology Fund | ||||
Class A | -% | .25% | $1,861,075 | $143,931 |
Class M | .25% | .25% | 1,547,700 | 39,414 |
Class C | .75% | .25% | 2,858,548 | 642,810 |
$6,267,323 | $826,155 | |||
Fidelity Advisor Utilities Fund | ||||
Class A | -% | .25% | $400,095 | $14,881 |
Class M | .25% | .25% | 232,636 | 520 |
Class C | .75% | .25% | 543,460 | 37,584 |
$1,176,191 | $52,985 |
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 | $319,144 |
Class M | 28,446 |
Class C(a) | 39,138 |
$386,728 | |
Fidelity Advisor Communications Equipment Fund | |
Class A | $5,357 |
Class M | 844 |
Class C(a) | 81 |
$6,282 | |
Fidelity Advisor Consumer Discretionary Fund | |
Class A | $108,100 |
Class M | 8,580 |
Class C(a) | 3,080 |
$119,760 | |
Fidelity Advisor Energy Fund | |
Class A | $91,865 |
Class M | - |
Class C(a) | 40,929 |
$132,794 | |
Fidelity Advisor Financial Services Fund | |
Class A | $123,161 |
Class M | 14,978 |
Class C(a) | 16,141 |
$154,280 | |
Fidelity Advisor Health Care Fund | |
Class A | $404,778 |
Class M | 40,044 |
Class C(a) | 35,639 |
$480,461 | |
Fidelity Advisor Industrials Fund | |
Class A | $120,327 |
Class M | 13,662 |
Class C(a) | 18,213 |
$152,202 | |
Fidelity Advisor Semiconductors Fund | |
Class A | $133,453 |
Class M | 7,803 |
Class C(a) | 8,550 |
$149,806 | |
Fidelity Advisor Technology Fund | |
Class A | $449,241 |
Class M | 45,197 |
Class C(a) | 37,266 |
$531,704 | |
Fidelity Advisor Utilities Fund | |
Class A | $78,759 |
Class M | 10,287 |
Class C(a) | 4,822 |
$93,868 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Fidelity Advisor Biotechnology Fund | ||
Class A | $1,534,465 | .20 |
Class M | 345,004 | .27 |
Class C | 1,091,777 | .19 |
Class I | 2,213,042 | .18 |
$5,184,288 | ||
Fidelity Advisor Communications Equipment Fund | ||
Class A | $19,631 | .29 |
Class M | 16,382 | .35 |
Class C | 10,245 | .31 |
Class I | 3,826 | .16 |
$50,084 | ||
Fidelity Advisor Consumer Discretionary Fund | ||
Class A | $242,513 | .21 |
Class M | 69,357 | .22 |
Class C | 132,053 | .21 |
Class I | 191,337 | .18 |
$635,260 | ||
Fidelity Advisor Energy Fund | ||
Class A | $652,845 | .24 |
Class M | 323,034 | .25 |
Class C | 401,097 | .21 |
Class I | 601,302 | .20 |
$1,978,278 | ||
Fidelity Advisor Financial Services Fund | ||
Class A | $352,524 | .21 |
Class M | 115,514 | .23 |
Class C | 235,365 | .21 |
Class I | 260,089 | .19 |
$963,492 | ||
Fidelity Advisor Health Care Fund | ||
Class A | $1,766,500 | .20 |
Class M | 575,236 | .21 |
Class C | 1,197,808 | .19 |
Class I | 1,900,164 | .18 |
$5,439,708 | ||
Fidelity Advisor Industrials Fund | ||
Class A | $615,782 | .19 |
Class M | 162,603 | .20 |
Class C | 279,588 | .20 |
Class I | 558,335 | .18 |
$1,616,308 | ||
Fidelity Advisor Semiconductors Fund | ||
Class A | $188,929 | .22 |
Class M | 59,609 | .30 |
Class C | 121,983 | .23 |
Class I | 220,284 | .18 |
$590,805 | ||
Fidelity Advisor Technology Fund | ||
Class A | $1,446,443 | .19 |
Class M | 621,797 | .20 |
Class C | 577,863 | .20 |
Class I | 1,002,857 | .18 |
$3,648,960 | ||
Fidelity Advisor Utilities Fund | ||
Class A | $353,411 | .22 |
Class M | 124,604 | .27 |
Class C | 124,738 | .23 |
Class I | 95,405 | .20 |
$698,158 |
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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Advisor Biotechnology Fund | .03 |
Fidelity Advisor Communications Equipment Fund | .04 |
Fidelity Advisor Consumer Discretionary Fund | .04 |
Fidelity Advisor Energy Fund | .03 |
Fidelity Advisor Financial Services Fund | .04 |
Fidelity Advisor Health Care Fund | .03 |
Fidelity Advisor Industrials Fund | .03 |
Fidelity Advisor Semiconductors Fund | .04 |
Fidelity Advisor Technology Fund | .03 |
Fidelity Advisor Utilities Fund | .04 |
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 | $112,320 |
Fidelity Advisor Communications Equipment Fund | 473 |
Fidelity Advisor Consumer Discretionary Fund | 3,922 |
Fidelity Advisor Energy Fund | 15,332 |
Fidelity Advisor Financial Services Fund | 4,268 |
Fidelity Advisor Health Care Fund | 56,703 |
Fidelity Advisor Industrials Fund | 15,082 |
Fidelity Advisor Semiconductors Fund | 13,619 |
Fidelity Advisor Technology Fund | 44,143 |
Fidelity Advisor Utilities Fund | 7,939 |
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 | $5,114,500 | 1.38% | $1,570 |
Fidelity Advisor Technology Fund | Borrower | $6,194,250 | 1.82% | $1,255 |
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 | $7,554 |
Fidelity Advisor Communications Equipment Fund | 47 |
Fidelity Advisor Consumer Discretionary Fund | 859 |
Fidelity Advisor Energy Fund | 2,526 |
Fidelity Advisor Financial Services Fund | 1,282 |
Fidelity Advisor Health Care Fund | 7,864 |
Fidelity Advisor Industrials Fund | 2,408 |
Fidelity Advisor Semiconductors Fund | 757 |
Fidelity Advisor Technology Fund | 5,144 |
Fidelity Advisor Utilities Fund | 871 |
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 each class of each Fund to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. Some expenses, for example the compensation of the independent Trustees, and certain other expenses such as interest expense, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Fidelity Advisor Communications Equipment Fund | ||
Class A | 1.40% | $24,476 |
Class M | 1.65% | 21,406 |
Class C | 2.15% | 12,911 |
Class I | 1.15% | 6,331 |
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. In addition, 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 | $60,604 | $365 |
Fidelity Advisor Communications Equipment Fund | 1,664 | – |
Fidelity Advisor Consumer Discretionary Fund | 10,314 | – |
Fidelity Advisor Energy Fund | 58,202 | 654 |
Fidelity Advisor Financial Services Fund | 28,487 | 61 |
Fidelity Advisor Health Care Fund | 299,117 | 2,110 |
Fidelity Advisor Industrials Fund | 56,182 | – |
Fidelity Advisor Semiconductors Fund | 53,693 | – |
Fidelity Advisor Technology Fund | 200,086 | 746 |
Fidelity Advisor Utilities Fund | 62,796 | – |
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 | $23,253 |
Fidelity Advisor Communications Equipment Fund | 131 |
Fidelity Advisor Consumer Discretionary Fund | 2,573 |
Fidelity Advisor Energy Fund | 7,985 |
Fidelity Advisor Financial Services Fund | 4,022 |
Fidelity Advisor Health Care Fund | 24,142 |
Fidelity Advisor Industrials Fund | 7,797 |
Fidelity Advisor Semiconductors Fund | 2,446 |
Fidelity Advisor Technology Fund | 16,089 |
Fidelity Advisor Utilities Fund | 2,827 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 31, 2018 | Year ended July 31, 2017 | |
Fidelity Advisor Communications Equipment Fund | ||
From net investment income | ||
Class A | $14,488 | $22,884 |
Class M | 7,578 | 7,287 |
Class I | 5,006 | 40,465 |
Total | $27,072 | $70,636 |
From net realized gain | ||
Class A | $237,596 | $76,855 |
Class M | 176,738 | 56,397 |
Class C | 120,142 | 45,429 |
Class I | 60,815 | 91,174 |
Total | $595,291 | $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 | $3,962,831 | $– |
Class M | 1,446,535 | – |
Class C | 1,622,297 | – |
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 | 26,595 | – |
Class I | 31,987 | 689,184 |
Total | $106,751 | $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 | $585,049 | $– |
Total | $585,049 | $– |
Fidelity Advisor Industrials Fund | ||
From net investment income | ||
Class A | $780,663 | $1,317,451 |
Class M | – | 189,934 |
Class I | 1,507,165 | 1,253,589 |
Total | $2,287,828 | $2,760,974 |
From net realized gain | ||
Class A | $8,925,958 | $15,952,070 |
Class M | 2,317,270 | 4,629,029 |
Class C | 4,255,486 | 6,747,943 |
Class I | 8,233,065 | 9,382,176 |
Total | $23,731,779 | $36,711,218 |
Fidelity Advisor Semiconductors Fund | ||
From net investment income | ||
Class A | $136,368 | $125,591 |
Class I | 505,397 | 266,839 |
Total | $641,765 | $392,430 |
From net realized gain | ||
Class A | $7,207,679 | $63,188 |
Class M | 1,725,353 | 16,965 |
Class C | 4,824,021 | 39,995 |
Class I | 10,109,891 | 70,633 |
Total | $23,866,944 | $190,781 |
Fidelity Advisor Technology Fund | ||
From net realized gain | ||
Class A | $53,381,170 | $7,901,048 |
Class M | 23,208,435 | 3,251,710 |
Class C | 22,813,687 | 2,523,567 |
Class I | 37,898,870 | 3,206,959 |
Total | $137,302,162 | $16,883,284 |
Fidelity Advisor Utilities Fund | ||
From net investment income | ||
Class A | $2,587,471 | $2,833,535 |
Class M | 623,640 | 721,535 |
Class C | 518,405 | 680,072 |
Class I | 928,041 | 855,509 |
Total | $4,657,557 | $5,090,651 |
From net realized gain | ||
Class A | $3,055,354 | $– |
Class M | 907,882 | – |
Class C | 1,119,531 | – |
Class I | 937,724 | – |
Total | $6,020,491 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2018 | Year ended July 31, 2017 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | ||||
Shares sold | 4,489,461 | 7,653,403 | $117,335,379 | $167,894,976 |
Shares redeemed | (9,153,167) | (25,942,034) | (237,146,069) | (575,800,593) |
Net increase (decrease) | (4,663,706) | (18,288,631) | $(119,810,690) | $(407,905,617) |
Class M | ||||
Shares sold | 922,950 | 1,036,607 | $22,890,680 | $21,755,495 |
Shares redeemed | (1,262,202) | (2,006,142) | (31,094,295) | (41,093,048) |
Net increase (decrease) | (339,252) | (969,535) | $(8,203,615) | $(19,337,553) |
Class C | ||||
Shares sold | 2,264,684 | 4,574,019 | $51,128,106 | $87,561,745 |
Shares redeemed | (6,920,490) | (12,148,694) | (154,651,855) | (229,492,656) |
Net increase (decrease) | (4,655,806) | (7,574,675) | $(103,523,749) | $(141,930,911) |
Class I | ||||
Shares sold | 14,300,108 | 24,415,611 | $394,886,039 | $579,987,789 |
Shares redeemed | (14,667,225) | (19,929,416) | (400,612,855) | (453,166,656) |
Net increase (decrease) | (367,117) | 4,486,195 | $(5,726,816) | $126,821,133 |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | ||||
Shares sold | 240,842 | 196,585 | $3,607,551 | $2,537,011 |
Reinvestment of distributions | 18,317 | 7,376 | 249,841 | 96,328 |
Shares redeemed | (131,537) | (122,799) | (1,894,331) | (1,616,350) |
Net increase (decrease) | 127,622 | 81,162 | $1,963,061 | $1,016,989 |
Class M | ||||
Shares sold | 124,711 | 45,088 | $1,797,699 | $566,811 |
Reinvestment of distributions | 14,023 | 5,034 | 184,116 | 63,422 |
Shares redeemed | (121,118) | (44,106) | (1,708,377) | (560,530) |
Net increase (decrease) | 17,616 | 6,016 | $273,438 | $69,703 |
Class C | ||||
Shares sold | 158,604 | 86,903 | $2,105,283 | $1,000,007 |
Reinvestment of distributions | 9,839 | 3,816 | 118,457 | 44,267 |
Shares redeemed | (70,659) | (68,095) | (888,706) | (804,053) |
Net increase (decrease) | 97,784 | 22,624 | $1,335,034 | $240,221 |
Class I | ||||
Shares sold | 180,193 | 696,847 | $2,805,233 | $9,244,140 |
Reinvestment of distributions | 4,027 | 9,441 | 57,058 | 127,920 |
Shares redeemed | (341,435) | (469,873) | (4,971,605) | (6,487,593) |
Net increase (decrease) | (157,215) | 236,415 | $(2,109,314) | $2,884,467 |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | ||||
Shares sold | 2,248,158 | 1,563,667 | $59,989,967 | $33,991,245 |
Reinvestment of distributions | – | 25,062 | – | 533,815 |
Shares redeemed | (1,821,427) | (3,724,571) | (45,906,961) | (80,253,124) |
Net increase (decrease) | 426,731 | (2,135,842) | $14,083,006 | $(45,728,064) |
Class M | ||||
Shares sold | 875,533 | 504,914 | $21,446,215 | $9,997,379 |
Reinvestment of distributions | – | 6,315 | – | 126,233 |
Shares redeemed | (791,689) | (719,118) | (19,230,008) | (14,255,751) |
Net increase (decrease) | 83,844 | (207,889) | $2,216,207 | $(4,132,139) |
Class C | ||||
Shares sold | 737,358 | 557,081 | $15,838,368 | $9,835,047 |
Shares redeemed | (831,010) | (1,276,483) | (17,067,044) | (22,490,171) |
Net increase (decrease) | (93,652) | (719,402) | $(1,228,676) | $(12,655,124) |
Class I | ||||
Shares sold | 3,539,647 | 2,729,213 | $99,528,546 | $63,547,711 |
Reinvestment of distributions | – | 13,622 | – | 311,266 |
Shares redeemed | (1,855,164) | (2,775,350) | (50,248,042) | (63,782,352) |
Net increase (decrease) | 1,684,483 | (32,515) | $49,280,504 | $76,625 |
Fidelity Advisor Energy Fund | ||||
Class A | ||||
Shares sold | 2,010,255 | 3,731,782 | $68,355,026 | $126,063,464 |
Reinvestment of distributions | 122,986 | 22,919 | 3,904,807 | 837,681 |
Shares redeemed | (3,744,347) | (5,899,065) | (126,255,245) | (197,164,038) |
Net increase (decrease) | (1,611,106) | (2,144,364) | $(53,995,412) | $(70,262,893) |
Class M | ||||
Shares sold | 661,725 | 633,035 | $23,576,811 | $21,820,862 |
Reinvestment of distributions | 43,874 | – | 1,426,363 | – |
Shares redeemed | (1,153,394) | (1,516,413) | (39,436,080) | (51,021,698) |
Net increase (decrease) | (447,795) | (883,378) | $(14,432,906) | $(29,200,836) |
Class C | ||||
Shares sold | 666,274 | 2,155,681 | $20,703,593 | $67,036,181 |
Reinvestment of distributions | 54,288 | – | 1,586,840 | – |
Shares redeemed | (3,033,482) | (3,021,436) | (92,256,812) | (91,933,200) |
Net increase (decrease) | (2,312,920) | (865,755) | $(69,966,379) | $(24,897,019) |
Class I | ||||
Shares sold | 5,429,294 | 7,723,732 | $193,924,922 | $275,440,495 |
Reinvestment of distributions | 125,558 | 27,291 | 4,196,161 | 1,049,878 |
Shares redeemed | (4,682,047) | (5,087,252) | (160,996,824) | (176,495,073) |
Net increase (decrease) | 872,805 | 2,663,771 | $37,124,259 | $99,995,300 |
Fidelity Advisor Financial Services Fund | ||||
Class A | ||||
Shares sold | 2,694,850 | 4,464,580 | $58,668,845 | $79,656,792 |
Reinvestment of distributions | 26,593 | 14,068 | 580,794 | 258,984 |
Shares redeemed | (2,090,965) | (3,395,590) | (44,613,971) | (61,313,608) |
Net increase (decrease) | 630,478 | 1,083,058 | $14,635,668 | $18,602,168 |
Class M | ||||
Shares sold | 758,763 | 882,368 | $16,347,774 | $15,952,818 |
Reinvestment of distributions | 3,172 | 2,145 | 68,610 | 39,121 |
Shares redeemed | (673,927) | (475,808) | (14,170,761) | (8,428,160) |
Net increase (decrease) | 88,008 | 408,705 | $2,245,623 | $7,563,779 |
Class C | ||||
Shares sold | 2,105,833 | 3,210,445 | $43,305,642 | $55,106,415 |
Reinvestment of distributions | – | 381 | – | 6,602 |
Shares redeemed | (1,228,211) | (1,427,464) | (24,460,182) | (24,008,233) |
Net increase (decrease) | 877,622 | 1,783,362 | $18,845,460 | $31,104,784 |
Class I | ||||
Shares sold | 5,000,148 | 6,135,135 | $111,196,062 | $113,873,501 |
Reinvestment of distributions | 33,129 | 8,203 | 743,087 | 155,027 |
Shares redeemed | (2,604,882) | (2,631,101) | (57,474,934) | (49,234,487) |
Net increase (decrease) | 2,428,395 | 3,512,237 | $54,464,215 | $64,794,041 |
Fidelity Advisor Health Care Fund | ||||
Class A | ||||
Shares sold | 3,820,700 | 4,544,454 | $174,179,057 | $169,771,747 |
Reinvestment of distributions | – | – | – | – |
Shares redeemed | (4,717,099) | (13,969,231) | (210,240,925) | (524,686,394) |
Net increase (decrease) | (896,399) | (9,424,777) | $(36,061,868) | $(354,914,647) |
Class M | ||||
Shares sold | 576,984 | 700,958 | $24,727,597 | $24,882,156 |
Reinvestment of distributions | – | – | – | – |
Shares redeemed | (1,082,800) | (2,005,513) | (45,253,288) | (69,983,106) |
Net increase (decrease) | (505,816) | (1,304,555) | $(20,525,691) | $(45,100,950) |
Class C | ||||
Shares sold | 1,981,630 | 3,257,257 | $72,552,352 | $99,280,372 |
Reinvestment of distributions | – | – | – | – |
Shares redeemed | (3,660,984) | (7,269,106) | (131,526,868) | (219,465,705) |
Net increase (decrease) | (1,679,354) | (4,011,849) | $(58,974,516) | $(120,185,333) |
Class I | ||||
Shares sold | 9,258,420 | 12,916,139 | $459,345,254 | $530,550,261 |
Reinvestment of distributions | 10,985 | – | 509,046 | – |
Shares redeemed | (5,167,599) | (8,776,012) | (251,193,735) | (352,865,687) |
Net increase (decrease) | 4,101,806 | 4,140,127 | $208,660,565 | $177,684,574 |
Fidelity Advisor Industrials Fund | ||||
Class A | ||||
Shares sold | 1,497,116 | 3,473,128 | $61,793,037 | $129,731,002 |
Reinvestment of distributions | 226,150 | 435,669 | 9,283,440 | 16,089,246 |
Shares redeemed | (2,770,461) | (3,604,639) | (113,411,149) | (134,343,693) |
Net increase (decrease) | (1,047,195) | 304,158 | $(42,334,672) | $11,476,555 |
Class M | ||||
Shares sold | 286,248 | 687,232 | $11,557,916 | $25,114,383 |
Reinvestment of distributions | 57,090 | 129,732 | 2,293,883 | 4,689,810 |
Shares redeemed | (967,134) | (738,370) | (38,592,300) | (27,015,212) |
Net increase (decrease) | (623,796) | 78,594 | $(24,740,501) | $2,788,981 |
Class C | ||||
Shares sold | 566,263 | 1,417,937 | $20,919,630 | $47,806,010 |
Reinvestment of distributions | 107,041 | 173,011 | 3,945,516 | 5,776,837 |
Shares redeemed | (988,699) | (1,132,989) | (36,415,774) | (37,861,806) |
Net increase (decrease) | (315,395) | 457,959 | $(11,550,628) | $15,721,041 |
Class I | ||||
Shares sold | 2,581,269 | 6,108,219 | $111,557,552 | $239,674,929 |
Reinvestment of distributions | 205,495 | 241,469 | 8,860,965 | 9,349,688 |
Shares redeemed | (2,784,650) | (2,774,981) | (119,181,603) | (107,749,101) |
Net increase (decrease) | 2,114 | 3,574,707 | $1,236,914 | $141,275,516 |
Fidelity Advisor Semiconductors Fund | ||||
Class A | ||||
Shares sold | 1,668,711 | 2,867,916 | $40,716,736 | $55,505,336 |
Reinvestment of distributions | 305,588 | 9,674 | 7,166,032 | 176,700 |
Shares redeemed | (1,408,788) | (1,601,800) | (34,081,400) | (31,487,416) |
Net increase (decrease) | 565,511 | 1,275,790 | $13,801,368 | $24,194,620 |
Class M | ||||
Shares sold | 316,181 | 423,364 | $7,446,796 | $7,881,848 |
Reinvestment of distributions | 76,374 | 903 | 1,722,235 | 15,741 |
Shares redeemed | (260,992) | (261,715) | (6,169,057) | (5,068,409) |
Net increase (decrease) | 131,563 | 162,552 | $2,999,974 | $2,829,180 |
Class C | ||||
Shares sold | 749,134 | 1,355,856 | $16,152,447 | $23,363,381 |
Reinvestment of distributions | 227,506 | 2,356 | 4,682,073 | 37,856 |
Shares redeemed | (564,806) | (558,596) | (11,999,565) | (9,836,334) |
Net increase (decrease) | 411,834 | 799,616 | $8,834,955 | $13,564,903 |
Class I | ||||
Shares sold | 2,700,418 | 4,699,271 | $69,688,220 | $93,678,192 |
Reinvestment of distributions | 411,599 | 16,678 | 10,121,229 | 316,449 |
Shares redeemed | (1,816,854) | (2,177,251) | (45,424,171) | (44,325,079) |
Net increase (decrease) | 1,295,163 | 2,538,698 | $34,385,278 | $49,669,562 |
Fidelity Advisor Technology Fund | ||||
Class A | ||||
Shares sold | 3,632,315 | 3,055,890 | $209,434,785 | $135,662,012 |
Reinvestment of distributions | 960,124 | 188,871 | 51,174,597 | 7,435,860 |
Shares redeemed | (3,153,557) | (3,709,517) | (179,792,848) | (163,600,241) |
Net increase (decrease) | 1,438,882 | (464,756) | $80,816,534 | $(20,502,369) |
Class M | ||||
Shares sold | 989,362 | 921,794 | $54,150,425 | $39,317,522 |
Reinvestment of distributions | 451,464 | 84,422 | 22,848,570 | 3,170,901 |
Shares redeemed | (1,236,642) | (1,104,127) | (67,046,356) | (45,466,739) |
Net increase (decrease) | 204,184 | (97,911) | $9,952,639 | $(2,978,316) |
Class C | ||||
Shares sold | 1,780,368 | 1,894,715 | $87,758,581 | $72,854,963 |
Reinvestment of distributions | 474,339 | 66,095 | 21,535,003 | 2,251,207 |
Shares redeemed | (1,266,229) | (1,274,568) | (61,788,663) | (49,720,750) |
Net increase (decrease) | 988,478 | 686,242 | $47,504,921 | $25,385,420 |
Class I | ||||
Shares sold | 6,670,752 | 4,625,431 | $412,237,755 | $221,194,715 |
Reinvestment of distributions | 621,718 | 71,165 | 35,543,634 | 2,988,203 |
Shares redeemed | (3,202,897) | (14,076,328)(a) | (195,523,397) | (592,265,064)(a) |
Net increase (decrease) | 4,089,573 | (9,379,732) | $252,257,992 | $(368,082,146) |
Fidelity Advisor Utilities Fund | ||||
Class A | ||||
Shares sold | 1,188,046 | 1,163,884 | $35,486,347 | $31,313,776 |
Reinvestment of distributions | 180,860 | 105,052 | 5,431,226 | 2,653,670 |
Shares redeemed | (1,234,740) | (2,342,072) | (36,590,564) | (62,630,474) |
Net increase (decrease) | 134,166 | (1,073,136) | $4,327,009 | $(28,663,028) |
Class M | ||||
Shares sold | 170,574 | 188,461 | $5,112,824 | $5,062,955 |
Reinvestment of distributions | 50,196 | 26,982 | 1,511,910 | 683,792 |
Shares redeemed | (360,617) | (640,220) | (10,729,871) | (17,005,411) |
Net increase (decrease) | (139,847) | (424,777) | $(4,105,137) | $(11,258,664) |
Class C | ||||
Shares sold | 227,468 | 395,852 | $6,648,453 | $10,347,902 |
Reinvestment of distributions | 52,741 | 24,717 | 1,554,276 | 613,397 |
Shares redeemed | (516,236) | (1,091,078) | (14,887,168) | (28,375,968) |
Net increase (decrease) | (236,027) | (670,509) | $(6,684,439) | $(17,414,669) |
Class I | ||||
Shares sold | 1,003,462 | 1,075,499 | $30,966,089 | $29,795,613 |
Reinvestment of distributions | 56,328 | 29,368 | 1,724,202 | 755,627 |
Shares redeemed | (885,101) | (1,782,322) | (26,822,894) | (48,142,867) |
Net increase (decrease) | 174,689 | (677,455) | $5,867,397 | $(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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and the Shareholders of Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Semiconductors Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Semiconductors Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund (the "Funds"), each a fund of Fidelity Advisor Series VII, including the schedules of investments, as of July 31, 2018, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2018, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 14, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 286 funds. Mr. Wiley oversees 197 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2018
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2018
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2018
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2018
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2018
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2018
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as a Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2018
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2018 to July 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 February 1, 2018 | Ending Account Value July 31, 2018 | Expenses Paid During Period-B February 1, 2018 to July 31, 2018 | |
Fidelity Advisor Biotechnology Fund | ||||
Class A | 1.07% | |||
Actual | $1,000.00 | $1,012.40 | $5.34 | |
Hypothetical-C | $1,000.00 | $1,019.49 | $5.36 | |
Class M | 1.38% | |||
Actual | $1,000.00 | $1,010.80 | $6.88 | |
Hypothetical-C | $1,000.00 | $1,017.95 | $6.90 | |
Class C | 1.81% | |||
Actual | $1,000.00 | $1,008.40 | $9.01 | |
Hypothetical-C | $1,000.00 | $1,015.82 | $9.05 | |
Class I | .80% | |||
Actual | $1,000.00 | $1,013.40 | $3.99 | |
Hypothetical-C | $1,000.00 | $1,020.83 | $4.01 | |
Fidelity Advisor Communications Equipment Fund | ||||
Class A | 1.42% | |||
Actual | $1,000.00 | $1,061.60 | $7.26 | |
Hypothetical-C | $1,000.00 | $1,017.75 | $7.10 | |
Class M | 1.61% | |||
Actual | $1,000.00 | $1,060.30 | $8.22 | |
Hypothetical-C | $1,000.00 | $1,016.81 | $8.05 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,057.90 | $10.97 | |
Hypothetical-C | $1,000.00 | $1,014.13 | $10.74 | |
Class I | 1.11% | |||
Actual | $1,000.00 | $1,063.30 | $5.68 | |
Hypothetical-C | $1,000.00 | $1,019.29 | $5.56 | |
Fidelity Advisor Consumer Discretionary Fund | ||||
Class A | 1.10% | |||
Actual | $1,000.00 | $1,020.20 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,019.34 | $5.51 | |
Class M | 1.37% | |||
Actual | $1,000.00 | $1,018.90 | $6.86 | |
Hypothetical-C | $1,000.00 | $1,018.00 | $6.85 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,016.40 | $9.25 | |
Hypothetical-C | $1,000.00 | $1,015.62 | $9.25 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,021.80 | $4.11 | |
Hypothetical-C | $1,000.00 | $1,020.73 | $4.11 | |
Fidelity Advisor Energy Fund | ||||
Class A | 1.09% | |||
Actual | $1,000.00 | $1,074.10 | $5.61 | |
Hypothetical-C | $1,000.00 | $1,019.39 | $5.46 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $1,072.70 | $6.99 | |
Hypothetical-C | $1,000.00 | $1,018.05 | $6.81 | |
Class C | 1.82% | |||
Actual | $1,000.00 | $1,070.00 | $9.34 | |
Hypothetical-C | $1,000.00 | $1,015.77 | $9.10 | |
Class I | .81% | |||
Actual | $1,000.00 | $1,075.60 | $4.17 | |
Hypothetical-C | $1,000.00 | $1,020.78 | $4.06 | |
Fidelity Advisor Financial Services Fund | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $941.00 | $5.20 | |
Hypothetical-C | $1,000.00 | $1,019.44 | $5.41 | |
Class M | 1.35% | |||
Actual | $1,000.00 | $939.90 | $6.49 | |
Hypothetical-C | $1,000.00 | $1,018.10 | $6.76 | |
Class C | 1.84% | |||
Actual | $1,000.00 | $938.00 | $8.84 | |
Hypothetical-C | $1,000.00 | $1,015.67 | $9.20 | |
Class I | .81% | |||
Actual | $1,000.00 | $942.10 | $3.90 | |
Hypothetical-C | $1,000.00 | $1,020.78 | $4.06 | |
Fidelity Advisor Health Care Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $1,082.00 | $5.42 | |
Hypothetical-C | $1,000.00 | $1,019.59 | $5.26 | |
Class M | 1.31% | |||
Actual | $1,000.00 | $1,080.40 | $6.76 | |
Hypothetical-C | $1,000.00 | $1,018.30 | $6.56 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,078.00 | $9.27 | |
Hypothetical-C | $1,000.00 | $1,015.87 | $9.00 | |
Class I | .79% | |||
Actual | $1,000.00 | $1,083.20 | $4.08 | |
Hypothetical-C | $1,000.00 | $1,020.88 | $3.96 | |
Fidelity Advisor Industrials Fund | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $970.80 | $5.08 | |
Hypothetical-C | $1,000.00 | $1,019.64 | $5.21 | |
Class M | 1.30% | |||
Actual | $1,000.00 | $969.70 | $6.35 | |
Hypothetical-C | $1,000.00 | $1,018.35 | $6.51 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $967.20 | $8.78 | |
Hypothetical-C | $1,000.00 | $1,015.87 | $9.00 | |
Class I | .78% | |||
Actual | $1,000.00 | $972.30 | $3.81 | |
Hypothetical-C | $1,000.00 | $1,020.93 | $3.91 | |
Fidelity Advisor Semiconductors Fund | ||||
Class A | 1.13% | |||
Actual | $1,000.00 | $1,015.80 | $5.65 | |
Hypothetical-C | $1,000.00 | $1,019.19 | $5.66 | |
Class M | 1.45% | |||
Actual | $1,000.00 | $1,013.90 | $7.24 | |
Hypothetical-C | $1,000.00 | $1,017.60 | $7.25 | |
Class C | 1.89% | |||
Actual | $1,000.00 | $1,012.00 | $9.43 | |
Hypothetical-C | $1,000.00 | $1,015.42 | $9.44 | |
Class I | .84% | |||
Actual | $1,000.00 | $1,017.40 | $4.20 | |
Hypothetical-C | $1,000.00 | $1,020.63 | $4.21 | |
Fidelity Advisor Technology Fund | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $1,032.10 | $5.24 | |
Hypothetical-C | $1,000.00 | $1,019.64 | $5.21 | |
Class M | 1.29% | |||
Actual | $1,000.00 | $1,030.80 | $6.50 | |
Hypothetical-C | $1,000.00 | $1,018.40 | $6.46 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,028.30 | $9.05 | |
Hypothetical-C | $1,000.00 | $1,015.87 | $9.00 | |
Class I | .77% | |||
Actual | $1,000.00 | $1,033.50 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,020.98 | $3.86 | |
Fidelity Advisor Utilities Fund | ||||
Class A | 1.09% | |||
Actual | $1,000.00 | $1,082.40 | $5.63 | |
Hypothetical-C | $1,000.00 | $1,019.39 | $5.46 | |
Class M | 1.39% | |||
Actual | $1,000.00 | $1,080.80 | $7.17 | |
Hypothetical-C | $1,000.00 | $1,017.90 | $6.95 | |
Class C | 1.85% | |||
Actual | $1,000.00 | $1,078.40 | $9.53 | |
Hypothetical-C | $1,000.00 | $1,015.62 | $9.25 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,083.80 | $4.24 | |
Hypothetical-C | $1,000.00 | $1,020.73 | $4.11 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 31, 2018, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Advisor Communications Equipment Fund | $1,135,944 |
Fidelity Advisor Consumer Discretionary Fund | $4,449,970 |
Fidelity Advisor Financial Services Fund | $9,562,644 |
Fidelity Advisor Health Care Fund | $133,018,319 |
Fidelity Advisor Industrials Fund | $66,915,916 |
Fidelity Advisor Semiconductors Fund | $20,006,666 |
Fidelity Advisor Technology Fund | $308,231,943 |
Fidelity Advisor Utilities Fund | $36,974,923 |
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:
Class A | Class M | Class C | Class I | |
Fidelity Advisor Biotechnology Fund | ||||
December, 2017 | – | – | – | – |
Fidelity Advisor Communications Equipment Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
Fidelity Advisor Consumer Discretionary Fund | ||||
December, 2017 | – | – | – | – |
Fidelity Advisor Energy Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
Fidelity Advisor Financial Services Fund | ||||
December, 2017 | 100% | 100% | – | 100% |
Fidelity Advisor Health Care Fund | ||||
December, 2017 | – | – | – | 100% |
Fidelity Advisor Industrials Fund | ||||
December, 2017 | 100% | 100% | – | 100% |
Fidelity Advisor Semiconductors Fund | ||||
December, 2017 | 38% | 41% | 44% | 35% |
Fidelity Advisor Technology Fund | ||||
December, 2017 | 8% | 9% | 10% | 8% |
Fidelity Advisor Utilities Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Class A | Class M | Class C | Class I | |
Fidelity Advisor Biotechnology Fund | ||||
December, 2017 | – | – | – | – |
Fidelity Advisor Communications Equipment Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
Fidelity Advisor Consumer Discretionary Fund | ||||
December, 2017 | – | – | – | – |
Fidelity Advisor Energy Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
Fidelity Advisor Financial Services Fund | ||||
December, 2017 | 100% | 100% | – | 100% |
Fidelity Advisor Health Care Fund | ||||
December, 2017 | – | – | – | 100% |
Fidelity Advisor Industrials Fund | ||||
December, 2017 | 100% | 100% | – | 100% |
Fidelity Advisor Semiconductors Fund | ||||
December, 2017 | 45% | 49% | 53% | 42% |
Fidelity Advisor Technology Fund | ||||
December, 2017 | 12% | 12% | 13% | 11% |
Fidelity Advisor Utilities Fund | ||||
December, 2017 | 100% | 100% | 100% | 100% |
The funds will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
AFOC-ANN-0918
1.762411.117
Fidelity Advisor® Global Real Estate Fund Class A, Class M, Class C and Class I Annual Report July 31, 2018 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended July 31, 2018 | Past 1 year | Life of fundA |
Class A (incl. 5.75% sales charge) | 0.05% | (0.48)% |
Class M (incl. 3.50% sales charge) | 2.20% | 0.44% |
Class C (incl. contingent deferred sales charge) | 4.38% | 1.77% |
Class I | 6.48% | 2.82% |
A From August 11, 2016
Class C shares' contingent deferred sales charges included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Global Real Estate Fund - Class A on August 11, 2016, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the FTSE EPRA/NAREIT Developed Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-005010/img405580499_740.jpg)
Period Ending Values | ||
$9,906 | Fidelity Advisor® Global Real Estate Fund - Class A | |
$10,524 | FTSE EPRA/NAREIT Developed Index |
Management's Discussion of Fund Performance
Market Recap: For the 12 months ending July 31, 2018, global real estate stocks gained 5.67%, as measured by the FTSE® EPRA℠/NAREIT® Developed Index, partly held back by the headwind of a strengthening U.S. dollar against many currencies. In the U.S., it was an up-and-down 12 months for real estate investment trusts (REITs), which made up 52% of the index this period, on average. U.S. REITs corrected sharply in late 2017 and the first two months of 2018 before enjoying a strong upward trend through the end of July. For the full 12 months, the group rose about 4%. Higher interest rates posed a headwind for U.S. REITs, as income-seeking investors perceived a correlation between the two factors. Still, the fundamental backdrop for U.S. REITs remained solid, with positive, if decelerating, cash-flow growth across most categories. Continental European markets performed especially well this period, gaining roughly 11%, owing to the earlier stage of their real estate recovery. Almost every country in this region fared well, led by Austria (+35%), Germany (+23%) and Sweden (+16%). Conversely, notable laggards within Europe included France (+2%) and Switzerland (+1%). Meanwhile, Japan and Hong Kong, the next-largest index allocations, returned 5% and roughly 7%, respectively, the past 12 months, while Australia (+6%) and the U.K. (+8%) each outperformed the broader market.Comments from Portfolio Manager Steven Buller: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained roughly 5% to 6%, with all but one outpacing the 5.67% return of the benchmark FTSE® EPRA℠/NAREIT® Developed Index. The fund's result versus the benchmark was helped by favorable security selection, especially in the U.S. and Australia, though security selection in Canada was negative. Also, overweighting the outperforming Austrian market added value, as did timely positioning in Japan, while underweighting outperforming Hong Kong and Sweden detracted. On an individual basis, industrial real estate investment trust (REIT) DCT gained ground, as the company agreed to merge with Prologis, a large fund holding, though not a meaningful contributor this period. In December, Buwog, an Austria-based owner and developer of apartment buildings. agreed to be acquired for a substantial premium. I subsequently sold the fund's stake. Another German residential property owner, Leg Immobilien, added value, although not owning another stock in the sector, Deutsche Wohnen, detracted. The fund's biggest individual detractor was poor-performing Land Securities Group, a U.K.-based owner of primarily London office and retail properties. Among health care REITs, an underperforming category owing to fundamental challenges in the senior housing industry, a position in Ventas further hampered our result, although not owning another poor-performing health care property owner and benchmark component, HCP, helped. Also detracting was Link Real Estate, a Hong Kong owner of retail and other properties. Shares of this benchmark component gained roughly 26% this period, and my decision to avoid the stock for valuation reasons hurt.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2018
% of fund's net assets | |
Simon Property Group, Inc. | 4.1 |
Prologis, Inc. | 3.4 |
UDR, Inc. | 2.9 |
Mitsui Fudosan Co. Ltd. | 2.6 |
Public Storage | 2.5 |
Boston Properties, Inc. | 2.5 |
Sun Hung Kai Properties Ltd. | 2.4 |
Duke Realty Corp. | 2.3 |
LEG Immobilien AG | 2.3 |
Equity Lifestyle Properties, Inc. | 2.1 |
27.1 |
Top Five Countries as of July 31, 2018
(excluding cash equivalents) | % of fund's net assets |
United States of America | 50.2 |
Japan | 10.0 |
Australia | 6.2 |
United Kingdom | 5.3 |
Germany | 5.0 |
Top Five REIT Sectors as of July 31, 2018
% of fund's net assets | |
REITs - Apartments | 11.7 |
REITs - Diversified | 11.4 |
REITs - Office Property | 8.1 |
REITs - Management/Investment | 8.0 |
REITs - Health Care | 6.3 |
Asset Allocation (% of fund's net assets)
As of July 31, 2018* | ||
Stocks | 98.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 48.7%
Schedule of Investments July 31, 2018
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
Australia - 6.2% | |||
Abacus Property Group unit | 7,990 | $22,201 | |
Arena (REIT) unit | 10,270 | 17,549 | |
Goodman Group unit | 6,398 | 45,775 | |
Ingenia Communities Group unit | 9,525 | 22,221 | |
National Storage (REIT) unit | 20,422 | 25,945 | |
Propertylink Group unit | 34,600 | 27,248 | |
The GPT Group unit | 9,693 | 37,159 | |
TOTAL AUSTRALIA | 198,098�� | ||
Austria - 0.6% | |||
CA Immobilien Anlagen AG | 520 | 18,193 | |
Bailiwick of Guernsey - 0.4% | |||
Sirius Real Estate Ltd. | 17,500 | 13,414 | |
Bermuda - 1.7% | |||
Hongkong Land Holdings Ltd. | 7,550 | 54,889 | |
Canada - 1.4% | |||
RioCan (REIT) | 820 | 15,645 | |
Smart (REIT) | 1,226 | 28,594 | |
TOTAL CANADA | 44,239 | ||
Finland - 0.2% | |||
Kojamo OYJ | 700 | 7,408 | |
France - 4.4% | |||
Accor SA | 452 | 23,298 | |
Gecina SA | 306 | 52,206 | |
Unibail-Rodamco SE & WFD Unibail-Rodamco NV unit | 292 | 64,824 | |
TOTAL FRANCE | 140,328 | ||
Germany - 5.0% | |||
Aroundtown SA | 2,029 | 16,940 | |
DIC Asset AG | 900 | 10,272 | |
LEG Immobilien AG | 650 | 73,150 | |
Vonovia SE | 1,200 | 58,107 | |
TOTAL GERMANY | 158,469 | ||
Hong Kong - 3.9% | |||
Sino Land Ltd. | 27,205 | 46,722 | |
Sun Hung Kai Properties Ltd. | 4,844 | 75,909 | |
TOTAL HONG KONG | 122,631 | ||
Ireland - 2.9% | |||
Hibernia (REIT) PLC | 37,300 | 63,506 | |
Irish Residential Properties REIT PLC | 17,200 | 27,635 | |
TOTAL IRELAND | 91,141 | ||
Italy - 0.6% | |||
COIMA RES SpA (a) | 2,100 | 19,547 | |
Japan - 10.0% | |||
Advance Residence Investment Corp. | 14 | 36,423 | |
Invincible Investment Corp. | 24 | 10,593 | |
Kenedix Office Investment Corp. | 6 | 36,382 | |
Kenedix Residential Investment Corp. | 17 | 25,238 | |
Kenedix, Inc. | 2,400 | 13,716 | |
Mitsubishi Estate Co. Ltd. | 2,038 | 35,365 | |
Mitsui Fudosan Co. Ltd. | 3,450 | 82,495 | |
NTT Urban Development Co. | 1,900 | 19,558 | |
ORIX JREIT, Inc. | 27 | 42,064 | |
Star Asia Investment Corp. | 16 | 15,397 | |
TOTAL JAPAN | 317,231 | ||
Mexico - 0.6% | |||
Concentradora Fibra Hotelera Mexicana SA de CV (a) | 15,000 | 10,020 | |
Terrafina | 5,600 | 8,698 | |
TOTAL MEXICO | 18,718 | ||
Netherlands - 0.9% | |||
Instone Real Estate Group BV (a) | 1,180 | 30,356 | |
Singapore - 4.3% | |||
Mapletree Commercial Trust | 28,000 | 33,320 | |
Parkway Life REIT | 26,100 | 52,915 | |
UOL Group Ltd. | 9,330 | 49,140 | |
TOTAL SINGAPORE | 135,375 | ||
Sweden - 0.3% | |||
Cibus Nordic Real Estate AB | 760 | 9,101 | |
United Kingdom - 5.3% | |||
Assura PLC | 10,200 | 7,578 | |
Capital & Counties Properties PLC | 4,889 | 17,673 | |
Derwent London PLC | 1,215 | 49,804 | |
Grainger Trust PLC | 3,200 | 12,869 | |
Land Securities Group PLC | 1,029 | 12,734 | |
Londonmetric Properity PLC | 17,948 | 44,336 | |
U & I Group PLC | 7,691 | 22,360 | |
TOTAL UNITED KINGDOM | 167,354 | ||
United States of America - 50.2% | |||
American Homes 4 Rent Class A | 1,337 | 29,601 | |
Apartment Investment & Management Co. Class A | 306 | 13,051 | |
AvalonBay Communities, Inc. | 325 | 57,476 | |
Boston Properties, Inc. | 620 | 77,829 | |
Braemar Hotels & Resorts, Inc. | 400 | 4,572 | |
Brandywine Realty Trust (SBI) | 1,587 | 26,170 | |
Camden Property Trust (SBI) | 299 | 27,684 | |
Crown Castle International Corp. | 144 | 15,960 | |
DCT Industrial Trust, Inc. | 426 | 28,487 | |
DiamondRock Hospitality Co. | 2,244 | 26,748 | |
Digital Realty Trust, Inc. | 459 | 55,732 | |
Duke Realty Corp. | 2,525 | 73,528 | |
Equinix, Inc. | 55 | 24,160 | |
Equity Lifestyle Properties, Inc. | 746 | 67,879 | |
Equity Residential (SBI) | 902 | 59,018 | |
Essex Property Trust, Inc. | 123 | 29,575 | |
Extra Space Storage, Inc. | 489 | 45,951 | |
Gaming & Leisure Properties | 450 | 16,344 | |
Healthcare Trust of America, Inc. | 710 | 19,397 | |
Host Hotels & Resorts, Inc. | 2,635 | 55,177 | |
Hudson Pacific Properties, Inc. | 488 | 16,719 | |
Kimco Realty Corp. | 1,550 | 25,870 | |
Prologis, Inc. | 1,658 | 108,798 | |
Public Storage | 364 | 79,290 | |
Regency Centers Corp. | 627 | 39,896 | |
RLJ Lodging Trust | 590 | 13,328 | |
Sabra Health Care REIT, Inc. | 450 | 9,725 | |
Simon Property Group, Inc. | 729 | 128,456 | |
SL Green Realty Corp. | 382 | 39,388 | |
Spirit MTA REIT | 284 | 2,837 | |
Spirit Realty Capital, Inc. | 2,945 | 24,650 | |
Sun Communities, Inc. | 474 | 45,959 | |
Terreno Realty Corp. | 200 | 7,382 | |
The Macerich Co. | 482 | 28,467 | |
UDR, Inc. | 2,377 | 91,467 | |
Urban Edge Properties | 230 | 5,216 | |
Ventas, Inc. | 1,022 | 57,620 | |
VEREIT, Inc. | 2,590 | 19,762 | |
VICI Properties, Inc. | 1,397 | 28,429 | |
Washington REIT (SBI) | 350 | 10,672 | |
Welltower, Inc. | 867 | 54,274 | |
TOTAL UNITED STATES OF AMERICA | 1,592,544 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,980,450) | 3,139,036 | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund, 1.96% (b) | |||
(Cost $65,803) | 65,790 | 65,803 | |
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $3,046,253) | 3,204,839 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (32,894) | ||
NET ASSETS - 100% | $3,171,945 |
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 $59,923 or 1.9% of net assets.
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $850 |
Total | $850 |
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 July 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 | $32,399 | $32,399 | $-- | $-- |
Financials | 42,645 | 42,645 | -- | -- |
Real Estate | 3,063,992 | 2,946,132 | 117,860 | -- |
Money Market Funds | 65,803 | 65,803 | -- | -- |
Total Investments in Securities: | $3,204,839 | $3,086,979 | $117,860 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended July 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 | $138,840 |
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
July 31, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $2,980,450) | $3,139,036 | |
Fidelity Central Funds (cost $65,803) | 65,803 | |
Total Investment in Securities (cost $3,046,253) | $3,204,839 | |
Cash | 1,696 | |
Receivable for fund shares sold | 143 | |
Dividends receivable | 7,302 | |
Distributions receivable from Fidelity Central Funds | 96 | |
Prepaid expenses | 30 | |
Receivable from investment adviser for expense reductions | 36,416 | |
Other receivables | 138 | |
Total assets | 3,250,660 | |
Liabilities | ||
Payable for investments purchased | $18,542 | |
Accrued management fee | 1,802 | |
Distribution and service plan fees payable | 949 | |
Other affiliated payables | 555 | |
Other payables and accrued expenses | 56,867 | |
Total liabilities | 78,715 | |
Net Assets | $3,171,945 | |
Net Assets consist of: | ||
Paid in capital | $3,102,543 | |
Undistributed net investment income | 33,111 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (122,317) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 158,608 | |
Net Assets | $3,171,945 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,001,437 ÷ 98,877 shares) | $10.13 | |
Maximum offering price per share (100/94.25 of $10.13) | $10.75 | |
Class M: | ||
Net Asset Value and redemption price per share ($570,455 ÷ 56,406 shares) | $10.11 | |
Maximum offering price per share (100/96.50 of $10.11) | $10.48 | |
Class C: | ||
Net Asset Value and offering price per share ($614,051 ÷ 60,908 shares)(a) | $10.08 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($986,002 ÷ 97,171 shares) | $10.15 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended July 31, 2018 | ||
Investment Income | ||
Dividends | $99,134 | |
Income from Fidelity Central Funds | 850 | |
Income before foreign taxes withheld | 99,984 | |
Less foreign taxes withheld | (5,882) | |
Total income | 94,102 | |
Expenses | ||
Management fee | $20,470 | |
Transfer agent fees | 5,205 | |
Distribution and service plan fees | 11,569 | |
Accounting fees and expenses | 1,152 | |
Custodian fees and expenses | 21,862 | |
Independent trustees' fees and expenses | 42 | |
Registration fees | 53,211 | |
Audit | 56,892 | |
Legal | 35 | |
Miscellaneous | 1,898 | |
Total expenses before reductions | 172,336 | |
Expense reductions | (127,205) | |
Total expenses after reductions | 45,131 | |
Net investment income (loss) | 48,971 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,609 | |
Foreign currency transactions | 713 | |
Total net realized gain (loss) | 5,322 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 115,645 | |
Assets and liabilities in foreign currencies | (165) | |
Total change in net unrealized appreciation (depreciation) | 115,480 | |
Net gain (loss) | 120,802 | |
Net increase (decrease) in net assets resulting from operations | $169,773 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended July 31, 2018 | For the period August 11, 2016 (commencement of operations) to July 31, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $48,971 | $35,722 |
Net realized gain (loss) | 5,322 | (82,716) |
Change in net unrealized appreciation (depreciation) | 115,480 | 43,128 |
Net increase (decrease) in net assets resulting from operations | 169,773 | (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) | 271,453 | 2,831,098 |
Total increase (decrease) in net assets | 364,698 | 2,807,247 |
Net Assets | ||
Beginning of period | 2,807,247 | – |
End of period | $3,171,945 | $2,807,247 |
Other Information | ||
Undistributed net investment income end of period | $33,111 | $18,064 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Global Real Estate Fund Class A
Years ended July 31, | 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 | .18 | .15 |
Net realized and unrealized gain (loss) | .42 | (.26) |
Total from investment operations | .60 | (.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 | $10.13 | $9.81 |
Total ReturnD,E,F | 6.16% | (1.00)% |
Ratios to Average Net AssetsG,H | ||
Expenses before reductions | 5.86% | 8.94%I |
Expenses net of fee waivers, if any | 1.40% | 1.40%I |
Expenses net of all reductions | 1.38% | 1.39%I |
Net investment income (loss) | 1.80% | 1.65%I |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $1,001 | $657 |
Portfolio turnover rateJ | 46% | 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
Years ended July 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 | .15 | .13 |
Net realized and unrealized gain (loss) | .42 | (.27) |
Total from investment operations | .57 | (.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 | $10.11 | $9.79 |
Total ReturnC,D,E | 5.90% | (1.30)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | 5.90% | 9.20%H |
Expenses net of fee waivers, if any | 1.65% | 1.65%H |
Expenses net of all reductions | 1.63% | 1.64%H |
Net investment income (loss) | 1.54% | 1.40%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $570 | $550 |
Portfolio turnover rateI | 46% | 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
Years ended July 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 | .10 | .08 |
Net realized and unrealized gain (loss) | .42 | (.26) |
Total from investment operations | .52 | (.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 | $10.08 | $9.76 |
Total ReturnC,D,E | 5.38% | (1.77)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | 6.26% | 9.75%H |
Expenses net of fee waivers, if any | 2.15% | 2.15%H |
Expenses net of all reductions | 2.13% | 2.14%H |
Net investment income (loss) | 1.04% | .90%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $614 | $737 |
Portfolio turnover rateI | 46% | 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
Years ended July 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 | .20 | .17 |
Net realized and unrealized gain (loss) | .43 | (.26) |
Total from investment operations | .63 | (.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 | $10.15 | $9.82 |
Total ReturnC,D | 6.48% | (.80)% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | 5.41% | 8.74%G |
Expenses net of fee waivers, if any | 1.15% | 1.15%G |
Expenses net of all reductions | 1.13% | 1.14%G |
Net investment income (loss) | 2.04% | 1.90%G |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $986 | $863 |
Portfolio turnover rateH | 46% | 59%G |
A For the period August 11, 2016 (commencement of operations) to July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 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. As of July 31, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), 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 | $209,928 |
Gross unrealized depreciation | (108,789) |
Net unrealized appreciation (depreciation) | $101,139 |
Tax Cost | $3,103,700 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $54,695 |
Capital loss carryforward | $(86,595) |
Net unrealized appreciation (depreciation) on securities and other investments | $101,302 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(75,280) |
Long-term | (11,315) |
Total capital loss carryforward | $(86,595) |
The tax character of distributions paid was as follows:
July 31, 2018 | July 31, 2017(a) | |
Ordinary Income | $76,528 | $ 19,985 |
(a) For the period August 11, 2016 (commencement of operations) to July 31, 2017.
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 $1,660,277 and $1,327,220, 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 annual 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% | $2,067 | $1,119 |
Class M | .25% | .25% | 2,798 | 2,260 |
Class C | .75% | .25% | 6,704 | 5,677 |
$11,569 | $9,056 |
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 M | $11 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $1,986 | .24 |
Class M | 1,080 | .19 |
Class C | 904 | .13 |
Class I | 1,235 | .14 |
$5,205 |
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. For the period, the fees were equivalent to an annual rate of .04%.
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 $38 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 $8 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 class-level average net assets as noted in the table below. This reimbursement will remain in place through November 30, 2020. 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% | $36,827 |
Class M | 1.65% | 23,777 |
Class C | 2.15% | 27,555 |
Class I | 1.15% | 38,550 |
$126,709 |
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 $347 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 $122.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $27.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended July 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 | |
Year ended July 31, 2018 | Year ended July 31, 2017(a) | Year ended July 31, 2018 | Year ended July 31, 2017(a) | |
Class A | ||||
Shares sold | 43,178 | 81,755 | $423,027 | $803,455 |
Reinvestment of distributions | 2,212 | 575 | 21,761 | 5,124 |
Shares redeemed | (13,506) | (15,337) | (131,704) | (141,193) |
Net increase (decrease) | 31,884 | 66,993 | $313,084 | $667,386 |
Class M | ||||
Shares sold | 5,975 | 55,940 | $59,008 | $555,479 |
Reinvestment of distributions | 1,449 | 424 | 14,256 | 3,782 |
Shares redeemed | (7,160) | (222) | (69,653) | (2,000) |
Net increase (decrease) | 264 | 56,142 | $3,611 | $557,261 |
Class C | ||||
Shares sold | 6,324 | 75,177 | $63,092 | $736,227 |
Reinvestment of distributions | 1,438 | 335 | 14,153 | 2,984 |
Shares redeemed | (22,353) | (13) | (213,557) | (118) |
Net increase (decrease) | (14,591) | 75,499 | $(136,312) | $739,093 |
Class I | ||||
Shares sold | 15,189 | 89,258 | $148,303 | $880,092 |
Reinvestment of distributions | 2,624 | 835 | 25,818 | 7,448 |
Shares redeemed | (8,521) | (2,214) | (83,051) | (20,182) |
Net increase (decrease) | 9,292 | 87,879 | $91,070 | $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 61% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and Shareholders of Fidelity Advisor Global Real Estate Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Global Real Estate Fund (the "Fund"), a fund of Fidelity Advisor Series VII, including the schedule of investments, as of July 31, 2018, the related statement of operations for the year then ended, the statement of changes in net assets and the financial highlights for the year then ended and for the period from August 11, 2016 (commencement of operations) to July 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2018, the results of its operations for the year then ended, and the changes in its net assets, and the financial highlights for the year then ended and for the period from August 11, 2016 (commencement of operations) to July 31, 2017, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 13, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 286 funds. Mr. Wiley oversees 197 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through SelectCo, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2018
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2018
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2018
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2018
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2017
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2018
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2018
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as a Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2018
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2018 to July 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 February 1, 2018 | Ending Account Value July 31, 2018 | Expenses Paid During Period-B February 1, 2018 to July 31, 2018 | |
Class A | 1.40% | |||
Actual | $1,000.00 | $1,012.00 | $6.98 | |
Hypothetical-C | $1,000.00 | $1,017.85 | $7.00 | |
Class M | 1.65% | |||
Actual | $1,000.00 | $1,010.00 | $8.22 | |
Hypothetical-C | $1,000.00 | $1,016.61 | $8.25 | |
Class C | 2.15% | |||
Actual | $1,000.00 | $1,008.00 | $10.70 | |
Hypothetical-C | $1,000.00 | $1,014.13 | $10.74 | |
Class I | 1.15% | |||
Actual | $1,000.00 | $1,013.00 | $5.74 | |
Hypothetical-C | $1,000.00 | $1,019.09 | $5.76 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AGRE-ANN-0918
1.9881280.101
Item 2.
Code of Ethics
As of the end of the period, July 31, 2018, Fidelity Advisor Series VII (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Global Real Estate Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Real Estate Fund, Fidelity Advisor Semiconductors Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $52,000 | $100 | $4,800 | $1,300 |
Fidelity Advisor Communications Equipment Fund | $35,000 | $100 | $4,800 | $1,100 |
Fidelity Advisor Consumer Discretionary Fund | $34,000 | $100 | $6,000 | $1,000 |
Fidelity Advisor Energy Fund | $36,000 | $100 | $7,100 | $1,100 |
Fidelity Advisor Financial Services Fund | $36,000 | $100 | $6,700 | $1,100 |
Fidelity Advisor Global Real Estate Fund | $43,000 | $100 | $6,400 | $1,200 |
Fidelity Advisor Health Care Fund | $36,000 | $100 | $6,000 | $1,100 |
Fidelity Advisor Industrials Fund | $35,000 | $100 | $6,000 | $1,100 |
Fidelity Advisor Real Estate Fund | $38,000 | $100 | $6,000 | $1,200 |
Fidelity Advisor Semiconductors Fund | $34,000 | $100 | $5,100 | $1,000 |
Fidelity Advisor Technology Fund | $44,000 | $100 | $6,000 | $1,100 |
Fidelity Advisor Utilities Fund | $34,000 | $100 | $6,000 | $1,000 |
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July 31, 2017 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $43,000 | $100 | $4,900 | $1,300 |
Fidelity Advisor Communications Equipment Fund | $38,000 | $100 | $4,900 | $1,100 |
Fidelity Advisor Consumer Discretionary Fund | $36,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Energy Fund | $38,000 | $100 | $7,200 | $1,200 |
Fidelity Advisor Financial Services Fund | $38,000 | $100 | $7,000 | $1,200 |
Fidelity Advisor Global Real Estate Fund | $39,000 | $100 | $6,300 | $1,100 |
Fidelity Advisor Health Care Fund | $38,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Industrials Fund | $37,000 | $100 | $6,100 | $1,100 |
Fidelity Advisor Real Estate Fund | $41,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Semiconductors Fund | $36,000 | $100 | $5,200 | $1,100 |
Fidelity Advisor Technology Fund | $40,000 | $100 | $6,100 | $1,200 |
Fidelity Advisor Utilities Fund | $36,000 | $100 | $6,100 | $1,100 |
A Amounts may reflect rounding.
B Fidelity Advisor Global Real Estate Fund commenced operations on August 11, 2016.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity SelectCo, LLC (“SelectCo”) and entities controlling, controlled by, or under common control with SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| July 31, 2018A | July 31, 2017A,B |
Audit-Related Fees | $5,000 | $- |
Tax Fees | $5,000 | $25,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Advisor Global Real Estate Fund’s commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | July 31, 2018A | July 31, 2017A,B |
Deloitte Entities | $430,000 | $585,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Advisor Global Real Estate Fund’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and SelectCo’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series VII
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | September 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: | September 26, 2018 |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | September 26, 2018 |