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 811-03114
Fidelity Select Portfolios
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Margaret Carey, 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: | January 31 |
Date of reporting period: | July 31, 2023 |
Item 1.
Reports to Stockholders
Contents
Top Holdings (% of Fund's net assets) | ||
Southern Co. | 9.5 | |
T-Mobile U.S., Inc. | 9.2 | |
AT&T, Inc. | 9.0 | |
Verizon Communications, Inc. | 8.5 | |
PG&E Corp. | 7.1 | |
Constellation Energy Corp. | 6.4 | |
Sempra Energy | 4.9 | |
Edison International | 4.8 | |
American Water Works Co., Inc. | 4.0 | |
Public Service Enterprise Group, Inc. | 3.8 | |
67.2 | ||
Industries (% of Fund's net assets) | ||
Electric Utilities | 40.6 | |
Diversified Telecommunication Services | 17.5 | |
Multi-Utilities | 15.5 | |
Wireless Telecommunication Services | 9.4 | |
Independent Power and Renewable Electricity Producers | 5.7 | |
Asset Allocation (% of Fund's net assets) |
Common Stocks - 93.8% | |||
Shares | Value ($) (000s) | ||
COMMUNICATION SERVICES - 26.9% | |||
Diversified Telecommunication Services - 17.5% | |||
AT&T, Inc. | 5,486,700 | 79,667 | |
Verizon Communications, Inc. | 2,227,700 | 75,920 | |
155,587 | |||
Wireless Telecommunication Services - 9.4% | |||
T-Mobile U.S., Inc. (a) | 594,269 | 81,872 | |
Telephone & Data Systems, Inc. | 284,570 | 2,282 | |
84,154 | |||
TOTAL COMMUNICATION SERVICES | 239,741 | ||
ENERGY - 1.1% | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Cheniere Energy, Inc. | 63,400 | 10,262 | |
UTILITIES - 65.8% | |||
Electric Utilities - 40.6% | |||
Constellation Energy Corp. | 593,880 | 57,399 | |
Edison International | 597,728 | 43,013 | |
Entergy Corp. | 67,215 | 6,903 | |
Eversource Energy | 435,010 | 31,464 | |
FirstEnergy Corp. | 580,177 | 22,853 | |
NextEra Energy, Inc. | 407,274 | 29,853 | |
PG&E Corp. (a) | 3,613,374 | 63,632 | |
PPL Corp. | 791,009 | 21,776 | |
Southern Co. | 1,175,465 | 85,033 | |
361,926 | |||
Independent Power and Renewable Electricity Producers - 5.7% | |||
Energy Harbor Corp. (a) | 154,400 | 11,912 | |
NextEra Energy Partners LP | 185,754 | 10,114 | |
The AES Corp. | 251,700 | 5,444 | |
Vistra Corp. | 839,787 | 23,564 | |
51,034 | |||
Multi-Utilities - 15.5% | |||
Dominion Energy, Inc. | 513,542 | 27,500 | |
DTE Energy Co. | 198,800 | 22,723 | |
NiSource, Inc. | 385,400 | 10,730 | |
Public Service Enterprise Group, Inc. | 531,500 | 33,548 | |
Sempra Energy | 293,871 | 43,793 | |
138,294 | |||
Water Utilities - 4.0% | |||
American Water Works Co., Inc. | 242,100 | 35,693 | |
TOTAL UTILITIES | 586,947 | ||
TOTAL COMMON STOCKS (Cost $673,146) | 836,950 | ||
Money Market Funds - 3.0% | |||
Shares | Value ($) (000s) | ||
Fidelity Cash Central Fund 5.32% (b) (Cost $27,429) | 27,423,306 | 27,429 | |
TOTAL INVESTMENT IN SECURITIES - 96.8% (Cost $700,575) | 864,379 |
NET OTHER ASSETS (LIABILITIES) - 3.2% | 28,129 |
NET ASSETS - 100.0% | 892,508 |
(a) | Non-income producing |
(b) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
Affiliate (Amounts in thousands) | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
Fidelity Cash Central Fund 5.32% | 17,633 | 217,014 | 207,218 | 569 | - | - | 27,429 | 0.1% |
Fidelity Securities Lending Cash Central Fund 5.32% | 1,146 | 19,750 | 20,896 | 1 | - | - | - | 0.0% |
Total | 18,779 | 236,764 | 228,114 | 570 | - | - | 27,429 | |
Valuation Inputs at Reporting Date: | ||||
Description (Amounts in thousands) | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | 239,741 | 239,741 | - | - |
Energy | 10,262 | 10,262 | - | - |
Utilities | 586,947 | 586,947 | - | - |
Money Market Funds | 27,429 | 27,429 | - | - |
Total Investments in Securities: | 864,379 | 864,379 | - | - |
Statement of Assets and Liabilities | ||||
Amounts in thousands (except per-share amount) | July 31, 2023 (Unaudited) | |||
Assets | ||||
Investment in securities, at value - See accompanying schedule: | ||||
Unaffiliated issuers (cost $673,146) | $ | 836,950 | ||
Fidelity Central Funds (cost $27,429) | 27,429 | |||
Total Investment in Securities (cost $700,575) | $ | 864,379 | ||
Cash | 19 | |||
Receivable for investments sold | 27,257 | |||
Receivable for fund shares sold | 60 | |||
Dividends receivable | 1,826 | |||
Distributions receivable from Fidelity Central Funds | 44 | |||
Prepaid expenses | 3 | |||
Other receivables | 109 | |||
Total assets | 893,697 | |||
Liabilities | ||||
Payable for fund shares redeemed | $ | 490 | ||
Accrued management fee | 435 | |||
Transfer agent fee payable | 108 | |||
Other affiliated payables | 23 | |||
Other payables and accrued expenses | 133 | |||
Total Liabilities | 1,189 | |||
Net Assets | $ | 892,508 | ||
Net Assets consist of: | ||||
Paid in capital | $ | 703,115 | ||
Total accumulated earnings (loss) | 189,393 | |||
Net Assets | $ | 892,508 | ||
Net Asset Value, offering price and redemption price per share ($892,508 ÷ 33,230 shares) | $ | 26.86 |
Statement of Operations | ||||
Amounts in thousands | Six months ended July 31, 2023 (Unaudited) | |||
Investment Income | ||||
Dividends | $ | 13,164 | ||
Income from Fidelity Central Funds (including $1 from security lending) | 570 | |||
Total Income | 13,734 | |||
Expenses | ||||
Management fee | ||||
Basic fee | $ | 1,939 | ||
Performance adjustment | 722 | |||
Transfer agent fees | 665 | |||
Accounting fees | 138 | |||
Custodian fees and expenses | 7 | |||
Independent trustees' fees and expenses | 3 | |||
Registration fees | 18 | |||
Audit | 24 | |||
Legal | 2 | |||
Miscellaneous | 3 | |||
Total expenses before reductions | 3,521 | |||
Expense reductions | (28) | |||
Total expenses after reductions | 3,493 | |||
Net Investment income (loss) | 10,241 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Investment Securities: | ||||
Unaffiliated issuers | 27,146 | |||
Total net realized gain (loss) | 27,146 | |||
Change in net unrealized appreciation (depreciation) on investment securities | (60,531) | |||
Net gain (loss) | (33,385) | |||
Net increase (decrease) in net assets resulting from operations | $ | (23,144) |
Statement of Changes in Net Assets | ||||
Amount in thousands | Six months ended July 31, 2023 (Unaudited) | Year ended January 31, 2023 | ||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 10,241 | $ | 17,902 |
Net realized gain (loss) | 27,146 | 38,922 | ||
Change in net unrealized appreciation (depreciation) | (60,531) | 14,554 | ||
Net increase (decrease) in net assets resulting from operations | (23,144) | 71,378 | ||
Distributions to shareholders | (31,846) | (36,135) | ||
Share transactions | ||||
Proceeds from sales of shares | 11,380 | 81,039 | ||
Reinvestment of distributions | 28,439 | 32,340 | ||
Cost of shares redeemed | (61,114) | (119,371) | ||
Net increase (decrease) in net assets resulting from share transactions | (21,295) | (5,992) | ||
Total increase (decrease) in net assets | (76,285) | 29,251 | ||
Net Assets | ||||
Beginning of period | 968,793 | 939,542 | ||
End of period | $ | 892,508 | $ | 968,793 |
Other Information | ||||
Shares | ||||
Sold | 422 | 2,841 | ||
Issued in reinvestment of distributions | 1,088 | 1,159 | ||
Redeemed | (2,271) | (4,267) | ||
Net increase (decrease) | (761) | (267) | ||
Fidelity® Telecom and Utilities Fund |
Six months ended (Unaudited) July 31, 2023 | Years ended January 31, 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 28.50 | $ | 27.43 | $ | 27.20 | $ | 28.73 | $ | 25.40 | $ | 26.24 |
Income from Investment Operations | ||||||||||||
Net investment income (loss) A,B | .30 | .52 | .65 | .58 | .69 | .64 | ||||||
Net realized and unrealized gain (loss) | (.99) | 1.61 | 1.03 | (1.08) | 4.57 | 1.00 | ||||||
Total from investment operations | (.69) | 2.13 | 1.68 | (.50) | 5.26 | 1.64 | ||||||
Distributions from net investment income | (.23) | (.54) | (.63) C | (.62) | (.76) | (.61) | ||||||
Distributions from net realized gain | (.72) | (.52) | (.82) C | (.40) | (1.17) | (1.87) | ||||||
Total distributions | (.95) | (1.06) | (1.45) | (1.03) D | (1.93) | (2.48) | ||||||
Net asset value, end of period | $ | 26.86 | $ | 28.50 | $ | 27.43 | $ | 27.20 | $ | 28.73 | $ | 25.40 |
Total Return E,F | (2.32)% | 7.91% | 6.29% | (1.47)% | 21.02% | 6.41% | ||||||
Ratios to Average Net Assets B,G,H | ||||||||||||
Expenses before reductions | .77% I | .73% | .60% | .67% | .75% | .70% | ||||||
Expenses net of fee waivers, if any | .77% I | .72% | .60% | .67% | .75% | .70% | ||||||
Expenses net of all reductions | .77% I | .72% | .60% | .66% | .74% | .68% | ||||||
Net investment income (loss) | 2.24% I | 1.85% | 2.31% | 2.25% | 2.48% | 2.49% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (in millions) | $ | 893 | $ | 969 | $ | 940 | $ | 968 | $ | 1,148 | $ | 974 |
Portfolio turnover rate J | 71% I | 34% | 34% | 60% | 48% | 77% |
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense RatioA |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
Fidelity Telecom and Utilities Fund | $107 |
Gross unrealized appreciation | $211,774 |
Gross unrealized depreciation | (51,101) |
Net unrealized appreciation (depreciation) | $160,673 |
Tax cost | $703,706 |
Purchases ($) | Sales ($) | |
Fidelity Telecom and Utilities Fund | 311,168 | 370,046 |
% of Average Net Assets | |
Fidelity Telecom and Utilities Fund | .03 |
Amount | |
Fidelity Telecom and Utilities Fund | $ 9 |
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Telecom and Utilities Fund | 4,342 | 663 | (90) |
Amount | |
Fidelity Telecom and Utilities Fund | $1 |
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Telecom and Utilities Fund | $- A | $ - | $- |
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, 2023 to July 31, 2023). |
Annualized Expense Ratio- A | Beginning Account Value February 1, 2023 | Ending Account Value July 31, 2023 | Expenses Paid During Period- C February 1, 2023 to July 31, 2023 | |||||||
Fidelity® Telecom and Utilities Fund | .77% | |||||||||
Actual | $ 1,000 | $ 976.80 | $ 3.77 | |||||||
Hypothetical-B | $ 1,000 | $ 1,020.98 | $ 3.86 | |||||||
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Select Portfolios’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Select Portfolios’s (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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) | Not applicable. |
(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 Select Portfolios
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | September 21, 2023 |
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, 2023 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | September 21, 2023 |