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 811-03010
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)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
Date of reporting period: | July 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity Advisor Focus Funds®
Fidelity Advisor® Biotechnology Fund
Fidelity Advisor® Communications Equipment Fund
Fidelity Advisor® Consumer Discretionary Fund
Fidelity Advisor® Energy Fund
Fidelity Advisor® Financial Services Fund
Fidelity Advisor® Health Care Fund
Fidelity Advisor® Industrials Fund
Fidelity Advisor® Semiconductors Fund
Fidelity Advisor® Technology Fund
Fidelity Advisor® Utilities Fund
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
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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.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 22.53% | 1.32% | 18.54% |
| Class M (incl. 3.50% sales charge) | 25.11% | 1.49% | 18.46% |
| Class C (incl. contingent deferred sales charge) | 28.07% | 1.77% | 18.36% |
| Class I | 30.32% | 2.81% | 19.58% |
| Class Z | 30.53% | 2.85% | 19.61% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Biotechnology Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $54,802 | Fidelity Advisor® Biotechnology Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Biotechnology Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Eirene Kontopoulos: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly 30% to 31%, trailing the 32.18% advance of the MSCI U.S. IMI Biotechnology 25/50 Index, but handily topping the S&P 500®. Exposure to the pharmaceuticals segment detracted notably from the fund’s performance versus the MSCI industry index the past 12 months. Moreover, a cash position averaging 1% of assets was a headwind in a strongly advancing market. Among individual holdings, a sizable overweighting in Alexion Pharmaceuticals made this stock our largest relative detractor the past 12 months, given its -9% return in the portfolio. Investors were cautious about Alexion’s stock, following news that the European Patent Office denied the company’s request for a patent extension for Soliris®, which means that the drug will likely face biosimilar competition in Europe as early as 2022. The firm also made some acquisitions that didn’t sit well with the market. Zogenix (-45%) was one of our out-of-index holdings in pharmaceuticals that worked against the fund this period. I liquidated the position in the second quarter. Overweighting Sage Therapeutics, whose shares returned about -72%, also hampered our relative result. Conversely, investment choices in the fund’s core biotechnology group contributed meaningfully the past 12 months. The fund’s top individual contributor, as well as our largest holding as of July 31, was Regeneron Pharmaceuticals, which gained roughly 73% in the fund after I established a position this period. I like Regeneron because it is one of the few large-cap biotech firms that rely mainly on in-house research and development, as opposed to purchasing assets from other companies. Vertex Pharmaceuticals, the fund’s fourth-largest position at period end, was also a significant contributor, rising about 62% in the portfolio.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® Biotechnology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Regeneron Pharmaceuticals, Inc. | 10.1 |
| AbbVie, Inc. | 9.9 |
| Amgen, Inc. | 9.5 |
| Vertex Pharmaceuticals, Inc. | 7.7 |
| Alexion Pharmaceuticals, Inc. | 4.3 |
| Argenx SE ADR | 3.4 |
| BioMarin Pharmaceutical, Inc. | 2.9 |
| Neurocrine Biosciences, Inc. | 2.8 |
| Ascendis Pharma A/S sponsored ADR | 2.8 |
| Alnylam Pharmaceuticals, Inc. | 2.8 |
| 56.2 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Biotechnology | 94.3% | |
| Pharmaceuticals | 4.1% | |
| Health Care Technology | 0.2% | |
| All Others* | 1.4% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Biotechnology Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value | ||
| Biotechnology - 93.8% | |||
| Biotechnology - 93.8% | |||
| AbbVie, Inc. | 2,514,980 | $238,696,752 | |
| Acceleron Pharma, Inc. (a) | 403,700 | 40,034,929 | |
| ADC Therapeutics SA (a) | 207,898 | 9,667,257 | |
| Agios Pharmaceuticals, Inc. (a) | 396,843 | 17,984,925 | |
| Alexion Pharmaceuticals, Inc. (a) | 1,008,214 | 103,331,853 | |
| Alnylam Pharmaceuticals, Inc. (a) | 454,986 | 66,318,759 | |
| ALX Oncology Holdings, Inc. (a) | 6,600 | 215,820 | |
| Amgen, Inc. | 932,320 | 228,110,734 | |
| Amicus Therapeutics, Inc. (a) | 1,360,700 | 19,662,115 | |
| Annexon, Inc. (a)(b) | 175,199 | 3,193,878 | |
| Aprea Therapeutics, Inc. (b) | 333,400 | 9,145,162 | |
| Arcutis Biotherapeutics, Inc. (a) | 243,850 | 6,510,795 | |
| Argenx SE ADR (a) | 353,200 | 81,281,916 | |
| Ascendis Pharma A/S sponsored ADR (a) | 491,019 | 67,569,125 | |
| BeiGene Ltd. (a) | 109,800 | 1,806,317 | |
| BeiGene Ltd. ADR (a) | 57,900 | 12,101,100 | |
| BioMarin Pharmaceutical, Inc. (a) | 578,200 | 69,274,142 | |
| BioNTech SE: | |||
| ADR (a) | 151,500 | 12,439,665 | |
| rights 8/14/20 (a) | 151,500 | 2 | |
| Black Diamond Therapeutics, Inc. (a) | 119,769 | 3,331,974 | |
| ChemoCentryx, Inc. (a) | 544,400 | 28,695,324 | |
| Crinetics Pharmaceuticals, Inc. (a) | 487,125 | 6,761,295 | |
| Exact Sciences Corp. (a) | 199,282 | 18,881,970 | |
| Exelixis, Inc. (a) | 1,721,200 | 39,742,508 | |
| FibroGen, Inc. (a) | 924,645 | 37,420,383 | |
| Forma Therapeutics Holdings, Inc. | 108,565 | 3,795,432 | |
| Fusion Pharmaceuticals, Inc. (a) | 213,893 | 2,943,168 | |
| G1 Therapeutics, Inc. (a)(b) | 419,708 | 6,157,116 | |
| Galapagos Genomics NV sponsored ADR (a) | 102,037 | 18,789,093 | |
| Gilead Sciences, Inc. | 629,400 | 43,762,182 | |
| Global Blood Therapeutics, Inc. (a)(b) | 482,618 | 32,567,063 | |
| Immunomedics, Inc. (a) | 1,555,746 | 65,699,154 | |
| Insmed, Inc. (a) | 1,163,487 | 30,390,280 | |
| Intercept Pharmaceuticals, Inc. (a)(b) | 213,604 | 9,748,887 | |
| Ionis Pharmaceuticals, Inc. (a) | 513,938 | 29,582,271 | |
| Keros Therapeutics, Inc. | 199,588 | 6,406,775 | |
| Kezar Life Sciences, Inc. (a) | 638,139 | 2,788,667 | |
| Kura Oncology, Inc. (a) | 1,003,700 | 16,500,828 | |
| Mirati Therapeutics, Inc. (a) | 197,120 | 23,912,627 | |
| Morphic Holding, Inc. (a) | 185,300 | 4,171,103 | |
| Neurocrine Biosciences, Inc. (a) | 567,752 | 68,334,631 | |
| ORIC Pharmaceuticals, Inc. (a)(b) | 419,000 | 8,409,330 | |
| Passage Bio, Inc. (b) | 438,459 | 6,857,499 | |
| Poseida Therapeutics, Inc. (a) | 31,500 | 408,870 | |
| Poseida Therapeutics, Inc. | 366,846 | 4,285,495 | |
| Principia Biopharma, Inc. (a) | 591,044 | 49,411,278 | |
| Protagonist Therapeutics, Inc. (a) | 368,312 | 5,793,548 | |
| PTC Therapeutics, Inc. (a) | 506,249 | 23,454,516 | |
| Regeneron Pharmaceuticals, Inc. (a) | 386,292 | 244,163,581 | |
| Relay Therapeutics, Inc. (a) | 144,585 | 5,126,984 | |
| Repare Therapeutics, Inc. (b) | 412,800 | 9,849,408 | |
| Revolution Medicines, Inc. | 278,700 | 6,722,244 | |
| Revolution Medicines, Inc. | 524,116 | 12,009,594 | |
| Sage Therapeutics, Inc. (a) | 290,487 | 13,237,493 | |
| Sarepta Therapeutics, Inc. (a)(b) | 359,681 | 55,218,227 | |
| Scholar Rock Holding Corp. (a) | 416,009 | 4,696,742 | |
| Stoke Therapeutics, Inc. (a) | 221,735 | 5,585,505 | |
| Syros Pharmaceuticals, Inc. (a) | 90,624 | 860,022 | |
| TG Therapeutics, Inc. (a)(b) | 926,800 | 18,146,744 | |
| Turning Point Therapeutics, Inc. (a)(b) | 341,150 | 20,206,315 | |
| uniQure B.V. (a) | 333,500 | 13,916,955 | |
| Vaxcyte, Inc. | 296,917 | 9,326,163 | |
| Vertex Pharmaceuticals, Inc. (a) | 679,127 | 184,722,544 | |
| Viela Bio, Inc. (b) | 1,096,079 | 40,127,452 | |
| Xenon Pharmaceuticals, Inc. (a) | 458,435 | 5,010,695 | |
| Zentalis Pharmaceuticals, Inc. (b) | 269,300 | 9,290,850 | |
| Zymeworks, Inc. (a) | 415,853 | 12,695,992 | |
| 2,257,262,023 | |||
| Health Care Providers & Services - 0.0% | |||
| Health Care Services - 0.0% | |||
| Precipio, Inc. (a)(c) | 30 | 94 | |
| Pharmaceuticals - 4.1% | |||
| Pharmaceuticals - 4.1% | |||
| Adimab LLC (a)(c)(d)(e) | 285,956 | 11,935,803 | |
| Afferent Pharmaceuticals, Inc. rights 12/31/24 (a)(e) | 1,915,787 | 3,295,154 | |
| Arvinas Holding Co. LLC (a) | 259,200 | 8,164,800 | |
| Bristol-Myers Squibb Co. rights (a) | 946,900 | 3,408,840 | |
| Chiasma, Inc. warrants 12/16/24 (a) | 81,298 | 71,424 | |
| IMARA, Inc. | 310,346 | 6,265,886 | |
| Intra-Cellular Therapies, Inc. (a) | 330,900 | 6,560,093 | |
| Kala Pharmaceuticals, Inc. (a) | 502,200 | 4,394,250 | |
| MyoKardia, Inc. (a) | 364,404 | 32,843,733 | |
| Pliant Therapeutics, Inc. | 380,873 | 8,870,532 | |
| Stemcentrx, Inc. rights 12/31/21 (a)(e) | 208,907 | 2 | |
| Theravance Biopharma, Inc. (a)(b) | 733,826 | 14,250,901 | |
| 100,061,418 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $1,502,279,711) | 2,357,323,535 | ||
| Preferred Stocks - 0.7% | |||
| Convertible Preferred Stocks - 0.7% | |||
| Biotechnology - 0.5% | |||
| Biotechnology - 0.5% | |||
| Immunocore Ltd. Series A (a)(c)(e) | 17,149 | 2,674,011 | |
| Shattuck Labs, Inc. Series B1 (c)(e) | 93,129 | 5,855,999 | |
| Taysha Gene Therapies, Inc. Series B (c)(e) | 236,200 | 4,015,400 | |
| 12,545,410 | |||
| Health Care Technology - 0.2% | |||
| Health Care Technology - 0.2% | |||
| Codiak Biosciences, Inc.: | |||
| Series A 8.00% (a)(c)(e) | 213,402 | 1,101,154 | |
| Series B 8.00% (a)(c)(e) | 693,558 | 3,578,759 | |
| 4,679,913 | |||
| Pharmaceuticals - 0.0% | |||
| Pharmaceuticals - 0.0% | |||
| Afferent Pharmaceuticals, Inc. Series C (a)(c)(e) | 1,915,787 | 19 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 17,225,342 | ||
| Nonconvertible Preferred Stocks - 0.0% | |||
| Biotechnology - 0.0% | |||
| Biotechnology - 0.0% | |||
| Yumanity Holdings LLC Class A(a)(c)(e) | 151,084 | 643,618 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $16,413,691) | 17,868,960 | ||
| Money Market Funds - 5.1% | |||
| Fidelity Cash Central Fund 0.14% (f) | 40,107,684 | 40,119,716 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (f)(g) | 81,411,446 | 81,419,588 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $121,531,498) | 121,539,304 | ||
| TOTAL INVESTMENT IN SECURITIES - 103.7% | |||
| (Cost $1,640,224,900) | 2,496,731,799 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.7)% | (89,960,975) | ||
| NET ASSETS - 100% | $2,406,770,824 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - 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 $29,804,858 or 1.2% of net assets.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) Level 3 security
(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 |
| Adimab LLC | 9/17/14 - 6/5/15 | $5,348,114 |
| Afferent Pharmaceuticals, Inc. Series C | 7/1/15 | $0 |
| 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 |
| Precipio, Inc. | 2/3/12 - 7/31/17 | $161,441 |
| Shattuck Labs, Inc. Series B1 | 6/12/20 | $5,855,999 |
| Taysha Gene Therapies, Inc. Series B | 7/2/20 | $4,015,400 |
| 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 | $173,048 |
| Fidelity Securities Lending Cash Central Fund | 553,301 |
| Total | $726,349 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Acorda Therapeutics, Inc. | $5,598,421 | $5,387,604 | $1,953,165 | $-- | $(25,271,197) | $16,238,337 | $-- |
| Kezar Life Sciences, Inc. | 2,749,287 | 2,949,256 | 5,986,513 | -- | (4,046,816) | 7,123,453 | -- |
| Total | $8,347,708 | $8,336,860 | $7,939,678 | $-- | $(29,318,013) | $23,361,790 | $-- |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $2,357,323,535 | $2,325,726,061 | $16,366,515 | $15,230,959 |
| Preferred Stocks | 17,868,960 | -- | -- | 17,868,960 |
| Money Market Funds | 121,539,304 | 121,539,304 | -- | -- |
| Total Investments in Securities: | $2,496,731,799 | $2,447,265,365 | $16,366,515 | $33,099,919 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Beginning Balance | $ 27,629,303 |
| Total Realized Gain (Loss) | (151,500) |
| Total Unrealized Gain (Loss) | 797,400 |
| Cost of Purchases | 10,078,542 |
| Proceeds of Sales | -- |
| Amortization/Accretion | -- |
| Transfers in to Level 3 | -- |
| Transfers out of Level 3 | (5,253,826) |
| Ending Balance | $33,099,919 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2020 | $645,903 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. 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 | 89.5% |
| Netherlands | 4.0% |
| Denmark | 2.8% |
| Cayman Islands | 1.2% |
| Others (Individually Less Than 1%) | 2.5% |
| 100.0% |
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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $77,492,069) — See accompanying schedule: Unaffiliated issuers (cost $1,518,693,402) | $2,375,192,495 | |
| Fidelity Central Funds (cost $121,531,498) | 121,539,304 | |
| Total Investment in Securities (cost $1,640,224,900) | $2,496,731,799 | |
| Restricted cash | 85,201 | |
| Receivable for fund shares sold | 2,375,379 | |
| Dividends receivable | 2,967,676 | |
| Distributions receivable from Fidelity Central Funds | 105,086 | |
| Prepaid expenses | 16,169 | |
| Other receivables | 55,856 | |
| Total assets | 2,502,337,166 | |
| Liabilities | ||
| Payable for investments purchased | $10,324,009 | |
| Payable for fund shares redeemed | 1,726,211 | |
| Accrued management fee | 1,110,220 | |
| Distribution and service plan fees payable | 567,725 | |
| Other affiliated payables | 429,300 | |
| Other payables and accrued expenses | 22,392 | |
| Collateral on securities loaned | 81,386,485 | |
| Total liabilities | 95,566,342 | |
| Net Assets | $2,406,770,824 | |
| Net Assets consist of: | ||
| Paid in capital | $1,569,554,285 | |
| Total accumulated earnings (loss) | 837,216,539 | |
| Net Assets | $2,406,770,824 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($722,895,712 ÷ 23,294,679 shares)(a) | $31.03 | |
| Maximum offering price per share (100/94.25 of $31.03) | $32.92 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($144,567,509 ÷ 4,972,175 shares)(a) | $29.08 | |
| Maximum offering price per share (100/96.50 of $29.08) | $30.13 | |
| Class C: | ||
| Net Asset Value and offering price per share ($384,419,633 ÷ 14,802,473 shares)(a) | $25.97 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,092,144,519 ÷ 32,930,741 shares) | $33.16 | |
| Class Z: | �� | |
| Net Asset Value, offering price and redemption price per share ($62,743,451 ÷ 1,888,446 shares) | $33.22 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends | $23,584,734 | |
| Income from Fidelity Central Funds (including $553,301 from security lending) | 726,349 | |
| Total income | 24,311,083 | |
| Expenses | ||
| Management fee | $11,496,090 | |
| Transfer agent fees | 3,982,219 | |
| Distribution and service plan fees | 6,040,493 | |
| Accounting fees | 650,172 | |
| Custodian fees and expenses | 11,466 | |
| Independent trustees' fees and expenses | 13,592 | |
| Registration fees | 103,918 | |
| Audit | 68,005 | |
| Legal | 7,403 | |
| Interest | 505 | |
| Miscellaneous | 118,958 | |
| Total expenses before reductions | 22,492,821 | |
| Expense reductions | (144,082) | |
| Total expenses after reductions | 22,348,739 | |
| Net investment income (loss) | 1,962,344 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 34,952,834 | |
| Fidelity Central Funds | 5,477 | |
| Other affiliated issuers | (29,318,013) | |
| Foreign currency transactions | (737) | |
| Total net realized gain (loss) | 5,639,561 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 515,535,125 | |
| Fidelity Central Funds | 1,921 | |
| Other affiliated issuers | 23,361,790 | |
| Total change in net unrealized appreciation (depreciation) | 538,898,836 | |
| Net gain (loss) | 544,538,397 | |
| Net increase (decrease) in net assets resulting from operations | $546,500,741 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,962,344 | $2,635,371 |
| Net realized gain (loss) | 5,639,561 | 250,747,409 |
| Change in net unrealized appreciation (depreciation) | 538,898,836 | (426,613,675) |
| Net increase (decrease) in net assets resulting from operations | 546,500,741 | (173,230,895) |
| Distributions to shareholders | (142,937,680) | (56,953,710) |
| Share transactions - net increase (decrease) | (167,947,129) | (367,095,686) |
| Total increase (decrease) in net assets | 235,615,932 | (597,280,291) |
| Net Assets | ||
| Beginning of period | 2,171,154,892 | 2,768,435,183 |
| End of period | $2,406,770,824 | $2,171,154,892 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Biotechnology Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $25.48 | $27.80 | $24.45 | $21.39 | $31.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03 | .03 | (.14) | (.15)B | (.16) |
| Net realized and unrealized gain (loss) | 7.40 | (1.76) | 3.49 | 3.21 | (8.48) |
| Total from investment operations | 7.43 | (1.73) | 3.35 | 3.06 | (8.64) |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.88) | (.59) | – | – | (1.40) |
| Total distributions | (1.88) | (.59) | – | – | (1.40) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $31.03 | $25.48 | $27.80 | $24.45 | $21.39 |
| Total ReturnD,E | 30.00% | (6.17)% | 13.70% | 14.31% | (28.55)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.02% | 1.04% | 1.06% | 1.05% | 1.05% |
| Expenses net of fee waivers, if any | 1.02% | 1.03% | 1.06% | 1.05% | 1.05% |
| Expenses net of all reductions | 1.02% | 1.03% | 1.06% | 1.04% | 1.04% |
| Net investment income (loss) | .11% | .13% | (.53)% | (.69)%B | (.69)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $722,896 | $616,894 | $766,303 | $787,802 | $1,080,733 |
| Portfolio turnover rateH | 66% | 62% | 45% | 30% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $24.02 | $26.32 | $23.22 | $20.39 | $30.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.05) | (.04) | (.21) | (.21)B | (.22) |
| Net realized and unrealized gain (loss) | 6.96 | (1.67) | 3.31 | 3.04 | (8.10) |
| Total from investment operations | 6.91 | (1.71) | 3.10 | 2.83 | (8.32) |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.85) | (.59) | – | – | (1.35) |
| Total distributions | (1.85) | (.59) | – | – | (1.35) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $29.08 | $24.02 | $26.32 | $23.22 | $20.39 |
| Total ReturnD,E | 29.64% | (6.44)% | 13.35% | 13.88% | (28.75)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.32% | 1.34% | 1.38% | 1.38% | 1.37% |
| Expenses net of fee waivers, if any | 1.32% | 1.34% | 1.38% | 1.38% | 1.37% |
| Expenses net of all reductions | 1.31% | 1.34% | 1.38% | 1.38% | 1.37% |
| Net investment income (loss) | (.18)% | (.18)% | (.84)% | (1.02)%B | (1.01)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $144,568 | $119,312 | $135,879 | $127,734 | $131,928 |
| Portfolio turnover rateH | 66% | 62% | 45% | 30% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.71 | $23.96 | $21.23 | $18.71 | $27.78 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.15) | (.14) | (.29) | (.27)B | (.29) |
| Net realized and unrealized gain (loss) | 6.26 | (1.52) | 3.02 | 2.79 | (7.46) |
| Total from investment operations | 6.11 | (1.66) | 2.73 | 2.52 | (7.75) |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.85) | (.59) | – | – | (1.32) |
| Total distributions | (1.85) | (.59) | – | – | (1.32) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $25.97 | $21.71 | $23.96 | $21.23 | $18.71 |
| Total ReturnD,E | 29.07% | (6.87)% | 12.86% | 13.47% | (29.06)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.77% | 1.78% | 1.80% | 1.79% | 1.80% |
| Expenses net of fee waivers, if any | 1.77% | 1.77% | 1.80% | 1.79% | 1.80% |
| Expenses net of all reductions | 1.76% | 1.77% | 1.80% | 1.79% | 1.79% |
| Net investment income (loss) | (.63)% | (.61)% | (1.27)% | (1.43)%B | (1.44)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $384,420 | $398,749 | $558,420 | $593,489 | $665,036 |
| Portfolio turnover rateH | 66% | 62% | 45% | 30% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $27.08 | $29.42 | $25.80 | $22.52 | $32.95 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .11 | (.07) | (.10)B | (.10) |
| Net realized and unrealized gain (loss) | 7.88 | (1.86) | 3.69 | 3.38 | (8.89) |
| Total from investment operations | 7.99 | (1.75) | 3.62 | 3.28 | (8.99) |
| Distributions from net investment income | –C | – | – | – | – |
| Distributions from net realized gain | (1.91) | (.59) | – | – | (1.44) |
| Total distributions | (1.91) | (.59) | – | – | (1.44) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $33.16 | $27.08 | $29.42 | $25.80 | $22.52 |
| Total ReturnD | 30.32% | (5.89)% | 14.03% | 14.56% | (28.32)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .75% | .76% | .79% | .78% | .78% |
| Expenses net of fee waivers, if any | .75% | .76% | .79% | .78% | .78% |
| Expenses net of all reductions | .75% | .76% | .79% | .77% | .78% |
| Net investment income (loss) | .38% | .40% | (.26)% | (.42)%B | (.42)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,092,145 | $1,006,084 | $1,307,833 | $1,156,358 | $908,234 |
| Portfolio turnover rateG | 66% | 62% | 45% | 30% | 29% |
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 returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Biotechnology Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $27.10 | $30.06 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .15 | .16 |
| Net realized and unrealized gain (loss) | 7.90 | (2.53) |
| Total from investment operations | 8.05 | (2.37) |
| Distributions from net investment income | (.02) | – |
| Distributions from net realized gain | (1.91) | (.59) |
| Total distributions | (1.93) | (.59) |
| Net asset value, end of period | $33.22 | $27.10 |
| Total ReturnC,D | 30.53% | (7.83)% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductions | .62% | .63%G |
| Expenses net of fee waivers, if any | .62% | .63%G |
| Expenses net of all reductions | .62% | .62%G |
| Net investment income (loss) | .51% | .73%G |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $62,743 | $30,116 |
| Portfolio turnover rateH | 66% | 62% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (11.79)% | 4.64% | 6.45% |
| Class M (incl. 3.50% sales charge) | (9.89)% | 4.87% | 6.44% |
| Class C (incl. contingent deferred sales charge) | (8.01)% | 5.10% | 6.29% |
| Class I | (6.19)% | 6.16% | 7.36% |
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, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $18,680 | Fidelity Advisor® Communications Equipment Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Communications Equipment Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Caroline Tall: For the year, the fund’s share classes (excluding sales charges, if applicable) returned roughly -6% to -7%, a bit behind the -6.00% result of the MSCI North America IMI + ADR Custom Communications Equipment 25/50 Linked Index, and considerably lagging the S&P 500®. Versus the MSCI industry index, unrewarding stock selection in the fund’s core communications equipment segment was the primary detractor from performance. Multinational networking and telecommunications equipment supplier Ericsson (+34%), headquartered in Sweden, was the fund’s largest individual relative detractor by a considerable margin because of our underweighting here. A slew of big-ticket deals to develop 5G networks aided the stock the past year. Untimely ownership of Arista Networks, which returned about -6% in the fund, also detracted meaningfully. F5 Networks, an application-delivery services provider that returned -8% in the portfolio, further weighed on our relative performance. Conversely, non-index positions in internet services & infrastructure, systems software and several other groups added value versus the industry benchmark the past 12 months. Top relative contributors Fastly (+232%) and Cloudflare (+92%) – both outside the benchmark – were major beneficiaries of the COVID-19 pandemic. Fastly operates an edge cloud platform for processing, serving and securing its customers’ applications, while Cloudflare provides an integrated cloud-based security solution across a combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices. Ciena, a major player in fiber-optic cable, is another stock that lifted the fund’s relative result this period. Our overweighted position here advanced approximately 31%. All stocks mentioned above were held at period end, except our stake in Fastly, which we sold during the period.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® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Ericsson (B Shares) sponsored ADR | 21.8 |
| Cisco Systems, Inc. | 15.9 |
| Ciena Corp. | 4.9 |
| Juniper Networks, Inc. | 4.7 |
| F5 Networks, Inc. | 4.5 |
| Motorola Solutions, Inc. | 3.8 |
| Lumentum Holdings, Inc. | 3.7 |
| Calix Networks, Inc. | 3.1 |
| ViaSat, Inc. | 3.1 |
| EchoStar Holding Corp. Class A | 3.1 |
| 68.6 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Communications Equipment | 91.7% | |
| Software | 4.3% | |
| Electronic Equipment & Components | 0.3% | |
| All Others* | 3.7% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Communications Equipment Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 96.3% | |||
| Shares | Value | ||
| Communications Equipment - 91.7% | |||
| Communications Equipment - 91.7% | |||
| Acacia Communications, Inc. (a) | 8,007 | $544,316 | |
| ADTRAN, Inc. | 10,168 | 126,287 | |
| Arista Networks, Inc. (a) | 2,212 | 574,611 | |
| Calix Networks, Inc. (a) | 29,260 | 600,123 | |
| Casa Systems, Inc. (a) | 5,843 | 32,779 | |
| Ciena Corp. (a) | 15,611 | 929,011 | |
| Cisco Systems, Inc. | 64,490 | 3,037,479 | |
| CommScope Holding Co., Inc. (a) | 38,073 | 353,317 | |
| EchoStar Holding Corp. Class A (a) | 21,379 | 583,647 | |
| Ericsson (B Shares) sponsored ADR | 361,221 | 4,172,103 | |
| Evertz Technologies Ltd. | 5,611 | 52,237 | |
| Extreme Networks, Inc. (a) | 25,461 | 115,848 | |
| F5 Networks, Inc. (a) | 6,323 | 859,296 | |
| Harmonic, Inc. (a) | 20,454 | 114,133 | |
| Inseego Corp. (a)(b) | 14,415 | 194,314 | |
| InterDigital, Inc. | 6,749 | 405,075 | |
| Juniper Networks, Inc. | 35,750 | 907,335 | |
| Lumentum Holdings, Inc. (a) | 7,575 | 703,187 | |
| Motorola Solutions, Inc. | 5,253 | 734,369 | |
| NetScout Systems, Inc. (a) | 15,542 | 395,699 | |
| Nokia Corp. sponsored ADR | 114,105 | 545,422 | |
| Radware Ltd. (a) | 8,819 | 225,325 | |
| Sierra Wireless, Inc. (a) | 7,798 | 103,744 | |
| Sonus Networks, Inc. (a) | 12,561 | 55,268 | |
| ViaSat, Inc. (a) | 15,481 | 587,659 | |
| Viavi Solutions, Inc. (a) | 41,553 | 574,678 | |
| 17,527,262 | |||
| Electronic Equipment & Components - 0.3% | |||
| Electronic Components - 0.3% | |||
| Corning, Inc. | 1,733 | 53,723 | |
| Software - 4.3% | |||
| Application Software - 0.9% | |||
| Citrix Systems, Inc. | 1,196 | 170,741 | |
| Systems Software - 3.4% | |||
| Cloudflare, Inc. (a) | 4,800 | 199,776 | |
| CommVault Systems, Inc. (a) | 2,164 | 95,389 | |
| Crowdstrike Holdings, Inc. (a) | 1,063 | 120,332 | |
| Rapid7, Inc. (a)(b) | 1,626 | 96,861 | |
| Tenable Holdings, Inc. (a) | 4,258 | 144,474 | |
| 656,832 | |||
| TOTAL SOFTWARE | 827,573 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $13,018,479) | 18,408,558 | ||
| Money Market Funds - 5.7% | |||
| Fidelity Cash Central Fund 0.14% (c) | 810,612 | 810,855 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (c)(d) | 266,899 | 266,925 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $1,077,780) | 1,077,780 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.0% | |||
| (Cost $14,096,259) | 19,486,338 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (375,496) | ||
| NET ASSETS - 100% | $19,110,842 |
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 | $2,663 |
| Fidelity Securities Lending Cash Central Fund | 26,699 |
| Total | $29,362 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $18,408,558 | $18,408,558 | $-- | $-- |
| Money Market Funds | 1,077,780 | 1,077,780 | -- | -- |
| Total Investments in Securities: | $19,486,338 | $19,486,338 | $-- | $-- |
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 | 73.3% |
| Sweden | 21.8% |
| Finland | 2.9% |
| Israel | 1.2% |
| Others (Individually Less Than 1%) | 0.8% |
| 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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $265,596) — See accompanying schedule: Unaffiliated issuers (cost $13,018,479) | $18,408,558 | |
| Fidelity Central Funds (cost $1,077,780) | 1,077,780 | |
| Total Investment in Securities (cost $14,096,259) | $19,486,338 | |
| Receivable for fund shares sold | 1,764 | |
| Distributions receivable from Fidelity Central Funds | 5,081 | |
| Prepaid expenses | 92 | |
| Receivable from investment adviser for expense reductions | 1,359 | |
| Other receivables | 3,071 | |
| Total assets | 19,497,705 | |
| Liabilities | ||
| Payable for investments purchased | $87,535 | |
| Payable for fund shares redeemed | 5,487 | |
| Accrued management fee | 8,099 | |
| Distribution and service plan fees payable | 5,966 | |
| Other affiliated payables | 4,710 | |
| Other payables and accrued expenses | 8,366 | |
| Collateral on securities loaned | 266,700 | |
| Total liabilities | 386,863 | |
| Net Assets | $19,110,842 | |
| Net Assets consist of: | ||
| Paid in capital | $14,991,706 | |
| Total accumulated earnings (loss) | 4,119,136 | |
| Net Assets | $19,110,842 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($10,653,955 ÷ 722,315 shares)(a) | $14.75 | |
| Maximum offering price per share (100/94.25 of $14.75) | $15.65 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($4,196,886 ÷ 297,876 shares)(a) | $14.09 | |
| Maximum offering price per share (100/96.50 of $14.09) | $14.60 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,695,325 ÷ 211,962 shares)(a) | $12.72 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,564,676 ÷ 101,280 shares) | $15.45 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $214,290 | |
| Income from Fidelity Central Funds (including $26,699 from security lending) | 29,362 | |
| Total income | 243,652 | |
| Expenses | ||
| Management fee | $111,498 | |
| Transfer agent fees | 57,479 | |
| Distribution and service plan fees | 83,308 | |
| Accounting fees | 8,135 | |
| Custodian fees and expenses | 10,720 | |
| Independent trustees' fees and expenses | 146 | |
| Registration fees | 52,106 | |
| Audit | 46,644 | |
| Legal | 1,302 | |
| Miscellaneous | 1,733 | |
| Total expenses before reductions | 373,071 | |
| Expense reductions | (55,600) | |
| Total expenses after reductions | 317,471 | |
| Net investment income (loss) | (73,819) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (974,472) | |
| Fidelity Central Funds | 118 | |
| Foreign currency transactions | (14) | |
| Total net realized gain (loss) | (974,368) | |
| Change in net unrealized appreciation (depreciation) on investment securities | (1,126,563) | |
| Net gain (loss) | (2,100,931) | |
| Net increase (decrease) in net assets resulting from operations | $(2,174,750) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(73,819) | $(62,945) |
| Net realized gain (loss) | (974,368) | (54,816) |
| Change in net unrealized appreciation (depreciation) | (1,126,563) | 1,972,149 |
| Net increase (decrease) in net assets resulting from operations | (2,174,750) | 1,854,388 |
| Distributions to shareholders | – | (912,371) |
| Share transactions - net increase (decrease) | (8,916,500) | 8,000,664 |
| Total increase (decrease) in net assets | (11,091,250) | 8,942,681 |
| Net Assets | ||
| Beginning of period | 30,202,092 | 21,259,411 |
| End of period | $19,110,842 | $30,202,092 |
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.76 | $15.17 | $13.69 | $12.09 | $12.57 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.03) | (.01) | .03 | .07 | .09 |
| Net realized and unrealized gain (loss) | (.98) | 1.04 | 2.08 | 1.76 | (.20) |
| Total from investment operations | (1.01) | 1.03 | 2.11 | 1.83 | (.11) |
| Distributions from net investment income | – | – | (.04)B | (.05) | – |
| Distributions from net realized gain | – | (.44) | (.59)B | (.18) | (.37) |
| Total distributions | – | (.44) | (.63) | (.23) | (.37) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $14.75 | $15.76 | $15.17 | $13.69 | $12.09 |
| Total ReturnD,E | (6.41)% | 7.09% | 15.86% | 15.24% | (.53)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.64% | 1.47% | 1.76% | 1.78% | 2.10% |
| Expenses net of fee waivers, if any | 1.41% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.37% | 1.39% | 1.39% | 1.39% | 1.40% |
| Net investment income (loss) | (.20)% | (.09)% | .21% | .56% | .81% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $10,654 | $14,991 | $8,860 | $6,247 | $4,536 |
| Portfolio turnover rateH | 138% | 98% | 60% | 71% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.09 | $14.59 | $13.18 | $11.65 | $12.15 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.06) | (.05) | – | .04 | .06 |
| Net realized and unrealized gain (loss) | (.94) | .99 | 2.00 | 1.69 | (.20) |
| Total from investment operations | (1.00) | .94 | 2.00 | 1.73 | (.14) |
| Distributions from net investment income | – | – | (.02)B | (.02) | – |
| Distributions from net realized gain | – | (.44) | (.57)B | (.18) | (.36) |
| Total distributions | – | (.44) | (.59) | (.20) | (.36) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $14.09 | $15.09 | $14.59 | $13.18 | $11.65 |
| Total ReturnD,E | (6.63)% | 6.75% | 15.69% | 14.94% | (.83)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.91% | 1.80% | 2.11% | 2.11% | 2.41% |
| Expenses net of fee waivers, if any | 1.66% | 1.65% | 1.65% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.62% | 1.64% | 1.64% | 1.64% | 1.65% |
| Net investment income (loss) | (.45)% | (.34)% | (.04)% | .31% | .56% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $4,197 | $5,242 | $4,943 | $4,236 | $3,674 |
| Portfolio turnover rateH | 138% | 98% | 60% | 71% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $13.69 | $13.34 | $12.10 | $10.74 | $11.27 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.12) | (.11) | (.07) | (.02) | .01 |
| Net realized and unrealized gain (loss) | (.85) | .90 | 1.84 | 1.56 | (.19) |
| Total from investment operations | (.97) | .79 | 1.77 | 1.54 | (.18) |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | – | (.44) | (.53) | (.18) | (.35) |
| Total distributions | – | (.44) | (.53) | (.18) | (.35) |
| Redemption fees added to paid in capitalA | – | – | –B | –B | –B |
| Net asset value, end of period | $12.72 | $13.69 | $13.34 | $12.10 | $10.74 |
| Total ReturnC,D | (7.09)% | 6.25% | 15.06% | 14.39% | (1.29)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.42% | 2.28% | 2.54% | 2.55% | 2.86% |
| Expenses net of fee waivers, if any | 2.16% | 2.15% | 2.15% | 2.15% | 2.15% |
| Expenses net of all reductions | 2.12% | 2.14% | 2.14% | 2.14% | 2.15% |
| Net investment income (loss) | (.95)% | (.84)% | (.54)% | (.19)% | .06% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,695 | $5,264 | $4,684 | $3,066 | $2,479 |
| Portfolio turnover rateG | 138% | 98% | 60% | 71% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Communications Equipment Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.47 | $15.79 | $14.22 | $12.54 | $13.01 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .01 | .03 | .07 | .11 | .12 |
| Net realized and unrealized gain (loss) | (1.03) | 1.09 | 2.16 | 1.83 | (.20) |
| Total from investment operations | (1.02) | 1.12 | 2.23 | 1.94 | (.08) |
| Distributions from net investment income | – | – | (.05)B | (.08) | – |
| Distributions from net realized gain | – | (.44) | (.61)B | (.18) | (.39) |
| Total distributions | – | (.44) | (.66) | (.26) | (.39) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $15.45 | $16.47 | $15.79 | $14.22 | $12.54 |
| Total ReturnD | (6.19)% | 7.39% | 16.21% | 15.55% | (.33)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.27% | 1.12% | 1.42% | 1.46% | 1.69% |
| Expenses net of fee waivers, if any | 1.16% | 1.12% | 1.15% | 1.15% | 1.15% |
| Expenses net of all reductions | 1.12% | 1.11% | 1.14% | 1.14% | 1.14% |
| Net investment income (loss) | .05% | .19% | .47% | .81% | 1.06% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,565 | $4,705 | $2,773 | $4,733 | $1,209 |
| Portfolio turnover rateG | 138% | 98% | 60% | 71% | 29% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 9.36% | 9.51% | 14.31% |
| Class M (incl. 3.50% sales charge) | 11.65% | 9.72% | 14.26% |
| Class C (incl. contingent deferred sales charge) | 14.14% | 9.98% | 14.14% |
| Class I | 16.34% | 11.12% | 15.34% |
| Class Z | 16.48% | 11.17% | 15.37% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$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, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $38,095 | Fidelity Advisor® Consumer Discretionary Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Consumer Discretionary Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Kathrine Shaw: For the fiscal year reporting period ending July 31, 2020, the fund's shares classes returned between roughly 15% and 16% (excluding sales charges, if applicable), behind the 21.80% advance of the MSCI U.S. IMI Consumer Discretionary 25/50 Index but ahead of the 11.96% result of the broad-market S&P 500® index. The sector overcame coronavirus headwinds this period to rebounded from late March through July on aggressive support for the financial markets by the U.S. Federal Reserve and plans for reopening the economy, as well as progress on potential treatments. In particular, internet retailers outperformed as the pandemic accelerated a broader shift to e-commerce. Avoiding index component Tesla was by far the fund’s biggest individual detractor because the stock gained 492% the past 12 months. Tesla’s Model 3 reached record-breaking sales in China and the company produced its fourth consecutive quarter of profit. Untimely positioning in Royal Caribbean Cruises (-74%) also hurt, as did a very modest cash position of about 1%, on average, which detracted amid an uptrending stock market. We sold our stake in Royal Caribbean from the fund by period end. Conversely, our stake in Amazon.com (+72%) was easily the fund’s largest individual contributor and the fund’s largest position. Shares of the company performed well as the COVID-19 pandemic accelerated a broader shift to e-commerce spending. It also helped to avoid index component General Motors (36%).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® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Amazon.com, Inc. | 24.3 |
| The Home Depot, Inc. | 9.2 |
| Lowe's Companies, Inc. | 5.1 |
| McDonald's Corp. | 4.0 |
| NIKE, Inc. Class B | 3.9 |
| Starbucks Corp. | 3.8 |
| Burlington Stores, Inc. | 3.0 |
| Dollar General Corp. | 3.0 |
| TJX Companies, Inc. | 2.8 |
| Dollar Tree, Inc. | 2.5 |
| 61.6 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Internet & Direct Marketing Retail | 28.1% | |
| Specialty Retail | 28.0% | |
| Hotels, Restaurants & Leisure | 17.1% | |
| Textiles, Apparel & Luxury Goods | 9.2% | |
| Multiline Retail | 7.5% | |
| All Others* | 10.1% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Consumer Discretionary Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 99.7% | |||
| Shares | Value | ||
| Automobiles - 0.4% | |||
| Automobile Manufacturers - 0.4% | |||
| Ferrari NV | 10,203 | $1,853,885 | |
| Commercial Services & Supplies - 0.3% | |||
| Diversified Support Services - 0.3% | |||
| Copart, Inc. (a) | 13,651 | 1,272,956 | |
| Diversified Consumer Services - 1.3% | |||
| Education Services - 1.3% | |||
| Bright Horizons Family Solutions, Inc. (a) | 10,400 | 1,115,296 | |
| Grand Canyon Education, Inc. (a) | 39,303 | 3,487,748 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 8,910 | 1,249,182 | |
| 5,852,226 | |||
| Food & Staples Retailing - 2.5% | |||
| Food Distributors - 1.3% | |||
| Performance Food Group Co. (a) | 101,808 | 2,852,660 | |
| U.S. Foods Holding Corp. (a) | 129,176 | 2,622,273 | |
| 5,474,933 | |||
| Food Retail - 0.2% | |||
| Kroger Co. | 27,900 | 970,641 | |
| Hypermarkets & Super Centers - 1.0% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 73,890 | 2,959,295 | |
| Walmart, Inc. | 12,363 | 1,599,772 | |
| 4,559,067 | |||
| TOTAL FOOD & STAPLES RETAILING | 11,004,641 | ||
| Food Products - 0.2% | |||
| Packaged Foods & Meats - 0.2% | |||
| JDE Peet's BV | 18,700 | 831,544 | |
| Hotels, Restaurants & Leisure - 17.1% | |||
| Casinos & Gaming - 1.8% | |||
| Caesars Entertainment, Inc. (a) | 99,985 | 3,104,534 | |
| Churchill Downs, Inc. | 30,322 | 4,200,203 | |
| Penn National Gaming, Inc. (a) | 24,200 | 819,170 | |
| 8,123,907 | |||
| Hotels, Resorts & Cruise Lines - 2.4% | |||
| Extended Stay America, Inc. unit | 178,200 | 2,033,262 | |
| Hilton Worldwide Holdings, Inc. | 63,000 | 4,728,150 | |
| Marriott Vacations Worldwide Corp. | 44,046 | 3,728,934 | |
| 10,490,346 | |||
| Leisure Facilities - 1.7% | |||
| Drive Shack, Inc. (a) | 190,081 | 340,245 | |
| Planet Fitness, Inc. (a) | 63,804 | 3,330,569 | |
| Vail Resorts, Inc. | 19,917 | 3,824,662 | |
| 7,495,476 | |||
| Restaurants - 11.2% | |||
| ARAMARK Holdings Corp. | 99,117 | 2,093,351 | |
| Chipotle Mexican Grill, Inc. (a) | 7,128 | 8,233,980 | |
| Darden Restaurants, Inc. | 7,600 | 576,840 | |
| McDonald's Corp. | 91,308 | 17,739,318 | |
| Noodles & Co. (a) | 91,863 | 638,448 | |
| Restaurant Brands International, Inc. | 18,800 | 1,061,794 | |
| Starbucks Corp. | 220,070 | 16,841,957 | |
| Wendy's Co. | 98,700 | 2,287,866 | |
| 49,473,554 | |||
| TOTAL HOTELS, RESTAURANTS & LEISURE | 75,583,283 | ||
| Household Durables - 3.9% | |||
| Homebuilding - 3.9% | |||
| D.R. Horton, Inc. | 109,119 | 7,219,313 | |
| Lennar Corp. Class A | 61,207 | 4,428,326 | |
| NVR, Inc. (a) | 1,374 | 5,400,026 | |
| 17,047,665 | |||
| Interactive Media & Services - 0.5% | |||
| Interactive Media & Services - 0.5% | |||
| Alphabet, Inc. Class A (a) | 1,453 | 2,161,991 | |
| Internet & Direct Marketing Retail - 28.1% | |||
| Internet & Direct Marketing Retail - 28.1% | |||
| Amazon.com, Inc. (a) | 33,900 | 107,282,655 | |
| Delivery Hero AG (a)(b) | 3,800 | 437,594 | |
| Expedia, Inc. | 56,700 | 4,593,267 | |
| Ocado Group PLC (a) | 34,300 | 921,770 | |
| The Booking Holdings, Inc. (a) | 5,681 | 9,442,561 | |
| The RealReal, Inc. (a)(c) | 54,005 | 736,628 | |
| Wayfair LLC Class A (a) | 3,519 | 936,371 | |
| 124,350,846 | |||
| IT Services - 0.6% | |||
| Data Processing & Outsourced Services - 0.6% | |||
| PayPal Holdings, Inc. (a) | 10,004 | 1,961,484 | |
| Visa, Inc. Class A | 4,600 | 875,840 | |
| 2,837,324 | |||
| Multiline Retail - 7.5% | |||
| General Merchandise Stores - 7.5% | |||
| B&M European Value Retail SA | 224,676 | 1,361,687 | |
| Dollar General Corp. | 69,958 | 13,320,003 | |
| Dollar Tree, Inc. (a) | 119,772 | 11,180,716 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 50,443 | 5,301,559 | |
| Target Corp. | 16,400 | 2,064,432 | |
| 33,228,397 | |||
| Road & Rail - 0.1% | |||
| Trucking - 0.1% | |||
| Lyft, Inc. (a) | 20,552 | 600,735 | |
| Specialty Retail - 28.0% | |||
| Apparel Retail - 7.8% | |||
| Burlington Stores, Inc. (a) | 71,225 | 13,390,300 | |
| Ross Stores, Inc. | 85,311 | 7,649,837 | |
| The Children's Place Retail Stores, Inc. (c) | 36,161 | 882,690 | |
| TJX Companies, Inc. | 240,248 | 12,490,494 | |
| 34,413,321 | |||
| Automotive Retail - 2.8% | |||
| AutoZone, Inc. (a) | 3,707 | 4,475,906 | |
| Monro, Inc. (c) | 21,118 | 1,188,943 | |
| O'Reilly Automotive, Inc. (a) | 14,183 | 6,770,681 | |
| 12,435,530 | |||
| Computer & Electronics Retail - 1.0% | |||
| Best Buy Co., Inc. | 44,772 | 4,458,843 | |
| Home Improvement Retail - 14.9% | |||
| Floor & Decor Holdings, Inc. Class A (a) | 40,206 | 2,649,575 | |
| Lowe's Companies, Inc. | 149,972 | 22,332,331 | |
| The Home Depot, Inc. | 153,118 | 40,651,298 | |
| 65,633,204 | |||
| Specialty Stores - 1.5% | |||
| Dick's Sporting Goods, Inc. | 36,600 | 1,669,692 | |
| Five Below, Inc. (a) | 31,655 | 3,447,546 | |
| National Vision Holdings, Inc. (a) | 31,159 | 996,776 | |
| Sally Beauty Holdings, Inc. (a) | 50,000 | 580,500 | |
| 6,694,514 | |||
| TOTAL SPECIALTY RETAIL | 123,635,412 | ||
| Textiles, Apparel & Luxury Goods - 9.2% | |||
| Apparel, Accessories & Luxury Goods - 4.3% | |||
| adidas AG | 8,084 | 2,227,324 | |
| Canada Goose Holdings, Inc. (a) | 17,066 | 379,811 | |
| Capri Holdings Ltd. (a) | 118,679 | 1,777,811 | |
| G-III Apparel Group Ltd. (a)(c) | 19,605 | 193,893 | |
| Hermes International SCA | 688 | 556,117 | |
| lululemon athletica, Inc. (a) | 7,375 | 2,401,226 | |
| LVMH Moet Hennessy Louis Vuitton SE | 6,315 | 2,746,035 | |
| PVH Corp. | 83,516 | 4,063,889 | |
| Tapestry, Inc. | 177,120 | 2,366,323 | |
| VF Corp. | 36,834 | 2,223,300 | |
| 18,935,729 | |||
| Footwear - 4.9% | |||
| Deckers Outdoor Corp. (a) | 18,900 | 3,954,825 | |
| NIKE, Inc. Class B | 178,354 | 17,409,134 | |
| Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 16,500 | 483,120 | |
| 21,847,079 | |||
| TOTAL TEXTILES, APPAREL & LUXURY GOODS | 40,782,808 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $273,508,339) | 441,043,713 | ||
| Money Market Funds - 0.7% | |||
| Fidelity Cash Central Fund 0.14% (d) | 1,544,649 | 1,545,113 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | 1,634,861 | 1,635,025 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $3,179,983) | 3,180,138 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
| (Cost $276,688,322) | 444,223,851 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.4)% | (1,928,275) | ||
| NET ASSETS - 100% | $442,295,576 |
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 $437,594 or 0.1% of net assets.
(c) Security or a portion of the security is on loan at period end.
(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 | $15,108 |
| Fidelity Securities Lending Cash Central Fund | 51,294 |
| Total | $66,402 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $441,043,713 | $438,297,678 | $2,746,035 | $-- |
| Money Market Funds | 3,180,138 | 3,180,138 | -- | -- |
| Total Investments in Securities: | $444,223,851 | $441,477,816 | $2,746,035 | $-- |
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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,573,980) — See accompanying schedule: Unaffiliated issuers (cost $273,508,339) | $441,043,713 | |
| Fidelity Central Funds (cost $3,179,983) | 3,180,138 | |
| Total Investment in Securities (cost $276,688,322) | $444,223,851 | |
| Receivable for investments sold | 8,447,213 | |
| Receivable for fund shares sold | 242,908 | |
| Dividends receivable | 83,622 | |
| Distributions receivable from Fidelity Central Funds | 7,165 | |
| Prepaid expenses | 2,030 | |
| Other receivables | 7,341 | |
| Total assets | 453,014,130 | |
| Liabilities | ||
| Payable for investments purchased | $8,257,826 | |
| Payable for fund shares redeemed | 448,843 | |
| Accrued management fee | 190,496 | |
| Distribution and service plan fees payable | 100,685 | |
| Other affiliated payables | 73,686 | |
| Other payables and accrued expenses | 12,168 | |
| Collateral on securities loaned | 1,634,850 | |
| Total liabilities | 10,718,554 | |
| Net Assets | $442,295,576 | |
| Net Assets consist of: | ||
| Paid in capital | $270,256,946 | |
| Total accumulated earnings (loss) | 172,038,630 | |
| Net Assets | $442,295,576 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($159,602,670 ÷ 4,736,360 shares)(a) | $33.70 | |
| Maximum offering price per share (100/94.25 of $33.70) | $35.76 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($33,895,593 ÷ 1,085,378 shares)(a) | $31.23 | |
| Maximum offering price per share (100/96.50 of $31.23) | $32.36 | |
| Class C: | ||
| Net Asset Value and offering price per share ($65,223,186 ÷ 2,443,449 shares)(a) | $26.69 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($134,906,618 ÷ 3,683,343 shares) | $36.63 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($48,667,509 ÷ 1,325,287 shares) | $36.72 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends | $3,602,269 | |
| Income from Fidelity Central Funds (including $51,294 from security lending) | 66,402 | |
| Total income | 3,668,671 | |
| Expenses | ||
| Management fee | $2,119,257 | |
| Transfer agent fees | 730,192 | |
| Distribution and service plan fees | 1,184,186 | |
| Accounting fees | 154,660 | |
| Custodian fees and expenses | 14,250 | |
| Independent trustees' fees and expenses | 2,503 | |
| Registration fees | 79,795 | |
| Audit | 61,448 | |
| Legal | 3,549 | |
| Interest | 1,732 | |
| Miscellaneous | 18,495 | |
| Total expenses before reductions | 4,370,067 | |
| Expense reductions | (10,138) | |
| Total expenses after reductions | 4,359,929 | |
| Net investment income (loss) | (691,258) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 7,555,810 | |
| Fidelity Central Funds | 91 | |
| Foreign currency transactions | (4,082) | |
| Total net realized gain (loss) | 7,551,819 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 44,691,148 | |
| Fidelity Central Funds | 155 | |
| Assets and liabilities in foreign currencies | 332 | |
| Total change in net unrealized appreciation (depreciation) | 44,691,635 | |
| Net gain (loss) | 52,243,454 | |
| Net increase (decrease) in net assets resulting from operations | $51,552,196 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(691,258) | $(534,996) |
| Net realized gain (loss) | 7,551,819 | 13,464,661 |
| Change in net unrealized appreciation (depreciation) | 44,691,635 | 9,013,424 |
| Net increase (decrease) in net assets resulting from operations | 51,552,196 | 21,943,089 |
| Distributions to shareholders | (11,256,995) | (4,099,245) |
| Share transactions - net increase (decrease) | (27,377,411) | 6,479,535 |
| Total increase (decrease) in net assets | 12,917,790 | 24,323,379 |
| Net Assets | ||
| Beginning of period | 429,377,786 | 405,054,407 |
| End of period | $442,295,576 | $429,377,786 |
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $29.83 | $28.22 | $22.92 | $20.94 | $21.51 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.04) | (.02) | (.02) | .06 | .10B |
| Net realized and unrealized gain (loss) | 4.73 | 1.90 | 5.32 | 2.01 | (.21) |
| Total from investment operations | 4.69 | 1.88 | 5.30 | 2.07 | (.11) |
| Distributions from net investment income | – | – | – | (.09) | (.02) |
| Distributions from net realized gain | (.82) | (.27) | – | – | (.44) |
| Total distributions | (.82) | (.27) | – | (.09) | (.46) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $33.70 | $29.83 | $28.22 | $22.92 | $20.94 |
| Total ReturnD,E | 16.03% | 6.81% | 23.12% | 9.93% | (.38)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.07% | 1.08% | 1.12% | 1.10% | 1.10% |
| Expenses net of fee waivers, if any | 1.07% | 1.08% | 1.12% | 1.10% | 1.10% |
| Expenses net of all reductions | 1.06% | 1.07% | 1.11% | 1.10% | 1.09% |
| Net investment income (loss) | (.14)% | (.09)% | (.08)% | .26% | .49%B |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $159,603 | $159,298 | $146,605 | $109,303 | $144,578 |
| Portfolio turnover rateH | 41%I | 60% | 60% | 47% | 59% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Consumer Discretionary Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $27.78 | $26.36 | $21.47 | $19.66 | $20.26 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.11) | (.09) | (.08) | –B | .03C |
| Net realized and unrealized gain (loss) | 4.38 | 1.78 | 4.97 | 1.89 | (.19) |
| Total from investment operations | 4.27 | 1.69 | 4.89 | 1.89 | (.16) |
| Distributions from net investment income | – | – | – | (.08) | – |
| Distributions from net realized gain | (.82) | (.27) | – | – | (.44) |
| Total distributions | (.82) | (.27) | – | (.08) | (.44) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $31.23 | $27.78 | $26.36 | $21.47 | $19.66 |
| Total ReturnD,E | 15.70% | 6.56% | 22.78% | 9.62% | (.68)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.34% | 1.34% | 1.38% | 1.39% | 1.40% |
| Expenses net of fee waivers, if any | 1.34% | 1.34% | 1.38% | 1.39% | 1.40% |
| Expenses net of all reductions | 1.33% | 1.34% | 1.38% | 1.39% | 1.39% |
| Net investment income (loss) | (.41)% | (.35)% | (.35)% | (.02)% | .19%C |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $33,896 | $32,792 | $34,622 | $26,398 | $28,259 |
| Portfolio turnover rateH | 41%I | 60% | 60% | 47% | 59% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Consumer Discretionary Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.97 | $22.90 | $18.74 | $17.18 | $17.84 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.21) | (.19) | (.17) | (.09) | (.04)B |
| Net realized and unrealized gain (loss) | 3.75 | 1.53 | 4.33 | 1.65 | (.18) |
| Total from investment operations | 3.54 | 1.34 | 4.16 | 1.56 | (.22) |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (.82) | (.27) | – | – | (.44) |
| Total distributions | (.82) | (.27) | – | – | (.44) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $26.69 | $23.97 | $22.90 | $18.74 | $17.18 |
| Total ReturnD,E | 15.14% | 6.02% | 22.20% | 9.08% | (1.11)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.82% | 1.83% | 1.87% | 1.85% | 1.86% |
| Expenses net of fee waivers, if any | 1.82% | 1.83% | 1.87% | 1.85% | 1.86% |
| Expenses net of all reductions | 1.82% | 1.82% | 1.86% | 1.85% | 1.85% |
| Net investment income (loss) | (.90)% | (.83)% | (.83)% | (.49)% | (.27)%B |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $65,223 | $70,890 | $71,116 | $59,958 | $67,306 |
| Portfolio turnover rateH | 41%I | 60% | 60% | 47% | 59% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Consumer Discretionary Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $32.27 | $30.42 | $24.64 | $22.48 | $23.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .06 | .06 | .12 | .16B |
| Net realized and unrealized gain (loss) | 5.14 | 2.06 | 5.72 | 2.18 | (.22) |
| Total from investment operations | 5.18 | 2.12 | 5.78 | 2.30 | (.06) |
| Distributions from net investment income | – | – | – | (.14) | (.08) |
| Distributions from net realized gain | (.82) | (.27) | – | – | (.44) |
| Total distributions | (.82) | (.27) | – | (.14) | (.52) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $36.63 | $32.27 | $30.42 | $24.64 | $22.48 |
| Total ReturnD | 16.34% | 7.10% | 23.46% | 10.27% | (.13)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .79% | .80% | .84% | .83% | .84% |
| Expenses net of fee waivers, if any | .79% | .80% | .83% | .83% | .84% |
| Expenses net of all reductions | .79% | .80% | .83% | .83% | .83% |
| Net investment income (loss) | .13% | .19% | .20% | .54% | .75%B |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $134,907 | $159,613 | $152,711 | $82,195 | $75,742 |
| Portfolio turnover rateG | 41%H | 60% | 60% | 47% | 59% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Consumer Discretionary Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $32.31 | $31.56 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .09 | .10 |
| Net realized and unrealized gain (loss) | 5.14 | .92 |
| Total from investment operations | 5.23 | 1.02 |
| Distributions from net investment income | – | – |
| Distributions from net realized gain | (.82) | (.27) |
| Total distributions | (.82) | (.27) |
| Net asset value, end of period | $36.72 | $32.31 |
| Total ReturnC,D | 16.48% | 3.36% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductions | .66% | .67%G |
| Expenses net of fee waivers, if any | .66% | .66%G |
| Expenses net of all reductions | .66% | .66%G |
| Net investment income (loss) | .26% | .39%G |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $48,668 | $6,786 |
| Portfolio turnover rateH | 41%I | 60% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (43.01)% | (11.92)% | (4.03)% |
| Class M (incl. 3.50% sales charge) | (41.77)% | (11.73)% | (4.03)% |
| Class C (incl. contingent deferred sales charge) | (40.54)% | (11.50)% | (4.16)% |
| Class I | (39.33)% | (10.60)% | (3.18)% |
| Class Z | (39.22)% | (10.55)% | (3.15)% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Energy Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $6,631 | Fidelity Advisor® Energy Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Energy Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Maurice FitzMaurice: For the fiscal year ending July 31, 2020, the fund's share classes (excluding sales charges, if applicable) returned between -39% and -40%, about in line with the -39.33% result of the MSCI U.S. IMI Energy 25/50 Index, but considerable behind the broad-market S&P 500® index. Versus the MSCI sector benchmark, security selection in the oil & gas exploration & production and the integrated oil & gas groups detracted most from the fund's performance the past 12 months. Positioning in oil & gas drilling also hurt, but to a lesser extent. Conversely, stock picks in the oil & gas storage & transportation category contributed to the fund's relative result, as did investment choices among oil & gas equipment & services and in oil & gas refining & marketing companies. The fund's stake in cash, at about 1% of assets, on average, also helped in a down market. In terms of individual stocks, the fund's position in integrated oil & gas company Occidental Petroleum (-67%) was the largest relative detractor this period. In the same category, our underweight stake in Chevron (-29%) also hurt, as the stock held up better than the sector benchmark. The fund maintained sizable positions in both Occidental and Chevron at period end. Turning to individual contributors, the fund's overweight in natural gas producer Cheniere Energy (-24%) helped more than any other position. An out-of-benchmark allocation to one stock in the independent power producers & energy traders group - Vistra (-18%) – was another key contributor to the fund's relative result. Both Cheniere and Vistra were among the fund's top 20 positions 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.
Note to shareholders: On January 1, 2020, Maurice Fitzmaurice assumed management responsibilities for the fund, succeeding John Dowd, who left the firm.Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Chevron Corp. | 18.1 |
| Exxon Mobil Corp. | 13.3 |
| BP PLC sponsored ADR | 5.7 |
| Cheniere Energy, Inc. | 5.5 |
| EOG Resources, Inc. | 4.1 |
| The Williams Companies, Inc. | 3.9 |
| Marathon Petroleum Corp. | 3.8 |
| Baker Hughes Co. Class A | 3.8 |
| Valero Energy Corp. | 3.7 |
| ConocoPhillips Co. | 3.7 |
| 65.6 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Oil, Gas & Consumable Fuels | 87.9% | |
| Energy Equipment & Services | 8.5% | |
| Independent Power and Renewable Electricity Producers | 3.0% | |
| All Others* | 0.6% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Energy Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 99.4% | |||
| Shares | Value | ||
| Energy Equipment & Services - 8.5% | |||
| Oil & Gas Drilling - 0.9% | |||
| Nabors Industries Ltd. (a) | 24,612 | $1,043,795 | |
| Odfjell Drilling Ltd. (b) | 1,111,056 | 1,376,941 | |
| Patterson-UTI Energy, Inc. | 214,100 | 829,638 | |
| Shelf Drilling Ltd. (b)(c) | 888,328 | 313,292 | |
| 3,563,666 | |||
| Oil & Gas Equipment & Services - 7.6% | |||
| Baker Hughes Co. Class A (a) | 973,900 | 15,085,711 | |
| Cactus, Inc. | 95,400 | 2,157,948 | |
| Forum Energy Technologies, Inc. (b) | 310,527 | 155,450 | |
| Nextier Oilfield Solutions, Inc. (b) | 447,800 | 1,128,456 | |
| Oceaneering International, Inc. (b) | 142,200 | 799,164 | |
| ProPetro Holding Corp. (b) | 437,900 | 2,351,523 | |
| RigNet, Inc. (b) | 349,251 | 859,157 | |
| Schlumberger Ltd. | 224,618 | 4,074,571 | |
| TechnipFMC PLC | 466,500 | 3,745,995 | |
| 30,357,975 | |||
| TOTAL ENERGY EQUIPMENT & SERVICES | 33,921,641 | ||
| Independent Power and Renewable Electricity Producers - 3.0% | |||
| Independent Power Producers & Energy Traders - 3.0% | |||
| Vistra Corp. | 646,800 | 12,069,288 | |
| Oil, Gas & Consumable Fuels - 87.9% | |||
| Integrated Oil & Gas - 43.0% | |||
| BP PLC sponsored ADR | 1,039,600 | 22,912,784 | |
| Chevron Corp. | 857,509 | 71,979,305 | |
| Exxon Mobil Corp. | 1,261,361 | 53,078,071 | |
| Occidental Petroleum Corp. | 280,100 | 4,408,774 | |
| Occidental Petroleum Corp. warrants 8/3/27 (b) | 36,587 | 204,887 | |
| Royal Dutch Shell PLC Class B sponsored ADR | 284,300 | 8,045,690 | |
| Suncor Energy, Inc. | 483,900 | 7,611,910 | |
| Total SA sponsored ADR | 90,800 | 3,419,528 | |
| 171,660,949 | |||
| Oil & Gas Exploration & Production - 21.6% | |||
| Callon Petroleum Co. (a)(b) | 573,400 | 653,676 | |
| Canadian Natural Resources Ltd. | 468,500 | 8,265,075 | |
| Cimarex Energy Co. | 93,100 | 2,277,226 | |
| Concho Resources, Inc. | 32,500 | 1,707,550 | |
| ConocoPhillips Co. | 393,300 | 14,705,487 | |
| Devon Energy Corp. | 158,200 | 1,659,518 | |
| EOG Resources, Inc. | 352,086 | 16,495,229 | |
| Hess Corp. | 55,500 | 2,731,155 | |
| Magnolia Oil & Gas Corp. Class A (b) | 304,900 | 1,823,302 | |
| National Energy Services Reunited Corp. (b) | 458,300 | 3,066,027 | |
| Noble Energy, Inc. | 763,100 | 7,623,369 | |
| Northern Oil & Gas, Inc. (a)(b) | 2,082,500 | 1,669,124 | |
| Parsley Energy, Inc. Class A | 323,800 | 3,555,324 | |
| PDC Energy, Inc. (b) | 273,588 | 3,901,365 | |
| Pioneer Natural Resources Co. | 149,216 | 14,462,015 | |
| Viper Energy Partners LP | 132,100 | 1,365,914 | |
| 85,961,356 | |||
| Oil & Gas Refining & Marketing - 10.5% | |||
| Marathon Petroleum Corp. | 397,778 | 15,195,120 | |
| Phillips 66 Co. | 183,218 | 11,363,180 | |
| Valero Energy Corp. | 264,300 | 14,861,589 | |
| World Fuel Services Corp. | 14,600 | 343,538 | |
| 41,763,427 | |||
| Oil & Gas Storage & Transport - 12.8% | |||
| Cheniere Energy, Inc. (b) | 444,600 | 21,998,808 | |
| Enterprise Products Partners LP | 340,500 | 5,992,800 | |
| Euronav NV | 59,700 | 584,463 | |
| Golar LNG Ltd. (a) | 217,300 | 1,629,750 | |
| Noble Midstream Partners LP | 297,188 | 2,793,567 | |
| Teekay LNG Partners LP | 210,000 | 2,284,800 | |
| The Williams Companies, Inc. | 816,800 | 15,625,384 | |
| 50,909,572 | |||
| TOTAL OIL, GAS & CONSUMABLE FUELS | 350,295,304 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $529,331,227) | 396,286,233 | ||
| Money Market Funds - 1.4% | |||
| Fidelity Cash Central Fund 0.14% (d) | 2,059,540 | 2,060,157 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | 3,298,395 | 3,298,724 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $5,358,881) | 5,358,881 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
| (Cost $534,690,108) | 401,645,114 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | (3,025,742) | ||
| NET ASSETS - 100% | $398,619,372 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $313,292 or 0.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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 | $40,795 |
| Fidelity Securities Lending Cash Central Fund | 34,350 |
| Total | $75,145 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $396,286,233 | $396,286,233 | $-- | $-- |
| Money Market Funds | 5,358,881 | 5,358,881 | -- | -- |
| Total Investments in Securities: | $401,645,114 | $401,645,114 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 82.8% |
| United Kingdom | 8.6% |
| Canada | 4.0% |
| Curacao | 1.0% |
| Bermuda | 1.0% |
| Others (Individually Less Than 1%) | 2.6% |
| 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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $3,012,926) — See accompanying schedule: Unaffiliated issuers (cost $529,331,227) | $396,286,233 | |
| Fidelity Central Funds (cost $5,358,881) | 5,358,881 | |
| Total Investment in Securities (cost $534,690,108) | $401,645,114 | |
| Receivable for fund shares sold | 778,850 | |
| Dividends receivable | 409,622 | |
| Distributions receivable from Fidelity Central Funds | 11,906 | |
| Prepaid expenses | 4,834 | |
| Other receivables | 159,823 | |
| Total assets | 403,010,149 | |
| Liabilities | ||
| Payable for fund shares redeemed | $653,987 | |
| Accrued management fee | 181,148 | |
| Distribution and service plan fees payable | 82,309 | |
| Other affiliated payables | 94,052 | |
| Other payables and accrued expenses | 80,881 | |
| Collateral on securities loaned | 3,298,400 | |
| Total liabilities | 4,390,777 | |
| Net Assets | $398,619,372 | |
| Net Assets consist of: | ||
| Paid in capital | $812,912,504 | |
| Total accumulated earnings (loss) | (414,293,132) | |
| Net Assets | $398,619,372 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($114,321,275 ÷ 6,889,843 shares)(a) | $16.59 | |
| Maximum offering price per share (100/94.25 of $16.59) | $17.60 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($43,768,125 ÷ 2,574,956 shares)(a) | $17.00 | |
| Maximum offering price per share (100/96.50 of $17.00) | $17.62 | |
| Class C: | ||
| Net Asset Value and offering price per share ($45,212,112 ÷ 2,968,655 shares)(a) | $15.23 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($154,575,411 ÷ 8,827,166 shares) | $17.51 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($40,742,449 ÷ 2,330,500 shares) | $17.48 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $17,832,420 | |
| Income from Fidelity Central Funds (including $34,350 from security lending) | 75,145 | |
| Total income | 17,907,565 | |
| Expenses | ||
| Management fee | $2,551,953 | |
| Transfer agent fees | 1,066,595 | |
| Distribution and service plan fees | 1,297,398 | |
| Accounting fees | 182,663 | |
| Custodian fees and expenses | 19,449 | |
| Independent trustees' fees and expenses | 3,174 | |
| Registration fees | 95,212 | |
| Audit | 61,564 | |
| Legal | 994 | |
| Miscellaneous | 39,025 | |
| Total expenses before reductions | 5,318,027 | |
| Expense reductions | (89,321) | |
| Total expenses after reductions | 5,228,706 | |
| Net investment income (loss) | 12,678,859 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of foreign taxes of $127,992) | (62,535,486) | |
| Fidelity Central Funds | (481) | |
| Foreign currency transactions | 14,416 | |
| Total net realized gain (loss) | (62,521,551) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $31,838) | (157,220,871) | |
| Assets and liabilities in foreign currencies | (3,705) | |
| Total change in net unrealized appreciation (depreciation) | (157,224,576) | |
| Net gain (loss) | (219,746,127) | |
| Net increase (decrease) in net assets resulting from operations | $(207,067,268) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $12,678,859 | $8,042,902 |
| Net realized gain (loss) | (62,521,551) | (50,555,493) |
| Change in net unrealized appreciation (depreciation) | (157,224,576) | (198,066,392) |
| Net increase (decrease) in net assets resulting from operations | (207,067,268) | (240,578,983) |
| Distributions to shareholders | (8,780,599) | (5,238,986) |
| Share transactions - net increase (decrease) | 12,036,839 | (120,369,893) |
| Total increase (decrease) in net assets | (203,811,028) | (366,187,862) |
| Net Assets | ||
| Beginning of period | 602,430,400 | 968,618,262 |
| End of period | $398,619,372 | $602,430,400 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Energy Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $27.88 | $37.52 | $30.70 | $31.12 | $30.96 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .57 | .35 | .12 | .38B | .16 |
| Net realized and unrealized gain (loss) | (11.42) | (9.76) | 7.18 | (.72) | .20 |
| Total from investment operations | (10.85) | (9.41) | 7.30 | (.34) | .36 |
| Distributions from net investment income | (.44) | (.18)C | (.48) | – | (.20) |
| Distributions from net realized gain | – | (.05)C | –D | (.08) | – |
| Total distributions | (.44) | (.23) | (.48) | (.08) | (.20) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $16.59 | $27.88 | $37.52 | $30.70 | $31.12 |
| Total ReturnE,F | (39.54)% | (25.07)% | 24.07% | (1.14)% | 1.25% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.14% | 1.10% | 1.11% | 1.09% | 1.12% |
| Expenses net of fee waivers, if any | 1.14% | 1.10% | 1.11% | 1.09% | 1.12% |
| Expenses net of all reductions | 1.12% | 1.09% | 1.10% | 1.08% | 1.11% |
| Net investment income (loss) | 2.62% | 1.14% | .36% | 1.15%B | .54% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $114,321 | $190,992 | $278,555 | $277,378 | $347,885 |
| Portfolio turnover rateI | 84%J | 47% | 56% | 90% | 85% |
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 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $28.53 | $38.36 | $31.37 | $31.82 | $31.63 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .53 | .27 | .03 | .30B | .08 |
| Net realized and unrealized gain (loss) | (11.71) | (9.97) | 7.35 | (.75) | .22 |
| Total from investment operations | (11.18) | (9.70) | 7.38 | (.45) | .30 |
| Distributions from net investment income | (.35) | (.08)C | (.39) | – | (.11) |
| Distributions from net realized gain | – | (.05)C | –D | – | – |
| Total distributions | (.35) | (.13) | (.39) | – | (.11) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $17.00 | $28.53 | $38.36 | $31.37 | $31.82 |
| Total ReturnE,F | (39.66)% | (25.28)% | 23.75% | (1.41)% | .98% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.40% | 1.37% | 1.38% | 1.36% | 1.38% |
| Expenses net of fee waivers, if any | 1.40% | 1.36% | 1.38% | 1.36% | 1.38% |
| Expenses net of all reductions | 1.38% | 1.36% | 1.37% | 1.35% | 1.37% |
| Net investment income (loss) | 2.36% | .88% | .09% | .88%B | .28% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $43,768 | $87,147 | $136,828 | $125,951 | $155,856 |
| Portfolio turnover rateI | 84%J | 47% | 56% | 90% | 85% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $25.58 | $34.39 | $28.16 | $28.69 | $28.58 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .39 | .12 | (.11) | .13B | (.05) |
| Net realized and unrealized gain (loss) | (10.52) | (8.93) | 6.59 | (.66) | .19 |
| Total from investment operations | (10.13) | (8.81) | 6.48 | (.53) | .14 |
| Distributions from net investment income | (.22) | – | (.24) | – | (.03) |
| Distributions from net realized gain | – | – | –C | – | – |
| Total distributions | (.22) | – | (.25)D | – | (.03) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $15.23 | $25.58 | $34.39 | $28.16 | $28.69 |
| Total ReturnE,F | (39.95)% | (25.62)% | 23.16% | (1.85)% | .52% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.86% | 1.82% | 1.84% | 1.82% | 1.84% |
| Expenses net of fee waivers, if any | 1.86% | 1.82% | 1.83% | 1.81% | 1.84% |
| Expenses net of all reductions | 1.84% | 1.81% | 1.83% | 1.80% | 1.83% |
| Net investment income (loss) | 1.90% | .42% | (.37)% | .42%B | (.18)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $45,212 | $90,437 | $179,521 | $212,105 | $240,949 |
| Portfolio turnover rateI | 84%J | 47% | 56% | 90% | 85% |
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 Amount represents less than $.005 per share.
D 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.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $29.39 | $39.57 | $32.36 | $32.78 | $32.62 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .67 | .47 | .23 | .50B | .25 |
| Net realized and unrealized gain (loss) | (12.02) | (10.31) | 7.57 | (.75) | .20 |
| Total from investment operations | (11.35) | (9.84) | 7.80 | (.25) | .45 |
| Distributions from net investment income | (.53) | (.30)C | (.58) | (.08) | (.29) |
| Distributions from net realized gain | – | (.05)C | –D | (.09) | – |
| Total distributions | (.53) | (.34)E | (.59)F | (.17) | (.29) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $17.51 | $29.39 | $39.57 | $32.36 | $32.78 |
| Total ReturnG | (39.33)% | (24.85)% | 24.43% | (.86)% | 1.50% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | .82% | .80% | .83% | .81% | .85% |
| Expenses net of fee waivers, if any | .82% | .80% | .83% | .81% | .85% |
| Expenses net of all reductions | .80% | .79% | .82% | .80% | .83% |
| Net investment income (loss) | 2.95% | 1.44% | .64% | 1.43%B | .82% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $154,575 | $224,599 | $373,714 | $277,385 | $193,683 |
| Portfolio turnover rateJ | 84%K | 47% | 56% | 90% | 85% |
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 $.34 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $.048 per share.
F 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.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Energy Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $29.35 | $39.35 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .69 | .45 |
| Net realized and unrealized gain (loss) | (11.97) | (10.03) |
| Total from investment operations | (11.28) | (9.58) |
| Distributions from net investment income | (.59) | (.37)C |
| Distributions from net realized gain | – | (.05)C |
| Total distributions | (.59) | (.42) |
| Net asset value, end of period | $17.48 | $29.35 |
| Total ReturnD,E | (39.22)% | (24.34)% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .66% | .65%H |
| Expenses net of fee waivers, if any | .66% | .64%H |
| Expenses net of all reductions | .64% | .64%H |
| Net investment income (loss) | 3.10% | 1.82%H |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $40,742 | $9,255 |
| Portfolio turnover rateI | 84%J | 47% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (20.03)% | 1.75% | 5.97% |
| Class M (incl. 3.50% sales charge) | (18.34)% | 1.95% | 5.94% |
| Class C (incl. contingent deferred sales charge) | (16.63)% | 2.19% | 5.81% |
| Class I | (14.91)% | 3.26% | 6.92% |
| Class Z | (14.79)% | 3.31% | 6.95% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$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, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $17,866 | Fidelity Advisor® Financial Services Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Financial Services Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Matthew Reed: For the year, the fund’s share classes (excluding sales charges, if applicable) returned in the range of roughly -15% to -16%, straddling the -15.29% result of the MSCI U.S. IMI Financials 5% Capped Linked Index, but well behind the S&P 500®. Versus the MSCI sector benchmark, stock selection aided the fund’s performance, especially in the investment banking & brokerage segment. An overweighting in that outperforming group also helped. Out-of-benchmark exposure to data processing & outsourced services stocks further benefited the fund’s relative result, along with positioning in life & health insurance. Overweighting investment bank Morgan Stanley (+13%), the fund’s third-largest holding at period end, made this stock the fund’s largest contributor the past 12 months, aided by the firm’s acquisition of discount broker E*TRADE Financial. Market-maker Virtu Financial, a sizable fund overweighting, delivered a 23% gain and contributed to the fund's relative performance. Conversely, an underweighting and investment choices in the outperforming financial exchanges & data segment detracted significantly from the fund’s relative result. Positioning in diversified banks and in asset management & custody banks also had a negative impact. Avoiding financial data and analytics provider S&P Global hurt relative performance the most, given the stock’s 44% gain. Wells Fargo (-47%), the fund’s fifth-largest holding at period end, also notably 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.
Note to shareholders: On October 1, 2019, Christopher Lee came off the fund, leaving Matthew Reed as sole portfolio manager.Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Citigroup, Inc. | 6.4 |
| The Travelers Companies, Inc. | 5.7 |
| Morgan Stanley | 5.4 |
| Bank of America Corp. | 5.4 |
| Wells Fargo & Co. | 4.9 |
| Capital One Financial Corp. | 3.3 |
| AGNC Investment Corp. | 3.0 |
| Arthur J. Gallagher & Co. | 2.8 |
| Truist Financial Corp. | 2.6 |
| American International Group, Inc. | 2.6 |
| 42.1 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Banks | 32.7% | |
| Insurance | 25.3% | |
| Capital Markets | 20.3% | |
| Consumer Finance | 6.7% | |
| Thrifts & Mortgage Finance | 4.3% | |
| All Others* | 10.7% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Financial Services Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 100.4% | |||
| Shares | Value | ||
| Banks - 32.7% | |||
| Diversified Banks - 19.3% | |||
| Bank of America Corp. | 643,356 | $16,006,697 | |
| Citigroup, Inc. | 379,305 | 18,969,045 | |
| U.S. Bancorp | 206,600 | 7,611,144 | |
| Wells Fargo & Co. | 605,128 | 14,680,405 | |
| 57,267,291 | |||
| Regional Banks - 13.4% | |||
| Ameris Bancorp | 53,000 | 1,222,975 | |
| Bank OZK | 107,400 | 2,582,970 | |
| BOK Financial Corp. | 20,616 | 1,148,311 | |
| Cadence Bancorp Class A | 183,364 | 1,432,073 | |
| Cullen/Frost Bankers, Inc. | 900 | 64,854 | |
| East West Bancorp, Inc. | 44,600 | 1,545,836 | |
| First Horizon National Corp. | 271,479 | 2,516,610 | |
| First Interstate Bancsystem, Inc. | 49,000 | 1,426,390 | |
| Great Western Bancorp, Inc. | 59,100 | 768,300 | |
| Huntington Bancshares, Inc. | 497,920 | 4,615,718 | |
| KeyCorp | 188,600 | 2,265,086 | |
| M&T Bank Corp. | 32,900 | 3,485,755 | |
| Regions Financial Corp. | 104,800 | 1,138,128 | |
| Signature Bank | 22,400 | 2,296,672 | |
| Truist Financial Corp. | 208,689 | 7,817,490 | |
| WesBanco, Inc. | 80,000 | 1,586,400 | |
| Wintrust Financial Corp. | 67,100 | 2,871,880 | |
| Zions Bancorp NA | 36,000 | 1,168,920 | |
| 39,954,368 | |||
| TOTAL BANKS | 97,221,659 | ||
| Capital Markets - 20.3% | |||
| Asset Management & Custody Banks - 7.5% | |||
| Affiliated Managers Group, Inc. | 44,000 | 3,026,760 | |
| AllianceBernstein Holding LP | 164,405 | 4,670,746 | |
| Bank of New York Mellon Corp. | 136,700 | 4,900,695 | |
| BlackRock, Inc. Class A | 100 | 57,501 | |
| Northern Trust Corp. | 43,900 | 3,439,565 | |
| State Street Corp. | 100,200 | 6,391,758 | |
| 22,487,025 | |||
| Financial Exchanges & Data - 2.4% | |||
| Cboe Global Markets, Inc. | 80,573 | 7,066,252 | |
| Investment Banking & Brokerage - 10.4% | |||
| Goldman Sachs Group, Inc. | 37,000 | 7,324,520 | |
| Morgan Stanley | 331,800 | 16,218,384 | |
| Raymond James Financial, Inc. | 48,200 | 3,348,936 | |
| Virtu Financial, Inc. Class A | 164,900 | 4,089,520 | |
| 30,981,360 | |||
| TOTAL CAPITAL MARKETS | 60,534,637 | ||
| Consumer Finance - 6.7% | |||
| Consumer Finance - 6.7% | |||
| Capital One Financial Corp. | 155,038 | 9,891,424 | |
| Discover Financial Services | 79,900 | 3,949,457 | |
| OneMain Holdings, Inc. | 113,200 | 3,248,840 | |
| SLM Corp. | 432,700 | 2,929,379 | |
| 20,019,100 | |||
| Diversified Financial Services - 3.1% | |||
| Multi-Sector Holdings - 3.1% | |||
| Berkshire Hathaway, Inc. Class B (a) | 24,200 | 4,737,876 | |
| Cannae Holdings, Inc. (a) | 118,340 | 4,459,051 | |
| 9,196,927 | |||
| Insurance - 25.3% | |||
| Insurance Brokers - 5.4% | |||
| Arthur J. Gallagher & Co. | 77,300 | 8,308,977 | |
| Willis Towers Watson PLC | 36,100 | 7,581,361 | |
| 15,890,338 | |||
| Life & Health Insurance - 3.5% | |||
| CNO Financial Group, Inc. | 211,000 | 3,186,100 | |
| MetLife, Inc. | 131,500 | 4,977,275 | |
| Primerica, Inc. | 19,500 | 2,333,370 | |
| 10,496,745 | |||
| Multi-Line Insurance - 5.4% | |||
| American International Group, Inc. | 238,100 | 7,652,534 | |
| Assurant, Inc. | 41,300 | 4,438,511 | |
| Hartford Financial Services Group, Inc. | 94,400 | 3,995,008 | |
| 16,086,053 | |||
| Property & Casualty Insurance - 10.6% | |||
| Allstate Corp. | 57,200 | 5,399,108 | |
| First American Financial Corp. | 93,700 | 4,779,637 | |
| Old Republic International Corp. | 278,800 | 4,480,316 | |
| The Travelers Companies, Inc. | 147,000 | 16,819,740 | |
| 31,478,801 | |||
| Reinsurance - 0.4% | |||
| RenaissanceRe Holdings Ltd. | 6,800 | 1,226,584 | |
| TOTAL INSURANCE | 75,178,521 | ||
| IT Services - 3.4% | |||
| Data Processing & Outsourced Services - 3.4% | |||
| Black Knight, Inc. (a) | 23,983 | 1,796,806 | |
| Computer Services, Inc. | 28,691 | 1,642,560 | |
| Fidelity National Information Services, Inc. | 23,500 | 3,438,285 | |
| Visa, Inc. Class A | 17,000 | 3,236,800 | |
| 10,114,451 | |||
| Mortgage Real Estate Investment Trusts - 3.0% | |||
| Mortgage REITs - 3.0% | |||
| AGNC Investment Corp. | 658,100 | 8,950,160 | |
| Professional Services - 1.6% | |||
| Research & Consulting Services - 1.6% | |||
| Dun & Bradstreet Holdings, Inc. (a) | 10,700 | 272,850 | |
| Equifax, Inc. | 27,700 | 4,502,912 | |
| 4,775,762 | |||
| Thrifts & Mortgage Finance - 4.3% | |||
| Thrifts & Mortgage Finance - 4.3% | |||
| Essent Group Ltd. | 170,300 | 6,101,849 | |
| MGIC Investment Corp. | 470,600 | 3,891,862 | |
| NMI Holdings, Inc. (a) | 184,000 | 2,855,680 | |
| 12,849,391 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $316,339,328) | 298,840,608 | ||
| Money Market Funds - 0.2% | |||
| Fidelity Cash Central Fund 0.14% (b) | |||
| (Cost $436,541) | 436,453 | 436,584 | |
| TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
| (Cost $316,775,869) | 299,277,192 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.6)% | (1,652,066) | ||
| NET ASSETS - 100% | $297,625,126 |
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 | $19,662 |
| Fidelity Securities Lending Cash Central Fund | 16,482 |
| Total | $36,144 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $298,840,608 | $298,840,608 | $-- | $-- |
| Money Market Funds | 436,584 | 436,584 | -- | -- |
| Total Investments in Securities: | $299,277,192 | $299,277,192 | $-- | $-- |
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, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $316,339,328) | $298,840,608 | |
| Fidelity Central Funds (cost $436,541) | 436,584 | |
| Total Investment in Securities (cost $316,775,869) | $299,277,192 | |
| Cash | 581 | |
| Receivable for investments sold | 890,365 | |
| Receivable for fund shares sold | 64,197 | |
| Dividends receivable | 552,923 | |
| Distributions receivable from Fidelity Central Funds | 309 | |
| Prepaid expenses | 3,035 | |
| Other receivables | 15,903 | |
| Total assets | 300,804,505 | |
| Liabilities | ||
| Payable for investments purchased | $299,811 | |
| Payable for fund shares redeemed | 2,599,376 | |
| Accrued management fee | 132,782 | |
| Distribution and service plan fees payable | 72,164 | |
| Other affiliated payables | 60,410 | |
| Other payables and accrued expenses | 14,836 | |
| Total liabilities | 3,179,379 | |
| Net Assets | $297,625,126 | |
| Net Assets consist of: | ||
| Paid in capital | $314,438,308 | |
| Total accumulated earnings (loss) | (16,813,182) | |
| Net Assets | $297,625,126 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($104,760,652 ÷ 5,820,625 shares)(a) | $18.00 | |
| Maximum offering price per share (100/94.25 of $18.00) | $19.10 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($34,828,096 ÷ 1,957,761 shares)(a) | $17.79 | |
| Maximum offering price per share (100/96.50 of $17.79) | $18.44 | |
| Class C: | ||
| Net Asset Value and offering price per share ($41,947,192 ÷ 2,497,307 shares)(a) | $16.80 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($85,298,823 ÷ 4,598,543 shares) | $18.55 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($30,790,363 ÷ 1,662,083 shares) | $18.53 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $10,508,355 | |
| Income from Fidelity Central Funds (including $16,482 from security lending) | 36,144 | |
| Total income | 10,544,499 | |
| Expenses | ||
| Management fee | $1,844,712 | |
| Transfer agent fees | 671,236 | |
| Distribution and service plan fees | 1,113,735 | |
| Accounting fees | 134,609 | |
| Custodian fees and expenses | 18,585 | |
| Independent trustees' fees and expenses | 2,237 | |
| Registration fees | 77,496 | |
| Audit | 51,129 | |
| Legal | 2,561 | |
| Interest | 1,712 | |
| Miscellaneous | 17,227 | |
| Total expenses before reductions | 3,935,239 | |
| Expense reductions | (41,173) | |
| Total expenses after reductions | 3,894,066 | |
| Net investment income (loss) | 6,650,433 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 13,295,242 | |
| Fidelity Central Funds | (155) | |
| Foreign currency transactions | (13,314) | |
| Total net realized gain (loss) | 13,281,773 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (73,279,292) | |
| Fidelity Central Funds | 43 | |
| Total change in net unrealized appreciation (depreciation) | (73,279,249) | |
| Net gain (loss) | (59,997,476) | |
| Net increase (decrease) in net assets resulting from operations | $(53,347,043) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $6,650,433 | $5,143,567 |
| Net realized gain (loss) | 13,281,773 | (9,908,000) |
| Change in net unrealized appreciation (depreciation) | (73,279,249) | 3,979,373 |
| Net increase (decrease) in net assets resulting from operations | (53,347,043) | (785,060) |
| Distributions to shareholders | (4,735,011) | (15,043,375) |
| Share transactions - net increase (decrease) | (24,010,625) | (116,089,686) |
| Total increase (decrease) in net assets | (82,092,679) | (131,918,121) |
| Net Assets | ||
| Beginning of period | 379,717,805 | 511,635,926 |
| End of period | $297,625,126 | $379,717,805 |
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.47 | $21.84 | $19.55 | $15.43 | $16.53 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .40 | .27 | .12 | .08 | .11 |
| Net realized and unrealized gain (loss) | (3.59) | .07B | 2.25 | 4.08 | (1.13) |
| Total from investment operations | (3.19) | .34 | 2.37 | 4.16 | (1.02) |
| Distributions from net investment income | (.28) | (.18) | (.07) | (.04) | (.07) |
| Distributions from net realized gain | – | (.53) | (.01) | – | (.01) |
| Total distributions | (.28) | (.71) | (.08) | (.04) | (.08) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $18.00 | $21.47 | $21.84 | $19.55 | $15.43 |
| Total ReturnD,E | (15.15)% | 2.05% | 12.13% | 26.97% | (6.15)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.09% | 1.08% | 1.10% | 1.12% | 1.15% |
| Expenses net of fee waivers, if any | 1.09% | 1.07% | 1.10% | 1.12% | 1.15% |
| Expenses net of all reductions | 1.08% | 1.07% | 1.09% | 1.12% | 1.15% |
| Net investment income (loss) | 1.97% | 1.31% | .55% | .48% | .77% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $104,761 | $145,799 | $174,786 | $144,144 | $97,011 |
| Portfolio turnover rateH | 88%I | 51% | 46% | 81% | 63% |
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 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Financial Services Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.23 | $21.60 | $19.34 | $15.29 | $16.41 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .34 | .21 | .06 | .04 | .07 |
| Net realized and unrealized gain (loss) | (3.55) | .07B | 2.23 | 4.03 | (1.13) |
| Total from investment operations | (3.21) | .28 | 2.29 | 4.07 | (1.06) |
| Distributions from net investment income | (.23) | (.13) | (.02) | (.02) | (.05) |
| Distributions from net realized gain | – | (.53) | (.01) | – | (.01) |
| Total distributions | (.23) | (.65)C | (.03) | (.02) | (.06) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $17.79 | $21.23 | $21.60 | $19.34 | $15.29 |
| Total ReturnE,F | (15.38)% | 1.77% | 11.84% | 26.63% | (6.43)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.35% | 1.34% | 1.37% | 1.40% | 1.45% |
| Expenses net of fee waivers, if any | 1.35% | 1.34% | 1.37% | 1.40% | 1.45% |
| Expenses net of all reductions | 1.34% | 1.33% | 1.36% | 1.40% | 1.44% |
| Net investment income (loss) | 1.72% | 1.04% | .28% | .20% | .47% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $34,828 | $48,210 | $53,178 | $45,920 | $30,044 |
| Portfolio turnover rateI | 88%J | 51% | 46% | 81% | 63% |
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 $.65 per share is comprised of distributions from net investment income of $.128 and distributions from net realized gain of $.525 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $20.04 | $20.41 | $18.34 | $14.55 | $15.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .23 | .11 | (.04) | (.05) | –B |
| Net realized and unrealized gain (loss) | (3.37) | .07C | 2.11 | 3.84 | (1.08) |
| Total from investment operations | (3.14) | .18 | 2.07 | 3.79 | (1.08) |
| Distributions from net investment income | (.10) | (.03) | – | –B | (.03) |
| Distributions from net realized gain | – | (.53) | – | – | (.01) |
| Total distributions | (.10) | (.55)D | – | –B | (.04) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $16.80 | $20.04 | $20.41 | $18.34 | $14.55 |
| Total ReturnE,F | (15.79)% | 1.29% | 11.29% | 26.06% | (6.88)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.84% | 1.83% | 1.86% | 1.87% | 1.90% |
| Expenses net of fee waivers, if any | 1.84% | 1.82% | 1.85% | 1.87% | 1.90% |
| Expenses net of all reductions | 1.83% | 1.82% | 1.85% | 1.87% | 1.89% |
| Net investment income (loss) | 1.22% | .56% | (.20)% | (.27)% | .02%B |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $41,947 | $71,609 | $120,947 | $92,593 | $47,505 |
| Portfolio turnover rateI | 88%J | 51% | 46% | 81% | 63% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
D Total distributions of $.55 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.525 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 contingent deferred sales charge.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Financial Services Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.11 | $22.47 | $20.11 | $15.84 | $16.94 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .47 | .33 | .18 | .14 | .17 |
| Net realized and unrealized gain (loss) | (3.69) | .08B | 2.32 | 4.19 | (1.17) |
| Total from investment operations | (3.22) | .41 | 2.50 | 4.33 | (1.00) |
| Distributions from net investment income | (.34) | (.25) | (.13) | (.06) | (.09) |
| Distributions from net realized gain | – | (.53) | (.01) | – | (.01) |
| Total distributions | (.34) | (.77)C | (.14) | (.06) | (.10) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $18.55 | $22.11 | $22.47 | $20.11 | $15.84 |
| Total ReturnE | (14.91)% | 2.36% | 12.43% | 27.36% | (5.89)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .80% | .80% | .83% | .84% | .85% |
| Expenses net of fee waivers, if any | .80% | .79% | .83% | .84% | .85% |
| Expenses net of all reductions | .78% | .79% | .82% | .83% | .84% |
| Net investment income (loss) | 2.27% | 1.59% | .83% | .76% | 1.07% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $85,299 | $107,059 | $162,724 | $96,789 | $20,588 |
| Portfolio turnover rateH | 88%I | 51% | 46% | 81% | 63% |
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 $.77 per share is comprised of distributions from net investment income of $.245 and distributions from net realized gain of $.525 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 Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Financial Services Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $22.09 | $21.99 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .49 | .25 |
| Net realized and unrealized gain (loss) | (3.67) | .66C |
| Total from investment operations | (3.18) | .91 |
| Distributions from net investment income | (.38) | (.29) |
| Distributions from net realized gain | – | (.53) |
| Total distributions | (.38) | (.81)D |
| Net asset value, end of period | $18.53 | $22.09 |
| Total ReturnE,F | (14.79)% | 4.72% |
| Ratios to Average Net AssetsG,H | ||
| Expenses before reductions | .67% | .66%I |
| Expenses net of fee waivers, if any | .67% | .65%I |
| Expenses net of all reductions | .65% | .65%I |
| Net investment income (loss) | 2.40% | 1.44%I |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $30,790 | $7,041 |
| Portfolio turnover rateJ | 88%K | 51% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C 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.
D Total distributions of $.81 per share is comprised of distributions from net investment income of $.286 and distributions from net realized gain of $.525 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® 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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 17.34% | 7.38% | 18.23% |
| Class M (incl. 3.50% sales charge) | 19.84% | 7.61% | 18.20% |
| Class C (incl. contingent deferred sales charge) | 22.58% | 7.85% | 18.05% |
| Class I | 24.84% | 8.94% | 19.25% |
| Class Z | 24.98% | 9.00% | 19.28% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$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, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $53,366 | Fidelity Advisor® Health Care Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Health Care Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Eddie Yoon: For the fiscal year reporting period ending July 31, 2020, the fund's shares classes returned between roughly 24% and 25% (excluding sales charges, if applicable), topping the 19.79% advance of the MSCI U.S. IMI Health Care 25/50 Index and the 11.96% result of the broad-market S&P 500® index. The sector posted a solid gain during the past year, led by the health care technology industry, where stocks gained 42% as health care providers increasingly turned to telemedicine as the coronavirus outbreak escalated. Biotechnology (+32%) and life science tools & services (+34%) also outpaced the broader sector, buoyed by companies assisting in the production of COVID-19 vaccines, treatments and testing. Versus the sector index, security selection drove the fund’s relative performance, as the fund benefited from a combination of owning strong-performing stocks and avoiding weaker-performing index components. Choices were particularly strong in the pharmaceuticals, managed care and biotechnology industries. The fund’s international holdings strongly contributed, aided in part by favorable foreign exchange. A large overweighting in Vertex Pharmaceuticals helped the most. Vertex is focused on rare diseases, and the stock gained 63% this period, largely on the strength of Trikafta – the company’s newest drug for cystic fibrosis. An out-of-index stake in BioNTech also notably contributed, and we maintained a stake in the company at period end. Conversely, our sizable overweighting in medical device maker Boston Scientific (-9%) was the fund’s single-largest detractor by far during the period. Operating performance was unusually choppy for Boston Scientific, due to this operational volatility, combined with the delay for elective surgeries to cope with the COVID-19 outbreak. We reduced the fund’s position in Boston Scientific, but the stock remained our 11th-largest holding at period end. Avoiding index component Thermo Fisher Scientific (+49%) 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, 2020
| % of fund's net assets | |
| UnitedHealth Group, Inc. | 8.3 |
| Roche Holding AG (participation certificate) | 6.3 |
| Becton, Dickinson & Co. | 5.4 |
| Regeneron Pharmaceuticals, Inc. | 5.1 |
| AstraZeneca PLC (United Kingdom) | 4.8 |
| Humana, Inc. | 4.8 |
| Cigna Corp. | 4.5 |
| Eli Lilly & Co. | 4.1 |
| Danaher Corp. | 4.0 |
| Centene Corp. | 3.5 |
| 50.8 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Health Care Providers & Services | 24.4% | |
| Health Care Equipment & Supplies | 24.0% | |
| Biotechnology | 23.4% | |
| Pharmaceuticals | 21.9% | |
| Life Sciences Tools & Services | 3.5% | |
| All Others* | 2.8% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Health Care Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value | ||
| Biotechnology - 23.3% | |||
| Biotechnology - 23.3% | |||
| Acceleron Pharma, Inc. (a) | 380,000 | $37,684,600 | |
| ADC Therapeutics SA (a)(b) | 460,523 | 21,414,320 | |
| Alnylam Pharmaceuticals, Inc. (a) | 500,000 | 72,880,000 | |
| Amgen, Inc. | 160,000 | 39,147,200 | |
| Aprea Therapeutics, Inc. | 360,000 | 9,874,800 | |
| Arcutis Biotherapeutics, Inc. (a) | 360,000 | 9,612,000 | |
| Argenx SE ADR (a) | 356,836 | 82,118,669 | |
| Ascendis Pharma A/S sponsored ADR (a) | 529,954 | 72,926,970 | |
| BeiGene Ltd. ADR (a) | 128,000 | 26,752,000 | |
| BioNTech SE: | |||
| ADR (a)(b) | 440,000 | 36,128,400 | |
| rights 8/14/20 (a)(b) | 450,000 | 5 | |
| Black Diamond Therapeutics, Inc. (a) | 160,000 | 4,451,200 | |
| Blueprint Medicines Corp. (a) | 230,000 | 16,831,400 | |
| Denali Therapeutics, Inc. (a)(b) | 200,000 | 4,684,000 | |
| Exelixis, Inc. (a) | 750,000 | 17,317,500 | |
| Forma Therapeutics Holdings, Inc. | 183,900 | 6,429,144 | |
| Fusion Pharmaceuticals, Inc. (a) | 47,000 | 646,720 | |
| G1 Therapeutics, Inc. (a) | 515,627 | 7,564,248 | |
| Generation Bio Co. | 84,100 | 1,651,724 | |
| Generation Bio Co. | 74,620 | 1,318,984 | |
| Innovent Biologics, Inc. (a)(c) | 4,000,000 | 24,515,180 | |
| Insmed, Inc. (a) | 820,034 | 21,419,288 | |
| Intercept Pharmaceuticals, Inc. (a) | 130,000 | 5,933,200 | |
| Kura Oncology, Inc. (a) | 780,000 | 12,823,200 | |
| Morphic Holding, Inc. (a) | 147,500 | 3,320,225 | |
| Neurocrine Biosciences, Inc. (a) | 640,000 | 77,030,400 | |
| ORIC Pharmaceuticals, Inc. (a) | 390,000 | 7,827,300 | |
| Passage Bio, Inc. | 353,300 | 5,525,612 | |
| Poseida Therapeutics, Inc. (a) | 70,000 | 908,600 | |
| Poseida Therapeutics, Inc. | 836,860 | 9,776,199 | |
| Principia Biopharma, Inc. (a) | 484,300 | 40,487,480 | |
| Regeneron Pharmaceuticals, Inc. (a) | 445,000 | 281,271,150 | |
| Repare Therapeutics, Inc. | 284,700 | 6,792,942 | |
| Revolution Medicines, Inc. | 800,000 | 19,296,000 | |
| Sage Therapeutics, Inc. (a) | 76,500 | 3,486,105 | |
| Sarepta Therapeutics, Inc. (a)(b) | 465,000 | 71,386,800 | |
| Scholar Rock Holding Corp. (a) | 64,307 | 726,026 | |
| Stoke Therapeutics, Inc. (a) | 25,433 | 640,657 | |
| TG Therapeutics, Inc. (a) | 800,000 | 15,664,000 | |
| Turning Point Therapeutics, Inc. (a) | 250,000 | 14,807,500 | |
| uniQure B.V. (a) | 254,000 | 10,599,420 | |
| Vaxcyte, Inc. | 183,615 | 5,767,347 | |
| Vertex Pharmaceuticals, Inc. (a) | 385,000 | 104,720,000 | |
| Viela Bio, Inc. | 620,000 | 22,698,200 | |
| Viking Therapeutics, Inc. (a)(b) | 600,000 | 4,212,000 | |
| Xencor, Inc. (a) | 690,351 | 20,772,662 | |
| Zentalis Pharmaceuticals, Inc. (b) | 400,000 | 13,800,000 | |
| Zymeworks, Inc. (a) | 480,048 | 14,655,865 | |
| 1,290,297,242 | |||
| Health Care Equipment & Supplies - 24.0% | |||
| Health Care Equipment - 23.2% | |||
| Atricure, Inc. (a) | 630,000 | 25,710,300 | |
| Becton, Dickinson & Co. | 1,060,000 | 298,220,400 | |
| Boston Scientific Corp. (a) | 5,000,000 | 192,850,000 | |
| Danaher Corp. | 1,090,000 | 222,142,000 | |
| DexCom, Inc. (a) | 56,000 | 24,390,240 | |
| Hologic, Inc. (a) | 251,675 | 17,561,882 | |
| Insulet Corp. (a) | 631,652 | 128,452,751 | |
| Intuitive Surgical, Inc. (a) | 136,000 | 93,219,840 | |
| Masimo Corp. (a) | 354,000 | 77,922,480 | |
| Penumbra, Inc. (a) | 660,260 | 146,518,297 | |
| Shockwave Medical, Inc. (a) | 236,547 | 11,666,498 | |
| Tandem Diabetes Care, Inc. (a) | 400,000 | 41,784,000 | |
| 1,280,438,688 | |||
| Health Care Supplies - 0.8% | |||
| Quidel Corp. (a) | 160,000 | 45,195,200 | |
| TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 1,325,633,888 | ||
| Health Care Providers & Services - 23.9% | |||
| Health Care Distributors & Services - 0.3% | |||
| EBOS Group Ltd. | 1,152,845 | 16,667,556 | |
| Health Care Services - 5.5% | |||
| 1Life Healthcare, Inc. (a)(b) | 975,000 | 28,869,750 | |
| Alignment Healthcare Partners unit (d)(e) | 1,155,248 | 18,436,141 | |
| Cigna Corp. | 1,450,000 | 250,400,500 | |
| Quest Diagnostics, Inc. | 61,300 | 7,789,391 | |
| 305,495,782 | |||
| Managed Health Care - 18.1% | |||
| Anthem, Inc. | 310,000 | 84,878,000 | |
| Centene Corp. (a) | 3,000,000 | 195,750,000 | |
| Humana, Inc. | 670,000 | 262,941,500 | |
| UnitedHealth Group, Inc. | 1,515,000 | 458,711,698 | |
| 1,002,281,198 | |||
| TOTAL HEALTH CARE PROVIDERS & SERVICES | 1,324,444,536 | ||
| Health Care Technology - 1.2% | |||
| Health Care Technology - 1.2% | |||
| Castlight Health, Inc. (a) | 331,400 | 364,540 | |
| Castlight Health, Inc. Class B (a) | 1,500,000 | 1,650,000 | |
| Inspire Medical Systems, Inc. (a) | 420,000 | 41,731,200 | |
| Veeva Systems, Inc. Class A (a) | 90,000 | 23,811,300 | |
| 67,557,040 | |||
| Insurance - 0.1% | |||
| Insurance Brokers - 0.1% | |||
| GoHealth, Inc. (a) | 200,000 | 3,550,000 | |
| Life Sciences Tools & Services - 3.5% | |||
| Life Sciences Tools & Services - 3.5% | |||
| 10X Genomics, Inc. (a)(b) | 336,293 | 33,081,142 | |
| Bio-Rad Laboratories, Inc. Class A (a) | 42,959 | 22,548,750 | |
| Bruker Corp. | 1,460,000 | 65,145,200 | |
| Lonza Group AG | 112,000 | 70,037,572 | |
| 190,812,664 | |||
| Pharmaceuticals - 21.6% | |||
| Pharmaceuticals - 21.6% | |||
| Arvinas Holding Co. LLC (a) | 380,000 | 11,970,000 | |
| AstraZeneca PLC (United Kingdom) | 2,400,000 | 265,151,254 | |
| Eli Lilly & Co. | 1,520,000 | 228,440,800 | |
| MyoKardia, Inc. (a) | 455,300 | 41,036,189 | |
| Nektar Therapeutics (a)(b) | 1,280,000 | 28,364,800 | |
| Pliant Therapeutics, Inc. | 569,221 | 13,257,157 | |
| Roche Holding AG (participation certificate) | 1,000,000 | 346,356,565 | |
| Royalty Pharma PLC (d)(e) | 4,463 | 0 | |
| Royalty Pharma PLC | 640,000 | 27,552,000 | |
| Royalty Pharma PLC | 572,200 | 22,169,889 | |
| Sanofi SA | 1,720,000 | 180,594,924 | |
| Theravance Biopharma, Inc. (a) | 638,820 | 12,405,884 | |
| UCB SA | 140,000 | 17,950,780 | |
| 1,195,250,242 | |||
| Professional Services - 0.3% | |||
| Research & Consulting Services - 0.3% | |||
| Clarivate Analytics PLC (a) | 670,000 | 18,525,500 | |
| Software - 0.0% | |||
| Application Software - 0.0% | |||
| Outset Medical, Inc. (a)(d)(e) | 313,707 | 934,847 | |
| TOTAL COMMON STOCKS | |||
| (Cost $3,679,309,350) | 5,417,005,959 | ||
| Preferred Stocks - 1.1% | |||
| Convertible Preferred Stocks - 0.6% | |||
| Biotechnology - 0.1% | |||
| Biotechnology - 0.1% | |||
| Shattuck Labs, Inc. Series B1 (d)(e) | 81,806 | 5,144,003 | |
| Pharmaceuticals - 0.3% | |||
| Pharmaceuticals - 0.3% | |||
| Harmony Biosciences II, Inc.: | |||
| Series A (a)(e) | 4,262,580 | 11,210,585 | |
| Series C (e) | 2,067,257 | 5,436,886 | |
| 16,647,471 | |||
| Software - 0.2% | |||
| Application Software - 0.2% | |||
| Outset Medical, Inc.: | |||
| Series C (a)(d)(e) | 1,003,280 | 2,989,774 | |
| Series D (a)(d)(e) | 884,245 | 3,475,083 | |
| Series E (d)(e) | 1,363,636 | 4,063,635 | |
| 10,528,492 | |||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 32,319,966 | ||
| Nonconvertible Preferred Stocks - 0.5% | |||
| Health Care Providers & Services - 0.5% | |||
| Health Care Services - 0.5% | |||
| Oak Street Health LLC Series III-E (e)(f) | 102,373 | 28,759,647 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $37,122,143) | 61,079,613 | ||
| Money Market Funds - 2.9% | |||
| Fidelity Cash Central Fund 0.14% (g) | 52,049,911 | 52,065,526 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (g)(h) | 110,126,290 | 110,137,303 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $162,198,419) | 162,202,829 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.9% | |||
| (Cost $3,878,629,912) | 5,640,288,401 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.9)% | (107,635,379) | ||
| NET ASSETS - 100% | $5,532,653,022 |
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 $24,515,180 or 0.4% of net assets.
(d) Level 3 security
(e) Restricted securities (including private placements) - 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 $80,450,601 or 1.5% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, 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 |
| Alignment Healthcare Partners unit | 2/28/20 | $14,000,005 |
| Harmony Biosciences II, Inc. Series A | 9/22/17 | $4,262,580 |
| Harmony Biosciences II, Inc. Series C | 8/9/19 | $4,051,824 |
| Oak Street Health LLC Series III-E | 2/21/20 | $15,999,876 |
| Outset Medical, Inc. | 1/27/20 | $686,141 |
| Outset Medical, Inc. Series C | 4/19/17 | $2,600,000 |
| Outset Medical, Inc. Series D | 8/20/18 | $2,750,002 |
| Outset Medical, Inc. Series E | 1/27/20 | $2,999,999 |
| Shattuck Labs, Inc. Series B1 | 6/12/20 | $5,144,003 |
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 | $503,160 |
| Fidelity Securities Lending Cash Central Fund | 1,560,075 |
| Total | $2,063,235 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $5,417,005,959 | $4,502,229,579 | $895,405,392 | $19,370,988 |
| Preferred Stocks | 61,079,613 | -- | 45,407,118 | 15,672,495 |
| Money Market Funds | 162,202,829 | 162,202,829 | -- | -- |
| Total Investments in Securities: | $5,640,288,401 | $4,664,432,408 | $940,812,510 | $35,043,483 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 77.5% |
| Switzerland | 8.0% |
| United Kingdom | 5.2% |
| France | 3.3% |
| Netherlands | 1.7% |
| Denmark | 1.3% |
| Cayman Islands | 1.1% |
| Others (Individually Less Than 1%) | 1.9% |
| 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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $105,584,192) — See accompanying schedule: Unaffiliated issuers (cost $3,716,431,493) | $5,478,085,572 | |
| Fidelity Central Funds (cost $162,198,419) | 162,202,829 | |
| Total Investment in Securities (cost $3,878,629,912) | $5,640,288,401 | |
| Receivable for investments sold | 32,780,909 | |
| Receivable for fund shares sold | 11,211,040 | |
| Dividends receivable | 3,514,669 | |
| Distributions receivable from Fidelity Central Funds | 662,446 | |
| Prepaid expenses | 17,510 | |
| Other receivables | 23,210 | |
| Total assets | 5,688,498,185 | |
| Liabilities | ||
| Payable for investments purchased | $37,108,200 | |
| Payable for fund shares redeemed | 4,322,445 | |
| Accrued management fee | 2,431,024 | |
| Distribution and service plan fees payable | 983,686 | |
| Other affiliated payables | 798,164 | |
| Other payables and accrued expenses | 66,219 | |
| Collateral on securities loaned | 110,135,425 | |
| Total liabilities | 155,845,163 | |
| Net Assets | $5,532,653,022 | |
| Net Assets consist of: | ||
| Paid in capital | $3,591,812,839 | |
| Total accumulated earnings (loss) | 1,940,840,183 | |
| Net Assets | $5,532,653,022 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,372,081,661 ÷ 22,468,850 shares)(a) | $61.07 | |
| Maximum offering price per share (100/94.25 of $61.07) | $64.80 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($349,280,243 ÷ 6,169,297 shares)(a) | $56.62 | |
| Maximum offering price per share (100/96.50 of $56.62) | $58.67 | |
| Class C: | ||
| Net Asset Value and offering price per share ($654,487,429 ÷ 13,742,510 shares)(a) | $47.63 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($2,546,322,807 ÷ 38,115,631 shares) | $66.81 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($610,480,882 ÷ 9,128,316 shares) | $66.88 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends | $39,283,406 | |
| Income from Fidelity Central Funds (including $1,560,075 from security lending) | 2,063,235 | |
| Total income | 41,346,641 | |
| Expenses | ||
| Management fee | $23,693,399 | |
| Transfer agent fees | 7,362,252 | |
| Distribution and service plan fees | 10,399,461 | |
| Accounting fees | 1,058,284 | |
| Custodian fees and expenses | 115,255 | |
| Independent trustees' fees and expenses | 27,017 | |
| Registration fees | 205,365 | |
| Audit | 52,628 | |
| Legal | 11,994 | |
| Miscellaneous | 195,639 | |
| Total expenses before reductions | 43,121,294 | |
| Expense reductions | (242,372) | |
| Total expenses after reductions | 42,878,922 | |
| Net investment income (loss) | (1,532,281) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 204,829,547 | |
| Fidelity Central Funds | (3,654) | |
| Foreign currency transactions | (301,111) | |
| Total net realized gain (loss) | 204,524,782 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 806,600,259 | |
| Fidelity Central Funds | 4,286 | |
| Assets and liabilities in foreign currencies | 257,946 | |
| Total change in net unrealized appreciation (depreciation) | 806,862,491 | |
| Net gain (loss) | 1,011,387,273 | |
| Net increase (decrease) in net assets resulting from operations | $1,009,854,992 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(1,532,281) | $(5,866,312) |
| Net realized gain (loss) | 204,524,782 | 65,765,731 |
| Change in net unrealized appreciation (depreciation) | 806,862,491 | 46,335,331 |
| Net increase (decrease) in net assets resulting from operations | 1,009,854,992 | 106,234,750 |
| Distributions to shareholders | (19,320,902) | (164,979,965) |
| Share transactions - net increase (decrease) | 506,568,084 | 806,362,559 |
| Total increase (decrease) in net assets | 1,497,102,174 | 747,617,344 |
| Net Assets | ||
| Beginning of period | 4,035,550,848 | 3,287,933,504 |
| End of period | $5,532,653,022 | $4,035,550,848 |
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $49.21 | $50.14 | $41.85 | $38.23 | $45.17 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.04) | (.07) | (.07) | (.04) | (.09) |
| Net realized and unrealized gain (loss) | 12.08 | 1.36 | 8.36 | 3.66 | (4.30) |
| Total from investment operations | 12.04 | 1.29 | 8.29 | 3.62 | (4.39) |
| Distributions from net realized gain | (.18) | (2.22) | – | – | (2.55) |
| Total distributions | (.18) | (2.22) | – | – | (2.55) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $61.07 | $49.21 | $50.14 | $41.85 | $38.23 |
| Total ReturnC,D | 24.50% | 2.87% | 19.81% | 9.47% | (9.82)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.01% | 1.02% | 1.05% | 1.04% | 1.04% |
| Expenses net of fee waivers, if any | 1.00% | 1.02% | 1.05% | 1.04% | 1.04% |
| Expenses net of all reductions | 1.00% | 1.02% | 1.04% | 1.04% | 1.04% |
| Net investment income (loss) | (.07)% | (.14)% | (.16)% | (.10)% | (.25)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,372,082 | $1,121,411 | $1,003,430 | $875,176 | $1,159,614 |
| Portfolio turnover rateG | 53%H | 45% | 81% | 64% | 67% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Health Care Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $45.75 | $46.89 | $39.25 | $35.95 | $42.68 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.16) | (.18) | (.18) | (.13) | (.18) |
| Net realized and unrealized gain (loss) | 11.21 | 1.26 | 7.82 | 3.43 | (4.06) |
| Total from investment operations | 11.05 | 1.08 | 7.64 | 3.30 | (4.24) |
| Distributions from net realized gain | (.18) | (2.22) | – | – | (2.49) |
| Total distributions | (.18) | (2.22) | – | – | (2.49) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $56.62 | $45.75 | $46.89 | $39.25 | $35.95 |
| Total ReturnC,D | 24.19% | 2.61% | 19.46% | 9.18% | (10.05)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.26% | 1.28% | 1.32% | 1.31% | 1.31% |
| Expenses net of fee waivers, if any | 1.26% | 1.28% | 1.32% | 1.31% | 1.31% |
| Expenses net of all reductions | 1.26% | 1.28% | 1.31% | 1.31% | 1.31% |
| Net investment income (loss) | (.33)% | (.40)% | (.43)% | (.37)% | (.52)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $349,280 | $306,758 | $298,061 | $269,332 | $293,556 |
| Portfolio turnover rateG | 53%H | 45% | 81% | 64% | 67% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Health Care Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $38.70 | $40.21 | $33.82 | $31.12 | $37.45 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.34) | (.34) | (.33) | (.26) | (.30) |
| Net realized and unrealized gain (loss) | 9.45 | 1.05 | 6.72 | 2.96 | (3.57) |
| Total from investment operations | 9.11 | .71 | 6.39 | 2.70 | (3.87) |
| Distributions from net realized gain | (.18) | (2.22) | – | – | (2.46) |
| Total distributions | (.18) | (2.22) | – | – | (2.46) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $47.63 | $38.70 | $40.21 | $33.82 | $31.12 |
| Total ReturnC,D | 23.58% | 2.10% | 18.89% | 8.68% | (10.50)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.76% | 1.77% | 1.80% | 1.79% | 1.79% |
| Expenses net of fee waivers, if any | 1.76% | 1.77% | 1.80% | 1.79% | 1.79% |
| Expenses net of all reductions | 1.75% | 1.77% | 1.79% | 1.79% | 1.79% |
| Net investment income (loss) | (.82)% | (.88)% | (.91)% | (.85)% | (1.00)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $654,487 | $585,093 | $669,639 | $619,991 | $695,374 |
| Portfolio turnover rateG | 53%H | 45% | 81% | 64% | 67% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Health Care Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.77 | $54.43 | $45.35 | $41.31 | $48.53 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .07 | .05 | .07 | –B |
| Net realized and unrealized gain (loss) | 13.22 | 1.49 | 9.06 | 3.97 | (4.62) |
| Total from investment operations | 13.33 | 1.56 | 9.11 | 4.04 | (4.62) |
| Distributions from net realized gain | (.29) | (2.22) | (.03) | – | (2.60) |
| Total distributions | (.29) | (2.22) | (.03) | – | (2.60) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $66.81 | $53.77 | $54.43 | $45.35 | $41.31 |
| Total ReturnC | 24.84% | 3.14% | 20.09% | 9.78% | (9.60)% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .74% | .76% | .79% | .78% | .78% |
| Expenses net of fee waivers, if any | .74% | .76% | .79% | .78% | .78% |
| Expenses net of all reductions | .74% | .76% | .78% | .78% | .78% |
| Net investment income (loss) | .19% | .13% | .10% | .16% | .01% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,546,323 | $1,783,417 | $1,316,804 | $911,005 | $658,848 |
| Portfolio turnover rateF | 53%G | 45% | 81% | 64% | 67% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Health Care Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $53.84 | $57.87 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .19 | .13 |
| Net realized and unrealized gain (loss) | 13.22 | (1.94)C |
| Total from investment operations | 13.41 | (1.81) |
| Distributions from net realized gain | (.37) | (2.22) |
| Total distributions | (.37) | (2.22) |
| Net asset value, end of period | $66.88 | $53.84 |
| Total ReturnD,E | 24.98% | (2.86)% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .61% | .62%H |
| Expenses net of fee waivers, if any | .61% | .62%H |
| Expenses net of all reductions | .61% | .62%H |
| Net investment income (loss) | .32% | .30%H |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $610,481 | $238,873 |
| Portfolio turnover rateI | 53%J | 45% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (11.95)% | 4.27% | 9.45% |
| Class M (incl. 3.50% sales charge) | (10.08)% | 4.49% | 9.43% |
| Class C (incl. contingent deferred sales charge) | (8.13)% | 4.72% | 9.27% |
| Class I | (6.32)% | 5.80% | 10.40% |
| Class Z | (6.21)% | 5.85% | 10.43% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Industrials Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $24,667 | Fidelity Advisor® Industrials Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Industrials Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Janet Glazer: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) returned roughly -6% to -7%, trailing the -5.80% result of the MSCI U.S. IMI Industrials 25/50 Linked Index, and considerably lagging the S&P 500®. Versus the MSCI sector index, stock selection and an underweighting in the strong-performing air freight & logistics industry was the biggest drag on the fund’s performance. The same factors hurt the fund’s positioning in two other groups: trading companies & distributors and construction machinery & heavy trucks. Package-delivery stock United Parcel Service was by far the fund’s largest relative detractor. I sold out of the fund’s position to consolidate into other transportation stocks I liked better. In doing so, I missed most of the rally that resulted in UPS posting a 24% gain during the period. Underweighting strong-performing Fastenal (+57%), a high-quality distributor of industrial and construction supplies, also detracted. Conversely, an underweighting in the weak-performing aerospace & defense group lifted the fund’s relative performance. Investment choices within the industrial conglomerates group helped as well, along with an underweighting in airlines. Within aerospace & defense, a sizable underweighting in commercial aircraft manufacturer Boeing was the fund’s largest relative contributor, with a roughly -66% result in the portfolio. I exited this position in the second quarter. A sizable overweighting in Roper Technologies (+20%) also proved timely. The company develops software and engineered products worldwide.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® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Roper Technologies, Inc. | 10.0 |
| Fortive Corp. | 6.6 |
| Colfax Corp. | 5.6 |
| XPO Logistics, Inc. | 5.2 |
| Regal Beloit Corp. | 4.7 |
| AMETEK, Inc. | 4.6 |
| Union Pacific Corp. | 4.2 |
| Illinois Tool Works, Inc. | 3.7 |
| Nordson Corp. | 3.6 |
| Vertiv Holdings Co. | 3.5 |
| 51.7 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Machinery | 30.9% | |
| Road & Rail | 16.3% | |
| Electrical Equipment | 15.2% | |
| Industrial Conglomerates | 12.4% | |
| Aerospace & Defense | 5.7% | |
| All Others* | 19.5% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Industrials Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 99.7% | |||
| Shares | Value | ||
| Aerospace & Defense - 5.7% | |||
| Aerospace & Defense - 5.7% | |||
| HEICO Corp. Class A | 64,715 | $4,953,933 | |
| Teledyne Technologies, Inc. (a) | 19,300 | 5,919,310 | |
| TransDigm Group, Inc. | 34,514 | 14,895,552 | |
| 25,768,795 | |||
| Air Freight & Logistics - 5.7% | |||
| Air Freight & Logistics - 5.7% | |||
| Air Transport Services Group, Inc. (a) | 85,400 | 2,081,198 | |
| XPO Logistics, Inc. (a) | 315,738 | 23,686,665 | |
| 25,767,863 | |||
| Building Products - 5.3% | |||
| Building Products - 5.3% | |||
| Fortune Brands Home & Security, Inc. | 79,900 | 6,112,350 | |
| Trane Technologies PLC | 131,835 | 14,748,381 | |
| Trex Co., Inc. (a) | 20,700 | 2,884,131 | |
| 23,744,862 | |||
| Commercial Services & Supplies - 1.9% | |||
| Diversified Support Services - 1.9% | |||
| Cintas Corp. | 28,800 | 8,693,856 | |
| Construction & Engineering - 0.2% | |||
| Construction & Engineering - 0.2% | |||
| AECOM (a) | 22,100 | 799,799 | |
| Electrical Equipment - 15.2% | |||
| Electrical Components & Equipment - 15.2% | |||
| AMETEK, Inc. | 223,734 | 20,863,196 | |
| Regal Beloit Corp. | 227,779 | 20,948,835 | |
| Rockwell Automation, Inc. | 45,700 | 9,968,998 | |
| Vertiv Holdings Co. (a) | 1,087,200 | 15,764,400 | |
| Vertiv Holdings LLC (b) | 63,796 | 925,042 | |
| 68,470,471 | |||
| Industrial Conglomerates - 12.4% | |||
| Industrial Conglomerates - 12.4% | |||
| Honeywell International, Inc. | 72,894 | 10,888,177 | |
| Roper Technologies, Inc. | 104,432 | 45,161,620 | |
| 56,049,797 | |||
| Machinery - 30.9% | |||
| Construction Machinery & Heavy Trucks - 2.8% | |||
| Oshkosh Corp. | 163,800 | 12,894,336 | |
| Industrial Machinery - 28.1% | |||
| Colfax Corp. (a) | 871,343 | 25,338,654 | |
| Fortive Corp. | 426,275 | 29,920,242 | |
| Gardner Denver Holdings, Inc. (a) | 171,300 | 5,411,367 | |
| IDEX Corp. | 29,234 | 4,818,348 | |
| Illinois Tool Works, Inc. | 90,400 | 16,723,096 | |
| ITT, Inc. | 6,951 | 401,281 | |
| Nordson Corp. | 83,800 | 16,226,194 | |
| Otis Worldwide Corp. | 72,600 | 4,554,924 | |
| Parker Hannifin Corp. | 70,800 | 12,667,536 | |
| Stanley Black & Decker, Inc. | 60,800 | 9,321,856 | |
| Xylem, Inc. | 19,300 | 1,408,514 | |
| 126,792,012 | |||
| TOTAL MACHINERY | 139,686,348 | ||
| Professional Services - 4.0% | |||
| Human Resource & Employment Services - 2.8% | |||
| Manpower, Inc. | 12,800 | 880,512 | |
| TriNet Group, Inc. (a) | 181,831 | 12,000,846 | |
| 12,881,358 | |||
| Research & Consulting Services - 1.2% | |||
| CoStar Group, Inc. (a) | 6,400 | 5,438,464 | |
| TOTAL PROFESSIONAL SERVICES | 18,319,822 | ||
| Road & Rail - 16.3% | |||
| Railroads - 9.2% | |||
| CSX Corp. | 174,795 | 12,469,875 | |
| Kansas City Southern | 25,184 | 4,327,870 | |
| Norfolk Southern Corp. | 31,891 | 6,129,769 | |
| Union Pacific Corp. | 109,179 | 18,926,180 | |
| 41,853,694 | |||
| Trucking - 7.1% | |||
| Knight-Swift Transportation Holdings, Inc. Class A (c) | 167,568 | 7,287,532 | |
| Marten Transport Ltd. | 3,645 | 97,030 | |
| Old Dominion Freight Lines, Inc. | 56,400 | 10,311,048 | |
| Saia, Inc. (a) | 80,400 | 9,603,780 | |
| Uber Technologies, Inc. (a) | 126,000 | 3,812,760 | |
| Werner Enterprises, Inc. | 18,600 | 818,121 | |
| 31,930,271 | |||
| TOTAL ROAD & RAIL | 73,783,965 | ||
| Trading Companies & Distributors - 2.1% | |||
| Trading Companies & Distributors - 2.1% | |||
| Fastenal Co. | 116,800 | 5,494,272 | |
| HD Supply Holdings, Inc. (a) | 27,634 | 969,953 | |
| United Rentals, Inc. (a) | 18,400 | 2,858,808 | |
| 9,323,033 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $356,233,375) | 450,408,611 | ||
| Money Market Funds - 1.4% | |||
| Fidelity Cash Central Fund 0.14% (d) | 783,595 | 783,830 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | 5,543,646 | 5,544,201 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $6,328,031) | 6,328,031 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
| (Cost $362,561,406) | 456,736,642 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.1)% | (5,003,563) | ||
| NET ASSETS - 100% | $451,733,079 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $925,042 or 0.2% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| Vertiv Holdings LLC | 2/6/20 | $637,960 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $23,996 |
| Fidelity Securities Lending Cash Central Fund | 13,895 |
| Total | $37,891 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $450,408,611 | $450,408,611 | $-- | $-- |
| Money Market Funds | 6,328,031 | 6,328,031 | -- | -- |
| Total Investments in Securities: | $456,736,642 | $456,736,642 | $-- | $-- |
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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $5,449,297) — See accompanying schedule: Unaffiliated issuers (cost $356,233,375) | $450,408,611 | |
| Fidelity Central Funds (cost $6,328,031) | 6,328,031 | |
| Total Investment in Securities (cost $362,561,406) | $456,736,642 | |
| Receivable for investments sold | 1,832,698 | |
| Receivable for fund shares sold | 201,673 | |
| Dividends receivable | 29,849 | |
| Distributions receivable from Fidelity Central Funds | 3,374 | |
| Prepaid expenses | 5,140 | |
| Other receivables | 40,814 | |
| Total assets | 458,850,190 | |
| Liabilities | ||
| Payable for fund shares redeemed | $1,164,768 | |
| Accrued management fee | 197,747 | |
| Distribution and service plan fees payable | 106,527 | |
| Other affiliated payables | 82,682 | |
| Other payables and accrued expenses | 20,862 | |
| Collateral on securities loaned | 5,544,525 | |
| Total liabilities | 7,117,111 | |
| Net Assets | $451,733,079 | |
| Net Assets consist of: | ||
| Paid in capital | $372,664,111 | |
| Total accumulated earnings (loss) | 79,068,968 | |
| Net Assets | $451,733,079 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($199,835,423 ÷ 5,903,423 shares)(a) | $33.85 | |
| Maximum offering price per share (100/94.25 of $33.85) | $35.92 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($45,157,015 ÷ 1,370,194 shares)(a) | $32.96 | |
| Maximum offering price per share (100/96.50 of $32.96) | $34.16 | |
| Class C: | ||
| Net Asset Value and offering price per share ($53,969,348 ÷ 1,828,365 shares)(a) | $29.52 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($123,602,800 ÷ 3,436,578 shares) | $35.97 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($29,168,493 ÷ 812,524 shares) | $35.90 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $7,157,739 | |
| Special dividends | 1,086,000 | |
| Income from Fidelity Central Funds (including $13,895 from security lending) | 37,891 | |
| Total income | 8,281,630 | |
| Expenses | ||
| Management fee | $2,895,091 | |
| Transfer agent fees | 994,000 | |
| Distribution and service plan fees | 1,564,040 | |
| Accounting fees | 202,846 | |
| Custodian fees and expenses | 25,092 | |
| Independent trustees' fees and expenses | 3,581 | |
| Registration fees | 78,390 | |
| Audit | 48,932 | |
| Legal | 2,664 | |
| Interest | 787 | |
| Miscellaneous | 26,126 | |
| Total expenses before reductions | 5,841,549 | |
| Expense reductions | (87,709) | |
| Total expenses after reductions | 5,753,840 | |
| Net investment income (loss) | 2,527,790 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 946,574 | |
| Fidelity Central Funds | (331) | |
| Foreign currency transactions | 7,138 | |
| Total net realized gain (loss) | 953,381 | |
| Change in net unrealized appreciation (depreciation) on investment securities | (55,718,333) | |
| Net gain (loss) | (54,764,952) | |
| Net increase (decrease) in net assets resulting from operations | $(52,237,162) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,527,790 | $4,156,417 |
| Net realized gain (loss) | 953,381 | 44,610,508 |
| Change in net unrealized appreciation (depreciation) | (55,718,333) | (52,846,604) |
| Net increase (decrease) in net assets resulting from operations | (52,237,162) | (4,079,679) |
| Distributions to shareholders | (43,927,430) | (71,563,333) |
| Share transactions - net increase (decrease) | (102,963,693) | (107,990,031) |
| Total increase (decrease) in net assets | (199,128,285) | (183,633,043) |
| Net Assets | ||
| Beginning of period | 650,861,364 | 834,494,407 |
| End of period | $451,733,079 | $650,861,364 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Industrials Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $38.95 | $42.62 | $37.89 | $35.52 | $37.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .18B | .24 | .13 | .19 | .15 |
| Net realized and unrealized gain (loss) | (2.46) | (.02) | 5.87 | 4.24 | 1.34 |
| Total from investment operations | (2.28) | .22 | 6.00 | 4.43 | 1.49 |
| Distributions from net investment income | (.25) | (.19) | (.10) | (.16) | (.14) |
| Distributions from net realized gain | (2.57) | (3.70) | (1.17) | (1.90) | (2.89) |
| Total distributions | (2.82) | (3.89) | (1.27) | (2.06) | (3.03) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $33.85 | $38.95 | $42.62 | $37.89 | $35.52 |
| Total ReturnD,E | (6.58)% | 2.06% | 15.97% | 12.62% | 5.04% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.05% | 1.04% | 1.06% | 1.06% | 1.06% |
| Expenses net of fee waivers, if any | 1.05% | 1.04% | 1.06% | 1.06% | 1.06% |
| Expenses net of all reductions | 1.03% | 1.03% | 1.05% | 1.06% | 1.06% |
| Net investment income (loss) | .49%B | .63% | .32% | .53% | .45% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $199,835 | $268,483 | $303,201 | $309,204 | $279,055 |
| Portfolio turnover rateH | 219%I | 125% | 61% | 57% | 53% |
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 .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 Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Industrials Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $37.99 | $41.65 | $37.03 | $34.77 | $36.35 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08B | .14 | .03 | .10 | .06 |
| Net realized and unrealized gain (loss) | (2.39) | (.03) | 5.74 | 4.14 | 1.31 |
| Total from investment operations | (2.31) | .11 | 5.77 | 4.24 | 1.37 |
| Distributions from net investment income | (.15) | (.07) | – | (.08) | (.06) |
| Distributions from net realized gain | (2.57) | (3.70) | (1.15) | (1.90) | (2.89) |
| Total distributions | (2.72) | (3.77) | (1.15) | (1.98) | (2.95) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $32.96 | $37.99 | $41.65 | $37.03 | $34.77 |
| Total ReturnD,E | (6.82)% | 1.78% | 15.70% | 12.33% | 4.74% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.31% | 1.31% | 1.32% | 1.32% | 1.33% |
| Expenses net of fee waivers, if any | 1.31% | 1.30% | 1.32% | 1.32% | 1.33% |
| Expenses net of all reductions | 1.30% | 1.30% | 1.31% | 1.32% | 1.32% |
| Net investment income (loss) | .23%B | .37% | .07% | .27% | .19% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $45,157 | $61,570 | $72,143 | $87,253 | $79,196 |
| Portfolio turnover rateH | 219%I | 125% | 61% | 57% | 53% |
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 .03%.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Industrials Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $34.27 | $38.09 | $34.09 | $32.24 | $34.02 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.08)B | (.04) | (.16) | (.08) | (.09) |
| Net realized and unrealized gain (loss) | (2.15) | (.08) | 5.28 | 3.83 | 1.20 |
| Total from investment operations | (2.23) | (.12) | 5.12 | 3.75 | 1.11 |
| Distributions from net investment income | (.03) | – | – | – | – |
| Distributions from net realized gain | (2.49) | (3.70) | (1.12) | (1.90) | (2.89) |
| Total distributions | (2.52) | (3.70) | (1.12) | (1.90) | (2.89) |
| Redemption fees added to paid in capitalA | – | – | – | –C | –C |
| Net asset value, end of period | $29.52 | $34.27 | $38.09 | $34.09 | $32.24 |
| Total ReturnD,E | (7.27)% | 1.28% | 15.13% | 11.76% | 4.25% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.81% | 1.80% | 1.82% | 1.82% | 1.82% |
| Expenses net of fee waivers, if any | 1.81% | 1.80% | 1.82% | 1.82% | 1.82% |
| Expenses net of all reductions | 1.79% | 1.79% | 1.81% | 1.81% | 1.81% |
| Net investment income (loss) | (.26)%B | (.12)% | (.43)% | (.23)% | (.30)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $53,969 | $90,512 | $138,249 | $134,505 | $112,425 |
| Portfolio turnover rateH | 219%I | 125% | 61% | 57% | 53% |
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 (.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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Industrials Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $41.20 | $44.85 | $39.80 | $37.21 | $38.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .29B | .37 | .25 | .31 | .25 |
| Net realized and unrealized gain (loss) | (2.60) | (.02) | 6.18 | 4.44 | 1.42 |
| Total from investment operations | (2.31) | .35 | 6.43 | 4.75 | 1.67 |
| Distributions from net investment income | (.35) | (.30) | (.21) | (.25) | (.24) |
| Distributions from net realized gain | (2.57) | (3.70) | (1.17) | (1.90) | (2.89) |
| Total distributions | (2.92) | (4.00) | (1.38) | (2.16)C | (3.13) |
| Redemption fees added to paid in capitalA | – | – | – | –D | –D |
| Net asset value, end of period | $35.97 | $41.20 | $44.85 | $39.80 | $37.21 |
| Total ReturnE | (6.32)% | 2.31% | 16.30% | 12.91% | 5.33% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .78% | .78% | .80% | .80% | .80% |
| Expenses net of fee waivers, if any | .78% | .77% | .80% | .80% | .80% |
| Expenses net of all reductions | .76% | .77% | .79% | .80% | .79% |
| Net investment income (loss) | .76%B | .90% | .59% | .79% | .72% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $123,603 | $219,218 | $320,902 | $284,727 | $133,176 |
| Portfolio turnover rateH | 219%I | 125% | 61% | 57% | 53% |
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 .56%.
C 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.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Industrials Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $41.15 | $46.84 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .34C | .34 |
| Net realized and unrealized gain (loss) | (2.60) | (1.94) |
| Total from investment operations | (2.26) | (1.60) |
| Distributions from net investment income | (.42) | (.39) |
| Distributions from net realized gain | (2.57) | (3.70) |
| Total distributions | (2.99) | (4.09) |
| Net asset value, end of period | $35.90 | $41.15 |
| Total ReturnD,E | (6.21)% | (1.92)% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .65% | .64%H |
| Expenses net of fee waivers, if any | .65% | .64%H |
| Expenses net of all reductions | .63% | .64%H |
| Net investment income (loss) | .89%C | 1.04%H |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $29,168 | $11,077 |
| Portfolio turnover rateI | 219%J | 125% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C 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 .69%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 23.14% | 22.25% | 19.37% |
| Class M (incl. 3.50% sales charge) | 25.72% | 22.43% | 19.30% |
| Class C (incl. contingent deferred sales charge) | 28.73% | 22.77% | 19.17% |
| Class I | 31.08% | 24.09% | 20.42% |
| Class Z | 31.22% | 24.15% | 20.45% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Semiconductors Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $58,767 | Fidelity Advisor® Semiconductors Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Semiconductors Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Adam Benjamin: For the year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 30% to 31%, trailing the 34.79% advance of the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index, but well ahead of the S&P 500®. Versus the MSCI industry index, out-of-benchmark exposure to communications equipment, electronic manufacturing services, and technology hardware, storage & peripherals detracted meaningfully from fund performance, as did a sizable underweighting in semiconductor equipment. At the stock level, a large underweighting in Advanced Micro Devices (AMD), which advanced roughly 154% the past 12 months, weighed on relative performance the most. AMD competes with Intel in the PC microprocessor space. Although the fund benefited from its large underweighting in Intel (-3%) – in fact, that stock was the fund’s top relative contributor the past 12 months – underweighting AMD detracted by almost the same amount, resulting in the two positions roughly offsetting each other. Two out-of-index positions – CommScope Holding (-39%), a maker of network-infrastructure equipment, and Flex (+4%), a provider of electronics contract manufacturing services – also detracted from relative performance, as did an overweighting in ON Semiconductor, which returned -5% in the fund. I sold CommScope from the fund by period end. The fund's approximately 4% stake in cash also detracted in an uptrending market. Conversely, stock selection in the fund’s core semiconductors group, which represented about 82% of the index, on average, meaningfully aided relative performance. Aside from Intel, mentioned earlier, noteworthy relative contributors included Texas Instruments, which contributed because we underweighted this lagging MSCI index component. Overweighting graphics chipmaker Nvidia, which advanced 154% in the fund, also proved timely.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 March 16, 2020, Adam Benjamin assumed co-management responsibilities for the fund, joining Steve Barwikowski. On July 1, 2020, Steve Barwikowski came off the fund, leaving Adam Benjamin as sole portfolio manager. On December 1, 2019, Fidelity added a non-fundamental investment policy to Advisor Semiconductors and modified the name-test policy. The changes better reflect the fund's name and narrow its investment universe to manufacturers of semiconductors/related products and semiconductor equipment.Fidelity Advisor® Semiconductors Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| NVIDIA Corp. | 17.9 |
| Qualcomm, Inc. | 8.6 |
| Broadcom, Inc. | 7.9 |
| Intel Corp. | 7.7 |
| NXP Semiconductors NV | 5.0 |
| Lam Research Corp. | 4.9 |
| Micron Technology, Inc. | 4.7 |
| Marvell Technology Group Ltd. | 4.1 |
| Xilinx, Inc. | 3.9 |
| Texas Instruments, Inc. | 3.8 |
| 68.5 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Semiconductors & Semiconductor Equipment | 87.8% | |
| Electronic Equipment & Components | 6.3% | |
| Technology Hardware, Storage & Peripherals | 1.7% | |
| All Others* | 4.2% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Semiconductors Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 95.7% | |||
| Shares | Value | ||
| Electronic Equipment & Components - 6.3% | |||
| Electronic Components - 0.3% | |||
| II-VI, Inc. (a) | 22,000 | $1,115,840 | |
| Electronic Manufacturing Services - 6.0% | |||
| Flextronics International Ltd. (a) | 543,327 | 6,242,827 | |
| Jabil, Inc. | 320,876 | 11,185,737 | |
| TTM Technologies, Inc. (a) | 347,990 | 4,283,757 | |
| 21,712,321 | |||
| TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 22,828,161 | ||
| Semiconductors & Semiconductor Equipment - 87.7% | |||
| Semiconductor Equipment - 7.7% | |||
| Advanced Energy Industries, Inc. (a) | 30,164 | 2,219,165 | |
| Applied Materials, Inc. | 91,500 | 5,886,195 | |
| Enphase Energy, Inc. (a) | 35,800 | 2,160,888 | |
| Lam Research Corp. | 46,446 | 17,517,573 | |
| 27,783,821 | |||
| Semiconductors - 80.0% | |||
| Advanced Micro Devices, Inc. (a) | 12,200 | 944,646 | |
| Alpha & Omega Semiconductor Ltd. (a) | 63,000 | 686,070 | |
| Ambarella, Inc. (a) | 8,600 | 389,408 | |
| Analog Devices, Inc. | 52,470 | 6,026,180 | |
| ASE Technology Holding Co. Ltd. ADR | 119,500 | 598,695 | |
| Broadcom, Inc. | 89,925 | 28,483,744 | |
| Cirrus Logic, Inc. (a) | 115,528 | 7,917,134 | |
| Intel Corp. | 584,064 | 27,877,375 | |
| Marvell Technology Group Ltd. | 410,487 | 14,970,461 | |
| Maxim Integrated Products, Inc. | 13,751 | 936,306 | |
| MaxLinear, Inc. Class A (a) | 70,349 | 1,783,347 | |
| MediaTek, Inc. | 4,000 | 95,498 | |
| Microchip Technology, Inc. | 136,201 | 13,855,728 | |
| Micron Technology, Inc. (a) | 343,212 | 17,179,477 | |
| NVIDIA Corp. | 152,723 | 64,844,656 | |
| NXP Semiconductors NV | 152,963 | 17,977,741 | |
| ON Semiconductor Corp. (a) | 644,206 | 13,270,644 | |
| Qualcomm, Inc. | 293,326 | 30,978,159 | |
| Semtech Corp. (a) | 4,200 | 234,066 | |
| Silicon Motion Technology Corp. sponsored ADR | 7,900 | 326,823 | |
| Skyworks Solutions, Inc. | 3,950 | 575,041 | |
| SMART Global Holdings, Inc. (a) | 52,800 | 1,472,592 | |
| Synaptics, Inc. (a) | 22,300 | 1,784,446 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 67,200 | 5,301,408 | |
| Texas Instruments, Inc. | 108,800 | 13,877,440 | |
| Universal Display Corp. | 15,500 | 2,703,975 | |
| Xilinx, Inc. | 130,150 | 13,971,603 | |
| 289,062,663 | |||
| TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 316,846,484 | ||
| Technology Hardware, Storage & Peripherals - 1.7% | |||
| Technology Hardware, Storage & Peripherals - 1.7% | |||
| Samsung Electronics Co. Ltd. | 28,040 | 1,357,614 | |
| Western Digital Corp. | 111,400 | 4,801,340 | |
| 6,158,954 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $235,093,635) | 345,833,599 | ||
| Principal Amount | Value | ||
| Convertible Bonds - 0.1% | |||
| Semiconductors & Semiconductor Equipment - 0.1% | |||
| Semiconductors - 0.1% | |||
| SMART Global Holdings, Inc. 2.25% 2/15/26 (b) | |||
| (Cost $310,000) | 310,000 | 286,195 | |
| Shares | Value | ||
| Money Market Funds - 4.5% | |||
| Fidelity Cash Central Fund 0.14% (c) | |||
| (Cost $16,184,332) | 16,180,859 | 16,185,713 | |
| TOTAL INVESTMENT IN SECURITIES - 100.3% | |||
| (Cost $251,587,967) | 362,305,507 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.3)% | (1,072,033) | ||
| NET ASSETS - 100% | $361,233,474 |
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 $286,195 or 0.1% of net assets.
(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.
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 | $125,090 |
| Fidelity Securities Lending Cash Central Fund | 13,263 |
| Total | $138,353 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $345,833,599 | $345,833,599 | $-- | $-- |
| Convertible Bonds | 286,195 | -- | 286,195 | -- |
| Money Market Funds | 16,185,713 | 16,185,713 | -- | -- |
| Total Investments in Securities: | $362,305,507 | $362,019,312 | $286,195 | $-- |
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 | 86.6% |
| Netherlands | 5.0% |
| Bermuda | 4.3% |
| Singapore | 1.7% |
| Taiwan | 1.7% |
| Others (Individually Less Than 1%) | 0.7% |
| 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, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $235,403,635) | $346,119,794 | |
| Fidelity Central Funds (cost $16,184,332) | 16,185,713 | |
| Total Investment in Securities (cost $251,587,967) | $362,305,507 | |
| Cash | 461,444 | |
| Foreign currency held at value (cost $1,289) | 1,287 | |
| Receivable for investments sold | 7,452,368 | |
| Receivable for fund shares sold | 445,209 | |
| Dividends receivable | 30,600 | |
| Interest receivable | 3,294 | |
| Distributions receivable from Fidelity Central Funds | 1,402 | |
| Prepaid expenses | 1,791 | |
| Other receivables | 98,176 | |
| Total assets | 370,801,078 | |
| Liabilities | ||
| Payable for investments purchased | $8,853,076 | |
| Payable for fund shares redeemed | 384,123 | |
| Accrued management fee | 156,983 | |
| Distribution and service plan fees payable | 88,265 | |
| Other affiliated payables | 66,158 | |
| Other payables and accrued expenses | 18,999 | |
| Total liabilities | 9,567,604 | |
| Net Assets | $361,233,474 | |
| Net Assets consist of: | ||
| Paid in capital | $238,559,920 | |
| Total accumulated earnings (loss) | 122,673,554 | |
| Net Assets | $361,233,474 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($140,071,801 ÷ 4,701,363 shares)(a) | $29.79 | |
| Maximum offering price per share (100/94.25 of $29.79) | $31.61 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($29,262,122 ÷ 1,035,758 shares)(a) | $28.25 | |
| Maximum offering price per share (100/96.50 of $28.25) | $29.27 | |
| Class C: | ||
| Net Asset Value and offering price per share ($57,320,244 ÷ 2,276,735 shares)(a) | $25.18 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($126,659,696 ÷ 3,998,253 shares) | $31.68 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($7,919,611 ÷ 250,244 shares) | $31.65 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $4,848,848 | |
| Interest | 3,294 | |
| Income from Fidelity Central Funds (including $13,263 from security lending) | 138,353 | |
| Total income | 4,990,495 | |
| Expenses | ||
| Management fee | $1,660,675 | |
| Transfer agent fees | 605,840 | |
| Distribution and service plan fees | 932,576 | |
| Accounting fees | 121,220 | |
| Custodian fees and expenses | 44,937 | |
| Independent trustees' fees and expenses | 1,877 | |
| Registration fees | 80,612 | |
| Audit | 47,003 | |
| Legal | 1,969 | |
| Interest | 184 | |
| Miscellaneous | 27,053 | |
| Total expenses before reductions | 3,523,946 | |
| Expense reductions | (58,993) | |
| Total expenses after reductions | 3,464,953 | |
| Net investment income (loss) | 1,525,542 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 25,187,699 | |
| Fidelity Central Funds | (2) | |
| Foreign currency transactions | (6,051) | |
| Total net realized gain (loss) | 25,181,646 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 51,351,822 | |
| Fidelity Central Funds | 1,381 | |
| Assets and liabilities in foreign currencies | (90) | |
| Total change in net unrealized appreciation (depreciation) | 51,353,113 | |
| Net gain (loss) | 76,534,759 | |
| Net increase (decrease) in net assets resulting from operations | $78,060,301 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,525,542 | $1,646,686 |
| Net realized gain (loss) | 25,181,646 | 2,441,907 |
| Change in net unrealized appreciation (depreciation) | 51,353,113 | 8,569,531 |
| Net increase (decrease) in net assets resulting from operations | 78,060,301 | 12,658,124 |
| Distributions to shareholders | (3,496,901) | (36,359,282) |
| Share transactions - net increase (decrease) | 18,884,510 | (26,503,284) |
| Total increase (decrease) in net assets | 93,447,910 | (50,204,442) |
| Net Assets | ||
| Beginning of period | 267,785,564 | 317,990,006 |
| End of period | $361,233,474 | $267,785,564 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Semiconductors Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.03 | $25.06 | $21.57 | $16.50 | $15.29 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .15 | .02 | .11 | .09 |
| Net realized and unrealized gain (loss) | 6.90 | 1.25 | 5.73 | 5.03 | 2.67 |
| Total from investment operations | 7.04 | 1.40 | 5.75 | 5.14 | 2.76 |
| Distributions from net investment income | (.07) | (.10) | (.05)B | (.05) | (.05) |
| Distributions from net realized gain | (.20) | (3.33) | (2.21)B | (.02) | (1.49) |
| Total distributions | (.28)C | (3.43) | (2.26) | (.07) | (1.55)D |
| Redemption fees added to paid in capitalA | – | – | –E | –E | –E |
| Net asset value, end of period | $29.79 | $23.03 | $25.06 | $21.57 | $16.50 |
| Total ReturnF,G | 30.65% | 10.18% | 27.35% | 31.21% | 20.46% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.10% | 1.12% | 1.15% | 1.17% | 1.31% |
| Expenses net of fee waivers, if any | 1.09% | 1.11% | 1.15% | 1.17% | 1.31% |
| Expenses net of all reductions | 1.08% | 1.11% | 1.13% | 1.16% | 1.28% |
| Net investment income (loss) | .53% | .70% | .09% | .55% | .61% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $140,072 | $98,459 | $97,883 | $72,040 | $34,066 |
| Portfolio turnover rateJ | 136% | 110% | 133% | 99% | 185% |
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 $.28 per share is comprised of distributions from net investment income of $.073 and distributions from net realized gain of $.204 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Semiconductors Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.89 | $24.04 | $20.77 | $15.91 | $14.81 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .06 | .08 | (.05) | .04 | .04 |
| Net realized and unrealized gain (loss) | 6.55 | 1.16 | 5.50 | 4.84 | 2.57 |
| Total from investment operations | 6.61 | 1.24 | 5.45 | 4.88 | 2.61 |
| Distributions from net investment income | (.05) | (.06) | –B | – | (.04) |
| Distributions from net realized gain | (.20) | (3.33) | (2.18)B | (.02) | (1.47) |
| Total distributions | (.25) | (3.39) | (2.18) | (.02) | (1.51) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $28.25 | $21.89 | $24.04 | $20.77 | $15.91 |
| Total ReturnD,E | 30.28% | 9.84% | 26.95% | 30.72% | 20.01% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.38% | 1.44% | 1.48% | 1.53% | 1.65% |
| Expenses net of fee waivers, if any | 1.38% | 1.43% | 1.47% | 1.53% | 1.65% |
| Expenses net of all reductions | 1.37% | 1.43% | 1.46% | 1.52% | 1.62% |
| Net investment income (loss) | .24% | .38% | (.23)% | .20% | .27% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $29,262 | $22,587 | $21,830 | $16,127 | $9,766 |
| Portfolio turnover rateH | 136% | 110% | 133% | 99% | 185% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $19.59 | $21.88 | $19.10 | $14.69 | $13.80 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.05) | (.01) | (.14) | (.04) | (.02) |
| Net realized and unrealized gain (loss) | 5.86 | .98 | 5.05 | 4.47 | 2.37 |
| Total from investment operations | 5.81 | .97 | 4.91 | 4.43 | 2.35 |
| Distributions from net investment income | (.01) | – | – | – | (.02) |
| Distributions from net realized gain | (.20) | (3.26) | (2.13) | (.02) | (1.44) |
| Total distributions | (.22)B | (3.26) | (2.13) | (.02) | (1.46) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $25.18 | $19.59 | $21.88 | $19.10 | $14.69 |
| Total ReturnD,E | 29.73% | 9.33% | 26.38% | 30.21% | 19.48% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.85% | 1.87% | 1.91% | 1.95% | 2.08% |
| Expenses net of fee waivers, if any | 1.85% | 1.87% | 1.91% | 1.95% | 2.08% |
| Expenses net of all reductions | 1.83% | 1.87% | 1.89% | 1.94% | 2.05% |
| Net investment income (loss) | (.23)% | (.06)% | (.67)% | (.23)% | (.16)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $57,320 | $45,659 | $57,915 | $42,684 | $21,088 |
| Portfolio turnover rateH | 136% | 110% | 133% | 99% | 185% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.22 per share is comprised of distributions from net investment income of $.014 and distributions from net realized gain of $.204 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 contingent deferred sales charge.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $24.42 | $26.33 | $22.56 | $17.24 | $15.89 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .22 | .23 | .10 | .17 | .14 |
| Net realized and unrealized gain (loss) | 7.34 | 1.35 | 5.99 | 5.26 | 2.79 |
| Total from investment operations | 7.56 | 1.58 | 6.09 | 5.43 | 2.93 |
| Distributions from net investment income | (.10) | (.16) | (.11)B | (.09) | (.09) |
| Distributions from net realized gain | (.20) | (3.33) | (2.21)B | (.02) | (1.49) |
| Total distributions | (.30) | (3.49) | (2.32) | (.11) | (1.58) |
| Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
| Net asset value, end of period | $31.68 | $24.42 | $26.33 | $22.56 | $17.24 |
| Total ReturnD | 31.08% | 10.46% | 27.74% | 31.62% | 20.85% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .81% | .83% | .86% | .88% | .98% |
| Expenses net of fee waivers, if any | .81% | .82% | .86% | .88% | .98% |
| Expenses net of all reductions | .79% | .82% | .84% | .87% | .95% |
| Net investment income (loss) | .81% | .98% | .38% | .84% | .94% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $126,660 | $98,451 | $140,362 | $91,052 | $25,827 |
| Portfolio turnover rateG | 136% | 110% | 133% | 99% | 185% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $24.38 | $26.00 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .26 | .17 |
| Net realized and unrealized gain (loss) | 7.33 | 1.76 |
| Total from investment operations | 7.59 | 1.93 |
| Distributions from net investment income | (.11) | (.22) |
| Distributions from net realized gain | (.20) | (3.33) |
| Total distributions | (.32)C | (3.55) |
| Net asset value, end of period | $31.65 | $24.38 |
| Total ReturnD,E | 31.22% | 12.03% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .68% | .69%H |
| Expenses net of fee waivers, if any | .68% | .69%H |
| Expenses net of all reductions | .66% | .68%H |
| Net investment income (loss) | .94% | .91%H |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $7,920 | $2,629 |
| Portfolio turnover rateI | 136% | 110% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.32 per share is comprised of distributions from net investment income of $.111 and distributions from net realized gain of $.204 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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® 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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 40.27% | 23.27% | 19.25% |
| Class M (incl. 3.50% sales charge) | 43.24% | 23.54% | 19.23% |
| Class C (incl. contingent deferred sales charge) | 46.69% | 23.80% | 19.07% |
| Class I | 49.22% | 25.10% | 20.32% |
| Class Z | 49.39% | 25.16% | 20.35% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Technology Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $58,166 | Fidelity Advisor® Technology Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Technology Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Co-Portfolio Manager Nidhi Gupta: For the year, the fund’s share classes (excluding sales charges, if applicable) gained roughly 48% to 49%, handily topping the 37.21% advance of the sector benchmark, the MSCI U.S. IMI Information Technology 25/50 Index, and roughly quadrupling the S&P 500®. Versus the MSCI sector benchmark, the fund’s performance benefited from both solid stock selection and favorable industry positioning. Picks in the internet & direct marketing retail industry and positioning in the technology hardware, storage & peripherals group were particularly helpful, although active management added value across a broad array of groups. At the stock level, it helped to underweight or avoid four slower-growing, large-cap components in the MSCI index: Intel (-3%) – the fund’s top relative contributor – Cisco Systems (-12%), IBM (-13%) and Oracle (0%). We didn’t own IBM or Oracle at all this period. Intel was an underweighted position that we sold as the stock rallied in January. We also eliminated our position in Cisco before period end. Within the internet & direct marketing retail segment, an out-of-benchmark position in China-based e-commerce platform provider Pinduoduo was a noteworthy contributor, gaining 289% in the portfolio. Conversely, the fund's out-of-benchmark exposure to trucking through ride-sharing providers Lyft and Uber Technologies notably detracted this period. To a lesser extent, stock choices in application software worked against the fund. Lyft (-49%) and Uber (-20%) were the fund’s two largest relative detractors among individual holdings. These companies struggled amid a sharp drop-off in customers during the pandemic. I’ll also mention the fund’s overweighted position in memory chipmaker Micron Technology, which underperformed, gaining about 12% this period. The fund maintained positions in Lyft, Uber and Micron 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 July 20, 2020, Adam Benjamin assumed co-management responsibilities for the fund, joining Nidhi Gupta.Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Apple, Inc. | 23.0 |
| Microsoft Corp. | 18.2 |
| Adobe, Inc. | 3.7 |
| Salesforce.com, Inc. | 3.3 |
| NVIDIA Corp. | 2.7 |
| MasterCard, Inc. Class A | 2.5 |
| PayPal Holdings, Inc. | 2.4 |
| Visa, Inc. Class A | 2.1 |
| Micron Technology, Inc. | 2.1 |
| Fidelity National Information Services, Inc. | 2.0 |
| 62.0 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Software | 33.9% | |
| Technology Hardware, Storage & Peripherals | 23.7% | |
| IT Services | 16.0% | |
| Semiconductors & Semiconductor Equipment | 14.3% | |
| Internet & Direct Marketing Retail | 4.0% | |
| All Others* | 8.1% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Technology Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 98.9% | |||
| Shares | Value | ||
| Chemicals - 0.2% | |||
| Commodity Chemicals - 0.2% | |||
| LG Chemical Ltd. | 16,570 | $7,870,286 | |
| Electronic Equipment & Components - 0.8% | |||
| Electronic Manufacturing Services - 0.8% | |||
| Flextronics International Ltd. (a) | 2,530,200 | 29,071,998 | |
| Entertainment - 0.6% | |||
| Movies & Entertainment - 0.6% | |||
| Netflix, Inc. (a) | 43,066 | 21,054,106 | |
| Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
| Diversified REITs - 0.4% | |||
| Ant International Co. Ltd. Class C(a)(b)(c) | 1,469,829 | 15,374,411 | |
| Interactive Media & Services - 2.2% | |||
| Interactive Media & Services - 2.2% | |||
| Eventbrite, Inc. (a) | 390,837 | 3,329,931 | |
| Facebook, Inc. Class A (a) | 247,400 | 62,757,958 | |
| Wise Talent Information Technology Co. Ltd. (a) | 3,657,800 | 8,495,207 | |
| 74,583,096 | |||
| Internet & Direct Marketing Retail - 3.8% | |||
| Internet & Direct Marketing Retail - 3.8% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 133,700 | 33,561,374 | |
| Amazon.com, Inc. (a) | 14,400 | 45,571,392 | |
| JD.com, Inc. Class A | 85,700 | 2,662,679 | |
| MercadoLibre, Inc. (a) | 14,200 | 15,969,604 | |
| Pinduoduo, Inc. ADR (a) | 376,376 | 34,551,317 | |
| 132,316,366 | |||
| IT Services - 16.0% | |||
| Data Processing & Outsourced Services - 11.6% | |||
| Fidelity National Information Services, Inc. | 478,989 | 70,080,881 | |
| Fiserv, Inc. (a) | 260,478 | 25,993,100 | |
| Genpact Ltd. | 862,800 | 34,356,696 | |
| Global Payments, Inc. | 79,421 | 14,138,526 | |
| MasterCard, Inc. Class A | 277,700 | 85,678,781 | |
| PagSeguro Digital Ltd. (a) | 83,100 | 3,176,913 | |
| PayPal Holdings, Inc. (a) | 423,100 | 82,957,217 | |
| Square, Inc. (a) | 117,700 | 15,283,345 | |
| Visa, Inc. Class A | 382,116 | 72,754,886 | |
| 404,420,345 | |||
| Internet Services & Infrastructure - 3.1% | |||
| GoDaddy, Inc. (a) | 462,000 | 32,469,360 | |
| MongoDB, Inc. Class A (a) | 126,700 | 29,024,436 | |
| Twilio, Inc. Class A (a) | 171,300 | 47,522,046 | |
| 109,015,842 | |||
| IT Consulting & Other Services - 1.3% | |||
| Capgemini SA | 143,500 | 18,509,423 | |
| DXC Technology Co. | 316,500 | 5,668,515 | |
| Gartner, Inc. (a) | 160,900 | 20,054,576 | |
| 44,232,514 | |||
| TOTAL IT SERVICES | 557,668,701 | ||
| Life Sciences Tools & Services - 0.0% | |||
| Life Sciences Tools & Services - 0.0% | |||
| JHL Biotech, Inc. (a)(b) | 387,462 | 0 | |
| Oil, Gas & Consumable Fuels - 1.0% | |||
| Oil & Gas Refining & Marketing - 1.0% | |||
| Reliance Industries Ltd. (a) | 80,346 | 1,262,565 | |
| Reliance Industries Ltd. | 1,218,700 | 33,624,863 | |
| 34,887,428 | |||
| Pharmaceuticals - 0.0% | |||
| Pharmaceuticals - 0.0% | |||
| Chime Biologics Ltd. (b) | 387,462 | 201,802 | |
| Road & Rail - 1.5% | |||
| Trucking - 1.5% | |||
| Lyft, Inc. (a) | 483,947 | 14,145,771 | |
| Uber Technologies, Inc. (a) | 1,292,064 | 39,097,857 | |
| 53,243,628 | |||
| Semiconductors & Semiconductor Equipment - 14.3% | |||
| Semiconductor Equipment - 4.2% | |||
| Applied Materials, Inc. | 984,300 | 63,320,019 | |
| ASML Holding NV (Netherlands) | 41,400 | 14,719,258 | |
| KLA-Tencor Corp. | 26,700 | 5,335,461 | |
| Lam Research Corp. | 171,600 | 64,720,656 | |
| SunEdison, Inc. (a)(b) | 500 | 0 | |
| 148,095,394 | |||
| Semiconductors - 10.1% | |||
| Advanced Micro Devices, Inc. (a) | 539,500 | 41,773,485 | |
| Marvell Technology Group Ltd. | 660,561 | 24,090,660 | |
| Micron Technology, Inc. (a) | 1,430,800 | 71,618,694 | |
| NVIDIA Corp. | 219,150 | 93,048,899 | |
| NXP Semiconductors NV | 232,300 | 27,302,219 | |
| ON Semiconductor Corp. (a) | 928,400 | 19,125,040 | |
| Qualcomm, Inc. | 538,550 | 56,876,266 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 1,145,000 | 16,625,567 | |
| 350,460,830 | |||
| TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 498,556,224 | ||
| Software - 33.9% | |||
| Application Software - 14.2% | |||
| Adobe, Inc. (a) | 289,516 | 128,637,749 | |
| Autodesk, Inc. (a) | 179,300 | 42,391,899 | |
| Citrix Systems, Inc. | 47,500 | 6,781,100 | |
| Datadog, Inc. Class A (a) | 5,500 | 516,230 | |
| Elastic NV (a) | 398,100 | 38,293,239 | |
| HubSpot, Inc. (a) | 175,700 | 41,220,977 | |
| Intuit, Inc. | 143,200 | 43,872,184 | |
| Nutanix, Inc. Class B(a)(d) | 39,963 | 886,779 | |
| Salesforce.com, Inc. (a) | 584,639 | 113,916,909 | |
| Snowflake Computing, Inc. Class B (b)(c) | 1,993 | 77,269 | |
| Splunk, Inc. (a) | 48,300 | 10,134,306 | |
| SS&C Technologies Holdings, Inc. | 209,900 | 12,069,250 | |
| Workday, Inc. Class A (a) | 254,900 | 46,116,508 | |
| Yext, Inc. (a)(e) | 572,300 | 9,626,086 | |
| 494,540,485 | |||
| Systems Software - 19.7% | |||
| Cloudflare, Inc. (a) | 11,000 | 457,820 | |
| Crowdstrike Holdings, Inc. (a) | 3,600 | 407,520 | |
| Microsoft Corp. | 3,093,000 | 634,095,930 | |
| Rapid7, Inc. (a) | 219,900 | 13,099,443 | |
| ServiceNow, Inc. (a) | 36,000 | 15,811,200 | |
| Tenable Holdings, Inc. (a) | 580,400 | 19,692,972 | |
| 683,564,885 | |||
| TOTAL SOFTWARE | 1,178,105,370 | ||
| Technology Hardware, Storage & Peripherals - 23.7% | |||
| Technology Hardware, Storage & Peripherals - 23.7% | |||
| Apple, Inc. | 1,884,429 | 800,957,701 | |
| Samsung Electronics Co. Ltd. | 367,700 | 17,802,945 | |
| Western Digital Corp. | 102,100 | 4,400,510 | |
| 823,161,156 | |||
| Wireless Telecommunication Services - 0.5% | |||
| Wireless Telecommunication Services - 0.5% | |||
| T-Mobile U.S., Inc. | 149,800 | 16,085,524 | |
| TOTAL COMMON STOCKS | |||
| (Cost $1,967,628,106) | 3,442,180,096 | ||
| Convertible Preferred Stocks - 0.2% | |||
| Internet & Direct Marketing Retail - 0.2% | |||
| Internet & Direct Marketing Retail - 0.2% | |||
| Reddit, Inc. Series D (a)(b)(c) | 94,300 | 4,689,539 | |
| Road & Rail - 0.0% | |||
| Trucking - 0.0% | |||
| Convoy, Inc. Series D (b)(c) | 81,762 | 1,101,334 | |
| Software - 0.0% | |||
| Application Software - 0.0% | |||
| UiPath, Inc.: | |||
| Series A1 (a)(b)(c) | 28,893 | 537,221 | |
| Series B1 (a)(b)(c) | 1,440 | 26,775 | |
| Series B2 (a)(b)(c) | 7,167 | 133,259 | |
| 697,255 | |||
| TOTAL CONVERTIBLE PREFERRED STOCKS | |||
| (Cost $3,643,971) | 6,488,128 | ||
| Money Market Funds - 1.4% | |||
| Fidelity Cash Central Fund 0.14% (f) | 44,276,425 | 44,289,708 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (f)(g) | 4,659,768 | 4,660,234 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $48,947,181) | 48,949,942 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
| (Cost $2,020,219,258) | 3,497,618,166 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.5)% | (17,534,656) | ||
| NET ASSETS - 100% | $3,480,083,510 |
Legend
(a) Non-income producing
(b) Level 3 security
(c) Restricted securities (including private placements) - 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 $21,939,808 or 0.6% of net assets.
(d) 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 $886,779 or 0.0% of net assets.
(e) Security or a portion of the security is on loan at period end.
(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. Class C | 5/16/18 | $8,245,741 |
| Convoy, Inc. Series D | 10/30/19 | $1,107,057 |
| Reddit, Inc. Series D | 2/4/19 | $2,045,018 |
| Snowflake Computing, Inc. Class B | 3/19/20 | $77,302 |
| UiPath, Inc. Series A1 | 6/14/19 | $378,996 |
| UiPath, Inc. Series B1 | 6/14/19 | $18,889 |
| UiPath, Inc. Series B2 | 6/14/19 | $94,011 |
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 | $208,022 |
| Fidelity Securities Lending Cash Central Fund | 45,663 |
| Total | $253,685 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $3,442,180,096 | $3,395,181,789 | $31,344,825 | $15,653,482 |
| Convertible Preferred Stocks | 6,488,128 | -- | -- | 6,488,128 |
| Money Market Funds | 48,949,942 | 48,949,942 | -- | -- |
| Total Investments in Securities: | $3,497,618,166 | $3,444,131,731 | $31,344,825 | $22,141,610 |
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 | 89.6% |
| Cayman Islands | 2.9% |
| Netherlands | 2.3% |
| Bermuda | 1.7% |
| India | 1.0% |
| Others (Individually Less Than 1%) | 2.5% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $4,595,224) — See accompanying schedule: Unaffiliated issuers (cost $1,971,272,077) | $3,448,668,224 | |
| Fidelity Central Funds (cost $48,947,181) | 48,949,942 | |
| Total Investment in Securities (cost $2,020,219,258) | $3,497,618,166 | |
| Cash | 7,849 | |
| Foreign currency held at value (cost $16,962,315) | 16,962,343 | |
| Receivable for fund shares sold | 5,450,145 | |
| Dividends receivable | 111,381 | |
| Distributions receivable from Fidelity Central Funds | 8,962 | |
| Prepaid expenses | 12,310 | |
| Other receivables | 159,055 | |
| Total assets | 3,520,330,211 | |
| Liabilities | ||
| Payable for investments purchased | $24,453,868 | |
| Payable for fund shares redeemed | 5,521,241 | |
| Accrued management fee | 1,476,176 | |
| Distribution and service plan fees payable | 731,494 | |
| Other affiliated payables | 506,363 | |
| Other payables and accrued expenses | 2,913,159 | |
| Collateral on securities loaned | 4,644,400 | |
| Total liabilities | 40,246,701 | |
| Net Assets | $3,480,083,510 | |
| Net Assets consist of: | ||
| Paid in capital | $1,842,108,172 | |
| Total accumulated earnings (loss) | 1,637,975,338 | |
| Net Assets | $3,480,083,510 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,339,059,153 ÷ 17,537,262 shares)(a) | $76.36 | |
| Maximum offering price per share (100/94.25 of $76.36) | $81.02 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($464,093,391 ÷ 6,502,557 shares)(a) | $71.37 | |
| Maximum offering price per share (100/96.50 of $71.37) | $73.96 | |
| Class C: | ||
| Net Asset Value and offering price per share ($343,584,852 ÷ 5,571,162 shares)(a) | $61.67 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,035,091,198 ÷ 12,387,879 shares) | $83.56 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($298,254,916 ÷ 3,574,328 shares) | $83.44 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $20,390,258 | |
| Income from Fidelity Central Funds (including $45,663 from security lending) | 253,685 | |
| Total income | 20,643,943 | |
| Expenses | ||
| Management fee | $13,639,590 | |
| Transfer agent fees | 4,352,356 | |
| Distribution and service plan fees | 6,935,750 | |
| Accounting fees | 760,888 | |
| Custodian fees and expenses | 5,765 | |
| Independent trustees' fees and expenses | 15,228 | |
| Registration fees | 168,937 | |
| Audit | 59,430 | |
| Legal | 6,152 | |
| Interest | 6,501 | |
| Miscellaneous | 86,821 | |
| Total expenses before reductions | 26,037,418 | |
| Expense reductions | (92,009) | |
| Total expenses after reductions | 25,945,409 | |
| Net investment income (loss) | (5,301,466) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 215,511,114 | |
| Fidelity Central Funds | 7,470 | |
| Foreign currency transactions | (71,233) | |
| Total net realized gain (loss) | 215,447,351 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of increase in deferred foreign taxes of $2,736,669) | 892,209,846 | |
| Fidelity Central Funds | 2,761 | |
| Assets and liabilities in foreign currencies | (3,103) | |
| Total change in net unrealized appreciation (depreciation) | 892,209,504 | |
| Net gain (loss) | 1,107,656,855 | |
| Net increase (decrease) in net assets resulting from operations | $1,102,355,389 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(5,301,466) | $(243,992) |
| Net realized gain (loss) | 215,447,351 | 32,540,200 |
| Change in net unrealized appreciation (depreciation) | 892,209,504 | 85,272,898 |
| Net increase (decrease) in net assets resulting from operations | 1,102,355,389 | 117,569,106 |
| Distributions to shareholders | (62,368,648) | (348,466,966) |
| Share transactions - net increase (decrease) | 286,541,904 | 174,349,452 |
| Total increase (decrease) in net assets | 1,326,528,645 | (56,548,408) |
| Net Assets | ||
| Beginning of period | 2,153,554,865 | 2,210,103,273 |
| End of period | $3,480,083,510 | $2,153,554,865 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Technology Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $52.61 | $60.37 | $52.11 | $37.86 | $36.83 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.12) | .02 | (.13) | (.07) | (.10) |
| Net realized and unrealized gain (loss) | 25.35 | 1.84 | 12.80 | 14.95 | 2.74 |
| Total from investment operations | 25.23 | 1.86 | 12.67 | 14.88 | 2.64 |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.48) | (9.62) | (4.41) | (.63) | (1.61) |
| Total distributions | (1.48) | (9.62) | (4.41) | (.63) | (1.61) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $76.36 | $52.61 | $60.37 | $52.11 | $37.86 |
| Total ReturnC,D | 48.83% | 7.26% | 25.43% | 39.85% | 7.86% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.01% | 1.03% | 1.05% | 1.07% | 1.09% |
| Expenses net of fee waivers, if any | 1.01% | 1.03% | 1.05% | 1.07% | 1.09% |
| Expenses net of all reductions | 1.01% | 1.02% | 1.04% | 1.07% | 1.07% |
| Net investment income (loss) | (.20)% | .04% | (.23)% | (.17)% | (.28)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,339,059 | $884,749 | $825,118 | $637,315 | $480,573 |
| Portfolio turnover rateG | 40%H | 88% | 84% | 73%H | 102% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Technology Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $49.28 | $57.23 | $49.63 | $36.14 | $35.26 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.25) | (.10) | (.27) | (.18) | (.18) |
| Net realized and unrealized gain (loss) | 23.71 | 1.63 | 12.16 | 14.26 | 2.61 |
| Total from investment operations | 23.46 | 1.53 | 11.89 | 14.08 | 2.43 |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.37) | (9.48) | (4.29) | (.59) | (1.55) |
| Total distributions | (1.37) | (9.48) | (4.29) | (.59) | (1.55) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $71.37 | $49.28 | $57.23 | $49.63 | $36.14 |
| Total ReturnC,D | 48.44% | 7.00% | 25.09% | 39.50% | 7.60% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.26% | 1.28% | 1.31% | 1.33% | 1.35% |
| Expenses net of fee waivers, if any | 1.26% | 1.28% | 1.31% | 1.33% | 1.35% |
| Expenses net of all reductions | 1.26% | 1.28% | 1.30% | 1.33% | 1.34% |
| Net investment income (loss) | (.45)% | (.22)% | (.49)% | (.43)% | (.54)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $464,093 | $321,915 | $328,709 | $274,918 | $203,727 |
| Portfolio turnover rateG | 40%H | 88% | 84% | 73% | 102% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Technology Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $42.81 | $51.18 | $44.86 | $32.83 | $32.27 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.46) | (.30) | (.49) | (.35) | (.31) |
| Net realized and unrealized gain (loss) | 20.52 | 1.22 | 10.95 | 12.92 | 2.37 |
| Total from investment operations | 20.06 | .92 | 10.46 | 12.57 | 2.06 |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (1.20) | (9.29) | (4.14) | (.54) | (1.50) |
| Total distributions | (1.20) | (9.29) | (4.14) | (.54) | (1.50) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $61.67 | $42.81 | $51.18 | $44.86 | $32.83 |
| Total ReturnC,D | 47.69% | 6.44% | 24.48% | 38.79% | 7.08% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.77% | 1.79% | 1.81% | 1.83% | 1.85% |
| Expenses net of fee waivers, if any | 1.77% | 1.79% | 1.81% | 1.83% | 1.85% |
| Expenses net of all reductions | 1.77% | 1.78% | 1.80% | 1.82% | 1.83% |
| Net investment income (loss) | (.96)% | (.72)% | (.99)% | (.93)% | (1.04)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $343,585 | $240,358 | $321,616 | $237,583 | $151,321 |
| Portfolio turnover rateG | 40%H | 88% | 84% | 73%H | 102% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Technology Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $57.41 | $64.86 | $55.69 | $40.30 | $39.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .17 | .02 | .06 | .02 |
| Net realized and unrealized gain (loss) | 27.72 | 2.15 | 13.71 | 15.96 | 2.92 |
| Total from investment operations | 27.76 | 2.32 | 13.73 | 16.02 | 2.94 |
| Distributions from net investment income | – | (.01) | – | – | – |
| Distributions from net realized gain | (1.61) | (9.76) | (4.56) | (.63) | (1.67) |
| Total distributions | (1.61) | (9.77) | (4.56) | (.63) | (1.67) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $83.56 | $57.41 | $64.86 | $55.69 | $40.30 |
| Total ReturnC | 49.22% | 7.56% | 25.75% | 40.26% | 8.24% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .74% | .76% | .78% | .77% | .75% |
| Expenses net of fee waivers, if any | .74% | .76% | .78% | .77% | .75% |
| Expenses net of all reductions | .74% | .76% | .77% | .77% | .74% |
| Net investment income (loss) | .07% | .30% | .03% | .13% | .06% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,035,091 | $674,914 | $734,661 | $403,024 | $669,599 |
| Portfolio turnover rateF | 40%G | 88% | 84% | 73% | 102% |
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
G 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 Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $57.34 | $67.88 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .12 | .23 |
| Net realized and unrealized gain (loss) | 27.68 | (.90)C |
| Total from investment operations | 27.80 | (.67) |
| Distributions from net investment income | – | (.11) |
| Distributions from net realized gain | (1.70) | (9.76) |
| Total distributions | (1.70) | (9.87) |
| Net asset value, end of period | $83.44 | $57.34 |
| Total ReturnD,E | 49.39% | 2.88% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .62% | .63%H |
| Expenses net of fee waivers, if any | .62% | .63%H |
| Expenses net of all reductions | .62% | .62%H |
| Net investment income (loss) | .19% | .53%H |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $298,255 | $31,619 |
| Portfolio turnover rateI | 40%J | 88% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J 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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (7.22)% | 7.26% | 9.79% |
| Class M (incl. 3.50% sales charge) | (5.25)% | 7.46% | 9.74% |
| Class C (incl. contingent deferred sales charge) | (3.25)% | 7.72% | 9.62% |
| Class I | (1.30)% | 8.83% | 10.76% |
| Class Z | (1.15)% | 8.90% | 10.79% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Utilities Fund - Class A on July 31, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $25,447 | Fidelity Advisor® Utilities Fund - Class A | |
| $36,558 | S&P 500® Index | |
Fidelity Advisor® Utilities Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Douglas Simmons: For the fiscal year, the fund's share classes posted returns in a range of roughly -1% to -2%, lagging the 3.26% result of both the sector benchmark – the MSCI U.S. IMI Utilities 25/50 Index – and the S&P® 500 index. Utilities stocks posted an absolute gain through January, then declined less than the S&P 500® in March, as investors sought dividend-paying stocks amid market volatility brought on by economic fears caused by the coronavirus pandemic. Then, when other sectors rebounded strongly in April, May, June and July, aided by government stimulus, utilities stocks lagged in a risk-on environment. Versus the MSCI index, stock selection in electric utilities - which comprised 58% of the benchmark - hurt the most, including overweightings in Edison International and Exelon, a non-benchmark stake in PG&E, and an underweighting in NextEra Energy. Conversely, underweighting the weak-performing gas utilities segment lifted the fund's relative results this period, as did positioning in renewable electricity, the best-performing segment among utilities for the 12 months. Stock choices among independent power producers & energy traders also added value, led by the fund's top contributor, Clearway Energy.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® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Dominion Energy, Inc. | 12.0 |
| NextEra Energy, Inc. | 11.1 |
| Edison International | 7.6 |
| Evergy, Inc. | 6.6 |
| Exelon Corp. | 6.0 |
| Entergy Corp. | 4.9 |
| Southern Co. | 4.8 |
| CenterPoint Energy, Inc. | 4.6 |
| Sempra Energy | 4.6 |
| American Electric Power Co., Inc. | 4.3 |
| 66.5 |
Top Industries (% of fund's net assets)
| As of July 31, 2020 | ||
| Electric Utilities | 60.1% | |
| Multi-Utilities | 26.7% | |
| Independent Power and Renewable Electricity Producers | 11.3% | |
| All Others* | 1.9% | |
* Includes short-term investments and net other assets (liabilities).
Fidelity Advisor® Utilities Fund
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 98.1% | |||
| Shares | Value | ||
| Electric Utilities - 60.1% | |||
| Electric Utilities - 60.1% | |||
| Alliant Energy Corp. | 87,643 | $4,719,576 | |
| American Electric Power Co., Inc. | 304,512 | 26,456,003 | |
| Duke Energy Corp. | 224,242 | 19,002,267 | |
| Edison International | 834,090 | 46,433,790 | |
| Entergy Corp. | 287,405 | 30,214,888 | |
| Evergy, Inc. | 625,589 | 40,556,935 | |
| Exelon Corp. | 942,572 | 36,392,705 | |
| FirstEnergy Corp. | 892,616 | 25,885,864 | |
| NextEra Energy, Inc. | 241,037 | 67,659,086 | |
| NRG Energy, Inc. | 332,515 | 11,242,332 | |
| PG&E Corp. (a) | 546,597 | 5,110,682 | |
| PG&E Corp. (b) | 1,645,847 | 14,619,236 | |
| Pinnacle West Capital Corp. | 72,800 | 6,048,224 | |
| PNM Resources, Inc. (c) | 95,649 | 4,039,257 | |
| Southern Co. | 535,887 | 29,264,789 | |
| 367,645,634 | |||
| Independent Power and Renewable Electricity Producers - 11.3% | |||
| Independent Power Producers & Energy Traders - 9.0% | |||
| Clearway Energy, Inc.: | |||
| Class A | 66,926 | 1,533,275 | |
| Class C | 849,620 | 20,849,675 | |
| The AES Corp. | 1,476,720 | 22,490,446 | |
| Vistra Corp. | 549,627 | 10,256,040 | |
| 55,129,436 | |||
| Renewable Electricity - 2.3% | |||
| NextEra Energy Partners LP | 224,785 | 13,981,627 | |
| TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 69,111,063 | ||
| Multi-Utilities - 26.7% | |||
| Multi-Utilities - 26.7% | |||
| Ameren Corp. (c) | 221,987 | 17,812,237 | |
| CenterPoint Energy, Inc. | 1,481,869 | 28,170,330 | |
| Dominion Energy, Inc. | 908,931 | 73,650,677 | |
| DTE Energy Co. | 14,170 | 1,638,477 | |
| Public Service Enterprise Group, Inc. | 248,800 | 13,917,872 | |
| Sempra Energy | 223,900 | 27,866,594 | |
| 163,056,187 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $526,994,272) | 599,812,884 | ||
| Money Market Funds - 1.9% | |||
| Fidelity Cash Central Fund 0.14% (d) | 10,852,424 | 10,855,679 | |
| Fidelity Securities Lending Cash Central Fund 0.13% (d)(e) | 781,197 | 781,275 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $11,636,564) | 11,636,954 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $538,630,836) | 611,449,838 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (193,907) | ||
| NET ASSETS - 100% | $611,255,931 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $14,619,236 or 2.4% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PG&E Corp. | 6/30/20 | $15,635,547 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $103,644 |
| Fidelity Securities Lending Cash Central Fund | 1,703 |
| Total | $105,347 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2020, 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 | $599,812,884 | $585,193,648 | $14,619,236 | $-- |
| Money Market Funds | 11,636,954 | 11,636,954 | -- | -- |
| Total Investments in Securities: | $611,449,838 | $596,830,602 | $14,619,236 | $-- |
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, 2020 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $769,020) — See accompanying schedule: Unaffiliated issuers (cost $526,994,272) | $599,812,884 | |
| Fidelity Central Funds (cost $11,636,564) | 11,636,954 | |
| Total Investment in Securities (cost $538,630,836) | $611,449,838 | |
| Receivable for investments sold | 5,456,202 | |
| Receivable for fund shares sold | 259,017 | |
| Dividends receivable | 561,791 | |
| Distributions receivable from Fidelity Central Funds | 726 | |
| Prepaid expenses | 1,758 | |
| Other receivables | 23,130 | |
| Total assets | 617,752,462 | |
| Liabilities | ||
| Payable for investments purchased | $4,455,790 | |
| Payable for fund shares redeemed | 735,997 | |
| Accrued management fee | 266,794 | |
| Distribution and service plan fees payable | 127,857 | |
| Other affiliated payables | 115,299 | |
| Other payables and accrued expenses | 13,519 | |
| Collateral on securities loaned | 781,275 | |
| Total liabilities | 6,496,531 | |
| Net Assets | $611,255,931 | |
| Net Assets consist of: | ||
| Paid in capital | $554,752,644 | |
| Total accumulated earnings (loss) | 56,503,287 | |
| Net Assets | $611,255,931 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($249,158,104 ÷ 8,123,354 shares)(a) | $30.67 | |
| Maximum offering price per share (100/94.25 of $30.67) | $32.54 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($58,772,712÷ 1,913,786 shares)(a) | $30.71 | |
| Maximum offering price per share (100/96.50 of $30.71) | $31.82 | |
| Class C: | ||
| Net Asset Value and offering price per share ($63,458,108 ÷ 2,127,345 shares)(a) | $29.83 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($187,833,133 ÷ 5,981,168 shares) | $31.40 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($52,033,874 ÷ 1,656,293 shares) | $31.42 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $20,094,634 | |
| Income from Fidelity Central Funds (including $1,703 from security lending) | 105,347 | |
| Total income | 20,199,981 | |
| Expenses | ||
| Management fee | $3,686,961 | |
| Transfer agent fees | 1,283,055 | |
| Distribution and service plan fees | 1,698,114 | |
| Accounting fees | 247,191 | |
| Custodian fees and expenses | 12,241 | |
| Independent trustees' fees and expenses | 4,312 | |
| Registration fees | 113,893 | |
| Audit | 48,021 | |
| Legal | 33,456 | |
| Interest | 88 | |
| Miscellaneous | 32,127 | |
| Total expenses before reductions | 7,159,459 | |
| Expense reductions | (60,214) | |
| Total expenses after reductions | 7,099,245 | |
| Net investment income (loss) | 13,100,736 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (12,387,747) | |
| Fidelity Central Funds | (1,556) | |
| Foreign currency transactions | 11,021 | |
| Total net realized gain (loss) | (12,378,282) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (24,428,779) | |
| Fidelity Central Funds | 390 | |
| Assets and liabilities in foreign currencies | 534 | |
| Total change in net unrealized appreciation (depreciation) | (24,427,855) | |
| Net gain (loss) | (36,806,137) | |
| Net increase (decrease) in net assets resulting from operations | $(23,705,401) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $13,100,736 | $10,177,681 |
| Net realized gain (loss) | (12,378,282) | (551,065) |
| Change in net unrealized appreciation (depreciation) | (24,427,855) | 44,485,488 |
| Net increase (decrease) in net assets resulting from operations | (23,705,401) | 54,112,104 |
| Distributions to shareholders | (13,931,390) | (43,917,084) |
| Share transactions - net increase (decrease) | 5,532,255 | 303,937,007 |
| Total increase (decrease) in net assets | (32,104,536) | 314,132,027 |
| Net Assets | ||
| Beginning of period | 643,360,467 | 329,228,440 |
| End of period | $611,255,931 | $643,360,467 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Utilities Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $31.73 | $31.54 | $29.74 | $27.59 | $25.48 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .60 | .67 | .49 | .50 | .44 |
| Net realized and unrealized gain (loss) | (1.03) | 2.81 | 2.38 | 2.14 | 2.75 |
| Total from investment operations | (.43) | 3.48 | 2.87 | 2.64 | 3.19 |
| Distributions from net investment income | (.62) | (.48) | (.49) | (.49) | (.46) |
| Distributions from net realized gain | –B | (2.81) | (.58) | – | (.61) |
| Total distributions | (.63)C | (3.29) | (1.07) | (.49) | (1.08)D |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $30.67 | $31.73 | $31.54 | $29.74 | $27.59 |
| Total ReturnE,F | (1.56)% | 11.73% | 9.84% | 9.87% | 13.49% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.06% | 1.08% | 1.12% | 1.12% | 1.13% |
| Expenses net of fee waivers, if any | 1.06% | 1.07% | 1.11% | 1.12% | 1.13% |
| Expenses net of all reductions | 1.05% | 1.06% | 1.09% | 1.11% | 1.12% |
| Net investment income (loss) | 1.88% | 2.14% | 1.66% | 1.87% | 1.78% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $249,158 | $268,246 | $173,999 | $160,040 | $178,116 |
| Portfolio turnover rateI | 80%J | 56% | 106% | 37% | 73% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.63 per share is comprised of distributions from net investment income of $.624 and distributions from net realized gain of $.002 per share.
D 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.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Utilities Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $31.77 | $31.58 | $29.77 | $27.62 | $25.49 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .51 | .58 | .41 | .42 | .36 |
| Net realized and unrealized gain (loss) | (1.03) | 2.81 | 2.38 | 2.14 | 2.77 |
| Total from investment operations | (.52) | 3.39 | 2.79 | 2.56 | 3.13 |
| Distributions from net investment income | (.53) | (.39) | (.40) | (.41) | (.39) |
| Distributions from net realized gain | –B | (2.81) | (.58) | – | (.61) |
| Total distributions | (.54)C | (3.20) | (.98) | (.41) | (1.00) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $30.71 | $31.77 | $31.58 | $29.77 | $27.62 |
| Total ReturnD,E | (1.82)% | 11.38% | 9.53% | 9.51% | 13.19% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.33% | 1.36% | 1.41% | 1.41% | 1.43% |
| Expenses net of fee waivers, if any | 1.33% | 1.36% | 1.41% | 1.41% | 1.43% |
| Expenses net of all reductions | 1.33% | 1.35% | 1.39% | 1.41% | 1.42% |
| Net investment income (loss) | 1.60% | 1.86% | 1.36% | 1.57% | 1.47% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $58,773 | $61,741 | $46,669 | $48,152 | $56,403 |
| Portfolio turnover rateH | 80%I | 56% | 106% | 37% | 73% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.54 per share is comprised of distributions from net investment income of $.533 and distributions from net realized gain of $.002 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Utilities Fund Class C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $30.90 | $30.81 | $29.07 | $26.98 | $24.91 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .35 | .42 | .26 | .29 | .25 |
| Net realized and unrealized gain (loss) | (1.01) | 2.74 | 2.33 | 2.09 | 2.70 |
| Total from investment operations | (.66) | 3.16 | 2.59 | 2.38 | 2.95 |
| Distributions from net investment income | (.40) | (.26) | (.27) | (.29) | (.27) |
| Distributions from net realized gain | –B | (2.81) | (.58) | – | (.61) |
| Total distributions | (.41)C | (3.07) | (.85) | (.29) | (.88) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $29.83 | $30.90 | $30.81 | $29.07 | $26.98 |
| Total ReturnD,E | (2.28)% | 10.87% | 9.04% | 9.01% | 12.64% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.81% | 1.83% | 1.87% | 1.87% | 1.88% |
| Expenses net of fee waivers, if any | 1.81% | 1.83% | 1.87% | 1.87% | 1.88% |
| Expenses net of all reductions | 1.80% | 1.82% | 1.85% | 1.86% | 1.88% |
| Net investment income (loss) | 1.12% | 1.39% | .90% | 1.11% | 1.02% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $63,458 | $66,525 | $53,099 | $56,964 | $70,957 |
| Portfolio turnover rateH | 80%I | 56% | 106% | 37% | 73% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.41 per share is comprised of distributions from net investment income of $.403 and distributions from net realized gain of $.002 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Utilities Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $32.47 | $32.21 | $30.35 | $28.14 | $25.97 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .71 | .76 | .59 | .59 | .53 |
| Net realized and unrealized gain (loss) | (1.07) | 2.88 | 2.43 | 2.17 | 2.78 |
| Total from investment operations | (.36) | 3.64 | 3.02 | 2.76 | 3.31 |
| Distributions from net investment income | (.71) | (.58) | (.58) | (.55) | (.53) |
| Distributions from net realized gain | –B | (2.81) | (.58) | – | (.61) |
| Total distributions | (.71) | (3.38)C | (1.16) | (.55) | (1.14) |
| Redemption fees added to paid in capitalA | – | – | – | –B | –B |
| Net asset value, end of period | $31.40 | $32.47 | $32.21 | $30.35 | $28.14 |
| Total ReturnD | (1.30)% | 12.04% | 10.14% | 10.17% | 13.81% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .79% | .81% | .84% | .85% | .84% |
| Expenses net of fee waivers, if any | .78% | .80% | .84% | .85% | .84% |
| Expenses net of all reductions | .78% | .79% | .82% | .84% | .84% |
| Net investment income (loss) | 2.15% | 2.41% | 1.93% | 2.14% | 2.06% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $187,833 | $229,777 | $55,462 | $46,943 | $62,600 |
| Portfolio turnover rateG | 80%H | 56% | 106% | 37% | 73% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $3.38 per share is comprised of distributions from net investment income of $.578 and distributions from net realized gain of $2.805 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $32.48 | $33.14 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .74 | .63 |
| Net realized and unrealized gain (loss) | (1.04) | 2.13 |
| Total from investment operations | (.30) | 2.76 |
| Distributions from net investment income | (.75) | (.61) |
| Distributions from net realized gain | –C | (2.81) |
| Total distributions | (.76)D | (3.42) |
| Net asset value, end of period | $31.42 | $32.48 |
| Total ReturnE,F | (1.15)% | 9.04% |
| Ratios to Average Net AssetsG,H | ||
| Expenses before reductions | .65% | .66%I |
| Expenses net of fee waivers, if any | .65% | .66%I |
| Expenses net of all reductions | .64% | .64%I |
| Net investment income (loss) | 2.29% | 2.41%I |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $52,034 | $17,071 |
| Portfolio turnover rateJ | 80%K | 56% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total distributions of $.76 per share is comprised of distributions from net investment income of $.754 and distributions from net realized gain of $.002 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2020
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 class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs)and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the 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 | $33,099,919 | Recovery value | Recovery value | 0.0% | Increase |
| Market comparable | Transaction price | $3.79 - $96.19 / $39.96 | Increase | ||
| Premium rate | 23.8% - 36.2% / 31.7% | Increase | |||
| Conversion ratio | 1.1 | Increase | |||
| Discounted cash flow | Discount rate | 8.0% - 12.0% / 11.1% | Decrease | ||
| Growth rate | 3.5% | Increase | |||
| Probability rate | 6.3% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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, 2020, as well as a roll forward of Level 3 investments, is included at the end of each 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. Large, non-recurring dividends recognized by the Funds are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Advisor Energy Fund and Fidelity Advisor Technology Fund, 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 each Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in each accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
| Fidelity Advisor Energy Fund | $70,832 |
| Fidelity Advisor Technology Fund | 113,429 |
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, 2020, 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. 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. 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, defaulted bonds, 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 | $1,646,808,250 | $912,424,631 | $(62,501,082) | $849,923,549 |
| Fidelity Advisor Communications Equipment Fund | 14,257,134 | 5,620,385 | (391,181) | 5,229,204 |
| Fidelity Advisor Consumer Discretionary Fund | 279,309,133 | 185,810,820 | (20,896,102) | 164,914,718 |
| Fidelity Advisor Energy Fund | 542,870,812 | 14,799,683 | (156,025,381) | (141,225,698) |
| Fidelity Advisor Financial Services Fund | 320,856,601 | 26,180,565 | (47,759,974) | (21,579,409) |
| Fidelity Advisor Health Care Fund | 3,896,585,735 | 1,828,899,208 | (85,196,542) | 1,743,702,666 |
| Fidelity Advisor Industrials Fund | 375,472,081 | 90,704,242 | (9,439,681) | 81,264,561 |
| Fidelity Advisor Semiconductors Fund | 253,384,587 | 113,465,194 | (4,544,274) | 108,920,920 |
| Fidelity Advisor Technology Fund | 2,029,629,518 | 1,491,778,441 | (23,789,793) | 1,467,988,648 |
| Fidelity Advisor Utilities Fund | 546,460,980 | 87,581,466 | (22,592,608) | 64,988,858 |
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 | $3,210,216 | $– | $– | $849,923,549 |
| Fidelity Advisor Communications Equipment Fund | – | – | (1,092,952) | 5,229,204 |
| Fidelity Advisor Consumer Discretionary Fund | – | 7,811,920 | – | 164,914,581 |
| Fidelity Advisor Energy Fund | 6,828,891 | – | (277,047,549) | (144,003,642) |
| Fidelity Advisor Financial Services Fund | 3,256,655 | 1,509,575 | – | (21,579,409) |
| Fidelity Advisor Health Care Fund | 53,363,650 | 143,530,315 | – | 1,743,946,218 |
| Fidelity Advisor Industrials Fund | – | – | – | 81,264,561 |
| Fidelity Advisor Semiconductors Fund | 627,058 | 13,125,554 | – | 108,920,942 |
| Fidelity Advisor Technology Fund | 45,871,989 | 126,969,477 | – | 1,467,983,970 |
| Fidelity Advisor Utilities Fund | 4,978,156 | – | (13,464,169) | 64,989,300 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. 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 capital loss carryfoward | |
| Fidelity Advisor Communications Equipment Fund | $(1,092,952) | $– | $(1,092,952) |
| Fidelity Advisor Energy Fund | (163,889,041) | (113,158,508) | (277,047,549) |
| Fidelity Advisor Utilities Fund | (13,464,169) | – | (13,464,169) |
In addition, certain of the Funds intend to elect to defer to the next fiscal year capital losses recognized during the period November 1, 2019 to July 31, 2020, and ordinary losses recognized during the period January 1, 2020 to July 31, 2020. Loss deferrals were as follows:
| Capital losses | Ordinary losses | |
| Fidelity Advisor Biotechnology Fund | $(15,917,227) | $– |
| Fidelity Advisor Communications Equipment Fund | – | (17,116) |
| Fidelity Advisor Consumer Discretionary Fund | – | (687,868) |
| Fidelity Advisor Industrials Fund | (1,998,398) | (197,196) |
The tax character of distributions paid was as follows:
| July 31, 2020 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Advisor Biotechnology Fund | $2,747,812 | $140,189,867 | $142,937,680 |
| Fidelity Advisor Communications Equipment Fund | – | – | – |
| Fidelity Advisor Consumer Discretionary Fund | – | 11,256,995 | 11,256,995 |
| Fidelity Advisor Energy Fund | 8,780,599 | – | 8,780,599 |
| Fidelity Advisor Financial Services Fund | 4,735,011 | – | 4,735,011 |
| Fidelity Advisor Health Care Fund | 4,785,422 | 14,535,480 | 19,320,902 |
| Fidelity Advisor Industrials Fund | 9,468,033 | 34,459,397 | 43,927,430 |
| Fidelity Advisor Semiconductors Fund | 892,431 | 2,604,470 | 3,496,901 |
| Fidelity Advisor Technology Fund | 11,738,124 | 50,630,525 | 62,368,648 |
| Fidelity Advisor Utilities Fund | 13,887,432 | 43,958 | 13,931,390 |
| July 31, 2019 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Advisor Biotechnology Fund | $– | $56,953,710 | $56,953,710 |
| Fidelity Advisor Communications Equipment Fund | – | 912,370 | 912,370 |
| Fidelity Advisor Consumer Discretionary Fund | – | 4,099,244 | 4,099,244 |
| Fidelity Advisor Energy Fund | 5,238,987 | – | 5,238,987 |
| Fidelity Advisor Financial Services Fund | 3,469,455 | 11,573,917 | 15,043,372 |
| Fidelity Advisor Health Care Fund | – | 164,979,965 | 164,979,965 |
| Fidelity Advisor Industrials Fund | 3,392,176 | 68,171,157 | 71,563,333 |
| Fidelity Advisor Semiconductors Fund | 13,577,874 | 22,781,407 | 36,359,281 |
| Fidelity Advisor Technology Fund | 61,702,769 | 286,764,198 | 348,466,967 |
| Fidelity Advisor Utilities Fund | 9,838,347 | 34,078,737 | 43,917,084 |
Restricted Securities (including Private Placements). 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. Certain Funds invest in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, Fidelity Advisor Biotechnology Fund held an investment of $12,021,004 in a Subsidiary, representing .50% of the Fund's net assets. As of period end, Fidelity Advisor Health Care Fund held an investment of $28,759,647 in a Subsidiary, representing .52% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Advisor Biotechnology Fund | 1,400,286,601 | 1,724,050,468 |
| Fidelity Advisor Communications Equipment Fund | 28,748,551 | 38,198,692 |
| Fidelity Advisor Consumer Discretionary Fund | 161,036,115 | 209,705,595 |
| Fidelity Advisor Energy Fund | 399,308,873 | 416,925,215 |
| Fidelity Advisor Financial Services Fund | 301,308,741 | 343,164,369 |
| Fidelity Advisor Health Care Fund | 2,703,853,733 | 2,328,397,822 |
| Fidelity Advisor Industrials Fund | 1,182,383,272 | 1,338,478,000 |
| Fidelity Advisor Semiconductors Fund | 417,464,335 | 406,196,670 |
| Fidelity Advisor Technology Fund | 1,147,991,578 | 1,023,769,451 |
| Fidelity Advisor Utilities Fund | 538,315,972 | 561,843,332 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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% | .23% | .53% |
| Fidelity Advisor Communications Equipment Fund | .30% | .23% | .53% |
| Fidelity Advisor Consumer Discretionary Fund | .30% | .23% | .53% |
| Fidelity Advisor Energy Fund | .30% | .23% | .53% |
| Fidelity Advisor Financial Services Fund | .30% | .23% | .53% |
| Fidelity Advisor Health Care Fund | .30% | .23% | .53% |
| Fidelity Advisor Industrials Fund | .30% | .23% | .53% |
| Fidelity Advisor Semiconductors Fund | .30% | .23% | .53% |
| Fidelity Advisor Technology Fund | .30% | .23% | .53% |
| Fidelity Advisor Utilities Fund | .30% | .23% | .53% |
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. Certain classes pay Fidelity Distributors Company LLC (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% | $1,566,554 | $24,693 |
| Class M | .25% | .25% | 630,822 | 3,882 |
| Class C | .75% | .25% | 3,843,117 | 167,016 |
| $6,040,493 | $195,591 | |||
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | -% | .25% | $27,615 | $1,128 |
| Class M | .25% | .25% | 20,684 | – |
| Class C | .75% | .25% | 35,009 | 7,069 |
| $83,308 | $8,197 | |||
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | -% | .25% | $370,409 | $13,059 |
| Class M | .25% | .25% | 155,296 | 230 |
| Class C | .75% | .25% | 658,481 | 57,443 |
| $1,184,186 | $70,732 | |||
| Fidelity Advisor Energy Fund | ||||
| Class A | -% | .25% | $351,521 | $9,658 |
| Class M | .25% | .25% | 316,670 | 3,244 |
| Class C | .75% | .25% | 629,207 | 61,011 |
| $1,297,398 | $73,913 | |||
| Fidelity Advisor Financial Services Fund | ||||
| Class A | -% | .25% | $317,021 | $7,718 |
| Class M | .25% | .25% | 212,778 | 808 |
| Class C | .75% | .25% | 583,936 | 30,462 |
| $1,113,735 | $38,988 | |||
| Fidelity Advisor Health Care Fund | ||||
| Class A | -% | .25% | $2,926,161 | $57,319 |
| Class M | .25% | .25% | 1,571,572 | 13,652 |
| Class C | .75% | .25% | 5,901,728 | 674,878 |
| $10,399,461 | $745,849 | |||
| Fidelity Advisor Industrials Fund | ||||
| Class A | -% | .25% | $573,629 | $7,464 |
| Class M | .25% | .25% | 260,952 | 1,272 |
| Class C | .75% | .25% | 729,459 | 40,439 |
| $1,564,040 | $49,175 | |||
| Fidelity Advisor Semiconductors Fund | ||||
| Class A | -% | .25% | $292,093 | $8,657 |
| Class M | .25% | .25% | 126,436 | 2,282 |
| Class C | .75% | .25% | 514,047 | 59,742 |
| $932,576 | $70,681 | |||
| Fidelity Advisor Technology Fund | ||||
| Class A | -% | .25% | $2,512,412 | $58,616 |
| Class M | .25% | .25% | 1,792,002 | 22,808 |
| Class C | .75% | .25% | 2,631,336 | 359,609 |
| $6,935,750 | $441,033 | |||
| Fidelity Advisor Utilities Fund | ||||
| Class A | -% | .25% | $680,193 | $23,359 |
| Class M | .25% | .25% | 318,870 | 2,778 |
| Class C | .75% | .25% | 699,051 | 187,825 |
| $1,698,114 | $213,962 |
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 | $224,825 |
| Class M | 19,249 |
| Class C(a) | 15,488 |
| $259,562 | |
| Fidelity Advisor Communications Equipment Fund | |
| Class A | $5,244 |
| Class M | 1,078 |
| Class C(a) | 645 |
| $6,967 | |
| Fidelity Advisor Consumer Discretionary Fund | |
| Class A | $72,797 |
| Class M | 5,543 |
| Class C(a) | 4,171 |
| $82,511 | |
| Fidelity Advisor Energy Fund | |
| Class A | $85,308 |
| Class M | 8,407 |
| Class C(a) | 8,911 |
| $102,626 | |
| Fidelity Advisor Financial Services Fund | |
| Class A | $45,541 |
| Class M | 4,170 |
| Class C(a) | 3,122 |
| $52,833 | |
| Fidelity Advisor Health Care Fund | |
| Class A | $629,285 |
| Class M | 46,498 |
| Class C(a) | 48,720 |
| $724,503 | |
| Fidelity Advisor Industrials Fund | |
| Class A | $45,011 |
| Class M | 5,528 |
| Class C(a) | 3,309 |
| $53,848 | |
| Fidelity Advisor Semiconductors Fund | |
| Class A | $123,227 |
| Class M | 5,523 |
| Class C(a) | 9,251 |
| $138,001 | |
| Fidelity Advisor Technology Fund | |
| Class A | $460,933 |
| Class M | 36,934 |
| Class C(a) | 27,215 |
| $525,082 | |
| Fidelity Advisor Utilities Fund | |
| Class A | $187,563 |
| Class M | 24,483 |
| Class C(a) | 15,729 |
| $227,775 |
(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 LLC (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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%. 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 | $1,227,686 | .20 |
| Class M | 302,491 | .24 |
| Class C | 723,052 | .19 |
| Class I | 1,711,495 | .17 |
| Class Z | 17,495 | .04 |
| $3,982,219 | ||
| Fidelity Advisor Communications Equipment Fund | ||
| Class A | $31,368 | .28 |
| Class M | 12,573 | .30 |
| Class C | 10,219 | .29 |
| Class I | 3,319 | .15 |
| $57,479 | ||
| Fidelity Advisor Consumer Discretionary Fund | ||
| Class A | $295,346 | .20 |
| Class M | 67,680 | .22 |
| Class C | 132,959 | .20 |
| Class I | 222,910 | .18 |
| Class Z | 11,297 | .04 |
| $730,192 | ||
| Fidelity Advisor Energy Fund | ||
| Class A | $383,500 | .27 |
| Class M | 179,254 | .28 |
| Class C | 151,607 | .24 |
| Class I | 333,089 | .20 |
| Class Z | 19,145 | .04 |
| $1,066,595 | ||
| Fidelity Advisor Financial Services Fund | ||
| Class A | $276,491 | .22 |
| Class M | 95,218 | .22 |
| Class C | 127,774 | .22 |
| Class I | 160,786 | .17 |
| Class Z | 10,967 | .04 |
| $671,236 | ||
| Fidelity Advisor Health Care Fund | ||
| Class A | $2,159,416 | .18 |
| Class M | 601,900 | .19 |
| Class C | 1,090,570 | .18 |
| Class I | 3,325,236 | .17 |
| Class Z | 185,130 | .04 |
| $7,362,252 | ||
| Fidelity Advisor Industrials Fund | ||
| Class A | $442,260 | .19 |
| Class M | 108,206 | .21 |
| Class C | 144,839 | .20 |
| Class I | 288,827 | .17 |
| Class Z | 9,868 | .04 |
| $994,000 | ||
| Fidelity Advisor Semiconductors Fund | ||
| Class A | $240,814 | .21 |
| Class M | 61,869 | .25 |
| Class C | 108,422 | .21 |
| Class I | 190,865 | .18 |
| Class Z | 3,870 | .04 |
| $605,840 | ||
| Fidelity Advisor Technology Fund | ||
| Class A | $1,831,781 | .18 |
| Class M | 658,270 | .18 |
| Class C | 513,482 | .20 |
| Class I | 1,273,559 | .17 |
| Class Z | 75,264 | .04 |
| $4,352,356 | ||
| Fidelity Advisor Utilities Fund | ||
| Class A | $546,833 | .20 |
| Class M | 145,074 | .23 |
| Class C | 142,446 | .20 |
| Class I | 428,150 | .18 |
| Class Z | 20,552 | .04 |
| $1,283,055 |
Accounting 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. 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 | .04 |
| Fidelity Advisor Financial Services Fund | .04 |
| Fidelity Advisor Health Care Fund | .02 |
| Fidelity Advisor Industrials Fund | .04 |
| Fidelity Advisor Semiconductors Fund | .04 |
| Fidelity Advisor Technology Fund | .03 |
| Fidelity Advisor Utilities Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 | $66,317 |
| Fidelity Advisor Communications Equipment Fund | 2,944 |
| Fidelity Advisor Consumer Discretionary Fund | 1,621 |
| Fidelity Advisor Energy Fund | 24,030 |
| Fidelity Advisor Financial Services Fund | 10,586 |
| Fidelity Advisor Health Care Fund | 62,582 |
| Fidelity Advisor Industrials Fund | 29,111 |
| Fidelity Advisor Semiconductors Fund | 16,709 |
| Fidelity Advisor Technology Fund | 29,089 |
| Fidelity Advisor Utilities Fund | 25,769 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, each fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 Biotechnology Fund | Borrower | $8,711,500 | 1.04% | $505 |
| Fidelity Advisor Consumer Discretionary Fund | Borrower | 3,193,278 | 1.09% | 1,732 |
| Fidelity Advisor Financial Services Fund | Borrower | $9,427,400 | 1.31% | 1,712 |
| Fidelity Advisor Industrials Fund | Borrower | 4,737,111 | .66% | 787 |
| Fidelity Advisor Semiconductors Fund | Borrower | 2,200,500 | .75% | 184 |
| Fidelity Advisor Technology Fund | Borrower | 12,309,818 | 1.73% | 6,501 |
| Fidelity Advisor Utilities Fund | Borrower | 4,981,500 | .32% | 88 |
Interfund Trades. 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.
Affiliated Exchanges In-Kind. During the period, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund received investments and cash in exchange for shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements.
| Shares | Value of investments and cash | |
| Fidelity Advisor Consumer Discretionary Fund | 340,887 | $10,509,560 |
| Fidelity Advisor Energy Fund | 1,418,542 | 37,704,833 |
| Fidelity Advisor Financial Services Fund | 1,072,326 | 22,465,229 |
| Fidelity Advisor Health Care Fund | 2,311,335 | 122,939,907 |
| Fidelity Advisor Industrials Fund | 331,589 | 13,207,212 |
| Fidelity Advisor Technology Fund | 1,742,932 | 97,220,739 |
| Fidelity Advisor Utilities Fund | 757,866 | 24,994,414 |
Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:
| Fidelity Advisor Biotechnology Fund | $1,875 |
| Fidelity Advisor Consumer Discretionary Fund | 1,344 |
| Fidelity Advisor Energy Fund | 1,357 |
| Fidelity Advisor Health Care Fund | 50,855 |
| Fidelity Advisor Technology Fund | 5,840 |
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:
| Amount | |
| Fidelity Advisor Biotechnology Fund | $5,197 |
| Fidelity Advisor Communications Equipment Fund | 54 |
| Fidelity Advisor Consumer Discretionary Fund | 972 |
| Fidelity Advisor Energy Fund | 1,213 |
| Fidelity Advisor Financial Services Fund | 866 |
| Fidelity Advisor Health Care Fund | 10,527 |
| Fidelity Advisor Industrials Fund | 1,375 |
| Fidelity Advisor Semiconductors Fund | 742 |
| Fidelity Advisor Technology Fund | 5,999 |
| Fidelity Advisor Utilities Fund | 1,699 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the Funds. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a Fund's daily lending revenue, for its services as lending agent. The Funds may lend securities to certain qualified borrowers, including NFS. 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. At period end, there were no security loans outstanding with NFS, an affiliated borrower. 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. Net income from Fidelity Central Funds is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity was as follows:
| Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
| Fidelity Advisor Biotechnology Fund | $52,661 | $29,023 | $6,884,415 |
| Fidelity Advisor Communications Equipment Fund | 2,600 | 58 | – |
| Fidelity Advisor Consumer Discretionary Fund | 4,885 | – | – |
| Fidelity Advisor Energy Fund | 1,754 | – | – |
| Fidelity Advisor Financial Services Fund | 1,737 | – | – |
| Fidelity Advisor Health Care Fund | 118,452 | 369,530 | 2,572,722 |
| Fidelity Advisor Industrials Fund | 1,287 | – | – |
| Fidelity Advisor Semiconductors Fund | 1,393 | – | – |
| Fidelity Advisor Technology Fund | 4,564 | – | – |
| Fidelity Advisor Utilities Fund | 174 | – | – |
8. Expense Reductions.
The investment adviser contractually agreed to reimburse expenses of 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. This reimbursement will remain in place through November 30, 2020. 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% | $25,455 |
| Class M | 1.65% | 10,234 |
| Class C | 2.15% | 9,021 |
| Class I | 1.15% | 2,514 |
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 each applicable Fund's or class' expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage service rebates | Custodian credits | |
| Fidelity Advisor Biotechnology Fund | $133,692 | $– |
| Fidelity Advisor Communications Equipment Fund | 8,288 | – |
| Fidelity Advisor Consumer Discretionary Fund | 7,695 | – |
| Fidelity Advisor Energy Fund | 85,501 | – |
| Fidelity Advisor Financial Services Fund | 38,810 | – |
| Fidelity Advisor Health Care Fund | 216,580 | 5,880 |
| Fidelity Advisor Industrials Fund | 83,988 | – |
| Fidelity Advisor Semiconductors Fund | 57,267 | – |
| Fidelity Advisor Technology Fund | 79,840 | – |
| Fidelity Advisor Utilities Fund | 56,761 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of class-level operating expenses as follows:
| Fund-Level Amount | |
| Fidelity Advisor Biotechnology Fund | $8,794 |
| Fidelity Advisor Communications Equipment Fund | 88 |
| Fidelity Advisor Consumer Discretionary Fund | 1,661 |
| Fidelity Advisor Energy Fund | 2,221 |
| Fidelity Advisor Financial Services Fund | 1,658 |
| Fidelity Advisor Health Care Fund | 17,659 |
| Fidelity Advisor Industrials Fund | 2,505 |
| Fidelity Advisor Semiconductors Fund | 1,353 |
| Fidelity Advisor Technology Fund | 9,873 |
| Fidelity Advisor Utilities Fund | 2,996 |
In addition, during the period the investment adviser or an affiliate reimbursed certain Funds for an operational error which is included in the accompanying Statements of Operations as follows:
| Amount | |
| Fidelity Advisor Biotechnology Fund | $1,596 |
| Fidelity Advisor Consumer Discretionary Fund | 782 |
| Fidelity Advisor Energy Fund | 1,599 |
| Fidelity Advisor Financial Services Fund | 705 |
| Fidelity Advisor Health Care Fund | 2,253 |
| Fidelity Advisor Industrials Fund | 1,216 |
| Fidelity Advisor Semiconductors Fund | 373 |
| Fidelity Advisor Technology Fund | 2,296 |
| Fidelity Advisor Utilities Fund | 457 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2020 | Year ended July 31, 2019(a) | |
| Fidelity Advisor Biotechnology Fund | ||
| Distributions to shareholders | ||
| Class A | $40,863,434 | $15,278,681 |
| Class M | 8,608,302 | 3,010,471 |
| Class C | 29,571,463 | 12,975,228 |
| Class I | 61,591,087 | 25,315,247 |
| Class Z | 2,303,394 | 374,083 |
| Total | $142,937,680 | $56,953,710 |
| Fidelity Advisor Communications Equipment Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $314,044 |
| Class M | – | 151,777 |
| Class C | – | 185,133 |
| Class I | – | 261,417 |
| Total | $– | $912,371 |
| Fidelity Advisor Consumer Discretionary Fund | ||
| Distributions to shareholders | ||
| Class A | $4,116,798 | $1,403,370 |
| Class M | 929,194 | 329,482 |
| Class C | 2,338,201 | 874,277 |
| Class I | 3,149,331 | 1,462,671 |
| Class Z | 723,471 | 29,445 |
| Total | $11,256,995 | $4,099,245 |
| Fidelity Advisor Energy Fund | ||
| Distributions to shareholders | ||
| Class A | $2,688,540 | $1,605,057 |
| Class M | 985,221 | 429,350 |
| Class C | 659,426 | – |
| Class I | 3,336,904 | 3,087,399 |
| Class Z | 1,110,508 | 117,180 |
| Total | $8,780,599 | $5,238,986 |
| Fidelity Advisor Financial Services Fund | ||
| Distributions to shareholders | ||
| Class A | $1,824,086 | $5,373,068 |
| Class M | 493,589 | 1,563,598 |
| Class C | 317,172 | 3,002,673 |
| Class I | 1,626,928 | 5,008,897 |
| Class Z | 473,236 | 95,139 |
| Total | $4,735,011 | $15,043,375 |
| Fidelity Advisor Health Care Fund | ||
| Distributions to shareholders | ||
| Class A | $3,927,602 | $45,987,592 |
| Class M | 1,147,016 | 14,213,911 |
| Class C | 2,538,507 | 37,772,817 |
| Class I | 9,099,909 | 65,169,013 |
| Class Z | 2,607,868 | 1,836,632 |
| Total | $19,320,902 | $164,979,965 |
| Fidelity Advisor Industrials Fund | ||
| Distributions to shareholders | ||
| Class A | $18,388,918 | $26,486,798 |
| Class M | 4,119,707 | 6,155,294 |
| Class C | 5,971,134 | 12,720,044 |
| Class I | 13,357,871 | 25,380,037 |
| Class Z | 2,089,800 | 821,160 |
| Total | $43,927,430 | $71,563,333 |
| Fidelity Advisor Semiconductors Fund | ||
| Distributions to shareholders | ||
| Class A | $1,274,755 | $12,594,207 |
| Class M | 264,058 | 2,992,949 |
| Class C | 523,732 | 7,583,372 |
| Class I | 1,293,451 | 13,008,216 |
| Class Z | 140,905 | 180,538 |
| Total | $3,496,901 | $36,359,282 |
| Fidelity Advisor Technology Fund | ||
| Distributions to shareholders | ||
| Class A | $24,794,599 | $129,911,664 |
| Class M | 8,680,589 | 53,119,227 |
| Class C | 6,376,707 | 57,301,872 |
| Class I | 18,523,848 | 105,941,248 |
| Class Z | 3,992,905 | 2,192,955 |
| Total | $62,368,648 | $348,466,966 |
| Fidelity Advisor Utilities Fund | ||
| Distributions to shareholders | ||
| Class A | $5,344,171 | $19,834,439 |
| Class M | 1,063,561 | 5,158,982 |
| Class C | 924,262 | 5,713,473 |
| Class I | 5,554,769 | 12,784,890 |
| Class Z | 1,044,627 | 425,300 |
| Total | $13,931,390 | $43,917,084 |
(a) Distributions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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, 2020 | Year ended July 31, 2019(a) | Year ended July 31, 2020 | Year ended July 31, 2019 (a) | |
| Fidelity Advisor Biotechnology Fund | ||||
| Class A | ||||
| Shares sold | 4,476,939 | 3,656,697 | $129,852,578 | $96,511,440 |
| Reinvestment of distributions | 1,386,979 | 585,843 | 38,627,357 | 14,505,460 |
| Shares redeemed | (6,779,279) | (7,594,989) | (181,633,714) | (198,292,523) |
| Net increase (decrease) | (915,361) | (3,352,449) | $(13,153,779) | $(87,275,623) |
| Class M | ||||
| Shares sold | 875,738 | 719,189 | $23,191,732 | $17,861,674 |
| Reinvestment of distributions | 326,946 | 127,736 | 8,546,370 | 2,987,750 |
| Shares redeemed | (1,197,844) | (1,041,267) | (30,411,303) | (25,606,228) |
| Net increase (decrease) | 4,840 | (194,342) | $1,326,799 | $(4,756,804) |
| Class C | ||||
| Shares sold | 1,316,924 | 1,239,104 | $31,385,640 | $27,856,582 |
| Reinvestment of distributions | 1,155,478 | 563,757 | 27,049,731 | 11,951,640 |
| Shares redeemed | (6,033,882) | (6,744,328) | (140,899,467) | (150,634,720) |
| Net increase (decrease) | (3,561,480) | (4,941,467) | $(82,464,096) | $(110,826,498) |
| Class I | ||||
| Shares sold | 8,470,953 | 10,350,975 | $257,423,341 | $288,655,164 |
| Reinvestment of distributions | 1,716,365 | 809,955 | 50,993,195 | 21,277,530 |
| Shares redeemed | (14,414,703) | (18,451,934) | (407,260,427) | (504,122,513) |
| Net increase (decrease) | (4,227,385) | (7,291,004) | $(98,843,891) | $(194,189,819) |
| Class Z | ||||
| Shares sold | 1,769,931 | 1,295,577 | $54,979,279 | $35,003,247 |
| Reinvestment of distributions | 65,751 | 13,350 | 1,955,433 | 350,695 |
| Shares redeemed | (1,058,458) | (197,705) | (31,746,874) | (5,400,884) |
| Net increase (decrease) | 777,224 | 1,111,222 | $25,187,838 | $29,953,058 |
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | ||||
| Shares sold | 217,044 | 567,294 | $2,771,341 | $8,773,740 |
| Reinvestment of distributions | – | 21,922 | – | 312,384 |
| Shares redeemed | (445,959) | (221,971) | (6,207,767) | (3,425,481) |
| Net increase (decrease) | (228,915) | 367,245 | $(3,436,426) | $5,660,643 |
| Class M | ||||
| Shares sold | 36,130 | 148,689 | $462,021 | $2,202,352 |
| Reinvestment of distributions | – | 11,052 | – | 151,084 |
| Shares redeemed | (85,605) | (151,269) | (1,118,547) | (2,248,818) |
| Net increase (decrease) | (49,475) | 8,472 | $(656,526) | $104,618 |
| Class C | ||||
| Shares sold | 84,351 | 186,010 | $980,333 | $2,508,296 |
| Reinvestment of distributions | – | 14,837 | – | 184,570 |
| Shares redeemed | (256,986) | (167,460) | (3,133,279) | (2,261,599) |
| Net increase (decrease) | (172,635) | 33,387 | $(2,152,946) | $431,267 |
| Class I | ||||
| Shares sold | 33,038 | 631,342 | $466,923 | $10,166,437 |
| Reinvestment of distributions | – | 16,990 | – | 252,474 |
| Shares redeemed | (217,484) | (538,241) | (3,137,525) | (8,614,775) |
| Net increase (decrease) | (184,446) | 110,091 | $(2,670,602) | $1,804,136 |
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | ||||
| Shares sold | 987,448 | 1,834,631 | $29,191,888 | $51,772,796 |
| Reinvestment of distributions | 132,999 | 52,843 | 4,013,924 | 1,360,710 |
| Shares redeemed | (1,723,422) | (1,743,605) | (49,014,820) | (48,339,368) |
| Net increase (decrease) | (602,975) | 143,869 | $(15,809,008) | $4,794,138 |
| Class M | ||||
| Shares sold | 155,773 | 282,122 | $4,255,414 | $7,413,199 |
| Reinvestment of distributions | 33,065 | 13,674 | 926,158 | 328,456 |
| Shares redeemed | (283,850) | (428,609) | (7,619,627) | (11,259,514) |
| Net increase (decrease) | (95,012) | (132,813) | $(2,438,055) | $(3,517,859) |
| Class C | ||||
| Shares sold | 330,132 | 774,531 | $7,749,039 | $17,385,643 |
| Reinvestment of distributions | 94,530 | 40,827 | 2,269,668 | 848,803 |
| Shares redeemed | (938,311) | (963,842) | (21,317,477) | (21,644,353) |
| Net increase (decrease) | (513,649) | (148,484) | $(11,298,770) | $(3,409,907) |
| Class I | ||||
| Shares sold | 1,960,114 | 3,596,218 | $61,846,005 | $109,779,069 |
| Reinvestment of distributions | 86,481 | 48,353 | 2,831,372 | 1,344,706 |
| Shares redeemed | (3,309,001) | (3,719,584) | (100,848,947) | (108,815,882) |
| Net increase (decrease) | (1,262,406) | (75,013) | $(36,171,570) | $2,307,893 |
| Class Z | ||||
| Shares sold | 1,633,004(b) | 291,890 | $53,010,630(b) | $8,677,500 |
| Reinvestment of distributions | 21,250 | 837 | 697,006 | 23,276 |
| Shares redeemed | (538,980) | (82,714) | (15,367,644) | (2,395,506) |
| Net increase (decrease) | 1,115,274 | 210,013 | $38,339,992 | $6,305,270 |
| Fidelity Advisor Energy Fund | ||||
| Class A | ||||
| Shares sold | 2,921,562 | 1,861,131 | $51,419,972 | $55,722,898 |
| Reinvestment of distributions | 95,010 | 56,702 | 2,593,762 | 1,558,168 |
| Shares redeemed | (2,978,037) | (2,490,889) | (63,901,347) | (75,232,664) |
| Net increase (decrease) | 38,535 | (573,056) | $(9,887,613) | $(17,951,598) |
| Class M | ||||
| Shares sold | 536,631 | 289,568 | $10,688,495 | $9,169,953 |
| Reinvestment of distributions | 34,199 | 14,855 | 957,921 | 418,471 |
| Shares redeemed | (1,050,158) | (816,932) | (23,326,366) | (25,787,299) |
| Net increase (decrease) | (479,328) | (512,509) | $(11,679,950) | $(16,198,875) |
| Class C | ||||
| Shares sold | 952,342 | 425,833 | $14,926,711 | $11,837,399 |
| Reinvestment of distributions | 25,382 | – | 638,866 | – |
| Shares redeemed | (1,543,989) | (2,110,590) | (30,880,652) | (57,990,403) |
| Net increase (decrease) | (566,265) | (1,684,757) | $(15,315,075) | $(46,153,004) |
| Class I | ||||
| Shares sold | 7,515,819 | 4,776,569 | $141,901,116 | $153,075,255 |
| Reinvestment of distributions | 107,684 | 99,377 | 3,095,929 | 2,872,985 |
| Shares redeemed | (6,438,806) | (6,677,828) | (143,255,421) | (206,372,328) |
| Net increase (decrease) | 1,184,697 | (1,801,882) | $1,741,624 | $(50,424,088) |
| Class Z | ||||
| Shares sold | 3,592,181(b) | 631,854 | $80,138,784(b) | $19,656,734 |
| Reinvestment of distributions | 37,631 | 3,050 | 1,079,250 | 88,002 |
| Shares redeemed | (1,614,597) | (319,619) | (34,040,181) | (9,387,064) |
| Net increase (decrease) | 2,015,215 | 315,285 | $47,177,853 | $10,357,672 |
| Fidelity Advisor Financial Services Fund | ||||
| Class A | ||||
| Shares sold | 1,136,964 | 1,446,430 | $22,282,321 | $28,995,274 |
| Reinvestment of distributions | 74,672 | 276,327 | 1,748,061 | 5,139,683 |
| Shares redeemed | (2,181,699) | (2,934,480) | (41,948,958) | (57,922,005) |
| Net increase (decrease) | (970,063) | (1,211,723) | $(17,918,576) | $(23,787,048) |
| Class M | ||||
| Shares sold | 410,506 | 302,635 | $8,117,860 | $6,146,264 |
| Reinvestment of distributions | 21,004 | 83,605 | 486,870 | 1,540,000 |
| Shares redeemed | (744,724) | (577,353) | (14,078,849) | (11,535,954) |
| Net increase (decrease) | (313,214) | (191,113) | $(5,474,119) | $(3,849,690) |
| Class C | ||||
| Shares sold | 294,424 | 410,286 | $5,246,784 | $7,848,866 |
| Reinvestment of distributions | 13,952 | 168,506 | 306,244 | 2,938,746 |
| Shares redeemed | (1,385,106) | (2,931,076) | (24,631,507) | (54,749,177) |
| Net increase (decrease) | (1,076,730) | (2,352,284) | $(19,078,479) | $(43,961,565) |
| Class I | ||||
| Shares sold | 3,650,938 | 1,835,735 | $69,558,772 | $37,691,340 |
| Reinvestment of distributions | 65,088 | 249,532 | 1,567,314 | 4,768,552 |
| Shares redeemed | (3,960,034) | (4,483,151) | (78,384,078) | (93,079,529) |
| Net increase (decrease) | (244,008) | (2,397,884) | $(7,257,992) | $(50,619,637) |
| Class Z | ||||
| Shares sold | 2,376,630(b) | 760,279 | $46,381,804(b) | $15,463,647 |
| Reinvestment of distributions | 19,154 | 4,207 | 460,276 | 80,262 |
| Shares redeemed | (1,052,466) | (445,721) | (21,123,539) | (9,415,655) |
| Net increase (decrease) | 1,343,318 | 318,765 | $25,718,541 | $6,128,254 |
| Fidelity Advisor Health Care Fund | ||||
| Class A | ||||
| Shares sold | 4,416,062 | 6,531,759 | $241,671,523 | $315,015,771 |
| Reinvestment of distributions | 67,108 | 946,164 | 3,732,529 | 43,618,143 |
| Shares redeemed | (4,802,715) | (4,703,521) | (249,141,197) | (225,165,039) |
| Net increase (decrease) | (319,545) | 2,774,402 | $(3,737,145) | $133,468,875 |
| Class M | ||||
| Shares sold | 725,698 | 1,014,711 | $36,630,755 | $45,568,415 |
| Reinvestment of distributions | 21,832 | 325,991 | 1,127,617 | 13,994,805 |
| Shares redeemed | (1,282,976) | (991,998) | (62,338,333) | (44,513,058) |
| Net increase (decrease) | (535,446) | 348,704 | $(24,579,961) | $15,050,162 |
| Class C | ||||
| Shares sold | 2,329,497 | 3,350,283 | $99,233,205 | $129,124,544 |
| Reinvestment of distributions | 55,297 | 994,670 | 2,409,588 | 36,235,842 |
| Shares redeemed | (3,760,176) | (5,880,505) | (154,683,543) | (223,232,476) |
| Net increase (decrease) | (1,375,382) | (1,535,552) | $(53,040,750) | $(57,872,090) |
| Class I | ||||
| Shares sold | 17,332,018 | 19,922,626 | $1,021,555,878 | $1,053,249,147 |
| Reinvestment of distributions | 131,180 | 1,142,636 | 7,969,368 | 57,463,164 |
| Shares redeemed | (12,512,534) | (12,090,899) | (710,787,677) | (622,715,268) |
| Net increase (decrease) | 4,950,664 | 8,974,363 | $318,737,569 | $487,997,043 |
| Class Z | ||||
| Shares sold | 6,860,756(b) | 5,177,204 | $395,026,855(b) | $265,690,740 |
| Reinvestment of distributions | 36,769 | 33,495 | 2,234,471 | 1,685,128 |
| Shares redeemed | (2,206,058) | (773,850) | (128,072,955) | (39,657,299) |
| Net increase (decrease) | 4,691,467 | 4,436,849 | $269,188,371 | $227,718,569 |
| Fidelity Advisor Industrials Fund | ||||
| Class A | ||||
| Shares sold | 800,781 | 1,304,915 | $27,338,916 | $49,280,821 |
| Reinvestment of distributions | 468,175 | 760,158 | 17,640,658 | 25,336,052 |
| Shares redeemed | (2,258,552) | (2,285,344) | (74,625,361) | (84,336,189) |
| Net increase (decrease) | (989,596) | (220,271) | $(29,645,787) | $(9,719,316) |
| Class M | ||||
| Shares sold | 131,299 | 146,173 | $4,482,960 | $5,438,985 |
| Reinvestment of distributions | 110,476 | 186,461 | 4,059,928 | 6,071,167 |
| Shares redeemed | (492,314) | (444,100) | (16,081,940) | (16,298,201) |
| Net increase (decrease) | (250,539) | (111,466) | $(7,539,052) | $(4,788,049) |
| Class C | ||||
| Shares sold | 141,731 | 268,186 | $4,356,577 | $9,092,369 |
| Reinvestment of distributions | 169,191 | 408,093 | 5,586,569 | 12,026,501 |
| Shares redeemed | (1,123,620) | (1,664,893) | (33,504,075) | (54,443,091) |
| Net increase (decrease) | (812,698) | (988,614) | $(23,560,929) | $(33,324,221) |
| Class I | ||||
| Shares sold | 1,036,149 | 1,661,115 | $39,146,978 | $67,265,713 |
| Reinvestment of distributions | 300,144 | 658,671 | 11,996,658 | 23,178,649 |
| Shares redeemed | (3,220,419) | (4,154,852) | (116,057,356) | (161,423,355) |
| Net increase (decrease) | (1,884,126) | (1,835,066) | $(64,913,720) | $(70,978,993) |
| Class Z | ||||
| Shares sold | 1,106,449(b) | 335,437 | $41,438,832(b) | $13,454,433 |
| Reinvestment of distributions | 50,287 | 22,285 | 2,004,432 | 782,425 |
| Shares redeemed | (613,430) | (88,504) | (20,747,469) | (3,416,310) |
| Net increase (decrease) | 543,306 | 269,218 | $22,695,795 | $10,820,548 |
| Fidelity Advisor Semiconductors Fund | ||||
| Class A | ||||
| Shares sold | 1,918,310 | 1,570,877 | $49,422,318 | $33,743,905 |
| Reinvestment of distributions | 45,175 | 709,273 | 1,246,388 | 12,234,967 |
| Shares redeemed | (1,538,083) | (1,910,172) | (37,609,605) | (39,847,044) |
| Net increase (decrease) | 425,402 | 369,978 | $13,059,101 | $6,131,828 |
| Class M | ||||
| Shares sold | 307,639 | 216,059 | $7,466,667 | $4,459,312 |
| Reinvestment of distributions | 9,966 | 179,840 | 261,204 | 2,954,769 |
| Shares redeemed | (313,869) | (271,786) | (7,526,473) | (5,395,142) |
| Net increase (decrease) | 3,736 | 124,113 | $201,398 | $2,018,939 |
| Class C | ||||
| Shares sold | 708,636 | 516,058 | $15,319,387 | $9,702,583 |
| Reinvestment of distributions | 21,740 | 500,352 | 509,143 | 7,380,198 |
| Shares redeemed | (784,252) | (1,332,533) | (16,605,105) | (23,766,702) |
| Net increase (decrease) | (53,876) | (316,123) | $(776,575) | $(6,683,921) |
| Class I | ||||
| Shares sold | 2,212,446 | 2,412,173 | $59,935,860 | $56,759,752 |
| Reinvestment of distributions | 43,044 | 694,346 | 1,260,337 | 12,678,766 |
| Shares redeemed | (2,288,478) | (4,406,979) | (59,322,282) | (99,658,089) |
| Net increase (decrease) | (32,988) | (1,300,460) | $1,873,915 | $(30,219,571) |
| Class Z | ||||
| Shares sold | 581,503 | 216,855 | $15,181,099 | $4,685,587 |
| Reinvestment of distributions | 4,479 | 9,898 | 130,911 | 180,240 |
| Shares redeemed | (443,607) | (118,884) | (10,785,339) | (2,616,386) |
| Net increase (decrease) | 142,375 | 107,869 | $4,526,671 | $2,249,441 |
| Fidelity Advisor Technology Fund | ||||
| Class A | ||||
| Shares sold | 4,045,407 | 3,756,669 | $244,306,097 | $187,693,872 |
| Reinvestment of distributions | 405,797 | 2,975,905 | 23,718,843 | 124,006,070 |
| Shares redeemed | (3,730,933) | (3,583,860) | (216,583,380) | (177,926,291) |
| Net increase (decrease) | 720,271 | 3,148,714 | $51,441,560 | $133,773,651 |
| Class M | ||||
| Shares sold | 1,410,824 | 805,546 | $79,216,290 | $38,923,214 |
| Reinvestment of distributions | 156,168 | 1,336,074 | 8,545,526 | 52,227,136 |
| Shares redeemed | (1,596,821) | (1,352,837) | (88,333,760) | (63,834,169) |
| Net increase (decrease) | (29,829) | 788,783 | $(571,944) | $27,316,181 |
| Class C | ||||
| Shares sold | 1,534,539 | 1,238,784 | $74,482,342 | $52,318,454 |
| Reinvestment of distributions | 129,222 | 1,628,057 | 6,128,996 | 55,467,904 |
| Shares redeemed | (1,706,549) | (3,537,434) | (80,576,120) | (140,707,328) |
| Net increase (decrease) | (42,788) | (670,593) | $35,218 | $(32,920,970) |
| Class I | ||||
| Shares sold | 6,639,669 | 4,978,186 | $434,536,634 | $279,288,161 |
| Reinvestment of distributions | 269,988 | 2,163,105 | 17,244,124 | 98,183,325 |
| Shares redeemed | (6,277,501) | (6,711,883) | (401,652,852) | (360,970,511) |
| Net increase (decrease) | 632,156 | 429,408 | $50,127,906 | $16,500,975 |
| Class Z | ||||
| Shares sold | 4,274,206(b) | 621,440 | $266,397,357(b) | $33,517,330 |
| Reinvestment of distributions | 60,687 | 41,765 | 3,867,591 | 1,891,557 |
| Shares redeemed | (1,311,989) | (111,781) | (84,755,784) | (5,729,272) |
| Net increase (decrease) | 3,022,904 | 551,424 | $185,509,164 | $29,679,615 |
| Fidelity Advisor Utilities Fund | ||||
| Class A | ||||
| Shares sold | 2,392,457 | 3,965,369 | $77,895,527 | $121,737,792 |
| Reinvestment of distributions | 152,614 | 635,093 | 5,172,093 | 18,874,957 |
| Shares redeemed | (2,875,150) | (1,662,969) | (88,551,028) | (50,721,580) |
| Net increase (decrease) | (330,079) | 2,937,493 | $(5,483,408) | $89,891,169 |
| Class M | ||||
| Shares sold | 475,312 | 621,871 | $15,397,803 | $19,194,066 |
| Reinvestment of distributions | 30,852 | 170,880 | 1,048,650 | 5,095,641 |
| Shares redeemed | (535,502) | (327,281) | (16,771,407) | (9,975,044) |
| Net increase (decrease) | (29,338) | 465,470 | $(324,954) | $14,314,663 |
| Class C | ||||
| Shares sold | 843,228 | 1,080,580 | $26,750,146 | $32,431,678 |
| Reinvestment of distributions | 27,506 | 192,852 | 910,715 | 5,610,064 |
| Shares redeemed | (896,060) | (844,191) | (27,330,917) | (25,438,001) |
| Net increase (decrease) | (25,326) | 429,241 | $329,944 | $12,603,741 |
| Class I | ||||
| Shares sold | 4,228,842 | 7,789,708 | $139,366,410 | $245,997,023 |
| Reinvestment of distributions | 156,807 | 409,312 | 5,431,804 | 12,426,708 |
| Shares redeemed | (5,481,417) | (2,843,740) | (172,916,612) | (87,926,911) |
| Net increase (decrease) | (1,095,768) | 5,355,280 | $(28,118,398) | $170,496,820 |
| Class Z | ||||
| Shares sold | 2,355,739(b) | 583,519 | $77,042,807(b) | $18,464,326 |
| Reinvestment of distributions | 28,120 | 583,519 | 973,507 | 358,825 |
| Shares redeemed | (1,253,225) | (69,687) | (38,887,243) | (2,192,537) |
| Net increase (decrease) | 1,130,634 | 525,659 | $39,129,071 | $16,630,614 |
(a) Share transactions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
(b) Amount includes in-kind exchanges (see the Affiliated Exchanges 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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Funds' performance.
Report of Independent Registered Public Accounting Firm
To the Board of 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, 2020, 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, 2020, 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, 2020, by correspondence with the custodian 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, 2020
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 Bettina Doulton, each of the Trustees oversees 311 funds. Ms. Doulton oversees 210 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. Robert A. Lawrence is an interested person and currently serves as Acting 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 and David M. Thomas serve as Co-Lead Independent Trustees and as such each (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 FMR 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 FMR, 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. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR'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+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 FMR.
+ 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 served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-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 Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as 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 in the past 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 at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as 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 Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. 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). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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 certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
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 Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). 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: 2020
Assistant 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 Deputy Treasurer of certain Fidelity® funds (2016-2020) and 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 Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
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 (2013-2019) 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 LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table 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/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value July 31, 2020 | Expenses Paid During Period-B February 1, 2020 to July 31, 2020 | |
| Fidelity Advisor Biotechnology Fund | ||||
| Class A | 1.02% | |||
| Actual | $1,000.00 | $1,177.20 | $5.52 | |
| Hypothetical-C | $1,000.00 | $1,019.79 | $5.12 | |
| Class M | 1.31% | |||
| Actual | $1,000.00 | $1,175.40 | $7.09 | |
| Hypothetical-C | $1,000.00 | $1,018.35 | $6.57 | |
| Class C | 1.77% | |||
| Actual | $1,000.00 | $1,172.50 | $9.56 | |
| Hypothetical-C | $1,000.00 | $1,016.06 | $8.87 | |
| Class I | .75% | |||
| Actual | $1,000.00 | $1,178.40 | $4.06 | |
| Hypothetical-C | $1,000.00 | $1,021.13 | $3.77 | |
| Class Z | .62% | |||
| Actual | $1,000.00 | $1,179.30 | $3.36 | |
| Hypothetical-C | $1,000.00 | $1,021.78 | $3.12 | |
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | 1.42% | |||
| Actual | $1,000.00 | $1,060.40 | $7.27 | |
| Hypothetical-C | $1,000.00 | $1,017.80 | $7.12 | |
| Class M | 1.67% | |||
| Actual | $1,000.00 | $1,058.60 | $8.55 | |
| Hypothetical-C | $1,000.00 | $1,016.56 | $8.37 | |
| Class C | 2.17% | |||
| Actual | $1,000.00 | $1,056.50 | $11.10 | |
| Hypothetical-C | $1,000.00 | $1,014.07 | $10.87 | |
| Class I | 1.17% | |||
| Actual | $1,000.00 | $1,061.90 | $6.00 | |
| Hypothetical-C | $1,000.00 | $1,019.05 | $5.87 | |
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | 1.07% | |||
| Actual | $1,000.00 | $1,109.30 | $5.61 | |
| Hypothetical-C | $1,000.00 | $1,019.54 | $5.37 | |
| Class M | 1.34% | |||
| Actual | $1,000.00 | $1,107.80 | $7.02 | |
| Hypothetical-C | $1,000.00 | $1,018.20 | $6.72 | |
| Class C | 1.82% | |||
| Actual | $1,000.00 | $1,105.20 | $9.53 | |
| Hypothetical-C | $1,000.00 | $1,015.81 | $9.12 | |
| Class I | .79% | |||
| Actual | $1,000.00 | $1,110.70 | $4.15 | |
| Hypothetical-C | $1,000.00 | $1,020.93 | $3.97 | |
| Class Z | .66% | |||
| Actual | $1,000.00 | $1,111.70 | $3.47 | |
| Hypothetical-C | $1,000.00 | $1,021.58 | $3.32 | |
| Fidelity Advisor Energy Fund | ||||
| Class A | 1.16% | |||
| Actual | $1,000.00 | $681.30 | $4.85 | |
| Hypothetical-C | $1,000.00 | $1,019.10 | $5.82 | |
| Class M | 1.42% | |||
| Actual | $1,000.00 | $680.80 | $5.93 | |
| Hypothetical-C | $1,000.00 | $1,017.80 | $7.12 | |
| Class C | 1.89% | |||
| Actual | $1,000.00 | $679.00 | $7.89 | |
| Hypothetical-C | $1,000.00 | $1,015.47 | $9.47 | |
| Class I | .83% | |||
| Actual | $1,000.00 | $682.70 | $3.47 | |
| Hypothetical-C | $1,000.00 | $1,020.74 | $4.17 | |
| Class Z | .67% | |||
| Actual | $1,000.00 | $683.10 | $2.80 | |
| Hypothetical-C | $1,000.00 | $1,021.53 | $3.37 | |
| Fidelity Advisor Financial Services Fund | ||||
| Class A | 1.11% | |||
| Actual | $1,000.00 | $790.50 | $4.94 | |
| Hypothetical-C | $1,000.00 | $1,019.34 | $5.57 | |
| Class M | 1.36% | |||
| Actual | $1,000.00 | $789.30 | $6.05 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $6.82 | |
| Class C | 1.86% | |||
| Actual | $1,000.00 | $787.60 | $8.27 | |
| Hypothetical-C | $1,000.00 | $1,015.61 | $9.32 | |
| Class I | .80% | |||
| Actual | $1,000.00 | $791.70 | $3.56 | |
| Hypothetical-C | $1,000.00 | $1,020.89 | $4.02 | |
| Class Z | .67% | |||
| Actual | $1,000.00 | $792.20 | $2.99 | |
| Hypothetical-C | $1,000.00 | $1,021.53 | $3.37 | |
| Fidelity Advisor Health Care Fund | ||||
| Class A | 1.00% | |||
| Actual | $1,000.00 | $1,118.30 | $5.27 | |
| Hypothetical-C | $1,000.00 | $1,019.89 | $5.02 | |
| Class M | 1.26% | |||
| Actual | $1,000.00 | $1,116.80 | $6.63 | |
| Hypothetical-C | $1,000.00 | $1,018.60 | $6.32 | |
| Class C | 1.75% | |||
| Actual | $1,000.00 | $1,114.20 | $9.20 | |
| Hypothetical-C | $1,000.00 | $1,016.16 | $8.77 | |
| Class I | .74% | |||
| Actual | $1,000.00 | $1,119.70 | $3.90 | |
| Hypothetical-C | $1,000.00 | $1,021.18 | $3.72 | |
| Class Z | .61% | |||
| Actual | $1,000.00 | $1,120.50 | $3.22 | |
| Hypothetical-C | $1,000.00 | $1,021.83 | $3.07 | |
| Fidelity Advisor Industrials Fund | ||||
| Class A | 1.06% | |||
| Actual | $1,000.00 | $894.80 | $4.99 | |
| Hypothetical-C | $1,000.00 | $1,019.59 | $5.32 | |
| Class M | 1.33% | |||
| Actual | $1,000.00 | $893.70 | $6.26 | |
| Hypothetical-C | $1,000.00 | $1,018.25 | $6.67 | |
| Class C | 1.82% | |||
| Actual | $1,000.00 | $891.60 | $8.56 | |
| Hypothetical-C | $1,000.00 | $1,015.81 | $9.12 | |
| Class I | .79% | |||
| Actual | $1,000.00 | $896.10 | $3.72 | |
| Hypothetical-C | $1,000.00 | $1,020.93 | $3.97 | |
| Class Z | .65% | |||
| Actual | $1,000.00 | $896.60 | $3.07 | |
| Hypothetical-C | $1,000.00 | $1,021.63 | $3.27 | |
| Fidelity Advisor Semiconductors Fund | ||||
| Class A | 1.08% | |||
| Actual | $1,000.00 | $1,104.10 | $5.65 | |
| Hypothetical-C | $1,000.00 | $1,019.49 | $5.42 | |
| Class M | 1.37% | |||
| Actual | $1,000.00 | $1,102.60 | $7.16 | |
| Hypothetical-C | $1,000.00 | $1,018.05 | $6.87 | |
| Class C | 1.84% | |||
| Actual | $1,000.00 | $1,100.00 | $9.61 | |
| Hypothetical-C | $1,000.00 | $1,015.71 | $9.22 | |
| Class I | .80% | |||
| Actual | $1,000.00 | $1,105.40 | $4.19 | |
| Hypothetical-C | $1,000.00 | $1,020.89 | $4.02 | |
| Class Z | .67% | |||
| Actual | $1,000.00 | $1,106.30 | $3.51 | |
| Hypothetical-C | $1,000.00 | $1,021.53 | $3.37 | |
| Fidelity Advisor Technology Fund | ||||
| Class A | 1.01% | |||
| Actual | $1,000.00 | $1,239.20 | $5.62 | |
| Hypothetical-C | $1,000.00 | $1,019.84 | $5.07 | |
| Class M | 1.25% | |||
| Actual | $1,000.00 | $1,237.80 | $6.95 | |
| Hypothetical-C | $1,000.00 | $1,018.65 | $6.27 | |
| Class C | 1.77% | |||
| Actual | $1,000.00 | $1,234.40 | $9.83 | |
| Hypothetical-C | $1,000.00 | $1,016.06 | $8.87 | |
| Class I | .74% | |||
| Actual | $1,000.00 | $1,240.90 | $4.12 | |
| Hypothetical-C | $1,000.00 | $1,021.18 | $3.72 | |
| Class Z | .62% | |||
| Actual | $1,000.00 | $1,241.70 | $3.46 | |
| Hypothetical-C | $1,000.00 | $1,021.78 | $3.12 | |
| Fidelity Advisor Utilities Fund | ||||
| Class A | 1.07% | |||
| Actual | $1,000.00 | $860.10 | $4.95 | |
| Hypothetical-C | $1,000.00 | $1,019.54 | $5.37 | |
| Class M | 1.34% | |||
| Actual | $1,000.00 | $858.80 | $6.19 | |
| Hypothetical-C | $1,000.00 | $1,018.20 | $6.72 | |
| Class C | 1.82% | |||
| Actual | $1,000.00 | $856.90 | $8.40 | |
| Hypothetical-C | $1,000.00 | $1,015.81 | $9.12 | |
| Class I | .79% | |||
| Actual | $1,000.00 | $861.20 | $3.66 | |
| Hypothetical-C | $1,000.00 | $1,020.93 | $3.97 | |
| Class Z | .65% | |||
| Actual | $1,000.00 | $862.00 | $3.01 | |
| Hypothetical-C | $1,000.00 | $1,021.63 | $3.27 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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, 2020, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Advisor Biotechnology Fund | $13,772,393 |
| Fidelity Advisor Consumer Discretionary Fund | $8,070,887 |
| Fidelity Advisor Financial Services Fund | $4,847,074 |
| Fidelity Advisor Health Care Fund | $143,641,124 |
| Fidelity Advisor Industrials Fund | $8,208,487 |
| Fidelity Advisor Semiconductors Fund | $20,076,850 |
| Fidelity Advisor Technology Fund | $150,800,185 |
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 | Class Z | |
| Fidelity Advisor Biotechnology Fund | |||||
| December 2019 | 100% | 100% | – | 100% | 100% |
| Fidelity Advisor Communications Equipment Fund | |||||
| December 2019 | – | – | – | – | – |
| Fidelity Advisor Consumer Discretionary Fund | |||||
| December 2019 | – | – | – | – | – |
| Fidelity Advisor Energy Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Financial Services Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Health Care Fund | |||||
| December 2019 | – | – | – | 100% | 100% |
| Fidelity Advisor Industrials Fund | |||||
| December 20, 2019 | 69% | 84% | 100% | 60% | 54% |
| December 30, 2019 | 63% | 63% | 63% | 63% | 63% |
| Fidelity Advisor Semiconductors Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Technology Fund | |||||
| December 2019 | 100% | 100% | – | 100% | 100% |
| Fidelity Advisor Utilities Fund | |||||
| December 2019 | 100% | 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 | Class Z | |
| Fidelity Advisor Biotechnology Fund | |||||
| December 2019 | 100% | 100% | – | 100% | 100% |
| Fidelity Advisor Communications Equipment Fund | |||||
| December 2019 | – | – | – | – | – |
| Fidelity Advisor Consumer Discretionary Fund | |||||
| December 2019 | – | – | – | – | – |
| Fidelity Advisor Energy Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Financial Services Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Health Care Fund | |||||
| December 2019 | – | – | – | 100% | 100% |
| Fidelity Advisor Industrials Fund | |||||
| December 20, 2019 | 73% | 88% | 100% | 63% | 57% |
| December 30, 2019 | 66% | 66% | 66% | 66% | 66% |
| Fidelity Advisor Semiconductors Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Technology Fund | |||||
| December 2019 | 100% | 100% | – | 100% | 100% |
| Fidelity Advisor Utilities Fund | |||||
| December 2019 | 100% | 100% | 100% | 100% | 100% |
The funds will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Funds have adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage each Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. Each Fund’s Board of Trustees (the Board) has designated each Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| # of Votes | % of Votes | |
| Dennis J. Dirks | ||
| Affirmative | 7,587,792,624.647 | 96.309 |
| Withheld | 290,814,620.482 | 3.691 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Donald F. Donahue | ||
| Affirmative | 7,594,961,614.235 | 96.400 |
| Withheld | 283,645,630.895 | 3.600 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Bettina Doulton | ||
| Affirmative | 7,600,867,953.681 | 96.475 |
| Withheld | 277,739,291.449 | 3.525 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Vicki L. Fuller | ||
| Affirmative | 7,629,721,233.483 | 96.841 |
| Withheld | 248,886,011.646 | 3.159 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Patricia L. Kampling | ||
| Affirmative | 7,599,301,653.562 | 96.455 |
| Withheld | 279,305,591.567 | 3.545 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Alan J. Lacy | ||
| Affirmative | 7,565,107,454.613 | 96.021 |
| Withheld | 313,499,790.516 | 3.979 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Ned C. Lautenbach | ||
| Affirmative | 7,547,884,641.090 | 95.802 |
| Withheld | 330,722,604.040 | 4.198 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Robert A. Lawrence | ||
| Affirmative | 7,569,972,953.372 | 96.083 |
| Withheld | 308,634,291.757 | 3.917 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Joseph Mauriello | ||
| Affirmative | 7,580,263,221.046 | 96.213 |
| Withheld | 298,344,024.084 | 3.787 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Cornelia M. Small | ||
| Affirmative | 7,592,314,722.618 | 96.366 |
| Withheld | 286,292,522.511 | 3.634 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Garnett A. Smith | ||
| Affirmative | 7,576,230,494.191 | 96.162 |
| Withheld | 302,376,750.938 | 3.838 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| David M. Thomas | ||
| Affirmative | 7,564,233,971.442 | 96.010 |
| Withheld | 314,373,273.687 | 3.990 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Susan Tomasky | ||
| Affirmative | 7,597,340,838.041 | 96.430 |
| Withheld | 281,266,407.088 | 3.570 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Michael E. Wiley | ||
| Affirmative | 7,563,324,977.302 | 95.998 |
| Withheld | 315,282,267.828 | 4.002 |
| TOTAL | 7,878,607,245.129 | 100.000 |
PROPOSAL 3
For shareholders of Fidelity Advisor® Semiconductors Fund, to modify the fund's fundamental investment policy.
| # of Votes | % of Votes | |
| Affirmative | 67,785,932.387 | 34.072 |
| Against | 5,324,454.419 | 2.676 |
| Abstain | 12,379,858.788 | 6.223 |
| Broker Non-Vote | 113,459,679.561 | 57.029 |
| TOTAL | 198,949,925.154 | 100.000 |
PROPOSAL 4
For shareholders of Fidelity Advisor® Semiconductors Fund, to modify the fund's fundamental concentration policy.
| # of Votes | % of Votes | |
| Affirmative | 68,575,323.045 | 34.469 |
| Against | 5,244,062.520 | 2.636 |
| Abstain | 12,301,659.349 | 6.183 |
| Broker Non-Vote | 112,828,880.240 | 56.712 |
| TOTAL | 198,949,925.154 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. | ||
| Proposals 3 and 4 were not approved by shareholders. |
AFOC-ANN-0920
1.762411.119
Fidelity Advisor® Global Real Estate Fund
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
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, 2020 | Past 1 year | Life of fundA |
| Class A (incl. 5.75% sales charge) | (10.10)% | 0.57% |
| Class M (incl. 3.50% sales charge) | (8.20)% | 0.92% |
| Class C (incl. contingent deferred sales charge) | (6.21)% | 1.33% |
| Class I | (4.40)% | 2.34% |
| Class Z | (4.29)% | 2.39% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Global Real Estate Fund - Class A on August 11, 2016, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the FTSE EPRA/NAREIT Developed Index performed over the same period.
| Period Ending Values | ||
| $10,228 | Fidelity Advisor® Global Real Estate Fund - Class A | |
| $9,855 | FTSE EPRA/NAREIT Developed Index | |
Management's Discussion of Fund Performance
Market Recap: For the 12 months ending July 31, 2020, global real estate stocks returned -13.40% – a negative result partly offset by a broadly weaker U.S. dollar – according to the FTSE® EPRA℠/NAREIT® Developed Index. For roughly the first half of the reporting period, global real estate securities steadily gained. Beginning in late February, however, conditions became tumultuous, as the COVID-19 pandemic forced economic shutdowns around the world. This situation led to questions about whether certain segments of the real estate market – such as retail, hotels and offices – would experience long-term challenges stemming from concern about social gathering. Meanwhile, other property types whose business models remained largely intact despite the pandemic – such as industrial, data center and mobile communication tower real estate investment trusts (REITs) – stood to benefit from similar worries. In this environment, real estate securities fell sharply between late February and mid-March. As economies reopened, however, and global central banks pursued aggressive economic stimulus efforts, the real estate market bounced back sharply, and the index regained a portion of its value through the end of July. Despite some groups experiencing serious fundamental challenges – highlighted by brick-and-mortar retail, whose existing difficulties, which included mounting competition from e-commerce, only accelerated along with the pandemic – the fundamental backdrop for global real estate was often favorable. Access to debt and equity capital remained often positive, while supply was constrained in certain segments and markets.Comments from Portfolio Manager Steven Buller: For the fiscal year ending July 31, 2020, the fund's share classes returned roughly -4% to -5%, significantly outperforming the -13.40% return of the FTSE® EPRA℠/NAREIT® Developed Index. Security selection was the primary driver of the fund's relative outperformance, led by favorable picks in the U.S., Australia and France. Country allocation also contributed overall, especially an overweighting in the outperforming German market. On an individual basis, the fund's largest relative contributor was our significant underweighting in Simon Property Group, which returned about -58% for the fund. We sold our stake in the company, the largest mall owner in the U.S., in March due to ongoing concerns about the business prospects for the retail property sector. Another relative outperformer was Ingenia Communities Group, an out-of-benchmark investment and large portfolio holding on July 31 that gained about 48%. This owner of manufactured housing sites in Australia benefited from growing demand for its properties amid travel limitations related to COVID-19. Data center REITs Equinix (+65%) – a non-benchmark holding – and an overweighting in Digital Realty Trust (+48%), also boosted the portfolio's relative result. These companies' share prices were aided by people working from home, which, in turn, increased demand for data-management facilities. Adding further value were warehouse operators Prologis (+33%) and Duke Realty (+24%) – both overweight positions – whose business benefits from growth in e-commerce. Prologis, Duke and Digital Realty Trust all were among the fund's largest holdings on July 31. In contrast, the fund's biggest individual detractor was Stockland Units. This diversified Australian REIT returned -58% for the fund, reflecting suboptimal timing with our ownership. We initially purchased the stock last October, prior to the pandemic-related market downturn, and then we sold the stock in March, thus missing out when the shares bounced back a bit. Another detractor was our lack of exposure to benchmark component Deutsche Wohnen (+35%), which, like other German residential REITs, enjoyed strong performance due to the category's relative stability. Also hampering relative performance was an overweighting in Diamondrock Hospitality, the fund's only remaining position in the hotel sector as of July 31. The stock returned -54%.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, 2020
| % of fund's net assets | |
| Prologis, Inc. | 8.2 |
| Digital Realty Trust, Inc. | 4.7 |
| Duke Realty Corp. | 3.8 |
| UDR, Inc. | 3.5 |
| Vonovia SE | 3.5 |
| LEG Immobilien AG | 3.2 |
| Equity Lifestyle Properties, Inc. | 2.6 |
| Ingenia Communities Group unit | 2.4 |
| Hibernia (REIT) PLC | 2.2 |
| Advance Residence Investment Corp. | 2.1 |
| 36.2 |
Top Five Countries as of July 31, 2020
| (excluding cash equivalents) | % of fund's net assets |
| United States of America | 54.6 |
| Germany | 8.6 |
| Japan | 7.0 |
| Singapore | 5.6 |
| Australia | 4.8 |
Top Five REIT Sectors as of July 31, 2020
| % of fund's net assets | |
| REITs - Diversified | 21.6 |
| REITs - Apartments | 14.2 |
| REITs - Warehouse/Industrial | 10.0 |
| REITs - Health Care | 7.7 |
| REITs - Management/Investment | 5.5 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020* | ||
| Stocks | 97.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.1% | |
* Foreign investments - 43.3%
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value | ||
| Australia - 4.8% | |||
| Abacus Property Group unit | 11,167 | $21,462 | |
| Arena (REIT) unit | 13,425 | 21,581 | |
| Ingenia Communities Group unit | 27,490 | 93,291 | |
| National Storage (REIT) unit | 37,325 | 48,000 | |
| TOTAL AUSTRALIA | 184,334 | ||
| Austria - 0.9% | |||
| CA Immobilien Anlagen AG | 1,110 | 34,780 | |
| Bailiwick of Guernsey - 1.3% | |||
| Sirius Real Estate Ltd. | 54,390 | 52,329 | |
| Canada - 2.3% | |||
| Boardwalk (REIT) | 1,636 | 37,411 | |
| Dream Industrial (REIT) | 6,272 | 51,508 | |
| TOTAL CANADA | 88,919 | ||
| Cayman Islands - 1.6% | |||
| Cheung Kong Property Holdings Ltd. | 11,354 | 63,067 | |
| France - 2.8% | |||
| ARGAN SA | 365 | 36,718 | |
| Gecina SA | 550 | 70,942 | |
| TOTAL FRANCE | 107,660 | ||
| Germany - 8.6% | |||
| Instone Real Estate Group BV (a)(b) | 2,811 | 72,185 | |
| LEG Immobilien AG | 904 | 125,931 | |
| Vonovia SE | 2,062 | 134,029 | |
| TOTAL GERMANY | 332,145 | ||
| Hong Kong - 1.4% | |||
| Sino Land Ltd. | 43,494 | 52,696 | |
| Ireland - 2.2% | |||
| Hibernia (REIT) PLC | 63,774 | 85,339 | |
| Italy - 0.7% | |||
| COIMA RES SpA (b) | 4,004 | 28,959 | |
| Japan - 7.0% | |||
| Advance Residence Investment Corp. | 26 | 83,756 | |
| Kenedix Residential Investment Corp. | 23 | 42,000 | |
| Mitsubishi Estate Co. Ltd. | 5,581 | 80,173 | |
| Mitsui Fudosan Co. Ltd. | 4,259 | 66,585 | |
| TOTAL JAPAN | 272,514 | ||
| Singapore - 5.6% | |||
| CapitaCommercial Trust (REIT) | 34,575 | 40,771 | |
| Mapletree Commercial Trust | 14,392 | 19,379 | |
| Parkway Life REIT | 30,916 | 80,226 | |
| UOL Group Ltd. | 15,544 | 75,293 | |
| TOTAL SINGAPORE | 215,669 | ||
| Sweden - 0.7% | |||
| Catena AB | 688 | 28,287 | |
| United Kingdom - 3.4% | |||
| Assura PLC | 27,495 | 28,433 | |
| Grainger Trust PLC | 14,272 | 54,215 | |
| Segro PLC | 2,586 | 32,808 | |
| U & I Group PLC | 17,094 | 15,104 | |
| TOTAL UNITED KINGDOM | 130,560 | ||
| United States of America - 54.6% | |||
| American Assets Trust, Inc. | 637 | 17,199 | |
| American Homes 4 Rent Class A | 2,030 | 58,870 | |
| Americold Realty Trust | 870 | 35,105 | |
| Apartment Investment & Management Co. Class A | 1,113 | 43,207 | |
| Boston Properties, Inc. | 544 | 48,465 | |
| Brandywine Realty Trust (SBI) | 2,519 | 27,281 | |
| Crown Castle International Corp. | 250 | 41,675 | |
| CubeSmart | 1,666 | 49,430 | |
| DiamondRock Hospitality Co. | 2,683 | 12,395 | |
| Digital Realty Trust, Inc. | 1,135 | 182,213 | |
| Duke Realty Corp. | 3,679 | 147,859 | |
| Equinix, Inc. | 88 | 69,122 | |
| Equity Lifestyle Properties, Inc. | 1,474 | 100,704 | |
| Equity Residential (SBI) | 608 | 32,607 | |
| Extra Space Storage, Inc. | 598 | 61,797 | |
| Gaming & Leisure Properties | 1,432 | 51,853 | |
| Healthcare Trust of America, Inc. | 1,819 | 50,223 | |
| Highwoods Properties, Inc. (SBI) | 749 | 28,717 | |
| Invitation Homes, Inc. | 2,219 | 66,171 | |
| Kimco Realty Corp. | 2,010 | 22,412 | |
| Lexington Corporate Properties Trust | 1,992 | 23,107 | |
| Mack-Cali Realty Corp. | 1,005 | 14,492 | |
| Mid-America Apartment Communities, Inc. | 463 | 55,185 | |
| National Retail Properties, Inc. | 1,126 | 39,917 | |
| Piedmont Office Realty Trust, Inc. Class A | 1,488 | 24,120 | |
| Prologis, Inc. | 3,005 | 316,787 | |
| Regency Centers Corp. | 847 | 34,752 | |
| Spirit Realty Capital, Inc. | 686 | 23,640 | |
| Sun Communities, Inc. | 405 | 60,722 | |
| UDR, Inc. | 3,712 | 134,374 | |
| Ventas, Inc. | 1,411 | 54,126 | |
| VEREIT, Inc. | 6,986 | 45,479 | |
| VICI Properties, Inc. | 1,690 | 36,690 | |
| Washington REIT (SBI) | 1,019 | 22,785 | |
| Welltower, Inc. | 1,558 | 83,446 | |
| TOTAL UNITED STATES OF AMERICA | 2,116,927 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $3,493,256) | 3,794,185 | ||
| Money Market Funds - 0.4% | |||
| Fidelity Cash Central Fund 0.14% (c) | |||
| (Cost $13,292) | 13,288 | 13,292 | |
| TOTAL INVESTMENT IN SECURITIES - 98.3% | |||
| (Cost $3,506,548) | 3,807,477 | ||
| NET OTHER ASSETS (LIABILITIES) - 1.7% | 67,313 | ||
| NET ASSETS - 100% | $3,874,790 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
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 $101,144 or 2.6% of net assets.
(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.
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 | $681 |
| Total | $681 |
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, 2020, 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: | ||||
| Real Estate | $3,794,185 | $3,431,758 | $362,427 | $-- |
| Money Market Funds | 13,292 | 13,292 | -- | -- |
| Total Investments in Securities: | $3,807,477 | $3,445,050 | $362,427 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $3,493,256) | $3,794,185 | |
| Fidelity Central Funds (cost $13,292) | 13,292 | |
| Total Investment in Securities (cost $3,506,548) | $3,807,477 | |
| Cash | 3,264 | |
| Foreign currency held at value (cost $23,496) | 23,492 | |
| Receivable for investments sold | 22,172 | |
| Receivable for fund shares sold | 807 | |
| Dividends receivable | 9,265 | |
| Distributions receivable from Fidelity Central Funds | 2 | |
| Prepaid expenses | 17 | |
| Receivable from investment adviser for expense reductions | 37,465 | |
| Other receivables | 237 | |
| Total assets | 3,904,198 | |
| Liabilities | ||
| Payable for investments purchased | $4,341 | |
| Payable for fund shares redeemed | 9,379 | |
| Accrued management fee | 2,173 | |
| Audit fees payable | 6,094 | |
| Custody fees payable | 5,768 | |
| Distribution and service plan fees payable | 780 | |
| Other affiliated payables | 751 | |
| Other payables and accrued expenses | 122 | |
| Total liabilities | 29,408 | |
| Net Assets | $3,874,790 | |
| Net Assets consist of: | ||
| Paid in capital | $3,899,746 | |
| Total accumulated earnings (loss) | (24,956) | |
| Net Assets | $3,874,790 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,732,125 ÷ 178,783 shares)(a) | $9.69 | |
| Maximum offering price per share (100/94.25 of $9.69) | $10.28 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($658,231 ÷ 68,085 shares)(a) | $9.67 | |
| Maximum offering price per share (100/96.50 of $9.67) | $10.02 | |
| Class C: | ||
| Net Asset Value and offering price per share ($184,938 ÷ 19,213 shares)(a) | $9.63 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,066,020 ÷ 109,828 shares) | $9.71 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($233,476 ÷ 23,993 shares) | $9.73 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $154,738 | |
| Income from Fidelity Central Funds | 681 | |
| Income before foreign taxes withheld | 155,419 | |
| Less foreign taxes withheld | (6,491) | |
| Total income | 148,928 | |
| Expenses | ||
| Management fee | $35,624 | |
| Transfer agent fees | 10,922 | |
| Distribution and service plan fees | 16,719 | |
| Accounting fees and expenses | 2,028 | |
| Custodian fees and expenses | 24,266 | |
| Independent trustees' fees and expenses | 35 | |
| Registration fees | 66,744 | |
| Audit | 61,793 | |
| Legal | 11 | |
| Miscellaneous | 325 | |
| Total expenses before reductions | 218,467 | |
| Expense reductions | (142,809) | |
| Total expenses after reductions | 75,658 | |
| Net investment income (loss) | 73,270 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (38,778) | |
| Fidelity Central Funds | 5 | |
| Foreign currency transactions | (642) | |
| Total net realized gain (loss) | (39,415) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (288,844) | |
| Assets and liabilities in foreign currencies | 387 | |
| Total change in net unrealized appreciation (depreciation) | (288,457) | |
| Net gain (loss) | (327,872) | |
| Net increase (decrease) in net assets resulting from operations | $(254,602) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $73,270 | $96,088 |
| Net realized gain (loss) | (39,415) | 12,772 |
| Change in net unrealized appreciation (depreciation) | (288,457) | 430,879 |
| Net increase (decrease) in net assets resulting from operations | (254,602) | 539,739 |
| Distributions to shareholders | (292,523) | (86,970) |
| Share transactions - net increase (decrease) | (2,100,606) | 2,897,807 |
| Total increase (decrease) in net assets | (2,647,731) | 3,350,576 |
| Net Assets | ||
| Beginning of period | 6,522,521 | 3,171,945 |
| End of period | $3,874,790 | $6,522,521 |
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, | 2020 | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $10.72 | $10.13 | $9.81 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .15 | .22 | .18 | .15 |
| Net realized and unrealized gain (loss) | (.58) | .58 | .42 | (.26) |
| Total from investment operations | (.43) | .80 | .60 | (.11) |
| Distributions from net investment income | (.23) | (.15) | (.13) | (.07) |
| Distributions from net realized gain | (.37) | (.06) | (.14) | (.01) |
| Total distributions | (.60) | (.21) | (.28)C | (.08) |
| Net asset value, end of period | $9.69 | $10.72 | $10.13 | $9.81 |
| Total ReturnD,E,F | (4.61)% | 8.25% | 6.16% | (1.00)% |
| Ratios to Average Net AssetsG,H | ||||
| Expenses before reductions | 4.22% | 4.56% | 5.86% | 8.94%I |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40%I |
| Expenses net of all reductions | 1.39% | 1.39% | 1.38% | 1.39%I |
| Net investment income (loss) | 1.47% | 2.09% | 1.80% | 1.65%I |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $1,732 | $3,290 | $1,001 | $657 |
| Portfolio turnover rateJ | 52% | 60% | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $10.71 | $10.11 | $9.79 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .12 | .19 | .15 | .13 |
| Net realized and unrealized gain (loss) | (.58) | .60 | .42 | (.27) |
| Total from investment operations | (.46) | .79 | .57 | (.14) |
| Distributions from net investment income | (.21) | (.13) | (.11) | (.06) |
| Distributions from net realized gain | (.37) | (.06) | (.14) | (.01) |
| Total distributions | (.58) | (.19) | (.25) | (.07) |
| Net asset value, end of period | $9.67 | $10.71 | $10.11 | $9.79 |
| Total ReturnC,D,E | (4.87)% | 8.06% | 5.90% | (1.30)% |
| Ratios to Average Net AssetsF,G | ||||
| Expenses before reductions | 4.46% | 4.79% | 5.90% | 9.20%H |
| Expenses net of fee waivers, if any | 1.66% | 1.65% | 1.65% | 1.65%H |
| Expenses net of all reductions | 1.64% | 1.64% | 1.63% | 1.64%H |
| Net investment income (loss) | 1.22% | 1.84% | 1.54% | 1.40%H |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $658 | $810 | $570 | $550 |
| Portfolio turnover rateI | 52% | 60% | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $10.63 | $10.08 | $9.76 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .07 | .14 | .10 | .08 |
| Net realized and unrealized gain (loss) | (.58) | .59 | .42 | (.26) |
| Total from investment operations | (.51) | .73 | .52 | (.18) |
| Distributions from net investment income | (.12) | (.12) | (.06) | (.05) |
| Distributions from net realized gain | (.37) | (.06) | (.14) | (.01) |
| Total distributions | (.49) | (.18) | (.20) | (.06) |
| Net asset value, end of period | $9.63 | $10.63 | $10.08 | $9.76 |
| Total ReturnC,D,E | (5.31)% | 7.52% | 5.38% | (1.77)% |
| Ratios to Average Net AssetsF,G | ||||
| Expenses before reductions | 4.46% | 5.04% | 6.26% | 9.75%H |
| Expenses net of fee waivers, if any | 2.16% | 2.15% | 2.15% | 2.15%H |
| Expenses net of all reductions | 2.15% | 2.14% | 2.13% | 2.14%H |
| Net investment income (loss) | .71% | 1.34% | 1.04% | .90%H |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $185 | $1,060 | $614 | $737 |
| Portfolio turnover rateI | 52% | 60% | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, | 2020 | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $10.75 | $10.15 | $9.82 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .17 | .24 | .20 | .17 |
| Net realized and unrealized gain (loss) | (.58) | .59 | .43 | (.26) |
| Total from investment operations | (.41) | .83 | .63 | (.09) |
| Distributions from net investment income | (.26) | (.17) | (.16) | (.08) |
| Distributions from net realized gain | (.37) | (.06) | (.14) | (.01) |
| Total distributions | (.63) | (.23) | (.30) | (.09) |
| Net asset value, end of period | $9.71 | $10.75 | $10.15 | $9.82 |
| Total ReturnC,D | (4.40)% | 8.55% | 6.48% | (.80)% |
| Ratios to Average Net AssetsE,F | ||||
| Expenses before reductions | 3.97% | 4.20% | 5.41% | 8.74%G |
| Expenses net of fee waivers, if any | 1.16% | 1.15% | 1.15% | 1.15%G |
| Expenses net of all reductions | 1.14% | 1.14% | 1.13% | 1.14%G |
| Net investment income (loss) | 1.71% | 2.34% | 2.04% | 1.90%G |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $1,066 | $1,056 | $986 | $863 |
| Portfolio turnover rateH | 52% | 60% | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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.
Fidelity Advisor Global Real Estate Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $10.76 | $10.01 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .19 | .22 |
| Net realized and unrealized gain (loss) | (.59) | .76 |
| Total from investment operations | (.40) | .98 |
| Distributions from net investment income | (.26) | (.17) |
| Distributions from net realized gain | (.37) | (.06) |
| Total distributions | (.63) | (.23) |
| Net asset value, end of period | $9.73 | $10.76 |
| Total ReturnC,D | (4.29)% | 10.17% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductions | 3.54% | 3.87%G |
| Expenses net of fee waivers, if any | 1.02% | 1.00%G |
| Expenses net of all reductions | 1.00% | 1.00%G |
| Net investment income (loss) | 1.86% | 2.50%G |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $233 | $306 |
| Portfolio turnover rateH | 52% | 60% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, 2020
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, Class I and Class Z 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. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 – Investment 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. 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, 2020 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, 2020, 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, partnerships, passive foreign investment companies (PFIC), capital loss carryforwards, 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:
| Gross unrealized appreciation | $622,028 |
| Gross unrealized depreciation | (419,706) |
| Net unrealized appreciation (depreciation) | $202,322 |
| Tax Cost | $3,605,155 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $25,852 |
| Capital loss carryforward | $(214,511) |
| Net unrealized appreciation (depreciation) on securities and other investments | $202,423 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. 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 | $(202,055) |
| Long-term | (12,456) |
| Total capital loss carryforward | $(214,511) |
The Fund intends to elect to defer to its next fiscal year $38,721 of ordinary losses recognized during the period January 1, 2019 to July 31, 2020.
The tax character of distributions paid was as follows:
| July 31, 2020 | July 31, 2019 | |
| Ordinary Income | $292,523 | $ 86,970 |
Restricted Securities (including Private Placements). 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, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Advisor Global Real Estate Fund | 2,697,642 | 4,911,475 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 .68% 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 Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
| Class A | -% | .25% | $5,852 | $2,782 |
| Class M | .25% | .25% | 3,726 | 2,626 |
| Class C | .75% | .25% | 7,141 | 1,903 |
| $16,719 | $7,311 |
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 | $277 |
| Class M | 67 |
| $344 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Class A | $6,454 | .28 |
| Class M | 1,574 | .21 |
| Class C | 1,346 | .19 |
| Class I | 1,404 | .13 |
| Class Z | 144 | .04 |
| $10,922 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
| % of Average Net Assets | |
| Fidelity Advisor Global Real Estate Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 Global Real Estate Fund | $98 |
Interfund Trades. 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.
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:
| Amount | |
| Fidelity Advisor Global Real Estate Fund | $13 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
The investment adviser contractually agreed to reimburse expenses of 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, 2021. 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% | $66,066 |
| Class M | 1.65% | 20,877 |
| Class C | 2.15% | 16,324 |
| Class I | 1.15% | 30,405 |
| Class Z | 1.00% | 8,298 |
| $141,970 |
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 $817 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.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $22.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Distributions to shareholders | ||
| Class A | $122,644 | $25,954 |
| Class M | 42,186 | 11,502 |
| Class C | 39,171 | 24,842 |
| Class I | 62,776 | 21,029 |
| Class Z | 25,746 | 3,643 |
| Total | $292,523 | $86,970 |
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, 2020 | Year ended July 31, 2019 | Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Class A | ||||
| Shares sold | 67,738 | 325,885 | $745,778 | $3,299,731 |
| Reinvestment of distributions | 11,335 | 2,803 | 122,644 | 25,954 |
| Shares redeemed | (207,100) | (120,755) | (2,288,710) | (1,255,243) |
| Net increase (decrease) | (128,027) | 207,933 | $(1,420,288) | $2,070,442 |
| Class M | ||||
| Shares sold | 6,383 | 28,136 | $70,605 | $284,727 |
| Reinvestment of distributions | 3,899 | 1,242 | 42,186 | 11,502 |
| Shares redeemed | (17,790) | (10,191) | (189,680) | (107,609) |
| Net increase (decrease) | (7,508) | 19,187 | $(76,889) | $188,620 |
| Class C | ||||
| Shares sold | 4,308 | 106,865 | $45,165 | $1,044,619 |
| Reinvestment of distributions | 3,627 | 2,694 | 39,171 | 24,842 |
| Shares redeemed | (88,473) | (70,716) | (826,012) | (737,722) |
| Net increase (decrease) | (80,538) | 38,843 | $(741,676) | $331,739 |
| Class I | ||||
| Shares sold | 19,620 | 12,846 | $193,070 | $135,171 |
| Reinvestment of distributions | 5,477 | 2,066 | 59,313 | 19,150 |
| Shares redeemed | (13,550) | (13,802) | (124,872) | (140,554) |
| Net increase (decrease) | 11,547 | 1,110 | $127,511 | $13,767 |
| Class Z | ||||
| Shares sold | 33,783 | 28,093 | $378,938 | $290,050 |
| Reinvestment of distributions | 2,125 | 348 | 23,031 | 3,227 |
| Shares redeemed | (40,352) | (4) | (391,233) | (38) |
| Net increase (decrease) | (4,444) | 28,437 | $10,736 | $293,239 |
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 57% of the total outstanding shares of the fund.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of 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, 2020, 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 three years in the period then ended and for the period from August 11, 2016 (commencement of operations) through 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, 2020, 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 three years in the period then ended and for the period from August 11, 2016 (commencement of operations) through 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, 2020, by correspondence with the custodian 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 9, 2020
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 Bettina Doulton, each of the Trustees oversees 311 funds. Ms. Doulton oversees 210 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.
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. Robert A. Lawrence is an interested person and currently serves as Acting 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 and David M. Thomas serve as Co-Lead Independent Trustees and as such each (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 FMR 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 FMR, 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. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR'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+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 FMR.
+ 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 served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-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 Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as 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 in the past 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 at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as 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 Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. 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). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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 certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
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 Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). 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: 2020
Assistant 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 Deputy Treasurer of certain Fidelity® funds (2016-2020) and 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 Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
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 (2013-2019) 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 LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table 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/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value July 31, 2020 | Expenses Paid During Period-B February 1, 2020 to July 31, 2020 | |
| Fidelity Advisor Global Real Estate Fund | ||||
| Class A | 1.41% | |||
| Actual | $1,000.00 | $866.70 | $6.54 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.07 | |
| Class M | 1.66% | |||
| Actual | $1,000.00 | $865.70 | $7.70 | |
| Hypothetical-C | $1,000.00 | $1,016.61 | $8.32 | |
| Class C | 2.20% | |||
| Actual | $1,000.00 | $863.70 | $10.19 | |
| Hypothetical-C | $1,000.00 | $1,013.92 | $11.02 | |
| Class I | 1.16% | |||
| Actual | $1,000.00 | $867.70 | $5.39 | |
| Hypothetical-C | $1,000.00 | $1,019.10 | $5.82 | |
| Class Z | 1.03% | |||
| Actual | $1,000.00 | $868.00 | $4.78 | |
| Hypothetical-C | $1,000.00 | $1,019.74 | $5.17 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
Class A designates 30%; Class M designates 31%; Class C designates 36%; and Class I designates 28%; Class Z designates 28%; of the dividend distributed in December 2019 during the fiscal year as a section 199A dividend.
Class A designates 11%; Class M designates 12%; Class C designates 14%; Class I designates 11%; and Class Z designates 11%; of the dividend distributed in December 2019, during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| # of Votes | % of Votes | |
| Dennis J. Dirks | ||
| Affirmative | 7,587,792,624.647 | 96.309 |
| Withheld | 290,814,620.482 | 3.691 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Donald F. Donahue | ||
| Affirmative | 7,594,961,614.235 | 96.400 |
| Withheld | 283,645,630.895 | 3.600 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Bettina Doulton | ||
| Affirmative | 7,600,867,953.681 | 96.475 |
| Withheld | 277,739,291.449 | 3.525 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Vicki L. Fuller | ||
| Affirmative | 7,629,721,233.483 | 96.841 |
| Withheld | 248,886,011.646 | 3.159 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Patricia L. Kampling | ||
| Affirmative | 7,599,301,653.562 | 96.455 |
| Withheld | 279,305,591.567 | 3.545 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Alan J. Lacy | ||
| Affirmative | 7,565,107,454.613 | 96.021 |
| Withheld | 313,499,790.516 | 3.979 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Ned C. Lautenbach | ||
| Affirmative | 7,547,884,641.090 | 95.802 |
| Withheld | 330,722,604.040 | 4.198 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Robert A. Lawrence | ||
| Affirmative | 7,569,972,953.372 | 96.083 |
| Withheld | 308,634,291.757 | 3.917 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Joseph Mauriello | ||
| Affirmative | 7,580,263,221.046 | 96.213 |
| Withheld | 298,344,024.084 | 3.787 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Cornelia M. Small | ||
| Affirmative | 7,592,314,722.618 | 96.366 |
| Withheld | 286,292,522.511 | 3.634 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Garnett A. Smith | ||
| Affirmative | 7,576,230,494.191 | 96.162 |
| Withheld | 302,376,750.938 | 3.838 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| David M. Thomas | ||
| Affirmative | 7,564,233,971.442 | 96.010 |
| Withheld | 314,373,273.687 | 3.990 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Susan Tomasky | ||
| Affirmative | 7,597,340,838.041 | 96.430 |
| Withheld | 281,266,407.088 | 3.570 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Michael E. Wiley | ||
| Affirmative | 7,563,324,977.302 | 95.998 |
| Withheld | 315,282,267.828 | 4.002 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. |
AGRE-ANN-0920
1.9881280.103
Fidelity Advisor® Real Estate Fund
July 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
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, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (12.55)% | 1.88% | 7.35% |
| Class M (incl. 3.50% sales charge) | (10.66)% | 2.13% | 7.34% |
| Class C (incl. contingent deferred sales charge) | (8.80)% | 2.29% | 7.15% |
| Class I | (6.99)% | 3.37% | 8.26% |
| Class Z | (6.80)% | 3.44% | 8.30% |
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.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$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, 2010, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $20,316 | Fidelity Advisor® Real Estate Fund - Class A | |
| $36,558 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 11.96% for the 12 months ending July 31, 2020, in what was a bumpy ride for U.S. equity investors, marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. Stocks slid in late February, after a surge in COVID-19 cases outside China. The sudden downtrend continued in March (-12%), capping the index’s worst quarter since 2008. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend. Aggressive support for financial markets by the U.S. Federal Reserve, plans for reopening the economy and improving infection data boosted stocks in April (+13%) and May (+5%). In June and July, the index gained amid progress on potential treatments and signs of an early recovery in economic activity. For the full 12 months, growth stocks widely topped value, while large-caps handily bested smaller-caps. The information technology sector (+39%) led the way, followed by consumer discretionary (+22%). In contrast, energy (-38%) fell hard along with the price of crude oil.Comments from Portfolio Manager Samuel Wald: For the fiscal year ending July 31, 2020, the fund's share classes returned roughly -7% to -8%, significantly outperforming the -16.30% return of the Dow Jones U.S. Select Real Estate Securities IndexSM. Against a volatile market backdrop, the fund was well positioned, driven by strong security selection and sector positioning in nearly every category. Investment choices, for example, added value among office & industrial REITs, while my decision to limit exposure to retail REITs, especially malls, also was helpful given this group's struggles. Overweighting industrial REITs, which have benefited from growing demand for warehouse space, also contributed to relative performance. In individual terms, the best performers tended to be REITs whose business remained largely unaffected by the pandemic, whereas the weakest performers were generally those more dependent on social interaction. Accordingly, the fund's top individual contributor was our underweighting and eventual sale of Simon Property Group, the country's largest mall REIT, which returned about -64% within the portfolio until we sold the stock in March. Also adding value was an overweight stake in data-center REIT Digital Realty Trust (+45%), which was aided by the increase in computing demand from employees working at home. Additional contributors and larger-than-benchmark positions included Alexandria Real Estate Equity, an owner of laboratory space benefiting from demand growth amid a national focus on drug and vaccine research, as well as industrial REIT Prologis, which gained amid robust growth in e-commerce lifting demand for its distribution facilities. Alexandria and Prologis, which advanced about 25% and 34% for the fund, respectively, were, along with Digital Realty, among the portfolio's largest holdings on July 31. In contrast, only security selection in residential REITs modestly hampered relative performance while the fund's biggest individual detractor was an overweight stake in hotel REIT RLJ Lodging Trust (-50%), which struggled due to sharp cutbacks in travel spending surrounding the COVID-19 pandemic. Another detractor was an overweighting in Site Centers, a strip center REIT that returned about -64% for the fund before I sold the position in April due to my broader concern about the backdrop for the retail sector.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 October 1, 2020, the fund's supplemental benchmark will change from the Dow Jones U.S. Select Real Estate Securities Index to the MSCI US IMI Real Estate 25/50 Index, which is a better representation of the overall real estate market.Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2020
| % of fund's net assets | |
| Prologis, Inc. | 15.2 |
| Digital Realty Trust, Inc. | 6.8 |
| CubeSmart | 5.2 |
| Mid-America Apartment Communities, Inc. | 5.2 |
| Alexandria Real Estate Equities, Inc. | 5.1 |
| Essex Property Trust, Inc. | 4.9 |
| UDR, Inc. | 4.4 |
| Invitation Homes, Inc. | 4.3 |
| Equity Lifestyle Properties, Inc. | 3.8 |
| National Retail Properties, Inc. | 3.7 |
| 58.6 |
Top Five REIT Sectors as of July 31, 2020
| % of fund's net assets | |
| REITs - Warehouse/Industrial | 20.4 |
| REITs - Apartments | 18.8 |
| REITs - Office Property | 11.7 |
| REITs - Diversified | 9.9 |
| REITs - Management/Investment | 9.7 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2020 | ||
| Stocks | 99.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.4% | |
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Common Stocks - 99.6% | |||
| Shares | Value | ||
| Equity Real Estate Investment Trusts (REITs) - 98.4% | |||
| REITs - Apartments - 18.8% | |||
| Essex Property Trust, Inc. | 94,547 | $20,870,305 | |
| Invitation Homes, Inc. | 614,700 | 18,330,354 | |
| Mid-America Apartment Communities, Inc. | 184,000 | 21,930,960 | |
| UDR, Inc. | 522,600 | 18,918,120 | |
| 80,049,739 | |||
| REITs - Diversified - 9.9% | |||
| Clipper Realty, Inc. | 273,990 | 1,830,253 | |
| Digital Realty Trust, Inc. | 180,500 | 28,977,470 | |
| VICI Properties, Inc. | 512,000 | 11,115,520 | |
| 41,923,243 | |||
| REITs - Health Care - 9.1% | |||
| Healthcare Realty Trust, Inc. | 365,400 | 10,706,220 | |
| Ventas, Inc. | 404,305 | 15,509,140 | |
| Welltower, Inc. | 232,319 | 12,443,006 | |
| 38,658,366 | |||
| REITs - Hotels - 2.8% | |||
| RLJ Lodging Trust | 1,484,026 | 11,887,048 | |
| REITs - Management/Investment - 9.7% | |||
| American Tower Corp. | 45,100 | 11,788,689 | |
| Lexington Corporate Properties Trust | 864,200 | 10,024,720 | |
| National Retail Properties, Inc. | 443,900 | 15,736,255 | |
| Weyerhaeuser Co. | 127,400 | 3,542,994 | |
| 41,092,658 | |||
| REITs - Manufactured Homes - 3.8% | |||
| Equity Lifestyle Properties, Inc. | 240,306 | 16,417,706 | |
| REITs - Office Property - 11.7% | |||
| Alexandria Real Estate Equities, Inc. | 120,700 | 21,430,285 | |
| Douglas Emmett, Inc. | 424,600 | 12,372,844 | |
| Highwoods Properties, Inc. (SBI) | 298,400 | 11,440,656 | |
| Mack-Cali Realty Corp. | 300,300 | 4,330,326 | |
| 49,574,111 | |||
| REITs - Single Tenant - 3.7% | |||
| Four Corners Property Trust, Inc. | 622,700 | 15,692,040 | |
| REITs - Storage - 8.5% | |||
| CubeSmart | 744,800 | 22,098,216 | |
| Extra Space Storage, Inc. | 116,100 | 11,997,774 | |
| Iron Mountain, Inc. | 71,800 | 2,024,042 | |
| 36,120,032 | |||
| REITs - Warehouse/Industrial - 20.4% | |||
| Americold Realty Trust | 333,100 | 13,440,585 | |
| Prologis, Inc. | 614,654 | 64,796,824 | |
| Terreno Realty Corp. | 137,800 | 8,372,728 | |
| 86,610,137 | |||
| TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 418,025,080 | ||
| Real Estate Management & Development - 1.2% | |||
| Real Estate Services - 1.2% | |||
| CBRE Group, Inc. (a) | 118,000 | 5,169,580 | |
| TOTAL COMMON STOCKS | |||
| (Cost $340,201,650) | 423,194,660 | ||
| Money Market Funds - 0.3% | |||
| Fidelity Cash Central Fund 0.14% (b) | |||
| (Cost $1,261,658) | 1,261,369 | 1,261,748 | |
| TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
| (Cost $341,463,308) | 424,456,408 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.1% | 281,936 | ||
| NET ASSETS - 100% | $424,738,344 |
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 | $71,047 |
| Total | $71,047 |
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, 2020, 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 | $423,194,660 | $423,194,660 | $-- | $-- |
| Money Market Funds | 1,261,748 | 1,261,748 | -- | -- |
| Total Investments in Securities: | $424,456,408 | $424,456,408 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $340,201,650) | $423,194,660 | |
| Fidelity Central Funds (cost $1,261,658) | 1,261,748 | |
| Total Investment in Securities (cost $341,463,308) | $424,456,408 | |
| Receivable for investments sold | 7,561,813 | |
| Receivable for fund shares sold | 225,252 | |
| Dividends receivable | 232,076 | |
| Distributions receivable from Fidelity Central Funds | 170 | |
| Prepaid expenses | 3,930 | |
| Other receivables | 90,091 | |
| Total assets | 432,569,740 | |
| Liabilities | ||
| Payable for investments purchased | $6,394,660 | |
| Payable for fund shares redeemed | 985,047 | |
| Accrued management fee | 181,780 | |
| Distribution and service plan fees payable | 80,135 | |
| Other affiliated payables | 102,490 | |
| Other payables and accrued expenses | 87,284 | |
| Total liabilities | 7,831,396 | |
| Net Assets | $424,738,344 | |
| Net Assets consist of: | ||
| Paid in capital | $332,993,411 | |
| Total accumulated earnings (loss) | 91,744,933 | |
| Net Assets | $424,738,344 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($115,736,493 ÷ 5,899,796 shares)(a) | $19.62 | |
| Maximum offering price per share (100/94.25 of $19.62) | $20.82 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($98,724,224 ÷ 5,041,458 shares)(a) | $19.58 | |
| Maximum offering price per share (100/96.50 of $19.58) | $20.29 | |
| Class C: | ||
| Net Asset Value and offering price per share ($20,773,971 ÷ 1,094,937 shares)(a) | $18.97 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($180,346,204 ÷ 9,090,781 shares) | $19.84 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($9,157,452 ÷ 461,392 shares) | $19.85 |
(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, 2020 | ||
| Investment Income | ||
| Dividends | $14,594,115 | |
| Income from Fidelity Central Funds | 71,047 | |
| Total income | 14,665,162 | |
| Expenses | ||
| Management fee | $2,594,998 | |
| Transfer agent fees | 1,147,490 | |
| Distribution and service plan fees | 1,178,241 | |
| Accounting fees and expenses | 186,469 | |
| Custodian fees and expenses | 15,381 | |
| Independent trustees' fees and expenses | 3,168 | |
| Registration fees | 75,823 | |
| Audit | 52,371 | |
| Legal | 957 | |
| Interest | 147 | |
| Miscellaneous | 22,799 | |
| Total expenses before reductions | 5,277,844 | |
| Expense reductions | (49,796) | |
| Total expenses after reductions | 5,228,048 | |
| Net investment income (loss) | 9,437,114 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 16,496,164 | |
| Fidelity Central Funds | 669 | |
| Total net realized gain (loss) | 16,496,833 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (61,855,972) | |
| Fidelity Central Funds | 90 | |
| Total change in net unrealized appreciation (depreciation) | (61,855,882) | |
| Net gain (loss) | (45,359,049) | |
| Net increase (decrease) in net assets resulting from operations | $(35,921,935) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $9,437,114 | $9,633,525 |
| Net realized gain (loss) | 16,496,833 | 37,125,150 |
| Change in net unrealized appreciation (depreciation) | (61,855,882) | 3,786,392 |
| Net increase (decrease) in net assets resulting from operations | (35,921,935) | 50,545,067 |
| Distributions to shareholders | (41,051,862) | (30,142,110) |
| Share transactions - net increase (decrease) | (39,601,264) | (96,244,911) |
| Total increase (decrease) in net assets | (116,575,061) | (75,841,954) |
| Net Assets | ||
| Beginning of period | 541,313,405 | 617,155,359 |
| End of period | $424,738,344 | $541,313,405 |
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, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.91 | $22.07 | $22.96 | $25.93 | $22.90 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .41 | .37 | .37 | .33 | .37 |
| Net realized and unrealized gain (loss) | (1.91) | 1.63 | .21 | (1.82) | 3.61 |
| Total from investment operations | (1.50) | 2.00 | .58 | (1.49) | 3.98 |
| Distributions from net investment income | (.38) | (.43) | (.36) | (.30) | (.36) |
| Distributions from net realized gain | (1.41) | (.73) | (1.11) | (1.18) | (.59) |
| Total distributions | (1.79) | (1.16) | (1.47) | (1.48) | (.95) |
| Net asset value, end of period | $19.62 | $22.91 | $22.07 | $22.96 | $25.93 |
| Total ReturnB,C | (7.21)% | 9.62% | 2.55% | (5.63)% | 18.33% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.10% | 1.10% | 1.10% | 1.09% | 1.09% |
| Expenses net of fee waivers, if any | 1.10% | 1.09% | 1.10% | 1.09% | 1.09% |
| Expenses net of all reductions | 1.09% | 1.09% | 1.10% | 1.08% | 1.08% |
| Net investment income (loss) | 1.93% | 1.68% | 1.70% | 1.42% | 1.62% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $115,736 | $151,536 | $161,570 | $249,442 | $370,408 |
| Portfolio turnover rateF | 56% | 49% | 41% | 69% | 62% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Real Estate Fund Class M
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.87 | $22.05 | $22.94 | $25.90 | $22.88 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .36 | .32 | .32 | .27 | .32 |
| Net realized and unrealized gain (loss) | (1.90) | 1.62 | .21 | (1.81) | 3.60 |
| Total from investment operations | (1.54) | 1.94 | .53 | (1.54) | 3.92 |
| Distributions from net investment income | (.34) | (.39) | (.31) | (.24) | (.30) |
| Distributions from net realized gain | (1.41) | (.73) | (1.11) | (1.18) | (.59) |
| Total distributions | (1.75) | (1.12) | (1.42) | (1.42) | (.90)B |
| Net asset value, end of period | $19.58 | $22.87 | $22.05 | $22.94 | $25.90 |
| Total ReturnC,D | (7.42)% | 9.35% | 2.34% | (5.83)% | 18.02% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.31% | 1.32% | 1.33% | 1.33% | 1.33% |
| Expenses net of fee waivers, if any | 1.31% | 1.31% | 1.33% | 1.33% | 1.33% |
| Expenses net of all reductions | 1.30% | 1.31% | 1.32% | 1.32% | 1.32% |
| Net investment income (loss) | 1.71% | 1.46% | 1.47% | 1.18% | 1.38% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $98,724 | $128,754 | $127,038 | $153,285 | $199,431 |
| Portfolio turnover rateG | 56% | 49% | 41% | 69% | 62% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.90 per share is comprised of distributions from net investment income of $.303 and distributions from net realized gain of $.594 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 C
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.26 | $21.54 | $22.46 | $25.43 | $22.49 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .23 | .19 | .20 | .15 | .19 |
| Net realized and unrealized gain (loss) | (1.85) | 1.58 | .20 | (1.78) | 3.54 |
| Total from investment operations | (1.62) | 1.77 | .40 | (1.63) | 3.73 |
| Distributions from net investment income | (.26) | (.32) | (.21) | (.16) | (.20) |
| Distributions from net realized gain | (1.41) | (.73) | (1.11) | (1.18) | (.59) |
| Total distributions | (1.67) | (1.05) | (1.32) | (1.34) | (.79) |
| Net asset value, end of period | $18.97 | $22.26 | $21.54 | $22.46 | $25.43 |
| Total ReturnB,C | (7.95)% | 8.72% | 1.77% | (6.34)% | 17.40% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.89% | 1.88% | 1.88% | 1.86% | 1.86% |
| Expenses net of fee waivers, if any | 1.89% | 1.88% | 1.88% | 1.86% | 1.86% |
| Expenses net of all reductions | 1.88% | 1.88% | 1.87% | 1.86% | 1.85% |
| Net investment income (loss) | 1.14% | .89% | .92% | .65% | .85% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $20,774 | $28,982 | $43,690 | $62,551 | $86,755 |
| Portfolio turnover rateF | 56% | 49% | 41% | 69% | 62% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Real Estate Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.15 | $22.28 | $23.17 | $26.15 | $23.09 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .46 | .43 | .43 | .39 | .43 |
| Net realized and unrealized gain (loss) | (1.92) | 1.65 | .21 | (1.83) | 3.64 |
| Total from investment operations | (1.46) | 2.08 | .64 | (1.44) | 4.07 |
| Distributions from net investment income | (.44) | (.48) | (.42) | (.36) | (.41) |
| Distributions from net realized gain | (1.41) | (.73) | (1.11) | (1.18) | (.59) |
| Total distributions | (1.85) | (1.21) | (1.53) | (1.54) | (1.01)B |
| Net asset value, end of period | $19.84 | $23.15 | $22.28 | $23.17 | $26.15 |
| Total ReturnC | (6.99)% | 9.93% | 2.84% | (5.36)% | 18.61% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .86% | .81% | .82% | .82% | .84% |
| Expenses net of fee waivers, if any | .86% | .81% | .82% | .82% | .83% |
| Expenses net of all reductions | .85% | .81% | .81% | .81% | .83% |
| Net investment income (loss) | 2.17% | 1.96% | 1.98% | 1.69% | 1.87% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $180,346 | $225,407 | $284,857 | $399,578 | $422,848 |
| Portfolio turnover rateF | 56% | 49% | 41% | 69% | 62% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.01 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.594 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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 Real Estate Fund Class Z
| Years ended July 31, | 2020 | 2019 A |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $23.16 | $21.91 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .50 | .40 |
| Net realized and unrealized gain (loss) | (1.92) | 1.94 |
| Total from investment operations | (1.42) | 2.34 |
| Distributions from net investment income | (.48) | (.36) |
| Distributions from net realized gain | (1.41) | (.73) |
| Total distributions | (1.89) | (1.09) |
| Net asset value, end of period | $19.85 | $23.16 |
| Total ReturnC,D | (6.80)% | 11.22% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductions | .65% | .65%G |
| Expenses net of fee waivers, if any | .65% | .64%G |
| Expenses net of all reductions | .64% | .64%G |
| Net investment income (loss) | 2.38% | 2.20%G |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $9,157 | $6,634 |
| Portfolio turnover rateH | 56% | 49% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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, 2020
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, Class I and Class Z 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. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 – Investment 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. 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, 2020 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the 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 $71,931 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, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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 foreign currency transactions, 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 | $103,898,974 |
| Gross unrealized depreciation | (22,734,382) |
| Net unrealized appreciation (depreciation) | $81,164,592 |
| Tax Cost | $343,291,816 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,425,049 |
| Undistributed long-term capital gain | $9,227,223 |
| Net unrealized appreciation (depreciation) on securities and other investments | $81,164,592 |
The tax character of distributions paid was as follows:
| July 31, 2020 | July 31, 2019 | |
| Ordinary Income | $8,901,801 | $ 11,385,034 |
| Long-term Capital Gains | 32,150,061 | 18,757,076 |
| Total | $41,051,862 | $ 30,142,110 |
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 Real Estate Fund | 268,301,597 | 333,501,494 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company 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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 .53% 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 Company LLC (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% | $334,203 | $5,083 |
| Class M | .25% | .25% | 579,982 | 502 |
| Class C | .75% | .25% | 264,056 | 24,319 |
| $1,178,241 | $29,904 |
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 | $27,356 |
| Class M | 4,523 |
| Class C(a) | 2,871 |
| $34,750 |
(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 LLC (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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Class A | $323,720 | .24 |
| Class M | 239,669 | .21 |
| Class C | 74,142 | .28 |
| Class I | 506,430 | .25 |
| Class Z | 3,529 | .04 |
| $1,147,490 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
| % of Average Net Assets | |
| Fidelity Advisor Real Estate Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 Real Estate Fund | $4,684 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 Real Estate Fund | Borrower | $5,124,000 | .35% | $147 |
Interfund Trades. 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.
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:
| Amount | |
| Fidelity Advisor Real Estate Fund | $1,218 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $39,885 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, custodian credits reduced the Fund's expenses by $252.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,109.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $7,550 for an operational error which is included in the accompanying Statement of Operations.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2020 | Year ended July 31, 2019(a) | |
| Distributions to shareholders | ||
| Class A | $11,351,149 | $7,770,800 |
| Class M | 9,900,861 | 6,470,306 |
| Class C | 2,212,295 | 1,942,389 |
| Class I | 16,797,330 | 13,766,198 |
| Class Z | 790,227 | 192,417 |
| Total | $41,051,862 | $30,142,110 |
(a) Distributions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
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, 2020 | Year ended July 31, 2019(a) | Year ended July 31, 2020 | Year ended July 31, 2019(a) | |
| Class A | ||||
| Shares sold | 1,177,605 | 1,438,522 | $24,680,361 | $31,232,246 |
| Reinvestment of distributions | 518,941 | 367,126 | 11,204,406 | 7,670,791 |
| Shares redeemed | (2,412,107) | (2,510,246) | (50,221,247) | (54,843,455) |
| Net increase (decrease) | (715,561) | (704,598) | $(14,336,480) | $(15,940,418) |
| Class M | ||||
| Shares sold | 950,286 | 1,062,860 | $20,331,432 | $23,205,065 |
| Reinvestment of distributions | 456,913 | 306,005 | 9,847,117 | 6,372,621 |
| Shares redeemed | (1,995,286) | (1,500,594) | (42,434,132) | (32,897,737) |
| Net increase (decrease) | (588,087) | (131,729) | $(12,255,583) | $(3,320,051) |
| Class C | ||||
| Shares sold | 220,320 | 156,567 | $4,724,593 | $3,354,867 |
| Reinvestment of distributions | 101,651 | 93,330 | 2,127,235 | 1,890,831 |
| Shares redeemed | (528,900) | (976,378) | (10,184,069) | (20,809,428) |
| Net increase (decrease) | (206,929) | (726,481) | $(3,332,241) | $(15,563,730) |
| Class I | ||||
| Shares sold | 3,925,859 | 2,903,162 | $80,680,448 | $64,049,999 |
| Reinvestment of distributions | 746,499 | 642,207 | 16,292,429 | 13,570,710 |
| Shares redeemed | (5,319,374) | (6,591,629) | (110,572,461) | (145,379,848) |
| Net increase (decrease) | (647,016) | (3,046,260) | $(13,599,584) | $(67,759,139) |
| Class Z | ||||
| Shares sold | 430,251 | 315,610 | $9,103,828 | $6,987,782 |
| Reinvestment of distributions | 33,911 | 8,643 | 738,465 | 181,838 |
| Shares redeemed | (289,280) | (37,743) | (5,919,669) | (831,193) |
| Net increase (decrease) | 174,882 | 286,510 | $3,922,624 | $6,338,427 |
(a) Share transactions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019
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.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of 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, 2020, 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, 2020, 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, 2020, by correspondence with the custodian 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 9, 2020
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 Bettina Doulton, each of the Trustees oversees 311 funds. Ms. Doulton oversees 210 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. Robert A. Lawrence is an interested person and currently serves as Acting 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 and David M. Thomas serve as Co-Lead Independent Trustees and as such each (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 FMR 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 FMR, 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. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR'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+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 FMR.
+ 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 served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-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 Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2018
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as 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 in the past 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 at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as 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 Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2018
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. 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). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (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 as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
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 certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
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: 2019
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 Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
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 Equity (2018-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 Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), 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).
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). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). 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: 2020
Assistant 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 Deputy Treasurer of certain Fidelity® funds (2016-2020) and 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 Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
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 (2013-2019) 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 LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to July 31, 2020).
Actual Expenses
The first line of the accompanying table 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/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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, 2020 | Ending Account Value July 31, 2020 | Expenses Paid During Period-B February 1, 2020 to July 31, 2020 | |
| Fidelity Advisor Real Estate Fund | ||||
| Class A | 1.12% | |||
| Actual | $1,000.00 | $895.00 | $5.28 | |
| Hypothetical-C | $1,000.00 | $1,019.29 | $5.62 | |
| Class M | 1.33% | |||
| Actual | $1,000.00 | $893.70 | $6.26 | |
| Hypothetical-C | $1,000.00 | $1,018.25 | $6.67 | |
| Class C | 1.90% | |||
| Actual | $1,000.00 | $891.00 | $8.93 | |
| Hypothetical-C | $1,000.00 | $1,015.42 | $9.52 | |
| Class I | .88% | |||
| Actual | $1,000.00 | $895.70 | $4.15 | |
| Hypothetical-C | $1,000.00 | $1,020.49 | $4.42 | |
| Class Z | .65% | |||
| Actual | $1,000.00 | $896.80 | $3.07 | |
| Hypothetical-C | $1,000.00 | $1,021.63 | $3.27 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
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, 2020, $16,589,624, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.10% 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.
Class A, Class C, Class M, Class I and Class Z designate 1% of the dividends distributed in December during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 1% and 1%; Class C designates 1% and 2%; Class M designates 1% and 2%; Class I designates 1% and 1%; Class Z designates 1% and 1%; of the dividends distributed in September and December, respectively during the fiscal year as amounts which 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 designates 100%, and 92%; Class C designates 100% and 99%; Class M designates 100%, and 98%; Class I designates 96%, and 85%; Class Z designates 89%, and 80%;of the dividends distributed in September and December, 2019, respectively during the fiscal year as a section 199A dividend.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
| # of Votes | % of Votes | |
| Dennis J. Dirks | ||
| Affirmative | 7,587,792,624.647 | 96.309 |
| Withheld | 290,814,620.482 | 3.691 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Donald F. Donahue | ||
| Affirmative | 7,594,961,614.235 | 96.400 |
| Withheld | 283,645,630.895 | 3.600 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Bettina Doulton | ||
| Affirmative | 7,600,867,953.681 | 96.475 |
| Withheld | 277,739,291.449 | 3.525 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Vicki L. Fuller | ||
| Affirmative | 7,629,721,233.483 | 96.841 |
| Withheld | 248,886,011.646 | 3.159 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Patricia L. Kampling | ||
| Affirmative | 7,599,301,653.562 | 96.455 |
| Withheld | 279,305,591.567 | 3.545 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Alan J. Lacy | ||
| Affirmative | 7,565,107,454.613 | 96.021 |
| Withheld | 313,499,790.516 | 3.979 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Ned C. Lautenbach | ||
| Affirmative | 7,547,884,641.090 | 95.802 |
| Withheld | 330,722,604.040 | 4.198 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Robert A. Lawrence | ||
| Affirmative | 7,569,972,953.372 | 96.083 |
| Withheld | 308,634,291.757 | 3.917 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Joseph Mauriello | ||
| Affirmative | 7,580,263,221.046 | 96.213 |
| Withheld | 298,344,024.084 | 3.787 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Cornelia M. Small | ||
| Affirmative | 7,592,314,722.618 | 96.366 |
| Withheld | 286,292,522.511 | 3.634 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Garnett A. Smith | ||
| Affirmative | 7,576,230,494.191 | 96.162 |
| Withheld | 302,376,750.938 | 3.838 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| David M. Thomas | ||
| Affirmative | 7,564,233,971.442 | 96.010 |
| Withheld | 314,373,273.687 | 3.990 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Susan Tomasky | ||
| Affirmative | 7,597,340,838.041 | 96.430 |
| Withheld | 281,266,407.088 | 3.570 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Michael E. Wiley | ||
| Affirmative | 7,563,324,977.302 | 95.998 |
| Withheld | 315,282,267.828 | 4.002 |
| TOTAL | 7,878,607,245.129 | 100.000 |
| Proposal 1 reflects trust wide proposal and voting results. |
ARE-ANN-0920
1.789690.117
Item 2.
Code of Ethics
As of the end of the period, July 31, 2020, 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, 2020 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Advisor Biotechnology Fund | $51,600 | $- | $6,900 | $1,100 |
Fidelity Advisor Communications Equipment Fund | $34,400 | $- | $6,900 | $800 |
Fidelity Advisor Consumer Discretionary Fund | $34,300 | $- | $8,700 | $800 |
Fidelity Advisor Energy Fund | $36,200 | $- | $9,900 | $800 |
Fidelity Advisor Financial Services Fund | $36,100 | $- | $9,200 | $800 |
Fidelity Advisor Global Real Estate Fund | $43,500 | $- | $8,700 | $900 |
Fidelity Advisor Health Care Fund | $36,000 | $- | $8,800 | $800 |
Fidelity Advisor Industrials Fund | $35,100 | $- | $8,300 | $800 |
Fidelity Advisor Real Estate Fund | $38,100 | $- | $8,300 | $800 |
Fidelity Advisor Semiconductors Fund | $34,000 | $- | $6,900 | $700 |
Fidelity Advisor Technology Fund | $37,400 | $- | $8,500 | $800 |
Fidelity Advisor Utilities Fund | $33,900 | $- | $8,700 | $800 |
July 31, 2019 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Advisor Biotechnology Fund | $54,000 | $100 | $4,800 | $1,500 |
Fidelity Advisor Communications Equipment Fund | $37,000 | $100 | $4,800 | $1,100 |
Fidelity Advisor Consumer Discretionary Fund | $37,000 | $100 | $6,200 | $1,100 |
Fidelity Advisor Energy Fund | $39,000 | $100 | $7,100 | $1,200 |
Fidelity Advisor Financial Services Fund | $39,000 | $100 | $6,700 | $1,100 |
Fidelity Advisor Global Real Estate Fund | $46,000 | $100 | $6,200 | $1,300 |
Fidelity Advisor Health Care Fund | $39,000 | $100 | $6,000 | $1,100 |
Fidelity Advisor Industrials Fund | $37,000 | $100 | $6,000 | $1,100 |
Fidelity Advisor Real Estate Fund | $41,000 | $100 | $5,700 | $1,200 |
Fidelity Advisor Semiconductors Fund | $36,000 | $100 | $5,100 | $1,000 |
Fidelity Advisor Technology Fund | $40,000 | $100 | $6,000 | $1,200 |
Fidelity Advisor Utilities Fund | $37,000 | $100 | $6,000 | $1,100 |
A Amounts may reflect rounding.
The following table(s) present(s) 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 Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (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 Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
July 31, 2020A | July 31, 2019A | |
Audit-Related Fees | $- | $290,000 |
Tax Fees | $3,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“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 Fund(s), FMR (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 Fund(s) are as follows:
Billed By | July 31, 2020A | July 31, 2019A |
Deloitte Entities | $614,300 | $785,000 |
A Amounts may reflect rounding.
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(their) audit of the Fund(s), taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) 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 Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
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) | |
(a) | (3) | Not applicable. |
(b) |
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 21, 2020 |
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 21, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | September 21, 2020 |