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)
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: | February 28 |
Date of reporting period: | August 31, 2021 |
Item 1.
Reports to Stockholders
Fidelity® Select Portfolios®
Consumer Discretionary Sector
Automotive Portfolio
Communication Services Portfolio
Construction and Housing Portfolio
Consumer Discretionary Portfolio
Leisure Portfolio
Retailing Portfolio
Semi-Annual Report
August 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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Contents
Automotive Portfolio | |
Communication Services Portfolio | |
Construction and Housing Portfolio | |
Consumer Discretionary Portfolio | |
Leisure Portfolio | |
Retailing Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Automotive Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Toyota Motor Corp. sponsored ADR | 11.2 |
Tesla, Inc. | 10.8 |
General Motors Co. | 8.6 |
Ford Motor Co. | 5.0 |
NIO, Inc. sponsored ADR | 4.9 |
O'Reilly Automotive, Inc. | 4.9 |
Aptiv PLC | 4.6 |
Ferrari NV | 4.1 |
Copart, Inc. | 4.0 |
AutoZone, Inc. | 3.7 |
61.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Automobiles | 57.0% | |
Specialty Retail | 17.6% | |
Auto Components | 13.1% | |
Commercial Services & Supplies | 4.9% | |
Distributors | 4.2% | |
All Others* | 3.2% |
* Includes short-term investments and net other assets (liabilities).
Automotive Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% | |||
Shares | Value | ||
Airlines - 0.2% | |||
Airlines - 0.2% | |||
Blade Air Mobility, Inc. (a)(b) | 29,500 | $251,045 | |
Joby Aviation, Inc. (c) | 13,300 | 160,591 | |
411,636 | |||
Auto Components - 13.1% | |||
Auto Parts & Equipment - 13.1% | |||
Adient PLC (a) | 90,152 | 3,546,580 | |
Aptiv PLC (a) | 61,277 | 9,325,747 | |
Gentex Corp. | 46,000 | 1,416,800 | |
Lear Corp. | 35,988 | 5,755,921 | |
Magna International, Inc. Class A (sub. vtg.) | 73,809 | 5,828,550 | |
Novem Group SA | 21,400 | 429,557 | |
26,303,155 | |||
Automobiles - 56.9% | |||
Automobile Manufacturers - 56.9% | |||
Daimler AG (Germany) | 33,953 | 2,863,228 | |
Ferrari NV | 37,682 | 8,192,067 | |
Ford Motor Co. (a) | 778,584 | 10,144,950 | |
General Motors Co. (a) | 351,831 | 17,243,237 | |
Honda Motor Co. Ltd. sponsored ADR (b) | 158,458 | 4,794,939 | |
Li Auto, Inc. ADR (a) | 132,812 | 4,098,578 | |
Lucid Motors, Inc. (c) | 9,900 | 197,604 | |
NIO, Inc. sponsored ADR (a) | 253,713 | 9,973,458 | |
Stellantis NV (b) | 277,236 | 5,550,265 | |
Tesla, Inc. (a) | 29,491 | 21,697,119 | |
Toyota Motor Corp. sponsored ADR (b) | 128,915 | 22,460,858 | |
XPeng, Inc. ADR (a) | 170,764 | 7,257,470 | |
114,473,773 | |||
Commercial Services & Supplies - 4.9% | |||
Diversified Support Services - 4.9% | |||
ACV Auctions, Inc. Class A (a) | 85,200 | 1,738,932 | |
Copart, Inc. (a) | 55,883 | 8,065,035 | |
9,803,967 | |||
Distributors - 4.2% | |||
Distributors - 4.2% | |||
Genuine Parts Co. | 14,115 | 1,724,712 | |
LKQ Corp. (a) | 128,709 | 6,781,677 | |
8,506,389 | |||
Electrical Equipment - 0.8% | |||
Electrical Components & Equipment - 0.8% | |||
Sensata Technologies, Inc. PLC (a) | 28,269 | 1,672,959 | |
Machinery - 0.5% | |||
Construction Machinery & Heavy Trucks - 0.5% | |||
Allison Transmission Holdings, Inc. | 24,568 | 908,525 | |
Road & Rail - 1.8% | |||
Trucking - 1.8% | |||
Lyft, Inc. (a) | 21,009 | 1,000,238 | |
TuSimple Holdings, Inc. (a) | 3,900 | 163,254 | |
Uber Technologies, Inc. (a) | 65,142 | 2,549,658 | |
3,713,150 | |||
Software - 0.1% | |||
Application Software - 0.1% | |||
Otonomo Technologies Ltd. (c) | 17,390 | 119,774 | |
Specialty Retail - 17.6% | |||
Automotive Retail - 17.6% | |||
Advance Auto Parts, Inc. | 8,819 | 1,788,934 | |
AutoZone, Inc. (a) | 4,757 | 7,369,307 | |
CarMax, Inc. (a) | 14,381 | 1,800,645 | |
Carvana Co. Class A (a)(b) | 21,219 | 6,961,105 | |
Group 1 Automotive, Inc. | 17,677 | 2,924,483 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 14,350 | 4,754,155 | |
O'Reilly Automotive, Inc. (a) | 16,572 | 9,845,094 | |
35,443,723 | |||
TOTAL COMMON STOCKS | |||
(Cost $148,795,359) | 201,357,051 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.1% | |||
Automobiles - 0.1% | |||
Automobile Manufacturers - 0.1% | |||
Rivian Automotive, Inc. 0% (Cost $189,997)(c)(d)(e) | 189,997 | 189,997 | |
Shares | Value | ||
Money Market Funds - 11.2% | |||
Fidelity Cash Central Fund 0.06% (f) | 216,460 | 216,503 | |
Fidelity Securities Lending Cash Central Fund 0.06% (f)(g) | 22,404,994 | 22,407,235 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $22,623,738) | 22,623,738 | ||
TOTAL INVESTMENT IN SECURITIES - 111.4% | |||
(Cost $171,609,094) | 224,170,786 | ||
NET OTHER ASSETS (LIABILITIES) - (11.4)% | (22,932,045) | ||
NET ASSETS - 100% | $201,238,741 |
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 $667,966 or 0.3% of net assets.
(d) Security is perpetual in nature with no stated maturity date.
(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 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 |
Joby Aviation, Inc. | 2/23/21 | $133,000 |
Lucid Motors, Inc. | 2/22/21 | $148,500 |
Otonomo Technologies Ltd. | 1/31/21 | $173,900 |
Rivian Automotive, Inc. 0% | 7/23/21 | $189,997 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $1,184,333 | $44,098,086 | $45,065,916 | $334 | $-- | $-- | $216,503 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 24,349,005 | 137,694,801 | 139,636,571 | 13,258 | -- | -- | 22,407,235 | 0.1% |
Total | $25,533,338 | $181,792,887 | $184,702,487 | $13,592 | $-- | $-- | $22,623,738 |
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 August 31, 2021, 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 | $201,357,051 | $201,076,686 | $280,365 | $-- |
Convertible Bonds | 189,997 | -- | -- | 189,997 |
Money Market Funds | 22,623,738 | 22,623,738 | -- | -- |
Total Investments in Securities: | $224,170,786 | $223,700,424 | $280,365 | $189,997 |
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 | 59.1% |
Japan | 13.6% |
Cayman Islands | 8.6% |
Netherlands | 6.9% |
Bailiwick of Jersey | 4.6% |
Canada | 2.9% |
Ireland | 1.8% |
Germany | 1.6% |
Others (Individually Less Than 1%) | 0.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Automotive Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $21,838,152) — See accompanying schedule: Unaffiliated issuers (cost $148,985,356) | $201,547,048 | |
Fidelity Central Funds (cost $22,623,738) | 22,623,738 | |
Total Investment in Securities (cost $171,609,094) | $224,170,786 | |
Cash | 25 | |
Receivable for investments sold | 4,112,448 | |
Receivable for fund shares sold | 192,069 | |
Dividends receivable | 30,027 | |
Distributions receivable from Fidelity Central Funds | 2,514 | |
Prepaid expenses | 609 | |
Other receivables | 13,658 | |
Total assets | 228,522,136 | |
Liabilities | ||
Payable for investments purchased | $2,616,327 | |
Payable for fund shares redeemed | 2,105,018 | |
Accrued management fee | 91,142 | |
Other affiliated payables | 37,721 | |
Other payables and accrued expenses | 26,362 | |
Collateral on securities loaned | 22,406,825 | |
Total liabilities | 27,283,395 | |
Net Assets | $201,238,741 | |
Net Assets consist of: | ||
Paid in capital | $142,734,131 | |
Total accumulated earnings (loss) | 58,504,610 | |
Net Assets | $201,238,741 | |
Net Asset Value, offering price and redemption price per share ($201,238,741 ÷ 3,406,863 shares) | $59.07 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $820,746 | |
Special dividends | 341,997 | |
Income from Fidelity Central Funds (including $13,258 from security lending) | 13,592 | |
Total income | 1,176,335 | |
Expenses | ||
Management fee | $519,769 | |
Transfer agent fees | 181,864 | |
Accounting fees | 38,483 | |
Custodian fees and expenses | 9,115 | |
Independent trustees' fees and expenses | 359 | |
Registration fees | 28,990 | |
Audit | 17,201 | |
Legal | 75 | |
Interest | 422 | |
Miscellaneous | 262 | |
Total expenses before reductions | 796,540 | |
Expense reductions | (19,313) | |
Total expenses after reductions | 777,227 | |
Net investment income (loss) | 399,108 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 6,355,411 | |
Foreign currency transactions | (3,485) | |
Total net realized gain (loss) | 6,351,926 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,212,585 | |
Unfunded commitments | (360,479) | |
Assets and liabilities in foreign currencies | (1,006) | |
Total change in net unrealized appreciation (depreciation) | 8,851,100 | |
Net gain (loss) | 15,203,026 | |
Net increase (decrease) in net assets resulting from operations | $15,602,134 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $399,108 | $81,335 |
Net realized gain (loss) | 6,351,926 | 4,642,110 |
Change in net unrealized appreciation (depreciation) | 8,851,100 | 34,682,030 |
Net increase (decrease) in net assets resulting from operations | 15,602,134 | 39,405,475 |
Distributions to shareholders | (436,220) | (6,816,480) |
Share transactions | ||
Proceeds from sales of shares | 89,846,120 | 177,484,001 |
Reinvestment of distributions | 424,360 | 6,545,736 |
Cost of shares redeemed | (102,422,377) | (54,873,788) |
Net increase (decrease) in net assets resulting from share transactions | (12,151,897) | 129,155,949 |
Total increase (decrease) in net assets | 3,014,017 | 161,744,944 |
Net Assets | ||
Beginning of period | 198,224,724 | 36,479,780 |
End of period | $201,238,741 | $198,224,724 |
Other Information | ||
Shares | ||
Sold | 1,526,173 | 3,627,198 |
Issued in reinvestment of distributions | 7,454 | 178,794 |
Redeemed | (1,783,388) | (1,194,382) |
Net increase (decrease) | (249,761) | 2,611,610 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Automotive Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $54.21 | $34.91 | $33.29 | $37.52 | $36.78 | $33.72 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .12C | .05D | .46E | .36 | .39F | .33 |
Net realized and unrealized gain (loss) | 4.86 | 23.73 | 2.67G | (2.15) | 6.11 | 5.22 |
Total from investment operations | 4.98 | 23.78 | 3.13 | (1.79) | 6.50 | 5.55 |
Distributions from net investment income | (.01) | (.01) | (.49)H | (.38) | (.20) | (.52) |
Distributions from net realized gain | (.11) | (4.47) | (1.02)H | (2.06) | (5.56) | (1.98) |
Total distributions | (.12) | (4.48) | (1.51) | (2.44) | (5.76) | (2.49)I |
Redemption fees added to paid in capitalB | – | – | – | – | –J | –J |
Net asset value, end of period | $59.07 | $54.21 | $34.91 | $33.29 | $37.52 | $36.78 |
Total ReturnK,L | 9.20% | 78.19% | 9.14%G | (4.66)% | 19.08% | 16.80% |
Ratios to Average Net AssetsM,N | ||||||
Expenses before reductions | .80%O | .88% | 1.00% | .97% | .97% | .96% |
Expenses net of fee waivers, if any | .80%O | .88% | 1.00% | .97% | .96% | .96% |
Expenses net of all reductions | .78%O | .87% | .99% | .97% | .96% | .95% |
Net investment income (loss) | .40%C,O | .10%D | 1.33%E | 1.04% | 1.04%F | .92% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $201,239 | $198,225 | $36,480 | $40,781 | $56,139 | $54,069 |
Portfolio turnover rateP | 80%O | 56% | 45% | 31% | 117% | 83% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .06%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.14 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.21) %.
E Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.07%.
F Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.08 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .83%.
G Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.19 per share. Excluding these litigation proceeds, the total return would have been 8.58%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
I Total distributions per share do not sum due to rounding.
J Amount represents less than $.005 per share.
K Total returns for periods of less than one year are not annualized.
L Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
M 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.
N Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
O Annualized
P Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Alphabet, Inc. Class A | 24.6 |
Facebook, Inc. Class A | 21.1 |
Comcast Corp. Class A | 4.9 |
The Walt Disney Co. | 4.6 |
Activision Blizzard, Inc. | 3.7 |
T-Mobile U.S., Inc. | 3.6 |
Snap, Inc. Class A | 3.3 |
AT&T, Inc. | 3.1 |
Netflix, Inc. | 3.0 |
Liberty Broadband Corp. Class A | 2.7 |
74.6 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Interactive Media & Services | 51.7% | |
Entertainment | 17.1% | |
Media | 14.4% | |
Diversified Telecommunication Services | 7.4% | |
Wireless Telecommunication Services | 4.0% | |
All Others* | 5.4% |
* Includes short-term investments and net other assets (liabilities).
Communication Services Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value | ||
Communications Equipment - 0.2% | |||
Communications Equipment - 0.2% | |||
EchoStar Holding Corp. Class A (a)(b) | 121,900 | $3,291,300 | |
Diversified Telecommunication Services - 7.4% | |||
Alternative Carriers - 3.9% | |||
Iridium Communications, Inc. (a) | 109,400 | 4,869,394 | |
Liberty Global PLC Class C (a) | 1,334,900 | 38,685,402 | |
Liberty Latin America Ltd. Class C (a) | 1,000,386 | 14,395,555 | |
57,950,351 | |||
Integrated Telecommunication Services - 3.5% | |||
AT&T, Inc. | 1,670,600 | 45,807,852 | |
Verizon Communications, Inc. | 120,300 | 6,616,500 | |
52,424,352 | |||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | 110,374,703 | ||
Entertainment - 17.1% | |||
Interactive Home Entertainment - 6.5% | |||
Activision Blizzard, Inc. | 672,000 | 55,352,640 | |
Electronic Arts, Inc. | 82,400 | 11,965,304 | |
Motorsport Games, Inc. Class A (b) | 4,300 | 46,311 | |
Roblox Corp. (a)(b) | 12,500 | 1,025,625 | |
Skillz, Inc. (a)(b) | 26,600 | 313,082 | |
Take-Two Interactive Software, Inc. (a) | 85,900 | 13,848,798 | |
Zynga, Inc. (a) | 1,620,600 | 14,342,310 | |
96,894,070 | |||
Movies & Entertainment - 10.6% | |||
Cinemark Holdings, Inc. (a)(b) | 450,400 | 8,030,632 | |
Endeavor Group Holdings, Inc. (a)(b) | 8,400 | 218,400 | |
Lions Gate Entertainment Corp.: | |||
Class A (a) | 34,500 | 445,740 | |
Class B (a) | 503,734 | 5,923,912 | |
Marcus Corp. (a)(b) | 256,300 | 3,998,280 | |
Netflix, Inc. (a) | 79,800 | 45,421,362 | |
The Walt Disney Co. (a) | 382,171 | 69,287,602 | |
Warner Music Group Corp. Class A | 497,700 | 18,912,600 | |
World Wrestling Entertainment, Inc. Class A (b) | 140,800 | 7,337,088 | |
159,575,616 | |||
TOTAL ENTERTAINMENT | 256,469,686 | ||
Equity Real Estate Investment Trusts (REITs) - 1.3% | |||
Specialized REITs - 1.3% | |||
Lamar Advertising Co. Class A | 63,100 | 7,182,673 | |
Outfront Media, Inc. | 500,463 | 12,391,464 | |
19,574,137 | |||
Interactive Media & Services - 51.7% | |||
Interactive Media & Services - 51.7% | |||
Alphabet, Inc. Class A (a) | 127,600 | 369,268,019 | |
Angi, Inc. (a)(b) | 891,500 | 9,485,560 | |
Facebook, Inc. Class A (a) | 835,600 | 317,009,928 | |
IAC (a) | 9,600 | 1,267,680 | |
Match Group, Inc. (a) | 76,470 | 10,510,037 | |
Snap, Inc. Class A (a) | 653,000 | 49,699,830 | |
Twitter, Inc. (a) | 125,500 | 8,094,750 | |
Vimeo, Inc. (a) | 138,035 | 5,261,894 | |
Zillow Group, Inc. Class A (a)(b) | 54,200 | 5,181,520 | |
775,779,218 | |||
Internet & Direct Marketing Retail - 0.5% | |||
Internet & Direct Marketing Retail - 0.5% | |||
Coupang, Inc. Class A (a)(b) | 8,200 | 245,672 | |
Doordash, Inc. | 2,400 | 459,360 | |
eBay, Inc. | 93,700 | 7,190,538 | |
7,895,570 | |||
Media - 14.4% | |||
Advertising - 0.1% | |||
S4 Capital PLC (a) | 117,000 | 1,309,380 | |
TechTarget, Inc. (a) | 12,100 | 1,023,418 | |
2,332,798 | |||
Broadcasting - 3.7% | |||
Fox Corp. Class A | 54,400 | 2,036,736 | |
Liberty Media Corp.: | |||
Liberty Media Class A (a) | 415,162 | 18,968,752 | |
Liberty SiriusXM Series A (a) | 458,200 | 22,680,900 | |
Liberty SiriusXM Series C (a) | 24,070 | 1,187,855 | |
ViacomCBS, Inc. Class B | 243,700 | 10,101,365 | |
54,975,608 | |||
Cable & Satellite - 10.2% | |||
Altice U.S.A., Inc. Class A (a) | 1,105,000 | 30,321,200 | |
Comcast Corp. Class A | 1,212,900 | 73,598,772 | |
DISH Network Corp. Class A (a) | 195,939 | 8,540,981 | |
Liberty Broadband Corp. Class A (a) | 218,123 | 40,520,710 | |
152,981,663 | |||
Publishing - 0.4% | |||
News Corp. Class A | 280,300 | 6,298,341 | |
TOTAL MEDIA | 216,588,410 | ||
Road & Rail - 1.4% | |||
Trucking - 1.4% | |||
Lyft, Inc. (a) | 433,200 | 20,624,652 | |
Software - 0.6% | |||
Application Software - 0.6% | |||
Unity Software, Inc. (b) | 66,400 | 8,416,200 | |
Viant Technology, Inc. | 1,200 | 16,500 | |
8,432,700 | |||
Wireless Telecommunication Services - 4.0% | |||
Wireless Telecommunication Services - 4.0% | |||
Millicom International Cellular SA (a)(b) | 153,500 | 5,785,415 | |
T-Mobile U.S., Inc. (a) | 396,550 | 54,335,281 | |
60,120,696 | |||
TOTAL COMMON STOCKS | |||
(Cost $938,567,838) | 1,479,151,072 | ||
Convertible Preferred Stocks - 0.2% | |||
Internet & Direct Marketing Retail - 0.2% | |||
Internet & Direct Marketing Retail - 0.2% | |||
Reddit, Inc. Series F (c)(d) | |||
(Cost $3,584,075) | 58,000 | 3,584,075 | |
Money Market Funds - 3.4% | |||
Fidelity Cash Central Fund 0.06% (e) | 19,746,463 | 19,750,412 | |
Fidelity Securities Lending Cash Central Fund 0.06% (e)(f) | 30,762,968 | 30,766,044 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $50,516,456) | 50,516,456 | ||
TOTAL INVESTMENT IN SECURITIES - 102.2% | |||
(Cost $992,668,369) | 1,533,251,603 | ||
NET OTHER ASSETS (LIABILITIES) - (2.2)% | (33,595,123) | ||
NET ASSETS - 100% | $1,499,656,480 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) Restricted securities (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 $3,584,075 or 0.2% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Reddit, Inc. Series F | 8/11/21 | $3,584,075 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $12,091,854 | $313,855,113 | $306,196,555 | $4,896 | $-- | $-- | $19,750,412 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 10,915,194 | 166,365,192 | 146,514,342 | 24,842 | -- | -- | 30,766,044 | 0.1% |
Total | $23,007,048 | $480,220,305 | $452,710,897 | $29,738 | $-- | $-- | $50,516,456 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,479,151,072 | $1,479,151,072 | $-- | $-- |
Convertible Preferred Stocks | 3,584,075 | -- | -- | 3,584,075 |
Money Market Funds | 50,516,456 | 50,516,456 | -- | -- |
Total Investments in Securities: | $1,533,251,603 | $1,529,667,528 | $-- | $3,584,075 |
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $30,500,154) — See accompanying schedule: Unaffiliated issuers (cost $942,151,913) | $1,482,735,147 | |
Fidelity Central Funds (cost $50,516,456) | 50,516,456 | |
Total Investment in Securities (cost $992,668,369) | $1,533,251,603 | |
Receivable for fund shares sold | 4,224,010 | |
Dividends receivable | 118,489 | |
Distributions receivable from Fidelity Central Funds | 5,176 | |
Prepaid expenses | 4,364 | |
Other receivables | 40,506 | |
Total assets | 1,537,644,148 | |
Liabilities | ||
Payable for investments purchased | $5,016,584 | |
Payable for fund shares redeemed | 1,302,702 | |
Accrued management fee | 627,443 | |
Distribution and service plan fees payable | 20,604 | |
Other affiliated payables | 229,174 | |
Other payables and accrued expenses | 26,011 | |
Collateral on securities loaned | 30,765,150 | |
Total liabilities | 37,987,668 | |
Net Assets | $1,499,656,480 | |
Net Assets consist of: | ||
Paid in capital | $935,645,274 | |
Total accumulated earnings (loss) | 564,011,206 | |
Net Assets | $1,499,656,480 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($41,763,105 ÷ 412,049 shares)(a) | $101.35 | |
Maximum offering price per share (100/94.25 of $101.35) | $107.53 | |
Class M: | ||
Net Asset Value and redemption price per share ($8,829,683 ÷ 87,482 shares)(a) | $100.93 | |
Maximum offering price per share (100/96.50 of $100.93) | $104.59 | |
Class C: | ||
Net Asset Value and offering price per share ($11,004,273 ÷ 110,338 shares)(a) | $99.73 | |
Communication Services: | ||
Net Asset Value, offering price and redemption price per share ($1,380,471,759 ÷ 13,535,775 shares) | $101.99 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($46,238,702 ÷ 453,657 shares) | $101.92 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($11,348,958 ÷ 111,058 shares) | $102.19 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $2,240,507 | |
Income from Fidelity Central Funds (including $24,842 from security lending) | 29,738 | |
Total income | 2,270,245 | |
Expenses | ||
Management fee | $3,153,112 | |
Transfer agent fees | 1,011,689 | |
Distribution and service plan fees | 101,332 | |
Accounting fees | 193,550 | |
Custodian fees and expenses | 6,387 | |
Independent trustees' fees and expenses | 2,012 | |
Registration fees | 95,678 | |
Audit | 20,305 | |
Legal | 1,180 | |
Miscellaneous | 2,612 | |
Total expenses before reductions | 4,587,857 | |
Expense reductions | (69,313) | |
Total expenses after reductions | 4,518,544 | |
Net investment income (loss) | (2,248,299) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 31,573,211 | |
Foreign currency transactions | (13,274) | |
Total net realized gain (loss) | 31,559,937 | |
Change in net unrealized appreciation (depreciation) on investment securities | 190,433,799 | |
Net gain (loss) | 221,993,736 | |
Net increase (decrease) in net assets resulting from operations | $219,745,437 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(2,248,299) | $(3,703,093) |
Net realized gain (loss) | 31,559,937 | 60,404,018 |
Change in net unrealized appreciation (depreciation) | 190,433,799 | 240,367,274 |
Net increase (decrease) in net assets resulting from operations | 219,745,437 | 297,068,199 |
Distributions to shareholders | (41,008,773) | (30,372,833) |
Share transactions - net increase (decrease) | 395,507,263 | 63,041,939 |
Total increase (decrease) in net assets | 574,243,927 | 329,737,305 |
Net Assets | ||
Beginning of period | 925,412,553 | 595,675,248 |
End of period | $1,499,656,480 | $925,412,553 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Communication Services Portfolio Class A
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $87.31 | $60.63 | $74.85 | $78.20 |
Income from Investment Operations | ||||
Net investment income (loss)C | (.30) | (.59) | (.30) | (.12) |
Net realized and unrealized gain (loss) | 17.88 | 30.37 | 8.77 | 2.68 |
Total from investment operations | 17.58 | 29.78 | 8.47 | 2.56 |
Distributions from net investment income | – | – | – | (.14) |
Distributions from net realized gain | (3.54) | (3.10) | (22.69) | (5.77) |
Total distributions | (3.54) | (3.10) | (22.69) | (5.91) |
Net asset value, end of period | $101.35 | $87.31 | $60.63 | $74.85 |
Total ReturnD,E,F | 20.57% | 50.81% | 11.90% | 3.83% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | 1.03%I | 1.08% | 1.07% | 1.13%I |
Expenses net of fee waivers, if any | 1.03%I | 1.08% | 1.07% | 1.12%I |
Expenses net of all reductions | 1.02%I | 1.07% | 1.06% | 1.11%I |
Net investment income (loss) | (.64)%I | (.81)% | (.47)% | (.68)%I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $41,763 | $22,962 | $9,947 | $715 |
Portfolio turnover rateJ | 42%I | 63% | 73% | 107% |
A For the year ended February 29.
B For the period November 30, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio Class M
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $86.94 | $60.52 | $74.82 | $78.20 |
Income from Investment Operations | ||||
Net investment income (loss)C | (.41) | (.77) | (.48) | (.16) |
Net realized and unrealized gain (loss) | 17.81 | 30.29 | 8.75 | 2.67 |
Total from investment operations | 17.40 | 29.52 | 8.27 | 2.51 |
Distributions from net investment income | – | – | – | (.12) |
Distributions from net realized gain | (3.41) | (3.10) | (22.57) | (5.77) |
Total distributions | (3.41) | (3.10) | (22.57) | (5.89) |
Net asset value, end of period | $100.93 | $86.94 | $60.52 | $74.82 |
Total ReturnD,E,F | 20.43% | 50.47% | 11.58% | 3.76% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | 1.27%I | 1.32% | 1.35% | 1.36%I |
Expenses net of fee waivers, if any | 1.27%I | 1.32% | 1.35% | 1.35%I |
Expenses net of all reductions | 1.26%I | 1.32% | 1.34% | 1.34%I |
Net investment income (loss) | (.88)%I | (1.06)% | (.75)% | (.90)%I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $8,830 | $5,386 | $2,264 | $485 |
Portfolio turnover rateJ | 42%I | 63% | 73% | 107% |
A For the year ended February 29.
B For the period November 30, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio Class C
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $86.05 | $60.20 | $74.76 | $78.20 |
Income from Investment Operations | ||||
Net investment income (loss)C | (.64) | (1.12) | (.81) | (.25) |
Net realized and unrealized gain (loss) | 17.60 | 30.07 | 8.74 | 2.67 |
Total from investment operations | 16.96 | 28.95 | 7.93 | 2.42 |
Distributions from net investment income | – | – | – | (.09) |
Distributions from net realized gain | (3.28) | (3.10) | (22.49) | (5.77) |
Total distributions | (3.28) | (3.10) | (22.49) | (5.86) |
Net asset value, end of period | $99.73 | $86.05 | $60.20 | $74.76 |
Total ReturnD,E,F | 20.11% | 49.77% | 11.01% | 3.63% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | 1.78%I | 1.80% | 1.86% | 1.87%I |
Expenses net of fee waivers, if any | 1.78%I | 1.80% | 1.86% | 1.85%I |
Expenses net of all reductions | 1.77%I | 1.79% | 1.85% | 1.84%I |
Net investment income (loss) | (1.39)%I | (1.53)% | (1.26)% | (1.37)%I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $11,004 | $6,856 | $1,982 | $377 |
Portfolio turnover rateJ | 42%I | 63% | 73% | 107% |
A For the year ended February 29.
B For the period November 30, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $87.88 | $60.82 | $74.88 | $79.70 | $80.75 | $68.59 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.17) | (.36) | (.12) | .13 | .21 | .22 |
Net realized and unrealized gain (loss) | 18.00 | 30.52 | 8.79 | 5.31 | 3.14 | 17.53 |
Total from investment operations | 17.83 | 30.16 | 8.67 | 5.44 | 3.35 | 17.75 |
Distributions from net investment income | – | – | – | (.20) | (.16) | (.33) |
Distributions from net realized gain | (3.72) | (3.10) | (22.73) | (10.06) | (4.23) | (5.26) |
Total distributions | (3.72) | (3.10) | (22.73) | (10.26) | (4.40)C | (5.59) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $101.99 | $87.88 | $60.82 | $74.88 | $79.70 | $80.75 |
Total ReturnE,F | 20.75% | 51.29% | 12.22% | 8.12% | 4.16% | 26.85% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .75%I | .77% | .78% | .82% | .80% | .82% |
Expenses net of fee waivers, if any | .75%I | .77% | .78% | .81% | .80% | .82% |
Expenses net of all reductions | .74%I | .76% | .77% | .80% | .79% | .82% |
Net investment income (loss) | (.36)%I | (.51)% | (.18)% | .17% | .26% | .30% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,380,472 | $859,871 | $577,157 | $562,422 | $509,375 | $680,392 |
Portfolio turnover rateJ | 42%I | 63% | 73% | 107% | 22% | 33% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio Class I
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $87.86 | $60.80 | $74.89 | $78.20 |
Income from Investment Operations | ||||
Net investment income (loss)C | (.18) | (.39) | (.11) | (.06) |
Net realized and unrealized gain (loss) | 17.99 | 30.55 | 8.78 | 2.67 |
Total from investment operations | 17.81 | 30.16 | 8.67 | 2.61 |
Distributions from net investment income | – | – | – | (.15) |
Distributions from net realized gain | (3.75) | (3.10) | (22.76) | (5.77) |
Total distributions | (3.75) | (3.10) | (22.76) | (5.92) |
Net asset value, end of period | $101.92 | $87.86 | $60.80 | $74.89 |
Total ReturnD,E | 20.73% | 51.31% | 12.22% | 3.91% |
Ratios to Average Net AssetsF,G | ||||
Expenses before reductions | .76%H | .78% | .77% | .70%H |
Expenses net of fee waivers, if any | .76%H | .77% | .77% | .69%H |
Expenses net of all reductions | .75%H | .77% | .76% | .68%H |
Net investment income (loss) | (.37)%H | (.51)% | (.17)% | (.30)%H |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $46,239 | $26,521 | $2,493 | $452 |
Portfolio turnover rateI | 42%H | 63% | 73% | 107% |
A For the year ended February 29.
B For the period November 30, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Communication Services Portfolio Class Z
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $88.04 | $60.85 | $74.89 | $78.20 |
Income from Investment Operations | ||||
Net investment income (loss)C | (.11) | (.28) | (.03) | (.03) |
Net realized and unrealized gain (loss) | 18.03 | 30.57 | 8.80 | 2.65 |
Total from investment operations | 17.92 | 30.29 | 8.77 | 2.62 |
Distributions from net investment income | – | – | – | (.16) |
Distributions from net realized gain | (3.77) | (3.10) | (22.81) | (5.77) |
Total distributions | (3.77) | (3.10) | (22.81) | (5.93) |
Net asset value, end of period | $102.19 | $88.04 | $60.85 | $74.89 |
Total ReturnD,E | 20.82% | 51.48% | 12.38% | 3.92% |
Ratios to Average Net AssetsF,G | ||||
Expenses before reductions | .62%H | .64% | .65% | .64%H |
Expenses net of fee waivers, if any | .62%H | .64% | .65% | .62%H |
Expenses net of all reductions | .61%H | .63% | .64% | .61%H |
Net investment income (loss) | (.23)%H | (.38)% | (.05)% | (.16)%H |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $11,349 | $3,817 | $1,833 | $529 |
Portfolio turnover rateI | 42%H | 63% | 73% | 107% |
A For the year ended February 29.
B For the period November 30, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Construction and Housing Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
The Home Depot, Inc. | 17.1 |
Lowe's Companies, Inc. | 16.6 |
Equity Residential (SBI) | 8.1 |
Johnson Controls International PLC | 4.7 |
Builders FirstSource, Inc. | 4.5 |
NVR, Inc. | 3.9 |
Vulcan Materials Co. | 3.8 |
Masco Corp. | 3.6 |
Lamar Advertising Co. Class A | 3.2 |
Washington REIT (SBI) | 2.7 |
68.2 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Specialty Retail | 33.7% | |
Building Products | 22.4% | |
Equity Real Estate Investment Trusts (Reits) | 18.3% | |
Household Durables | 11.1% | |
Construction & Engineering | 6.2% | |
All Others* | 8.3% |
* Includes short-term investments and net other assets (liabilities).
Construction and Housing Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Building Products - 22.4% | |||
Building Products - 22.4% | |||
Advanced Drain Systems, Inc. | 46,700 | $5,330,805 | |
Apogee Enterprises, Inc. (a) | 113,400 | 4,873,932 | |
Builders FirstSource, Inc. (b) | 509,235 | 27,137,133 | |
Carrier Global Corp. | 231,400 | 13,328,640 | |
Johnson Controls International PLC | 376,651 | 28,173,495 | |
Masco Corp. | 357,500 | 21,707,400 | |
Resideo Technologies, Inc. (b) | 141,100 | 4,549,064 | |
Simpson Manufacturing Co. Ltd. | 61,000 | 6,902,150 | |
Trane Technologies PLC | 72,900 | 14,470,650 | |
UFP Industries, Inc. | 109,226 | 8,200,688 | |
134,673,957 | |||
Construction & Engineering - 6.2% | |||
Construction & Engineering - 6.2% | |||
Comfort Systems U.S.A., Inc. | 49,429 | 3,755,615 | |
EMCOR Group, Inc. | 38,270 | 4,649,805 | |
Fluor Corp. (a)(b) | 334,600 | 5,574,436 | |
Granite Construction, Inc. | 137,618 | 5,579,034 | |
Quanta Services, Inc. | 75,199 | 7,677,818 | |
Willscot Mobile Mini Holdings (b) | 338,850 | 10,029,960 | |
37,266,668 | |||
Construction Materials - 4.7% | |||
Construction Materials - 4.7% | |||
Summit Materials, Inc. (a)(b) | 164,614 | 5,542,553 | |
Vulcan Materials Co. | 120,476 | 22,400,103 | |
27,942,656 | |||
Equity Real Estate Investment Trusts (REITs) - 18.3% | |||
Diversified REITs - 2.7% | |||
Washington REIT (SBI) | 643,900 | 16,187,646 | |
Industrial REITs - 2.1% | |||
Americold Realty Trust | 346,300 | 12,723,062 | |
Residential REITs - 10.3% | |||
Equity Residential (SBI) | 578,600 | 48,642,902 | |
Invitation Homes, Inc. | 311,500 | 12,827,570 | |
61,470,472 | |||
Specialized REITs - 3.2% | |||
Lamar Advertising Co. Class A | 169,482 | 19,292,136 | |
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 109,673,316 | ||
Household Durables - 11.1% | |||
Homebuilding - 11.1% | |||
Blu Investments LLC (b)(c)(d) | 11,990,913 | 3,717 | |
D.R. Horton, Inc. | 57,856 | 5,532,191 | |
Installed Building Products, Inc. (a) | 90,238 | 11,205,755 | |
NVR, Inc. (b) | 4,484 | 23,226,851 | |
PulteGroup, Inc. | 294,085 | 15,839,418 | |
Toll Brothers, Inc. | 172,900 | 11,075,974 | |
66,883,906 | |||
IT Services - 0.8% | |||
Internet Services & Infrastructure - 0.8% | |||
Cyxtera Technologies, Inc. (d) | 200,000 | 1,683,400 | |
Cyxtera Technologies, Inc.: | |||
warrants 9/10/27 (b) | 82,575 | 142,029 | |
Class A (a)(b) | 318,287 | 2,820,023 | |
4,645,452 | |||
Real Estate Management & Development - 1.2% | |||
Diversified Real Estate Activities - 0.6% | |||
The RMR Group, Inc. | 82,560 | 3,825,830 | |
Real Estate Services - 0.6% | |||
Cushman & Wakefield PLC (b) | 180,895 | 3,281,435 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 7,107,265 | ||
Specialty Retail - 33.7% | |||
Home Improvement Retail - 33.7% | |||
Lowe's Companies, Inc. | 490,095 | 99,925,470 | |
The Home Depot, Inc. | 314,390 | 102,547,731 | |
202,473,201 | |||
Trading Companies & Distributors - 1.0% | |||
Trading Companies & Distributors - 1.0% | |||
Beacon Roofing Supply, Inc. (b) | 119,703 | 6,162,310 | |
TOTAL COMMON STOCKS | |||
(Cost $374,500,586) | 596,828,731 | ||
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund 0.06% (e) | 5,446,189 | 5,447,278 | |
Fidelity Securities Lending Cash Central Fund 0.06% (e)(f) | 8,926,001 | 8,926,894 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,374,172) | 14,374,172 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $388,874,758) | 611,202,903 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (10,599,916) | ||
NET ASSETS - 100% | $600,602,987 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Level 3 security
(d) 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 $1,687,117 or 0.3% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Blu Investments LLC | 5/21/20 | $20,739 |
Cyxtera Technologies, Inc. | 2/21/21 | $2,000,000 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,984,621 | $85,364,671 | $82,902,014 | $946 | $-- | $-- | $5,447,278 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 17,887,567 | 8,960,673 | 34,422 | -- | -- | 8,926,894 | 0.0% |
Total | $2,984,621 | $103,252,238 | $91,862,687 | $35,368 | $-- | $-- | $14,374,172 |
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 August 31, 2021, 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 | $596,828,731 | $595,141,614 | $1,683,400 | $3,717 |
Money Market Funds | 14,374,172 | 14,374,172 | -- | -- |
Total Investments in Securities: | $611,202,903 | $609,515,786 | $1,683,400 | $3,717 |
See accompanying notes which are an integral part of the financial statements.
Construction and Housing Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,785,044) — See accompanying schedule: Unaffiliated issuers (cost $374,500,586) | $596,828,731 | |
Fidelity Central Funds (cost $14,374,172) | 14,374,172 | |
Total Investment in Securities (cost $388,874,758) | $611,202,903 | |
Receivable for fund shares sold | 1,707,230 | |
Dividends receivable | 65,146 | |
Distributions receivable from Fidelity Central Funds | 32,805 | |
Prepaid expenses | 2,424 | |
Other receivables | 9,505 | |
Total assets | 613,020,013 | |
Liabilities | ||
Payable for investments purchased | $1,914,276 | |
Payable for fund shares redeemed | 1,204,954 | |
Accrued management fee | 253,451 | |
Other affiliated payables | 93,567 | |
Other payables and accrued expenses | 23,884 | |
Collateral on securities loaned | 8,926,894 | |
Total liabilities | 12,417,026 | |
Net Assets | $600,602,987 | |
Net Assets consist of: | ||
Paid in capital | $351,079,490 | |
Total accumulated earnings (loss) | 249,523,497 | |
Net Assets | $600,602,987 | |
Net Asset Value, offering price and redemption price per share ($600,602,987 ÷ 6,312,200 shares) | $95.15 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,476,212 | |
Income from Fidelity Central Funds (including $34,422 from security lending) | 35,368 | |
Total income | 3,511,580 | |
Expenses | ||
Management fee | $1,371,049 | |
Transfer agent fees | 425,903 | |
Accounting fees | 98,919 | |
Custodian fees and expenses | 6,964 | |
Independent trustees' fees and expenses | 859 | |
Registration fees | 59,043 | |
Audit | 16,972 | |
Legal | 171 | |
Miscellaneous | 968 | |
Total expenses before reductions | 1,980,848 | |
Expense reductions | (16,133) | |
Total expenses after reductions | 1,964,715 | |
Net investment income (loss) | 1,546,865 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 26,918,064 | |
Total net realized gain (loss) | 26,918,064 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 70,108,797 | |
Unfunded commitments | 162,200 | |
Total change in net unrealized appreciation (depreciation) | 70,433,197 | |
Net gain (loss) | 97,351,261 | |
Net increase (decrease) in net assets resulting from operations | $98,898,126 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,546,865 | $2,764,446 |
Net realized gain (loss) | 26,918,064 | 11,232,483 |
Change in net unrealized appreciation (depreciation) | 70,433,197 | 80,379,638 |
Net increase (decrease) in net assets resulting from operations | 98,898,126 | 94,376,567 |
Distributions to shareholders | (10,187,181) | (15,851,989) |
Share transactions | ||
Proceeds from sales of shares | 304,182,351 | 111,965,826 |
Reinvestment of distributions | 9,652,120 | 15,043,485 |
Cost of shares redeemed | (145,403,862) | (180,977,827) |
Net increase (decrease) in net assets resulting from share transactions | 168,430,609 | (53,968,516) |
Total increase (decrease) in net assets | 257,141,554 | 24,556,062 |
Net Assets | ||
Beginning of period | 343,461,433 | 318,905,371 |
End of period | $600,602,987 | $343,461,433 |
Other Information | ||
Shares | ||
Sold | 3,392,993 | 1,731,273 |
Issued in reinvestment of distributions | 109,746 | 305,680 |
Redeemed | (1,620,645) | (3,052,385) |
Net increase (decrease) | 1,882,094 | (1,015,432) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Construction and Housing Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $77.53 | $58.56 | $54.22 | $59.88 | $61.70 | $53.16 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .27 | .59 | .53 | .49 | .44 | .37 |
Net realized and unrealized gain (loss) | 19.34 | 21.82 | 8.71 | 1.32 | 6.58 | 10.29 |
Total from investment operations | 19.61 | 22.41 | 9.24 | 1.81 | 7.02 | 10.66 |
Distributions from net investment income | – | (.61) | (.60) | (.55) | (.30) | (.45) |
Distributions from net realized gain | (1.99) | (2.83) | (4.31) | (6.92) | (8.53) | (1.67) |
Total distributions | (1.99) | (3.44) | (4.90)C | (7.47) | (8.84)C | (2.12) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $95.15 | $77.53 | $58.56 | $54.22 | $59.88 | $61.70 |
Total ReturnE,F | 25.51% | 41.70% | 17.10% | 4.03% | 11.07% | 20.23% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .76%I | .78% | .79% | .80% | .80% | .80% |
Expenses net of fee waivers, if any | .76%I | .78% | .79% | .80% | .80% | .80% |
Expenses net of all reductions | .76%I | .77% | .79% | .79% | .79% | .79% |
Net investment income (loss) | .59%I | .94% | .88% | .86% | .69% | .62% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $600,603 | $343,461 | $318,905 | $225,255 | $331,418 | $404,526 |
Portfolio turnover rateJ | 69%I | 93% | 161% | 90% | 56% | 87% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Amazon.com, Inc. | 22.5 |
Tesla, Inc. | 6.0 |
The Home Depot, Inc. | 5.4 |
NIKE, Inc. Class B | 4.0 |
Capri Holdings Ltd. | 3.3 |
Lowe's Companies, Inc. | 3.1 |
Starbucks Corp. | 2.5 |
Tapestry, Inc. | 2.3 |
Booking Holdings, Inc. | 2.2 |
Burlington Stores, Inc. | 2.2 |
53.5 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Internet & Direct Marketing Retail | 25.6% | |
Specialty Retail | 19.3% | |
Hotels, Restaurants & Leisure | 18.7% | |
�� | Textiles, Apparel & Luxury Goods | 16.7% |
Automobiles | 6.4% | |
All Others* | 13.3% |
* Includes short-term investments and net other assets (liabilities).
Consumer Discretionary Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.2% | |||
Shares | Value | ||
Auto Components - 0.2% | |||
Auto Parts & Equipment - 0.2% | |||
Adient PLC (a) | 37,100 | $1,459,514 | |
Automobiles - 6.4% | |||
Automobile Manufacturers - 6.4% | |||
Ferrari NV | 13,114 | 2,850,984 | |
Tesla, Inc. (a) | 53,200 | 39,140,304 | |
41,991,288 | |||
Building Products - 0.3% | |||
Building Products - 0.3% | |||
The AZEK Co., Inc. (a) | 47,300 | 2,009,777 | |
Commercial Services & Supplies - 0.3% | |||
Diversified Support Services - 0.3% | |||
Copart, Inc. (a) | 12,358 | 1,783,507 | |
Diversified Consumer Services - 0.2% | |||
Education Services - 0.2% | |||
Grand Canyon Education, Inc. (a) | 11,664 | 1,039,729 | |
Entertainment - 0.4% | |||
Movies & Entertainment - 0.4% | |||
Live Nation Entertainment, Inc. (a) | 29,600 | 2,566,320 | |
Food & Staples Retailing - 1.6% | |||
Food Distributors - 1.1% | |||
Performance Food Group Co. (a) | 63,692 | 3,198,612 | |
U.S. Foods Holding Corp. (a) | 122,900 | 4,178,600 | |
7,377,212 | |||
Hypermarkets & Super Centers - 0.5% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 51,380 | 2,911,191 | |
TOTAL FOOD & STAPLES RETAILING | 10,288,403 | ||
Hotels, Restaurants & Leisure - 18.7% | |||
Casinos & Gaming - 4.0% | |||
Caesars Entertainment, Inc. (a) | 126,949 | 12,901,827 | |
Churchill Downs, Inc. | 32,246 | 6,787,783 | |
Penn National Gaming, Inc. (a) | 84,089 | 6,819,618 | |
26,509,228 | |||
Hotels, Resorts & Cruise Lines - 7.7% | |||
Airbnb, Inc. Class A | 23,200 | 3,595,768 | |
Booking Holdings, Inc. (a) | 6,450 | 14,832,872 | |
Expedia, Inc. (a) | 44,800 | 6,473,600 | |
Hilton Worldwide Holdings, Inc. (a) | 78,000 | 9,739,080 | |
Lindblad Expeditions Holdings (a) | 73,323 | 1,078,581 | |
Marriott International, Inc. Class A (a) | 66,200 | 8,946,268 | |
Marriott Vacations Worldwide Corp. (a) | 21,805 | 3,260,938 | |
Wyndham Hotels & Resorts, Inc. | 39,500 | 2,871,650 | |
50,798,757 | |||
Leisure Facilities - 0.9% | |||
Planet Fitness, Inc. (a) | 33,509 | 2,724,282 | |
Vail Resorts, Inc. (a) | 10,312 | 3,143,613 | |
5,867,895 | |||
Restaurants - 6.1% | |||
ARAMARK Holdings Corp. | 72,968 | 2,538,557 | |
Chipotle Mexican Grill, Inc. (a) | 3,022 | 5,751,863 | |
Domino's Pizza, Inc. | 6,900 | 3,566,541 | |
McDonald's Corp. | 23,316 | 5,536,617 | |
Noodles & Co. (a) | 185,533 | 2,335,860 | |
Restaurant Brands International, Inc. | 43,200 | 2,775,565 | |
Ruth's Hospitality Group, Inc. (a) | 41,322 | 846,688 | |
Starbucks Corp. | 139,887 | 16,435,324 | |
39,787,015 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 122,962,895 | ||
Household Durables - 3.0% | |||
Home Furnishings - 0.5% | |||
Purple Innovation, Inc. (a) | 74,140 | 1,809,016 | |
Tempur Sealy International, Inc. | 33,900 | 1,515,330 | |
3,324,346 | |||
Homebuilding - 2.5% | |||
D.R. Horton, Inc. | 69,781 | 6,672,459 | |
Lennar Corp. Class A | 50,193 | 5,386,211 | |
NVR, Inc. (a) | 907 | 4,698,206 | |
16,756,876 | |||
TOTAL HOUSEHOLD DURABLES | 20,081,222 | ||
Interactive Media & Services - 1.0% | |||
Interactive Media & Services - 1.0% | |||
Alphabet, Inc. Class A (a) | 1,244 | 3,600,074 | |
Facebook, Inc. Class A (a) | 7,500 | 2,845,350 | |
6,445,424 | |||
Internet & Direct Marketing Retail - 25.6% | |||
Internet & Direct Marketing Retail - 25.6% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 7,800 | 1,302,522 | |
Amazon.com, Inc. (a) | 42,635 | 147,977,129 | |
Deliveroo PLC | 20,000 | 91,010 | |
Deliveroo PLC Class A (a)(b) | 63,000 | 301,769 | |
eBay, Inc. | 76,600 | 5,878,284 | |
Farfetch Ltd. Class A (a) | 56,400 | 2,360,904 | |
Global-e Online Ltd. (a) | 5,000 | 394,800 | |
MercadoLibre, Inc. (a) | 3,400 | 6,349,330 | |
The RealReal, Inc. (a) | 142,100 | 1,767,724 | |
Wayfair LLC Class A (a) | 6,912 | 1,940,544 | |
168,364,016 | |||
IT Services - 0.2% | |||
Data Processing & Outsourced Services - 0.2% | |||
Visa, Inc. Class A | 6,100 | 1,397,510 | |
Multiline Retail - 5.7% | |||
Department Stores - 0.7% | |||
Kohl's Corp. | 48,589 | 2,789,009 | |
Nordstrom, Inc. (a) | 81,000 | 2,317,410 | |
5,106,419 | |||
General Merchandise Stores - 5.0% | |||
B&M European Value Retail SA | 133,886 | 1,028,969 | |
Dollar General Corp. | 53,471 | 11,919,221 | |
Dollar Tree, Inc. (a) | 64,412 | 5,831,862 | |
Ollie's Bargain Outlet Holdings, Inc. (a)(c) | 57,082 | 4,131,595 | |
Target Corp. | 39,900 | 9,854,502 | |
32,766,149 | |||
TOTAL MULTILINE RETAIL | 37,872,568 | ||
Road & Rail - 0.6% | |||
Trucking - 0.6% | |||
Lyft, Inc. (a) | 51,000 | 2,428,110 | |
Uber Technologies, Inc. (a) | 41,900 | 1,639,966 | |
4,068,076 | |||
Specialty Retail - 19.3% | |||
Apparel Retail - 6.6% | |||
American Eagle Outfitters, Inc. (c) | 229,906 | 7,016,731 | |
Aritzia, Inc. (a) | 34,700 | 1,133,976 | |
Burlington Stores, Inc. (a) | 47,618 | 14,261,115 | |
Ross Stores, Inc. | 70,727 | 8,374,077 | |
TJX Companies, Inc. | 151,513 | 11,018,025 | |
Torrid Holdings, Inc. | 5,600 | 129,416 | |
Victoria's Secret & Co. (a) | 22,333 | 1,480,678 | |
43,414,018 | |||
Automotive Retail - 0.6% | |||
Carvana Co. Class A (a) | 12,300 | 4,035,138 | |
Home Improvement Retail - 9.3% | |||
Floor & Decor Holdings, Inc. Class A (a) | 44,149 | 5,443,572 | |
Lowe's Companies, Inc. | 100,034 | 20,395,932 | |
The Home Depot, Inc. | 108,817 | 35,493,929 | |
61,333,433 | |||
Specialty Stores - 2.8% | |||
Academy Sports & Outdoors, Inc. | 39,510 | 1,749,108 | |
Bath & Body Works, Inc. | 40,700 | 2,746,436 | |
Dick's Sporting Goods, Inc. | 25,900 | 3,646,979 | |
Five Below, Inc. (a) | 21,679 | 4,613,508 | |
Sally Beauty Holdings, Inc. (a) | 63,100 | 1,173,029 | |
Ulta Beauty, Inc. (a) | 11,400 | 4,415,334 | |
18,344,394 | |||
TOTAL SPECIALTY RETAIL | 127,126,983 | ||
Textiles, Apparel & Luxury Goods - 16.7% | |||
Apparel, Accessories & Luxury Goods - 11.1% | |||
adidas AG | 7,305 | 2,591,495 | |
Canada Goose Holdings, Inc. (a) | 20,434 | 783,899 | |
Capri Holdings Ltd. (a) | 383,630 | 21,678,931 | |
G-III Apparel Group Ltd. (a) | 58,897 | 1,821,684 | |
Hermes International SCA | 723 | 1,062,408 | |
Kontoor Brands, Inc. | 27,200 | 1,467,712 | |
Levi Strauss & Co. Class A | 90,300 | 2,366,763 | |
lululemon athletica, Inc. (a) | 14,230 | 5,694,419 | |
LVMH Moet Hennessy Louis Vuitton SE | 5,284 | 3,914,442 | |
PVH Corp. (a) | 127,273 | 13,336,938 | |
Ralph Lauren Corp. | 26,938 | 3,128,310 | |
Tapestry, Inc. | 381,282 | 15,373,290 | |
73,220,291 | |||
Footwear - 5.6% | |||
Crocs, Inc. (a) | 3,400 | 485,588 | |
Deckers Outdoor Corp. (a) | 20,627 | 8,631,368 | |
NIKE, Inc. Class B | 160,630 | 26,462,186 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 21,200 | 1,069,116 | |
36,648,258 | |||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 109,868,549 | ||
TOTAL COMMON STOCKS | |||
(Cost $357,378,097) | 659,325,781 | ||
Money Market Funds - 1.2% | |||
Fidelity Cash Central Fund 0.06% (d) | 142,215 | 142,243 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 7,517,362 | 7,518,114 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,660,357) | 7,660,357 | ||
TOTAL INVESTMENT IN SECURITIES - 101.4% | |||
(Cost $365,038,454) | 666,986,138 | ||
NET OTHER ASSETS (LIABILITIES) - (1.4)% | (9,008,942) | ||
NET ASSETS - 100% | $657,977,196 |
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 $301,769 or 0.0% 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 are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,465,893 | $58,638,136 | $60,961,786 | $446 | $-- | $-- | $142,243 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 3,700,614 | 49,169,697 | 45,352,197 | 5,292 | -- | -- | 7,518,114 | 0.0% |
Total | $6,166,507 | $107,807,833 | $106,313,983 | $5,738 | $-- | $-- | $7,660,357 |
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 August 31, 2021, 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 | $659,325,781 | $655,320,329 | $4,005,452 | $-- |
Money Market Funds | 7,660,357 | 7,660,357 | -- | -- |
Total Investments in Securities: | $666,986,138 | $662,980,686 | $4,005,452 | $-- |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,033,894) — See accompanying schedule: Unaffiliated issuers (cost $357,378,097) | $659,325,781 | |
Fidelity Central Funds (cost $7,660,357) | 7,660,357 | |
Total Investment in Securities (cost $365,038,454) | $666,986,138 | |
Receivable for investments sold | 934,732 | |
Receivable for fund shares sold | 142,162 | |
Dividends receivable | 186,075 | |
Distributions receivable from Fidelity Central Funds | 506 | |
Prepaid expenses | 4,646 | |
Other receivables | 26,999 | |
Total assets | 668,281,258 | |
Liabilities | ||
Payable for investments purchased | $1,447,845 | |
Payable for fund shares redeemed | 929,293 | |
Accrued management fee | 288,134 | |
Other affiliated payables | 102,737 | |
Other payables and accrued expenses | 22,228 | |
Collateral on securities loaned | 7,513,825 | |
Total liabilities | 10,304,062 | |
Net Assets | $657,977,196 | |
Net Assets consist of: | ||
Paid in capital | $336,825,647 | |
Total accumulated earnings (loss) | 321,151,549 | |
Net Assets | $657,977,196 | |
Net Asset Value, offering price and redemption price per share ($657,977,196 ÷ 9,093,318 shares) | $72.36 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,491,540 | |
Income from Fidelity Central Funds (including $5,292 from security lending) | 5,738 | |
Total income | 1,497,278 | |
Expenses | ||
Management fee | $1,691,558 | |
Transfer agent fees | 495,655 | |
Accounting fees | 117,037 | |
Custodian fees and expenses | 5,280 | |
Independent trustees' fees and expenses | 1,167 | |
Registration fees | 35,484 | |
Audit | 17,117 | |
Legal | 1,058 | |
Interest | 250 | |
Miscellaneous | 1,625 | |
Total expenses before reductions | 2,366,231 | |
Expense reductions | (20,871) | |
Total expenses after reductions | 2,345,360 | |
Net investment income (loss) | (848,082) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,974,689 | |
Foreign currency transactions | (1,918) | |
Total net realized gain (loss) | 21,972,771 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 41,627,560 | |
Assets and liabilities in foreign currencies | 424 | |
Total change in net unrealized appreciation (depreciation) | 41,627,984 | |
Net gain (loss) | 63,600,755 | |
Net increase (decrease) in net assets resulting from operations | $62,752,673 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(848,082) | $(284,752) |
Net realized gain (loss) | 21,972,771 | 36,446,522 |
Change in net unrealized appreciation (depreciation) | 41,627,984 | 148,643,456 |
Net increase (decrease) in net assets resulting from operations | 62,752,673 | 184,805,226 |
Distributions to shareholders | (25,857,896) | (6,311,869) |
Share transactions | ||
Proceeds from sales of shares | 129,890,822 | 211,985,501 |
Reinvestment of distributions | 24,374,008 | 5,968,009 |
Cost of shares redeemed | (117,120,315) | (214,912,312) |
Net increase (decrease) in net assets resulting from share transactions | 37,144,515 | 3,041,198 |
Total increase (decrease) in net assets | 74,039,292 | 181,534,555 |
Net Assets | ||
Beginning of period | 583,937,904 | 402,403,349 |
End of period | $657,977,196 | $583,937,904 |
Other Information | ||
Shares | ||
Sold | 1,838,365 | 3,649,920 |
Issued in reinvestment of distributions | 343,489 | 90,837 |
Redeemed | (1,675,019) | (3,983,299) |
Net increase (decrease) | 506,835 | (242,542) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Consumer Discretionary Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $68.01 | $45.58 | $44.31 | $43.65 | $37.00 | $32.38 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.09) | (.03) | .11 | .12 | .16 | .21 |
Net realized and unrealized gain (loss) | 7.42 | 23.23 | 2.26 | 1.87 | 8.17 | 4.73 |
Total from investment operations | 7.33 | 23.20 | 2.37 | 1.99 | 8.33 | 4.94 |
Distributions from net investment income | – | – | (.11) | (.15) | (.14) | (.32) |
Distributions from net realized gain | (2.98) | (.77) | (.99) | (1.18) | (1.54) | – |
Total distributions | (2.98) | (.77) | (1.10) | (1.33) | (1.68) | (.32) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $72.36 | $68.01 | $45.58 | $44.31 | $43.65 | $37.00 |
Total ReturnD,E | 10.86% | 50.96% | 5.30% | 4.81% | 22.79% | 15.29% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .74%H | .76% | .76% | .78% | .78% | .76% |
Expenses net of fee waivers, if any | .73%H | .76% | .76% | .77% | .78% | .76% |
Expenses net of all reductions | .73%H | .75% | .76% | .77% | .77% | .76% |
Net investment income (loss) | (.26)%H | (.06)% | .23% | .27% | .40% | .60% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $657,977 | $583,938 | $402,403 | $433,188 | $819,937 | $828,992 |
Portfolio turnover rateI | 28%H | 55% | 41%J | 46%J | 74% | 39%J |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Leisure Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Booking Holdings, Inc. | 13.9 |
McDonald's Corp. | 12.9 |
Starbucks Corp. | 8.8 |
Marriott International, Inc. Class A | 7.7 |
Hilton Worldwide Holdings, Inc. | 5.2 |
Caesars Entertainment, Inc. | 4.9 |
Yum! Brands, Inc. | 4.6 |
Restaurant Brands International, Inc. | 3.6 |
Domino's Pizza, Inc. | 3.5 |
Las Vegas Sands Corp. | 3.2 |
68.3 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Hotels, Restaurants & Leisure | 86.9% | |
Entertainment | 3.7% | |
Food & Staples Retailing | 2.3% | |
IT Services | 1.8% | |
Road & Rail | 1.8% | |
All Others* | 3.5% |
* Includes short-term investments and net other assets (liabilities).
Leisure Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value | ||
Chemicals - 0.7% | |||
Specialty Chemicals - 0.7% | |||
Ecolab, Inc. | 20,800 | $4,687,488 | |
Diversified Consumer Services - 0.5% | |||
Education Services - 0.5% | |||
Graham Holdings Co. | 5,999 | 3,700,243 | |
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Altimeter Growth Corp. (a)(b) | 59,700 | 641,775 | |
Entertainment - 3.7% | |||
Interactive Home Entertainment - 0.5% | |||
Playstudios, Inc. Class A (a)(b) | 214,500 | 1,072,500 | |
Sea Ltd. ADR (a) | 7,200 | 2,435,904 | |
3,508,404 | |||
Movies & Entertainment - 3.2% | |||
Endeavor Group Holdings, Inc. (a)(b) | 323,900 | 8,421,400 | |
Live Nation Entertainment, Inc. (a) | 154,000 | 13,351,800 | |
21,773,200 | |||
TOTAL ENTERTAINMENT | 25,281,604 | ||
Food & Staples Retailing - 2.3% | |||
Food Distributors - 0.9% | |||
U.S. Foods Holding Corp. (a) | 181,100 | 6,157,400 | |
Food Retail - 1.4% | |||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 239,800 | 9,689,695 | |
TOTAL FOOD & STAPLES RETAILING | 15,847,095 | ||
Hotels, Restaurants & Leisure - 86.9% | |||
Casinos & Gaming - 14.0% | |||
Bally's Corp. (a) | 96,300 | 4,838,112 | |
Caesars Entertainment, Inc. (a) | 329,549 | 33,492,065 | |
Churchill Downs, Inc. | 79,548 | 16,744,854 | |
Las Vegas Sands Corp. (a) | 498,287 | 22,228,583 | |
MGM Resorts International | 446,021 | 19,009,415 | |
96,313,029 | |||
Hotels, Resorts & Cruise Lines - 32.5% | |||
Airbnb, Inc. Class A | 100,000 | 15,499,000 | |
Booking Holdings, Inc. (a) | 41,676 | 95,841,046 | |
Expedia, Inc. (a) | 58,718 | 8,484,751 | |
Hilton Worldwide Holdings, Inc. (a) | 286,132 | 35,726,442 | |
Lindblad Expeditions Holdings (a) | 273,625 | 4,025,024 | |
Marriott International, Inc. Class A (a) | 394,225 | 53,275,567 | |
Marriott Vacations Worldwide Corp. (a) | 46,413 | 6,941,064 | |
Trip.com Group Ltd. ADR (a) | 136,700 | 4,167,983 | |
223,960,877 | |||
Leisure Facilities - 1.8% | |||
Vail Resorts, Inc. (a) | 41,182 | 12,554,333 | |
Restaurants - 38.6% | |||
Brinker International, Inc. (a) | 74,900 | 3,989,923 | |
Chipotle Mexican Grill, Inc. (a) | 8,509 | 16,195,435 | |
Domino's Pizza, Inc. | 46,542 | 24,057,094 | |
McDonald's Corp. | 374,993 | 89,045,838 | |
Noodles & Co. (a) | 207,400 | 2,611,166 | |
Restaurant Brands International, Inc. | 382,874 | 24,599,347 | |
Ruth's Hospitality Group, Inc. (a) | 215,700 | 4,419,693 | |
Starbucks Corp. | 515,956 | 60,619,670 | |
Wendy's Co. | 43,000 | 989,860 | |
Wingstop, Inc. | 46,900 | 8,063,517 | |
Yum! Brands, Inc. | 243,600 | 31,918,908 | |
266,510,451 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 599,338,690 | ||
IT Services - 1.8% | |||
Data Processing & Outsourced Services - 1.8% | |||
Amadeus IT Holding SA Class A (a) | 82,300 | 5,025,929 | |
Flywire Corp. (a) | 9,283 | 407,617 | |
Global Payments, Inc. | 42,300 | 6,879,672 | |
12,313,218 | |||
Media - 0.4% | |||
Broadcasting - 0.4% | |||
Liberty Media Corp. Liberty Media Class A (a) | 67,300 | 3,074,937 | |
Road & Rail - 1.8% | |||
Trucking - 1.8% | |||
Uber Technologies, Inc. (a) | 321,633 | 12,588,716 | |
Specialty Retail - 0.3% | |||
Automotive Retail - 0.3% | |||
Diversified Royalty Corp. (b) | 834,100 | 1,877,576 | |
Textiles, Apparel & Luxury Goods - 1.4% | |||
Apparel, Accessories & Luxury Goods - 1.4% | |||
Hermes International SCA | 1,800 | 2,644,998 | |
LVMH Moet Hennessy Louis Vuitton SE | 9,500 | 7,037,698 | |
9,682,696 | |||
TOTAL COMMON STOCKS | |||
(Cost $455,270,446) | 689,034,038 | ||
Money Market Funds - 0.9% | |||
Fidelity Cash Central Fund 0.06% (c) | 1,546,697 | 1,547,006 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 4,410,659 | 4,411,100 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $5,958,106) | 5,958,106 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $461,228,552) | 694,992,144 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (5,580,310) | ||
NET ASSETS - 100% | $689,411,834 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $9,740,260 | $89,235,900 | $97,429,154 | $510 | $-- | $-- | $1,547,006 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 4,458,000 | 98,562,450 | 98,609,350 | 32,252 | -- | -- | 4,411,100 | 0.0% |
Total | $14,198,260 | $187,798,350 | $196,038,504 | $32,762 | $-- | $-- | $5,958,106 |
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 August 31, 2021, 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 | $689,034,038 | $681,996,340 | $7,037,698 | $-- |
Money Market Funds | 5,958,106 | 5,958,106 | -- | -- |
Total Investments in Securities: | $694,992,144 | $687,954,446 | $7,037,698 | $-- |
Net unrealized depreciation on unfunded commitments | $(33,053) | $-- | $(33,053) | $-- |
See accompanying notes which are an integral part of the financial statements.
Leisure Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,234,521) — See accompanying schedule: Unaffiliated issuers (cost $455,270,446) | $689,034,038 | |
Fidelity Central Funds (cost $5,958,106) | 5,958,106 | |
Total Investment in Securities (cost $461,228,552) | $694,992,144 | |
Foreign currency held at value (cost $572) | 568 | |
Receivable for investments sold | 62,286 | |
Receivable for fund shares sold | 68,152 | |
Dividends receivable | 619,278 | |
Distributions receivable from Fidelity Central Funds | 8,192 | |
Prepaid expenses | 3,679 | |
Other receivables | 27,887 | |
Total assets | 695,782,186 | |
Liabilities | ||
Unrealized depreciation on unfunded commitments | $33,053 | |
Payable for fund shares redeemed | 1,481,352 | |
Accrued management fee | 303,426 | |
Other affiliated payables | 116,593 | |
Other payables and accrued expenses | 24,828 | |
Collateral on securities loaned | 4,411,100 | |
Total liabilities | 6,370,352 | |
Net Assets | $689,411,834 | |
Net Assets consist of: | ||
Paid in capital | $382,691,189 | |
Total accumulated earnings (loss) | 306,720,645 | |
Net Assets | $689,411,834 | |
Net Asset Value, offering price and redemption price per share ($689,411,834 ÷ 35,548,754 shares) | $19.39 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $2,838,659 | |
Income from Fidelity Central Funds (including $32,252 from security lending) | 32,762 | |
Total income | 2,871,421 | |
Expenses | ||
Management fee | $1,943,428 | |
Transfer agent fees | 598,503 | |
Accounting fees | 130,215 | |
Custodian fees and expenses | 8,615 | |
Independent trustees' fees and expenses | 1,325 | |
Registration fees | 41,918 | |
Audit | 17,374 | |
Legal | 280 | |
Interest | 1,212 | |
Miscellaneous | 1,527 | |
Total expenses before reductions | 2,744,397 | |
Expense reductions | (50,315) | |
Total expenses after reductions | 2,694,082 | |
Net investment income (loss) | 177,339 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 76,118,109 | |
Foreign currency transactions | (3,237) | |
Total net realized gain (loss) | 76,114,872 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (27,820,898) | |
Unfunded commitments | (33,053) | |
Assets and liabilities in foreign currencies | (12) | |
Total change in net unrealized appreciation (depreciation) | (27,853,963) | |
Net gain (loss) | 48,260,909 | |
Net increase (decrease) in net assets resulting from operations | $48,438,248 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $177,339 | $2,206,649 |
Net realized gain (loss) | 76,114,872 | 35,065,293 |
Change in net unrealized appreciation (depreciation) | (27,853,963) | 136,340,266 |
Net increase (decrease) in net assets resulting from operations | 48,438,248 | 173,612,208 |
Distributions to shareholders | (35,130,652) | (12,967,558) |
Share transactions | ||
Proceeds from sales of shares | 180,255,141 | 240,729,438 |
Reinvestment of distributions | 32,006,651 | 12,074,974 |
Cost of shares redeemed | (189,866,324) | (190,886,060) |
Net increase (decrease) in net assets resulting from share transactions | 22,395,468 | 61,918,352 |
Total increase (decrease) in net assets | 35,703,064 | 222,563,002 |
Net Assets | ||
Beginning of period | 653,708,770 | 431,145,768 |
End of period | $689,411,834 | $653,708,770 |
Other Information | ||
Shares | ||
Sold | 9,363,081 | 16,202,316 |
Issued in reinvestment of distributions | 1,672,239 | 1,034,599 |
Redeemed | (9,993,731) | (13,765,059) |
Net increase (decrease) | 1,041,589 | 3,471,856 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Leisure Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.94 | $13.89 | $14.53 | $16.58 | $14.14 | $12.83 |
Income from Investment Operations | ||||||
Net investment income (loss)C | – | .07 | .12 | .16 | .18 | .16 |
Net realized and unrealized gain (loss) | 1.35 | 5.40 | .25 | .39 | 3.31 | 1.29 |
Total from investment operations | 1.35 | 5.47 | .37 | .55 | 3.49 | 1.45 |
Distributions from net investment income | (.01) | (.08) | (.11) | (.16) | (.14) | (.14) |
Distributions from net realized gain | (.90) | (.34) | (.89) | (2.44) | (.91) | – |
Total distributions | (.90)D | (.42) | (1.01)D | (2.60) | (1.05) | (.14) |
Redemption fees added to paid in capitalC | – | – | – | –E | –E | –E |
Net asset value, end of period | $19.39 | $18.94 | $13.89 | $14.53 | $16.58 | $14.14 |
Total ReturnF,G | 7.20% | 41.30% | 1.76% | 4.48% | 24.75% | 11.26% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .74%J | .77% | .76% | .76% | .77% | .80% |
Expenses net of fee waivers, if any | .74%J | .77% | .75% | .76% | .77% | .79% |
Expenses net of all reductions | .73%J | .76% | .75% | .76% | .77% | .79% |
Net investment income (loss) | .05%J | .48% | .79% | 1.05% | 1.09% | 1.17% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $689,412 | $653,709 | $431,146 | $472,923 | $544,540 | $402,941 |
Portfolio turnover rateK | 89%J | 72% | 53% | 41% | 56% | 23% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Retailing Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Amazon.com, Inc. | 21.5 |
The Home Depot, Inc. | 9.3 |
Lowe's Companies, Inc. | 6.5 |
Target Corp. | 5.0 |
eBay, Inc. | 4.8 |
Dollar General Corp. | 3.2 |
Ross Stores, Inc. | 2.9 |
Farfetch Ltd. Class A | 2.6 |
Burlington Stores, Inc. | 2.6 |
MercadoLibre, Inc. | 2.5 |
60.9 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Specialty Retail | 35.5% | |
Internet & Direct Marketing Retail | 33.4% | |
Multiline Retail | 14.7% | |
Textiles, Apparel & Luxury Goods | 6.5% | |
Food & Staples Retailing | 3.7% | |
All Others* | 6.2% |
* Includes short-term investments and net other assets (liabilities).
Retailing Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value | ||
Food & Staples Retailing - 3.7% | |||
Food Distributors - 1.7% | |||
Performance Food Group Co. (a) | 694,536 | $34,879,598 | |
U.S. Foods Holding Corp. (a) | 1,255,300 | 42,680,200 | |
77,559,798 | |||
Hypermarkets & Super Centers - 2.0% | |||
BJ's Wholesale Club Holdings, Inc. (a)(b) | 1,635,340 | 92,658,364 | |
TOTAL FOOD & STAPLES RETAILING | 170,218,162 | ||
Hotels, Restaurants & Leisure - 3.4% | |||
Casinos & Gaming - 1.5% | |||
Caesars Entertainment, Inc. (a) | 664,100 | 67,492,483 | |
Hotels, Resorts & Cruise Lines - 1.9% | |||
Booking Holdings, Inc. (a) | 16,560 | 38,082,535 | |
Marriott International, Inc. Class A (a) | 380,400 | 51,407,256 | |
89,489,791 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 156,982,274 | ||
Interactive Media & Services - 1.6% | |||
Interactive Media & Services - 1.6% | |||
Alphabet, Inc. Class A (a) | 12,500 | 36,174,375 | |
Facebook, Inc. Class A (a) | 95,800 | 36,344,604 | |
72,518,979 | |||
Internet & Direct Marketing Retail - 33.4% | |||
Internet & Direct Marketing Retail - 33.4% | |||
1stDibs.com, Inc. | 132,300 | 2,157,813 | |
Amazon.com, Inc. (a) | 285,430 | 990,667,589 | |
Chewy, Inc. (a)(b) | 467,100 | 41,160,852 | |
Deliveroo PLC | 200,000 | 910,096 | |
eBay, Inc. | 2,856,700 | 219,223,158 | |
Etsy, Inc. (a) | 26,300 | 5,687,638 | |
Farfetch Ltd. Class A (a)(b) | 2,900,600 | 121,419,116 | |
MercadoLibre, Inc. (a) | 61,900 | 115,595,155 | |
The RealReal, Inc. (a)(b) | 2,638,633 | 32,824,595 | |
thredUP, Inc. (a) | 69,846 | 1,338,948 | |
Wayfair LLC Class A (a) | 23,100 | 6,485,325 | |
1,537,470,285 | |||
Multiline Retail - 14.7% | |||
Department Stores - 3.8% | |||
Kohl's Corp. | 1,781,600 | 102,263,840 | |
Nordstrom, Inc. (a)(b) | 2,485,100 | 71,098,711 | |
173,362,551 | |||
General Merchandise Stores - 10.9% | |||
Dollar General Corp. | 654,000 | 145,783,140 | |
Dollar Tree, Inc. (a) | 831,800 | 75,311,172 | |
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 685,935 | 49,647,975 | |
Target Corp. | 940,800 | 232,358,784 | |
503,101,071 | |||
TOTAL MULTILINE RETAIL | 676,463,622 | ||
Road & Rail - 1.1% | |||
Trucking - 1.1% | |||
Lyft, Inc. (a) | 728,000 | 34,660,080 | |
Uber Technologies, Inc. (a) | 413,600 | 16,188,304 | |
50,848,384 | |||
Specialty Retail - 35.5% | |||
Apparel Retail - 9.2% | |||
American Eagle Outfitters, Inc. (b) | 1,806,800 | 55,143,536 | |
Aritzia, Inc. (a) | 683,400 | 22,333,121 | |
Burlington Stores, Inc. (a) | 396,794 | 118,835,835 | |
Ross Stores, Inc. | 1,142,100 | 135,224,640 | |
TJX Companies, Inc. | 978,100 | 71,127,432 | |
Victoria's Secret & Co. (a) | 334,133 | 22,153,018 | |
424,817,582 | |||
Automotive Retail - 1.7% | |||
Carvana Co. Class A (a)(b) | 241,400 | 79,193,684 | |
Computer & Electronics Retail - 1.8% | |||
Best Buy Co., Inc. | 713,300 | 83,106,583 | |
Home Improvement Retail - 17.5% | |||
Floor & Decor Holdings, Inc. Class A (a) | 632,737 | 78,016,472 | |
Lowe's Companies, Inc. | 1,464,300 | 298,556,127 | |
The Home Depot, Inc. | 1,310,600 | 427,491,508 | |
804,064,107 | |||
Specialty Stores - 5.3% | |||
Bath & Body Works, Inc. | 1,002,400 | 67,641,952 | |
Five Below, Inc. (a) | 330,700 | 70,376,267 | |
Ulta Beauty, Inc. (a) | 268,400 | 103,954,004 | |
241,972,223 | |||
TOTAL SPECIALTY RETAIL | 1,633,154,179 | ||
Textiles, Apparel & Luxury Goods - 6.5% | |||
Apparel, Accessories & Luxury Goods - 5.6% | |||
Canada Goose Holdings, Inc. (a) | 306,600 | 11,761,931 | |
Capri Holdings Ltd. (a) | 1,349,900 | 76,282,849 | |
G-III Apparel Group Ltd. (a)(b) | 762,128 | 23,572,619 | |
lululemon athletica, Inc. (a) | 82,357 | 32,956,801 | |
PVH Corp. (a) | 587,800 | 61,595,562 | |
Tapestry, Inc. | 1,254,300 | 50,573,376 | |
256,743,138 | |||
Footwear - 0.9% | |||
Deckers Outdoor Corp. (a) | 99,700 | 41,719,465 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 298,462,603 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,169,451,921) | 4,596,118,488 | ||
Money Market Funds - 6.4% | |||
Fidelity Cash Central Fund 0.06% (c) | 11,440,183 | 11,442,471 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 284,729,530 | 284,758,003 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $296,200,474) | 296,200,474 | ||
TOTAL INVESTMENT IN SECURITIES - 106.3% | |||
(Cost $2,465,652,395) | 4,892,318,962 | ||
NET OTHER ASSETS (LIABILITIES) - (6.3)% | (290,205,757) | ||
NET ASSETS - 100% | $4,602,113,205 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $17,054,488 | $245,262,197 | $250,874,214 | $2,977 | $-- | $-- | $11,442,471 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 140,878,842 | 749,250,134 | 605,370,973 | 112,983 | -- | -- | 284,758,003 | 0.9% |
Total | $157,933,330 | $994,512,331 | $856,245,187 | $115,960 | $-- | $-- | $296,200,474 |
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 August 31, 2021, 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 | $4,596,118,488 | $4,595,208,392 | $910,096 | $-- |
Money Market Funds | 296,200,474 | 296,200,474 | -- | -- |
Total Investments in Securities: | $4,892,318,962 | $4,891,408,866 | $910,096 | $-- |
See accompanying notes which are an integral part of the financial statements.
Retailing Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $272,445,853) — See accompanying schedule: Unaffiliated issuers (cost $2,169,451,921) | $4,596,118,488 | |
Fidelity Central Funds (cost $296,200,474) | 296,200,474 | |
Total Investment in Securities (cost $2,465,652,395) | $4,892,318,962 | |
Receivable for fund shares sold | 1,052,175 | |
Dividends receivable | 1,793,938 | |
Distributions receivable from Fidelity Central Funds | 17,532 | |
Prepaid expenses | 17,633 | |
Other receivables | 60,144 | |
Total assets | 4,895,260,384 | |
Liabilities | ||
Payable for fund shares redeemed | $5,696,660 | |
Accrued management fee | 2,016,467 | |
Other affiliated payables | 649,509 | |
Other payables and accrued expenses | 30,874 | |
Collateral on securities loaned | 284,753,669 | |
Total liabilities | 293,147,179 | |
Net Assets | $4,602,113,205 | |
Net Assets consist of: | ||
Paid in capital | $1,859,521,586 | |
Total accumulated earnings (loss) | 2,742,591,619 | |
Net Assets | $4,602,113,205 | |
Net Asset Value, offering price and redemption price per share ($4,602,113,205 ÷ 182,448,570 shares) | $25.22 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $13,865,481 | |
Income from Fidelity Central Funds (including $112,983 from security lending) | 115,960 | |
Total income | 13,981,441 | |
Expenses | ||
Management fee | $11,761,355 | |
Transfer agent fees | 3,347,350 | |
Accounting fees | 529,780 | |
Custodian fees and expenses | 14,992 | |
Independent trustees' fees and expenses | 8,136 | |
Registration fees | 52,952 | |
Audit | 17,589 | |
Legal | 1,719 | |
Interest | 516 | |
Miscellaneous | 11,256 | |
Total expenses before reductions | 15,745,645 | |
Expense reductions | (137,248) | |
Total expenses after reductions | 15,608,397 | |
Net investment income (loss) | (1,626,956) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 319,864,572 | |
Foreign currency transactions | (22,436) | |
Total net realized gain (loss) | 319,842,136 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 215,882,089 | |
Assets and liabilities in foreign currencies | (620) | |
Total change in net unrealized appreciation (depreciation) | 215,881,469 | |
Net gain (loss) | 535,723,605 | |
Net increase (decrease) in net assets resulting from operations | $534,096,649 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,626,956) | $(2,404,914) |
Net realized gain (loss) | 319,842,136 | 529,737,589 |
Change in net unrealized appreciation (depreciation) | 215,881,469 | 939,658,602 |
Net increase (decrease) in net assets resulting from operations | 534,096,649 | 1,466,991,277 |
Distributions to shareholders | (230,383,451) | (251,762,516) |
Share transactions | ||
Proceeds from sales of shares | 405,324,029 | 893,605,318 |
Reinvestment of distributions | 218,556,884 | 238,817,402 |
Cost of shares redeemed | (381,419,735) | (990,710,293) |
Net increase (decrease) in net assets resulting from share transactions | 242,461,178 | 141,712,427 |
Total increase (decrease) in net assets | 546,174,376 | 1,356,941,188 |
Net Assets | ||
Beginning of period | 4,055,938,829 | 2,698,997,641 |
End of period | $4,602,113,205 | $4,055,938,829 |
Other Information | ||
Shares | ||
Sold | 16,518,973 | 43,628,691 |
Issued in reinvestment of distributions | 8,873,605 | 10,603,061 |
Redeemed | (15,564,050) | (53,402,342) |
Net increase (decrease) | 9,828,528 | 829,410 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Retailing Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.50 | $15.71 | $15.01 | $14.35 | $11.56 | $9.88 |
Income from Investment Operations | ||||||
Net investment income (loss)C | (.01) | (.01) | .04 | .03 | .04 | .01 |
Net realized and unrealized gain (loss) | 3.05 | 9.35 | 1.02 | .93 | 3.23 | 1.69 |
Total from investment operations | 3.04 | 9.34 | 1.06 | .96 | 3.27 | 1.70 |
Distributions from net investment income | – | – | (.05) | (.02) | (.03) | (.02) |
Distributions from net realized gain | (1.32) | (1.55) | (.31) | (.27) | (.45) | – |
Total distributions | (1.32) | (1.55) | (.36) | (.30)D | (.48) | (.02) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –E |
Net asset value, end of period | $25.22 | $23.50 | $15.71 | $15.01 | $14.35 | $11.56 |
Total ReturnF,G | 13.07% | 59.90% | 7.02% | 6.83% | 28.66% | 17.20% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .70%J | .73% | .74% | .76% | .78% | .78% |
Expenses net of fee waivers, if any | .70%J | .73% | .74% | .75% | .77% | .78% |
Expenses net of all reductions | .70%J | .73% | .74% | .75% | .77% | .78% |
Net investment income (loss) | (.07)%J | (.07)% | .26% | .20% | .29% | .07% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,602,113 | $4,055,939 | $2,698,998 | $3,035,591 | $2,329,366 | $1,924,403 |
Portfolio turnover rateK | 44%J | 46% | 17% | 34% | 24% | 17% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
C Calculated based on average shares outstanding during the period.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Automotive Portfolio, Communication Services Portfolio, Construction and Housing Portfolio, Consumer Discretionary Portfolio, Leisure Portfolio, and Retailing Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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. Each Fund is authorized to issue an unlimited number of shares. Each Fund offers a single class of shares, with the exception of Communication Services Portfolio. Communication Services Portfolio offers Class A, Class M, Class C, Communication Services, Class I and Class Z shares. Each class of Communication Services Portfolio has equal rights as to assets and voting privileges, and each class has exclusive voting rights with respect to matters that affect that class. Effective June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions. Prior to June 21, 2021, Class C shares automatically converted to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions. The Funds invest primarily in securities of companies whose principal business activities fall within specific industries. Share transactions on the Statement of Changes in Net Assets and Share Transactions note may contain exchanges between affiliated funds.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 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.
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.
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 August 31, 2021 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
For Communication Services Portfolio, investment income, realized and unrealized capital gains and losses, common expenses, 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. 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.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, capital loss carryforwards and 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) | |
Automotive Portfolio | $172,263,908 | $56,071,658 | $(4,164,780) | $51,906,878 |
Communication Services Portfolio | 997,853,216 | 558,125,293 | (22,726,906) | 535,398,387 |
Construction and Housing Portfolio | 390,271,635 | 224,612,670 | (3,681,402) | 220,931,268 |
Consumer Discretionary Portfolio | 367,118,059 | 308,256,755 | (8,388,676) | 299,868,079 |
Leisure Portfolio | 463,723,035 | 245,029,690 | (13,760,581) | 231,269,109 |
Retailing Portfolio | 2,467,590,427 | 2,458,885,711 | (34,157,176) | 2,424,728,535 |
Certain of the Funds elected to defer to the next fiscal year ordinary losses recognized during the period January 1, 2021 to February 28, 2021. Loss deferrals were as follows:
Ordinary losses | |
Construction and Housing Portfolio | $406,589 |
Consumer Discretionary Portfolio | 195,112 |
Restricted Securities (including Private Placements). 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, Leisure Portfolio had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Automotive Portfolio | 78,797,084 | 85,683,486 |
Communication Services Portfolio | 607,107,763 | 250,405,766 |
Construction and Housing Portfolio | 334,662,908 | 176,333,055 |
Consumer Discretionary Portfolio | 105,647,517 | 91,113,657 |
Leisure Portfolio | 323,801,219 | 333,995,090 |
Retailing Portfolio | 996,039,683 | 980,655,866 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Automotive Portfolio | .30% | .23% | .52% |
Communication Services Portfolio | .30% | .23% | .53% |
Construction and Housing Portfolio | .30% | .23% | .53% |
Consumer Discretionary Portfolio | .30% | .23% | .53% |
Leisure Portfolio | .30% | .23% | .53% |
Retailing Portfolio | .30% | .23% | .53% |
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, Communication Services Portfolio 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 | |
Communication Services Portfolio | ||||
Class A | -% | .25% | $39,402 | $2,563 |
Class M | .25% | .25% | 17,650 | – |
Class C | .75% | .25% | 44,280 | 17,363 |
$101,332 | $19,926 |
Sales Load. For Communication Services Portfolio, 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 | |
Communication Services Portfolio | |
Class A | $25,577 |
Class M | 2,772 |
Class C(a) | 286 |
$28,635 |
(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 (Communication Services Portfolio) or Fund (all other 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 class or 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. For the period, transfer agent fees were as follows:
Amount | % of Average Net Assets(a) | |
Automotive Portfolio | $181,864 | .18 |
Communication Services Portfolio | ||
Class A | 32,188 | .20 |
Class M | 6,683 | .19 |
Class C | 8,946 | .20 |
Communication Services | 930,896 | .17 |
Class I | 31,349 | .18 |
Class Z | 1,627 | .04 |
1,011,689 | ||
Construction and Housing Portfolio | 425,903 | .16 |
Consumer Discretionary Portfolio | 495,655 | .15 |
Leisure Portfolio | 598,503 | .16 |
Retailing Portfolio | 3,347,350 | .15 |
(a) Annualized
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 annualized rates:
% of Average Net Assets | |
Automotive Portfolio | .04 |
Communication Services Portfolio | .03 |
Construction and Housing Portfolio | .04 |
Consumer Discretionary Portfolio | .04 |
Leisure Portfolio | .04 |
Retailing Portfolio | .02 |
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 | |
Automotive Portfolio | $1,239 |
Communication Services Portfolio | 8,373 |
Construction and Housing Portfolio | 3,701 |
Consumer Discretionary Portfolio | 536 |
Leisure Portfolio | 3,619 |
Retailing Portfolio | 11,580 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Automotive Portfolio | Borrower | $13,090,500 | .29% | $422 |
Consumer Discretionary Portfolio | Borrower | $6,275,000 | .29% | $250 |
Leisure Portfolio | Borrower | $8,470,412 | .30% | $1,212 |
Retailing Portfolio | Borrower | $4,400,846 | .33% | $516 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Automotive Portfolio | 2,148,941 | 1,502,756 |
Communication Services Portfolio | 49,393,467 | 10,657,225 |
Construction and Housing Portfolio | 17,811,074 | 7,170,994 |
Consumer Discretionary Portfolio | 6,755,003 | 1,643,991 |
Leisure Portfolio | 13,103,810 | 6,638,743 |
Retailing Portfolio | 49,016,305 | 22,433,751 |
Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:
Amount ($) | |
Consumer Discretionary Portfolio | 78,846 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Automotive Portfolio | $178 |
Communication Services Portfolio | 929 |
Construction and Housing Portfolio | 395 |
Consumer Discretionary Portfolio | 560 |
Leisure Portfolio | 628 |
Retailing Portfolio | 3,904 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Automotive Portfolio | $1,361 | $- | $ - |
Communication Services Portfolio | 2,561 | 189 | - |
Construction and Housing Portfolio | 3,929 | - | - |
Consumer Discretionary Portfolio | 548 | - | - |
Leisure Portfolio | 3,442 | 5,487 | 169,850 |
Retailing Portfolio | 11,650 | 1 | - |
8. Expense Reductions.
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 expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | Custodian credits | |
Automotive Portfolio | $17,938 | $22 |
Communication Services Portfolio | 60,609 | 1 |
Construction and Housing Portfolio | 12,250 | 15 |
Consumer Discretionary Portfolio | 16,194 | – |
Leisure Portfolio | 44,886 | – |
Retailing Portfolio | 104,489 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Automotive Portfolio | $1,353 |
Construction and Housing Portfolio | 3,868 |
Consumer Discretionary Portfolio | 4,677 |
Leisure Portfolio | 5,429 |
Retailing Portfolio | 32,759 |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses as follows:
Fund-Level Amount | |
Communication Services Portfolio | $8,703 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Communication Services Portfolio | ||
Distributions to shareholders | ||
Class A | $998,787 | $635,984 |
Class M | 227,134 | 164,640 |
Class C | 280,646 | 167,834 |
Communication Services | 38,169,617 | 28,584,094 |
Class I | 1,159,559 | 512,611 |
Class Z | 173,030 | 307,670 |
Total | $41,008,773 | $30,372,833 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended August 31, 2021 | Year ended February 28, 2021 | Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Communication Services Portfolio | ||||
Class A | ||||
Shares sold | 165,338 | 268,026 | $15,677,395 | $17,593,964 |
Reinvestment of distributions | 10,765 | 9,103 | 985,321 | 632,897 |
Shares redeemed | (27,036) | (178,220) | (2,564,838) | (12,053,875) |
Net increase (decrease) | 149,067 | 98,909 | $14,097,878 | $6,172,986 |
Class M | ||||
Shares sold | 26,893 | 60,603 | $2,530,802 | $4,303,282 |
Reinvestment of distributions | 2,440 | 2,265 | 222,646 | 162,557 |
Shares redeemed | (3,802) | (38,319) | (363,064) | (2,745,690) |
Net increase (decrease) | 25,531 | 24,549 | $2,390,384 | $1,720,149 |
Class C | ||||
Shares sold | 36,874 | 56,901 | $3,430,072 | $4,065,760 |
Reinvestment of distributions | 3,085 | 2,360 | 278,701 | 167,219 |
Shares redeemed | (9,297) | (12,513) | (860,227) | (829,994) |
Net increase (decrease) | 30,662 | 46,748 | $2,848,546 | $3,402,985 |
Communication Services | ||||
Shares sold | 4,663,399 | 2,744,272 | $443,221,795 | $201,655,702 |
Reinvestment of distributions | 398,246 | 412,314 | 36,638,583 | 27,550,747 |
Shares redeemed | (1,310,309) | (2,861,981) | (124,630,085) | (194,981,100) |
Net increase (decrease) | 3,751,336 | 294,605 | $355,230,293 | $34,225,349 |
Class I | ||||
Shares sold | 181,279 | 395,855 | $17,442,745 | $28,329,531 |
Reinvestment of distributions | 12,180 | 6,359 | 1,119,990 | 498,174 |
Shares redeemed | (41,649) | (141,365) | (3,951,636) | (10,652,768) |
Net increase (decrease) | 151,810 | 260,849 | $14,611,099 | $18,174,937 |
Class Z | ||||
Shares sold | 73,095 | 159,779 | $6,833,208 | $11,122,518 |
Reinvestment of distributions | 1,797 | 1,640 | 165,530 | 115,109 |
Shares redeemed | (7,185) | (148,188) | (669,675) | (11,892,094) |
Net increase (decrease) | 67,707 | 13,231 | $6,329,063 | $(654,467) |
11. Other.
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.
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.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Automotive Portfolio | .80% | |||
Actual | $1,000.00 | $1,092.00 | $4.22 | |
Hypothetical-C | $1,000.00 | $1,021.17 | $4.08 | |
Communication Services Portfolio | ||||
Class A | 1.03% | |||
Actual | $1,000.00 | $1,205.70 | $5.73 | |
Hypothetical-C | $1,000.00 | $1,020.01 | $5.24 | |
Class M | 1.27% | |||
Actual | $1,000.00 | $1,204.30 | $7.06 | |
Hypothetical-C | $1,000.00 | $1,018.80 | $6.46 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,201.10 | $9.88 | |
Hypothetical-C | $1,000.00 | $1,016.23 | $9.05 | |
Communication Services | .75% | |||
Actual | $1,000.00 | $1,207.50 | $4.17 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 | |
Class I | .76% | |||
Actual | $1,000.00 | $1,207.30 | $4.23 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Class Z | .62% | |||
Actual | $1,000.00 | $1,208.20 | $3.45 | |
Hypothetical-C | $1,000.00 | $1,022.08 | $3.16 | |
Construction and Housing Portfolio | .76% | |||
Actual | $1,000.00 | $1,255.10 | $4.32 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Consumer Discretionary Portfolio | .73% | |||
Actual | $1,000.00 | $1,108.60 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 | |
Leisure Portfolio | .74% | |||
Actual | $1,000.00 | $1,072.00 | $3.86 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Retailing Portfolio | .70% | |||
Actual | $1,000.00 | $1,130.70 | $3.76 | |
Hypothetical-C | $1,000.00 | $1,021.68 | $3.57 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Automotive Portfolio
Communication Services Portfolio
Construction and Housing Portfolio
Consumer Discretionary Portfolio
Leisure Portfolio
Retailing Portfolio
Automotive Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733188467.jpg)
Communication Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733188559.jpg)
Construction and Housing Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733188650.jpg)
Consumer Discretionary Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733189450.jpg)
Leisure Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190092.jpg)
Retailing Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190183.jpg)
Automotive Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190454.jpg)
Communication Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190566.jpg)
Construction and Housing Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190689.jpg)
Consumer Discretionary Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733190944.jpg)
Leisure Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733191103.jpg)
Retailing Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733191225.jpg)
SELCON-SANN-1021
1.813637.116
Fidelity® Select Portfolios®
Energy Sector
Energy Portfolio
Energy Service Portfolio
Natural Gas Portfolio
Semi-Annual Report
August 31, 2021
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
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Contents
Energy Portfolio | |
Energy Service Portfolio | |
Natural Gas Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Energy Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Exxon Mobil Corp. | 14.3 |
Chevron Corp. | 8.8 |
Royal Dutch Shell PLC Class B sponsored ADR | 7.2 |
Cheniere Energy, Inc. | 5.8 |
Pioneer Natural Resources Co. | 4.7 |
ConocoPhillips Co. | 4.0 |
Devon Energy Corp. | 3.7 |
Canadian Natural Resources Ltd. | 3.4 |
Marathon Petroleum Corp. | 3.3 |
Valero Energy Corp. | 2.8 |
58.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Oil, Gas & Consumable Fuels | 87.6% | |
Energy Equipment & Services | 8.7% | |
Independent Power and Renewable Electricity Producers | 2.4% | |
Food Products | 0.6% | |
All Others* | 0.7% |
* Includes short-term investments and net other assets (liabilities).
Energy Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Energy Equipment & Services - 8.7% | |||
Oil & Gas Drilling - 0.6% | |||
Nabors Industries Ltd. (a) | 18,758 | $1,582,050 | |
Nabors Industries Ltd. warrants 6/11/26 (a) | 13,823 | 80,173 | |
Odfjell Drilling Ltd. (a) | 1,867,080 | 4,179,012 | |
Shelf Drilling Ltd. (a)(b) | 1,474,713 | 736,148 | |
6,577,383 | |||
Oil & Gas Equipment & Services - 8.1% | |||
Baker Hughes Co. Class A | 1,121,640 | 25,550,959 | |
Cactus, Inc. | 81,800 | 3,068,318 | |
Championx Corp. (a) | 167,400 | 3,905,442 | |
Nextier Oilfield Solutions, Inc. (a) | 1,910,100 | 6,876,360 | |
Oceaneering International, Inc. (a) | 523,700 | 6,441,510 | |
ProPetro Holding Corp. (a) | 943,700 | 7,304,238 | |
Schlumberger Ltd. | 517,058 | 14,498,306 | |
Technip Energies NV (a) | 534,780 | 6,986,900 | |
TechnipFMC PLC (a) | 1,951,400 | 12,937,782 | |
87,569,815 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 94,147,198 | ||
Food Products - 0.6% | |||
Agricultural Products - 0.6% | |||
Darling Ingredients, Inc. (a) | 90,900 | 6,772,050 | |
Independent Power and Renewable Electricity Producers - 2.4% | |||
Independent Power Producers & Energy Traders - 2.4% | |||
The AES Corp. | 69,500 | 1,658,965 | |
Vistra Corp. | 1,246,000 | 23,786,140 | |
25,445,105 | |||
Oil, Gas & Consumable Fuels - 87.6% | |||
Coal & Consumable Fuels - 0.2% | |||
Enviva Partners LP | 52,000 | 2,810,080 | |
Integrated Oil & Gas - 35.6% | |||
BP PLC sponsored ADR | 229,800 | 5,620,908 | |
Cenovus Energy, Inc. (Canada) | 3,317,500 | 27,530,793 | |
Chevron Corp. | 988,798 | 95,685,982 | |
Exxon Mobil Corp. | 2,847,748 | 155,259,222 | |
Occidental Petroleum Corp. | 859,600 | 22,083,124 | |
Occidental Petroleum Corp. warrants 8/3/27 (a) | 63,600 | 643,632 | |
Royal Dutch Shell PLC Class B sponsored ADR | 1,993,100 | 78,468,347 | |
Total SA sponsored ADR | 13,800 | 611,202 | |
385,903,210 | |||
Oil & Gas Exploration & Production - 33.2% | |||
Antero Resources Corp. (a) | 861,200 | 11,815,664 | |
APA Corp. | 1,347,000 | 26,239,560 | |
Callon Petroleum Co. (a)(c) | 99,300 | 3,393,081 | |
Canadian Natural Resources Ltd. | 1,111,300 | 36,774,680 | |
Cimarex Energy Co. | 224,800 | 14,436,656 | |
ConocoPhillips Co. | 775,266 | 43,050,521 | |
Devon Energy Corp. | 1,372,900 | 40,569,195 | |
Diamondback Energy, Inc. | 134,800 | 10,398,472 | |
EOG Resources, Inc. | 396,864 | 26,796,257 | |
Extraction Oil & Gas, Inc. (a) | 91,500 | 4,165,995 | |
Hess Corp. | 329,500 | 22,653,125 | |
Magnolia Oil & Gas Corp. Class A | 497,600 | 7,802,368 | |
National Energy Services Reunited Corp. (a) | 987,400 | 11,206,990 | |
Northern Oil & Gas, Inc. | 154,760 | 2,569,016 | |
Ovintiv, Inc. | 343,700 | 9,369,262 | |
PDC Energy, Inc. | 675,751 | 28,212,604 | |
Pioneer Natural Resources Co. | 341,766 | 51,152,117 | |
Range Resources Corp. (a) | 189,000 | 2,763,180 | |
SM Energy Co. | 148,300 | 2,832,530 | |
Viper Energy Partners LP (c) | 200,859 | 3,719,909 | |
359,921,182 | |||
Oil & Gas Refining & Marketing - 8.7% | |||
Marathon Petroleum Corp. | 613,392 | 36,355,744 | |
Phillips 66 Co. | 362,573 | 25,775,315 | |
Renewable Energy Group, Inc. (a) | 43,100 | 2,086,902 | |
Valero Energy Corp. | 463,500 | 30,734,685 | |
94,952,646 | |||
Oil & Gas Storage & Transport - 9.9% | |||
Cheniere Energy, Inc. | 721,200 | 63,076,152 | |
Energy Transfer LP | 1,213,900 | 11,289,270 | |
Golar LNG Ltd. (a) | 394,700 | 4,440,375 | |
Targa Resources Corp. | 303,800 | 13,342,896 | |
Teekay LNG Partners LP | 275,600 | 3,830,840 | |
The Williams Companies, Inc. | 451,800 | 11,154,942 | |
107,134,475 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 950,721,593 | ||
TOTAL COMMON STOCKS | |||
(Cost $937,618,883) | 1,077,085,946 | ||
Money Market Funds - 0.2% | |||
Fidelity Cash Central Fund 0.06% (d) | 2,332,724 | 2,333,190 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 475,460 | 475,508 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $2,808,698) | 2,808,698 | ||
TOTAL INVESTMENT IN SECURITIES - 99.5% | |||
(Cost $940,427,581) | 1,079,894,644 | ||
NET OTHER ASSETS (LIABILITIES) - 0.5% | 5,095,496 | ||
NET ASSETS - 100% | $1,084,990,140 |
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 $736,148 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 are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $14,452,970 | $138,774,032 | $150,893,812 | $1,659 | $-- | $-- | $2,333,190 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 559,733 | 79,582,837 | 79,667,062 | 7,623 | -- | -- | 475,508 | 0.0% |
Total | $15,012,703 | $218,356,869 | $230,560,874 | $9,282 | $-- | $-- | $2,808,698 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,077,085,946 | $1,077,085,946 | $-- | $-- |
Money Market Funds | 2,808,698 | 2,808,698 | -- | -- |
Total Investments in Securities: | $1,079,894,644 | $1,079,894,644 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 80.7% |
United Kingdom | 8.9% |
Canada | 6.0% |
Curacao | 1.3% |
British Virgin Islands | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Energy Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $470,268) — See accompanying schedule: Unaffiliated issuers (cost $937,618,883) | $1,077,085,946 | |
Fidelity Central Funds (cost $2,808,698) | 2,808,698 | |
Total Investment in Securities (cost $940,427,581) | $1,079,894,644 | |
Receivable for fund shares sold | 1,330,610 | |
Dividends receivable | 6,745,956 | |
Distributions receivable from Fidelity Central Funds | 218 | |
Prepaid expenses | 9,921 | |
Other receivables | 332,940 | |
Total assets | 1,088,314,289 | |
Liabilities | ||
Payable for fund shares redeemed | $1,879,050 | |
Accrued management fee | 478,044 | |
Transfer agent fee payable | 189,481 | |
Other affiliated payables | 29,795 | |
Other payables and accrued expenses | 272,879 | |
Collateral on securities loaned | 474,900 | |
Total liabilities | 3,324,149 | |
Net Assets | $1,084,990,140 | |
Net Assets consist of: | ||
Paid in capital | $1,515,212,889 | |
Total accumulated earnings (loss) | (430,222,749) | |
Net Assets | $1,084,990,140 | |
Net Asset Value, offering price and redemption price per share ($1,084,990,140 ÷ 35,925,676 shares) | $30.20 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $19,625,939 | |
Income from Fidelity Central Funds (including $7,623 from security lending) | 9,282 | |
Total income | 19,635,221 | |
Expenses | ||
Management fee | $3,042,652 | |
Transfer agent fees | 1,151,256 | |
Accounting fees | 187,748 | |
Custodian fees and expenses | 8,892 | |
Independent trustees' fees and expenses | 2,022 | |
Registration fees | 83,712 | |
Audit | 25,913 | |
Legal | 995 | |
Interest | 356 | |
Miscellaneous | 3,594 | |
Total expenses before reductions | 4,507,140 | |
Expense reductions | (53,126) | |
Total expenses after reductions | 4,454,014 | |
Net investment income (loss) | 15,181,207 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (19,408,517) | |
Foreign currency transactions | (2,719) | |
Total net realized gain (loss) | (19,411,236) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 36,374,664 | |
Assets and liabilities in foreign currencies | 1,712 | |
Total change in net unrealized appreciation (depreciation) | 36,376,376 | |
Net gain (loss) | 16,965,140 | |
Net increase (decrease) in net assets resulting from operations | $32,146,347 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,181,207 | $30,974,157 |
Net realized gain (loss) | (19,411,236) | (142,968,598) |
Change in net unrealized appreciation (depreciation) | 36,376,376 | 269,516,568 |
Net increase (decrease) in net assets resulting from operations | 32,146,347 | 157,522,127 |
Distributions to shareholders | (7,918,385) | (24,866,401) |
Share transactions | ||
Proceeds from sales of shares | 455,397,941 | 546,805,883 |
Reinvestment of distributions | 7,379,593 | 23,686,159 |
Cost of shares redeemed | (382,659,002) | (398,816,396) |
Net increase (decrease) in net assets resulting from share transactions | 80,118,532 | 171,675,646 |
Total increase (decrease) in net assets | 104,346,494 | 304,331,372 |
Net Assets | ||
Beginning of period | 980,643,646 | 676,312,274 |
End of period | $1,084,990,140 | $980,643,646 |
Other Information | ||
Shares | ||
Sold | 14,526,638 | 25,409,225 |
Issued in reinvestment of distributions | 253,856 | 1,036,348 |
Redeemed | (12,379,516) | (18,168,636) |
Net increase (decrease) | 2,400,978 | 8,276,937 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Energy Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.25 | $26.79 | $37.50 | $41.01 | $44.10 | $32.63 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .41 | .99C | .71 | .49 | .75D | .18 |
Net realized and unrealized gain (loss) | .75 | 2.27 | (10.76) | (3.51) | (3.06) | 11.58 |
Total from investment operations | 1.16 | 3.26 | (10.05) | (3.02) | (2.31) | 11.76 |
Distributions from net investment income | (.21) | (.80) | (.64) | (.48) | (.68) | (.24) |
Distributions from net realized gain | – | – | (.02) | (.01) | (.10) | (.05) |
Total distributions | (.21) | (.80) | (.66) | (.49) | (.78) | (.29) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $30.20 | $29.25 | $26.79 | $37.50 | $41.01 | $44.10 |
Total ReturnF,G | 4.00% | 13.03% | (27.24)% | (7.30)% | (5.27)% | 36.05% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .78%J | .85% | .81% | .78% | .79% | .79% |
Expenses net of fee waivers, if any | .78%J | .85% | .81% | .78% | .79% | .79% |
Expenses net of all reductions | .77%J | .84% | .80% | .77% | .78% | .78% |
Net investment income (loss) | 2.63%J | 4.50%C | 2.00% | 1.12% | 1.82%D | .44% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,084,990 | $980,644 | $676,312 | $1,152,173 | $1,778,436 | $2,289,350 |
Portfolio turnover rateK | 47%J | 31% | 79%L | 59%L | 59% | 93%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 3.82%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.48 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .66%.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Energy Service Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Schlumberger Ltd. | 18.6 |
Baker Hughes Co. Class A | 13.2 |
Halliburton Co. | 6.6 |
Cactus, Inc. | 6.0 |
TechnipFMC PLC | 5.2 |
Championx Corp. | 4.8 |
Oceaneering International, Inc. | 4.5 |
National Energy Services Reunited Corp. | 4.4 |
ProPetro Holding Corp. | 2.9 |
Nextier Oilfield Solutions, Inc. | 2.8 |
69.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Energy Equipment & Services | 94.3% | |
Oil, Gas & Consumable Fuels | 5.4% | |
All Others* | 0.3% |
* Includes short-term investments and net other assets (liabilities).
Energy Service Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
Energy Equipment & Services - 94.3% | |||
Oil & Gas Drilling - 12.8% | |||
Borr Drilling Ltd. (a)(b) | 65,712 | $52,000 | |
Helmerich & Payne, Inc. | 250,398 | 6,740,714 | |
Independence Contract Drilling, Inc. (a)(b) | 39,062 | 122,264 | |
Nabors Industries Ltd. (a) | 50,941 | 4,296,364 | |
Nabors Industries Ltd. warrants 6/11/26 (a) | 23,176 | 134,421 | |
Odfjell Drilling Ltd. (a) | 2,693,082 | 6,027,820 | |
Patterson-UTI Energy, Inc. | 782,090 | 6,069,018 | |
Shelf Drilling Ltd. (a)(c) | 2,276,276 | 1,136,273 | |
Transocean Ltd. (United States) (a)(b) | 1,749,900 | 6,229,644 | |
Valaris Ltd. (a) | 47,700 | 1,416,213 | |
32,224,731 | |||
Oil & Gas Equipment & Services - 81.5% | |||
Archrock, Inc. | 378,716 | 2,908,539 | |
Baker Hughes Co. Class A | 1,456,038 | 33,168,546 | |
Cactus, Inc. | 400,886 | 15,037,234 | |
Championx Corp. (a) | 519,248 | 12,114,056 | |
Core Laboratories NV (b) | 100,600 | 2,772,536 | |
CSI Compressco LP | 526,557 | 626,603 | |
Dril-Quip, Inc. (a)(b) | 129,700 | 3,151,710 | |
Forum Energy Technologies, Inc. (a)(b) | 12,304 | 236,852 | |
Frank's International NV (a)(b) | 653,583 | 1,882,319 | |
Halliburton Co. | 834,092 | 16,665,158 | |
Helix Energy Solutions Group, Inc. (a) | 899,529 | 3,382,229 | |
Liberty Oilfield Services, Inc. Class A (a) | 361,100 | 3,690,442 | |
Nextier Oilfield Solutions, Inc. (a) | 1,974,700 | 7,108,920 | |
NOV, Inc. (a) | 446,500 | 5,880,405 | |
Oceaneering International, Inc. (a) | 915,825 | 11,264,648 | |
Oil States International, Inc. (a) | 213,725 | 1,252,429 | |
ProPetro Holding Corp. (a) | 942,100 | 7,291,854 | |
Ranger Energy Services, Inc. Class A (a) | 652,187 | 4,780,531 | |
Schlumberger Ltd. | 1,666,811 | 46,737,379 | |
SEACOR Marine Holdings, Inc. (a) | 100 | 429 | |
Smart Sand, Inc. (a)(b) | 178,890 | 436,492 | |
Solaris Oilfield Infrastructure, Inc. Class A | 111,600 | 829,188 | |
Subsea 7 SA | 86,800 | 661,115 | |
Technip Energies NV (a) | 268,854 | 3,512,577 | |
TechnipFMC PLC (a) | 1,986,772 | 13,172,298 | |
Tenaris SA sponsored ADR | 211,400 | 4,253,368 | |
TETRA Technologies, Inc. (a) | 579,522 | 1,877,651 | |
TETRA Technologies, Inc. warrants 12/14/21 (a) | 300,100 | 2,008 | |
Weatherford International PLC (a) | 1,499 | 23,624 | |
204,721,140 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 236,945,871 | ||
Oil, Gas & Consumable Fuels - 5.4% | |||
Oil & Gas Exploration & Production - 4.4% | |||
National Energy Services Reunited Corp. (a)(b) | 970,874 | 11,019,420 | |
Oil & Gas Storage & Transport - 1.0% | |||
Cheniere Energy, Inc. | 21,612 | 1,890,186 | |
Golar LNG Ltd. (a) | 60,333 | 678,746 | |
2,568,932 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 13,588,352 | ||
TOTAL COMMON STOCKS | |||
(Cost $275,601,161) | 250,534,223 | ||
Money Market Funds - 4.6% | |||
Fidelity Cash Central Fund 0.06% (d) | 1,319,086 | 1,319,349 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 10,285,960 | 10,286,988 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,606,337) | 11,606,337 | ||
TOTAL INVESTMENT IN SECURITIES - 104.3% | |||
(Cost $287,207,498) | 262,140,560 | ||
NET OTHER ASSETS (LIABILITIES) - (4.3)% | (10,906,909) | ||
NET ASSETS - 100% | $251,233,651 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,136,273 or 0.5% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $4,416,118 | $68,793,386 | $71,890,155 | $403 | $-- | $-- | $1,319,349 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 9,891,911 | 59,605,313 | 59,210,236 | 12,367 | 118 | (118) | 10,286,988 | 0.0% |
Total | $14,308,029 | $128,398,699 | $131,100,391 | $12,770 | $118 | $(118) | $11,606,337 |
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 August 31, 2021, 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 | $250,534,223 | $250,532,215 | $2,008 | $-- |
Money Market Funds | 11,606,337 | 11,606,337 | -- | -- |
Total Investments in Securities: | $262,140,560 | $262,138,552 | $2,008 | $-- |
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 | 58.6% |
Curacao | 18.6% |
United Kingdom | 5.2% |
Bermuda | 5.0% |
British Virgin Islands | 4.4% |
Netherlands | 3.3% |
Switzerland | 2.5% |
Luxembourg | 2.0% |
Others (Individually Less Than 1%) | 0.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Energy Service Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $9,816,961) — See accompanying schedule: Unaffiliated issuers (cost $275,601,161) | $250,534,223 | |
Fidelity Central Funds (cost $11,606,337) | 11,606,337 | |
Total Investment in Securities (cost $287,207,498) | $262,140,560 | |
Receivable for investments sold | 2,592,978 | |
Receivable for fund shares sold | 154,809 | |
Dividends receivable | 286,184 | |
Distributions receivable from Fidelity Central Funds | 1,617 | |
Prepaid expenses | 2,412 | |
Other receivables | 103,650 | |
Total assets | 265,282,210 | |
Liabilities | ||
Payable for investments purchased | $2,584,894 | |
Payable for fund shares redeemed | 860,711 | |
Accrued management fee | 111,114 | |
Other affiliated payables | 62,431 | |
Other payables and accrued expenses | 142,359 | |
Collateral on securities loaned | 10,287,050 | |
Total liabilities | 14,048,559 | |
Net Assets | $251,233,651 | |
Net Assets consist of: | ||
Paid in capital | $615,068,950 | |
Total accumulated earnings (loss) | (363,835,299) | |
Net Assets | $251,233,651 | |
Net Asset Value, offering price and redemption price per share ($251,233,651 ÷ 13,722,482 shares) | $18.31 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,573,664 | |
Income from Fidelity Central Funds (including $12,367 from security lending) | 12,770 | |
Total income | 1,586,434 | |
Expenses | ||
Management fee | $793,051 | |
Transfer agent fees | 338,944 | |
Accounting fees | 58,711 | |
Custodian fees and expenses | 5,113 | |
Independent trustees' fees and expenses | 545 | |
Registration fees | 48,711 | |
Audit | 25,707 | |
Legal | 1,284 | |
Interest | 156 | |
Miscellaneous | 35,130 | |
Total expenses before reductions | 1,307,352 | |
Expense reductions | (32,785) | |
Total expenses after reductions | 1,274,567 | |
Net investment income (loss) | 311,867 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (15,896,405) | |
Fidelity Central Funds | 118 | |
Foreign currency transactions | (1,172) | |
Total net realized gain (loss) | (15,897,459) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (12,816,881) | |
Fidelity Central Funds | (118) | |
Assets and liabilities in foreign currencies | 10 | |
Total change in net unrealized appreciation (depreciation) | (12,816,989) | |
Net gain (loss) | (28,714,448) | |
Net increase (decrease) in net assets resulting from operations | $(28,402,581) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $311,867 | $6,261,698 |
Net realized gain (loss) | (15,897,459) | (75,408,324) |
Change in net unrealized appreciation (depreciation) | (12,816,989) | 127,563,879 |
Net increase (decrease) in net assets resulting from operations | (28,402,581) | 58,417,253 |
Distributions to shareholders | (6,248,718) | (3,350,025) |
Share transactions | ||
Proceeds from sales of shares | 172,045,767 | 211,693,911 |
Reinvestment of distributions | 5,850,902 | 3,185,845 |
Cost of shares redeemed | (180,930,014) | (140,158,256) |
Net increase (decrease) in net assets resulting from share transactions | (3,033,345) | 74,721,500 |
Total increase (decrease) in net assets | (37,684,644) | 129,788,728 |
Net Assets | ||
Beginning of period | 288,918,295 | 159,129,567 |
End of period | $251,233,651 | $288,918,295 |
Other Information | ||
Shares | ||
Sold | 8,321,970 | 16,108,333 |
Issued in reinvestment of distributions | 325,231 | 227,132 |
Redeemed | (9,444,831) | (11,057,541) |
Net increase (decrease) | (797,630) | 5,277,924 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Energy Service Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.90 | $17.22 | $30.61 | $42.04 | $54.70 | $37.54 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .02 | .50C | .34 | .26 | 1.41D | .17 |
Net realized and unrealized gain (loss) | (1.22) | 2.45 | (13.21) | (11.37) | (10.86) | 17.22 |
Total from investment operations | (1.20) | 2.95 | (12.87) | (11.11) | (9.45) | 17.39 |
Distributions from net investment income | (.39) | (.27) | (.52) | (.32) | (1.77) | (.23) |
Distributions from net realized gain | – | – | – | – | (1.43) | – |
Total distributions | (.39) | (.27) | (.52) | (.32) | (3.21)E | (.23) |
Redemption fees added to paid in capitalB | – | – | – | – | –F | –F |
Net asset value, end of period | $18.31 | $19.90 | $17.22 | $30.61 | $42.04 | $54.70 |
Total ReturnG,H | (6.01)% | 17.85% | (42.54)% | (26.36)% | (17.41)% | 46.36% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .85%K,L | .91% | .90% | .84% | .84% | .85% |
Expenses net of fee waivers, if any | .85%K,L | .91% | .90% | .84% | .84% | .85% |
Expenses net of all reductions | .83%K,L | .89% | .89% | .81% | .82% | .84% |
Net investment income (loss) | .22%K,L | 3.91%C | 1.38% | .65% | 3.04%D | .36% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $251,234 | $288,918 | $159,130 | $303,349 | $413,055 | $734,091 |
Portfolio turnover rateM | 59%K | 38% | 42% | 80% | 62% | 96% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.37 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.04%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $1.34 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .16%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Proxy expenses are not annualized.
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Natural Gas Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Enbridge, Inc. | 10.0 |
Hess Corp. | 6.4 |
The Williams Companies, Inc. | 5.4 |
Antero Resources Corp. | 5.4 |
ConocoPhillips Co. | 5.3 |
Targa Resources Corp. | 4.8 |
Devon Energy Corp. | 4.7 |
Occidental Petroleum Corp. | 4.1 |
ONEOK, Inc. | 3.9 |
Halliburton Co. | 3.9 |
53.9 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Oil, Gas & Consumable Fuels | 85.2% | |
Energy Equipment & Services | 12.2% | |
Gas Utilities | 1.6% | |
Food Products | 0.4% | |
All Others* | 0.6% |
* Includes short-term investments and net other assets (liabilities).
Natural Gas Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Energy Equipment & Services - 12.2% | |||
Oil & Gas Equipment & Services - 12.2% | |||
Baker Hughes Co. Class A | 171,300 | $3,902,214 | |
Championx Corp. (a) | 84,600 | 1,973,718 | |
Core Laboratories NV (b) | 36,800 | 1,014,208 | |
Halliburton Co. | 236,300 | 4,721,274 | |
Liberty Oilfield Services, Inc. Class A (a) | 150,700 | 1,540,154 | |
ProPetro Holding Corp. (a) | 228,600 | 1,769,364 | |
14,920,932 | |||
Food Products - 0.4% | |||
Agricultural Products - 0.4% | |||
Bunge Ltd. | 6,400 | 484,544 | |
Gas Utilities - 1.6% | |||
Gas Utilities - 1.6% | |||
Atmos Energy Corp. | 11,800 | 1,150,618 | |
Brookfield Infrastructure Corp. A Shares | 11,600 | 737,760 | |
1,888,378 | |||
Oil, Gas & Consumable Fuels - 85.2% | |||
Integrated Oil & Gas - 5.8% | |||
Cenovus Energy, Inc. | 151,500 | 1,254,420 | |
Cenovus Energy, Inc. warrants (a) | 97,500 | 453,375 | |
Occidental Petroleum Corp. | 194,615 | 4,999,659 | |
Occidental Petroleum Corp. warrants 8/3/27 (a) | 35,950 | 363,814 | |
7,071,268 | |||
Oil & Gas Exploration & Production - 40.0% | |||
Antero Resources Corp. (a) | 478,500 | 6,565,020 | |
Canadian Natural Resources Ltd. | 110,180 | 3,643,653 | |
ConocoPhillips Co. | 116,300 | 6,458,139 | |
Devon Energy Corp. | 193,800 | 5,726,790 | |
Diamondback Energy, Inc. | 24,900 | 1,920,786 | |
EOG Resources, Inc. | 24,200 | 1,633,984 | |
Hess Corp. | 113,500 | 7,803,125 | |
Magnolia Oil & Gas Corp. Class A | 222,200 | 3,484,096 | |
MEG Energy Corp. (a) | 162,454 | 1,035,256 | |
Ovintiv, Inc. | 75,700 | 2,063,582 | |
PDC Energy, Inc. | 65,000 | 2,713,750 | |
Pioneer Natural Resources Co. | 17,550 | 2,626,709 | |
Range Resources Corp. (a) | 217,700 | 3,182,774 | |
48,857,664 | |||
Oil & Gas Storage & Transport - 39.4% | |||
Cheniere Energy, Inc. | 39,900 | 3,489,654 | |
DT Midstream, Inc. | 21,400 | 994,458 | |
Enbridge, Inc. | 309,500 | 12,179,823 | |
Energy Transfer LP | 371,600 | 3,455,880 | |
Enterprise Products Partners LP | 117,800 | 2,622,228 | |
Equitrans Midstream Corp. (b) | 145,200 | 1,267,596 | |
Gibson Energy, Inc. | 47,300 | 853,286 | |
ONEOK, Inc. | 89,900 | 4,721,548 | |
Pembina Pipeline Corp. | 128,200 | 3,907,019 | |
Targa Resources Corp. | 133,400 | 5,858,928 | |
TC Energy Corp. | 43,700 | 2,074,767 | |
The Williams Companies, Inc. | 267,729 | 6,610,229 | |
48,035,416 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 103,964,348 | ||
TOTAL COMMON STOCKS | |||
(Cost $102,490,144) | 121,258,202 | ||
Money Market Funds - 1.2% | |||
Fidelity Cash Central Fund 0.06% (c) | 513,418 | 513,521 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 959,484 | 959,580 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,473,101) | 1,473,101 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $103,963,245) | 122,731,303 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (736,494) | ||
NET ASSETS - 100% | $121,994,809 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $181,654 | $17,736,508 | $17,404,641 | $195 | $-- | $-- | $513,521 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 1,775,813 | 40,997,499 | 41,813,732 | 5,087 | -- | -- | 959,580 | 0.0% |
Total | $1,957,467 | $58,734,007 | $59,218,373 | $5,282 | $-- | $-- | $1,473,101 |
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 August 31, 2021, 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 | $121,258,202 | $121,258,202 | $-- | $-- |
Money Market Funds | 1,473,101 | 1,473,101 | -- | -- |
Total Investments in Securities: | $122,731,303 | $122,731,303 | $-- | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $1,268,338 |
Total Realized Gain (Loss) | (796,813) |
Total Unrealized Gain (Loss) | 731,162 |
Cost of Purchases | -- |
Proceeds of Sales | (1,202,687) |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $-- |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2021 | $-- |
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 | 77.4% |
Canada | 21.4% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Natural Gas Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $906,432) — See accompanying schedule: Unaffiliated issuers (cost $102,490,144) | $121,258,202 | |
Fidelity Central Funds (cost $1,473,101) | 1,473,101 | |
Total Investment in Securities (cost $103,963,245) | $122,731,303 | |
Receivable for investments sold | 2,428,804 | |
Receivable for fund shares sold | 332,581 | |
Dividends receivable | 285,687 | |
Distributions receivable from Fidelity Central Funds | 2,246 | |
Prepaid expenses | 1,276 | |
Other receivables | 72,920 | |
Total assets | 125,854,817 | |
Liabilities | ||
Payable for investments purchased | $2,317,272 | |
Payable for fund shares redeemed | 385,316 | |
Accrued management fee | 53,107 | |
Other affiliated payables | 33,751 | |
Other payables and accrued expenses | 111,087 | |
Collateral on securities loaned | 959,475 | |
Total liabilities | 3,860,008 | |
Net Assets | $121,994,809 | |
Net Assets consist of: | ||
Paid in capital | $528,319,640 | |
Total accumulated earnings (loss) | (406,324,831) | |
Net Assets | $121,994,809 | |
Net Asset Value, offering price and redemption price per share ($121,994,809 ÷ 9,001,446 shares) | $13.55 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,740,488 | |
Income from Fidelity Central Funds (including $5,087 from security lending) | 5,282 | |
Income before foreign taxes withheld | 1,745,770 | |
Less foreign taxes withheld | (145,194) | |
Total income | 1,600,576 | |
Expenses | ||
Management fee | $337,086 | |
Transfer agent fees | 175,985 | |
Accounting fees | 24,957 | |
Custodian fees and expenses | 3,697 | |
Independent trustees' fees and expenses | 232 | |
Registration fees | 18,488 | |
Audit | 17,092 | |
Legal | 853 | |
Miscellaneous | 29,150 | |
Total expenses before reductions | 607,540 | |
Expense reductions | (18,762) | |
Total expenses after reductions | 588,778 | |
Net investment income (loss) | 1,011,798 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,143,907 | |
Foreign currency transactions | 14,637 | |
Total net realized gain (loss) | 3,158,544 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,823,458 | |
Assets and liabilities in foreign currencies | (523) | |
Total change in net unrealized appreciation (depreciation) | 7,822,935 | |
Net gain (loss) | 10,981,479 | |
Net increase (decrease) in net assets resulting from operations | $11,993,277 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,011,798 | $2,816,687 |
Net realized gain (loss) | 3,158,544 | (92,526,463) |
Change in net unrealized appreciation (depreciation) | 7,822,935 | 85,232,815 |
Net increase (decrease) in net assets resulting from operations | 11,993,277 | (4,476,961) |
Distributions to shareholders | (2,794,959) | (2,175,969) |
Share transactions | ||
Proceeds from sales of shares | 29,838,648 | 52,382,909 |
Reinvestment of distributions | 2,604,936 | 2,046,977 |
Cost of shares redeemed | (36,227,896) | (45,826,297) |
Net increase (decrease) in net assets resulting from share transactions | (3,784,312) | 8,603,589 |
Total increase (decrease) in net assets | 5,414,006 | 1,950,659 |
Net Assets | ||
Beginning of period | 116,580,803 | 114,630,144 |
End of period | $121,994,809 | $116,580,803 |
Other Information | ||
Shares | ||
Sold | 2,152,851 | 5,141,965 |
Issued in reinvestment of distributions | 210,585 | 198,651 |
Redeemed | (2,697,654) | (4,459,318) |
Net increase (decrease) | (334,218) | 881,298 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Natural Gas Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.49 | $13.56 | $20.45 | $21.60 | $27.76 | $17.83 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .11 | .31C | .28 | .24 | .61D | .13 |
Net realized and unrealized gain (loss) | 1.25 | (1.14) | (6.98) | (1.27) | (5.83) | 9.98 |
Total from investment operations | 1.36 | (.83) | (6.70) | (1.03) | (5.22) | 10.11 |
Distributions from net investment income | (.30) | (.24) | (.19) | – | (.65) | (.15) |
Distributions from net realized gain | – | – | – | (.12) | (.29) | (.03) |
Total distributions | (.30) | (.24) | (.19) | (.12) | (.94) | (.18) |
Redemption fees added to paid in capitalB | – | – | – | – | –E | –E |
Net asset value, end of period | $13.55 | $12.49 | $13.56 | $20.45 | $21.60 | $27.76 |
Total ReturnF,G | 11.10% | (5.72)% | (32.98)% | (4.82)% | (18.97)% | 56.75% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .92%J,K | .92% | .93% | .89% | .89% | .87% |
Expenses net of fee waivers, if any | .92%J,K | .92% | .93% | .89% | .89% | .87% |
Expenses net of all reductions | .90%J,K | .90% | .92% | .86% | .87% | .87% |
Net investment income (loss) | 1.60%J,K | 3.09%C | 1.51% | 1.02% | 2.52%D | .50% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $121,995 | $116,581 | $114,630 | $201,085 | $238,368 | $479,879 |
Portfolio turnover rateL | 122%J | 127% | 87% | 86% | 69% | 76% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 2.42%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.45 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .66%.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Proxy expenses are not annualized.
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Energy Portfolio, Energy Service Portfolio and Natural Gas Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. Effective June 7, 2021 Energy Service Portfolio and Natural Gas Portfolio are closed to new accounts with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. 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 August 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Energy Portfolio | $247,432 |
Energy Service Portfolio | 84,957 |
Natural Gas Portfolio | 61,791 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. 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, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and 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) | |
Energy Portfolio | $949,683,362 | $203,028,216 | $(72,816,934) | $130,211,282 |
Energy Service Portfolio | 290,620,163 | 41,410,141 | (69,889,744) | (28,479,603) |
Natural Gas Portfolio | 104,903,905 | 21,204,475 | (3,377,077) | 17,827,398 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |||
Short-term | Long-term | Total capital loss carryforward | |
Energy Portfolio | $(318,163,884) | $(227,593,698) | $(545,757,582) |
Energy Service Portfolio | (61,356,240) | (248,157,631) | (309,513,871) |
Natural Gas Portfolio | (90,706,831) | (334,906,146) | (425,612,977) |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Energy Portfolio | 357,567,836 | 260,953,986 |
Energy Service Portfolio | 85,537,870 | 87,531,900 |
Natural Gas Portfolio | 75,839,540 | 80,971,134 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Energy Portfolio | .30% | .23% | .53% |
Energy Service Portfolio | .30% | .23% | .53% |
Natural Gas Portfolio | .30% | .23% | .53% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Energy Portfolio | .20% |
Energy Service Portfolio | .22% |
Natural Gas Portfolio | .27% |
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 annualized rates:
% of Average Net Assets | |
Energy Portfolio | .03 |
Energy Service Portfolio | .04 |
Natural Gas Portfolio | .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 | |
Energy Portfolio | $10,966 |
Energy Service Portfolio | 7,552 |
Natural Gas Portfolio | 2,601 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Energy Portfolio | Borrower | $5,016,714 | .33% | $317 |
Energy Service Portfolio | Borrower | $9,653,000 | .29% | $156 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Energy Portfolio | 24,471,648 | 9,712,008 |
Energy Service Portfolio | 344,245 | 2,057,477 |
Natural Gas Portfolio | 2,525,156 | 2,098,805 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Energy Portfolio | $954 |
Energy Service Portfolio | 262 |
Natural Gas Portfolio | 111 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Energy Portfolio | $723 | $– | $– |
Energy Service Portfolio | $1,246 | $22 | $14,398 |
Natural Gas Portfolio | $538 | $– | $– |
8. Bank Borrowings.
Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Energy Portfolio | $585,750 | .60% | $39 |
9. Expense Reductions.
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 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 expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | |
Energy Portfolio | $44,292 |
Energy Service Portfolio | 30,386 |
Natural Gas Portfolio | 17,754 |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Energy Portfolio | $8,834 |
Energy Service Portfolio | 2,399 |
Natural Gas Portfolio | 1,008 |
10. Other.
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 Funds' performance.
12. Proposed Reorganization.
The Board of Trustees of Energy Service Portfolio, Natural Gas Portfolio and Energy Portfolio approved an Agreement and Plan of Reorganization (the Agreement) between Energy Service Portfolio and Natural Gas Portfolio and Energy Portfolio. The Agreement provides for the transfer of all the assets and the assumption of all the liabilities of Energy Service Portfolio and Natural Gas Portfolio in exchange for shares of Energy Portfolio equal in value to the net assets of Energy Service Portfolio and Natural Gas Portfolio on the day the reorganization is effective. The reorganization provides shareholders of Energy Service Portfolio and Natural Gas Portfolio access to a larger portfolio with a similar investment objective. The reorganization is expected to qualify as a tax-free transaction for federal income tax purposes with no gain or loss recognized by the funds or their shareholders.
A meeting of shareholders of Energy Service Portfolio and Natural Gas Portfolio is expected to be held during the fourth quarter of 2021 to vote on the reorganization. If approved by shareholders, the reorganization is expected to become effective on or about November 19, 2021.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Energy Portfolio | .78% | |||
Actual | $1,000.00 | $1,040.00 | $4.01 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 | |
Energy Service Portfolio | .85% | |||
Actual | $1,000.00 | $939.90 | $4.16 | |
Hypothetical-C | $1,000.00 | $1,020.92 | $4.33 | |
Natural Gas Portfolio | .92% | |||
Actual | $1,000.00 | $1,111.00 | $4.90 | |
Hypothetical-C | $1,000.00 | $1,020.57 | $4.69 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Energy Portfolio
Energy Service Portfolio
Natural Gas Portfolio
Energy Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733194818.jpg)
Energy Service Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733195032.jpg)
Natural Gas Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733195164.jpg)
Energy Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733195468.jpg)
Energy Service Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733195606.jpg)
Natural Gas Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733195697.jpg)
SELNR-SANN-1021
1.813654.116
Fidelity® Select Portfolios®
Health Care Sector
Biotechnology Portfolio
Health Care Portfolio
Health Care Services Portfolio
Medical Technology and Devices Portfolio
Pharmaceuticals Portfolio
Semi-Annual Report
August 31, 2021
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fipro_logo.jpg)
Contents
Biotechnology Portfolio | |
Health Care Portfolio | |
Health Care Services Portfolio | |
Medical Technology and Devices Portfolio | |
Pharmaceuticals Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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.
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Biotechnology Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
AbbVie, Inc. | 10.3 |
Moderna, Inc. | 4.8 |
Biogen, Inc. | 3.8 |
Alnylam Pharmaceuticals, Inc. | 3.5 |
Seagen, Inc. | 1.9 |
Vertex Pharmaceuticals, Inc. | 1.8 |
Biohaven Pharmaceutical Holding Co. Ltd. | 1.8 |
Regeneron Pharmaceuticals, Inc. | 1.7 |
Argenx SE ADR | 1.7 |
Intellia Therapeutics, Inc. | 1.7 |
33.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Biotechnology | 91.0% | |
Pharmaceuticals | 6.7% | |
Life Sciences Tools & Services | 1.4% | |
Chemicals | 0.1% | |
Health Care Equipment & Supplies | 0.1% | |
All Others* | 0.7% |
* Includes short-term investments and net other assets (liabilities).
Biotechnology Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value | ||
Biotechnology - 90.3% | |||
Biotechnology - 90.3% | |||
4D Molecular Therapeutics, Inc. | 214,868 | $6,564,217 | |
AbbVie, Inc. | 6,994,908 | 844,844,987 | |
ACADIA Pharmaceuticals, Inc. (a) | 45,994 | 805,355 | |
Acceleron Pharma, Inc. (a) | 886,486 | 118,682,746 | |
Acumen Pharmaceuticals, Inc. | 107,100 | 1,919,232 | |
Adagio Theraputics, Inc. | 230,316 | 7,793,893 | |
Adagio Theraputics, Inc. | 95,500 | 2,908,548 | |
ADC Therapeutics SA (a)(b) | 755,238 | 22,030,292 | |
Aerovate Therapeutics, Inc. (b) | 286,251 | 4,892,030 | |
Agios Pharmaceuticals, Inc. (a) | 654,571 | 29,246,232 | |
Akouos, Inc. (a)(b) | 716,626 | 8,520,683 | |
Albireo Pharma, Inc. (a) | 42,050 | 1,284,628 | |
Aldeyra Therapeutics, Inc. (a) | 1,201,911 | 11,406,135 | |
Alector, Inc. (a) | 887,882 | 23,999,450 | |
Allakos, Inc. (a) | 732,524 | 65,311,840 | |
Allena Pharmaceuticals, Inc. (a)(b) | 2,296,083 | 2,342,005 | |
Allogene Therapeutics, Inc. (a)(b) | 909,170 | 21,683,705 | |
Allovir, Inc. (a) | 730,894 | 14,069,710 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,432,939 | 288,636,903 | |
ALX Oncology Holdings, Inc. (a)(b) | 643,290 | 45,030,300 | |
Ambrx Biopharma, Inc.: | |||
ADR | 87,104 | 1,551,322 | |
ADR | 1,302,291 | 20,874,422 | |
Amgen, Inc. | 17,090 | 3,854,308 | |
Amicus Therapeutics, Inc. (a) | 1,304,101 | 14,853,710 | |
Annexon, Inc. (a) | 309,436 | 5,059,279 | |
Apellis Pharmaceuticals, Inc. (a) | 1,268,259 | 83,514,855 | |
Applied Therapeutics, Inc. (a) | 569,640 | 8,949,044 | |
Arcturus Therapeutics Holdings, Inc. (a)(b) | 1,072,977 | 58,809,869 | |
Arcus Biosciences, Inc. (a)(b) | 3,091,165 | 90,169,283 | |
Arcutis Biotherapeutics, Inc. (a) | 868,174 | 18,379,244 | |
Arena Pharmaceuticals, Inc. (a) | 298,473 | 15,795,191 | |
Argenx SE ADR (a) | 412,686 | 136,607,320 | |
Arrowhead Pharmaceuticals, Inc. (a) | 1,077,626 | 72,330,257 | |
Ascendis Pharma A/S sponsored ADR (a) | 659,409 | 103,349,173 | |
Atara Biotherapeutics, Inc. (a) | 526,695 | 7,889,891 | |
aTyr Pharma, Inc. (a)(b) | 662,890 | 3,655,838 | |
Aurinia Pharmaceuticals, Inc. (a)(b) | 1,263,586 | 20,571,180 | |
Autolus Therapeutics PLC ADR (a)(b) | 505,988 | 3,476,138 | |
Avidity Biosciences, Inc. (a)(b) | 442,484 | 10,106,335 | |
AVROBIO, Inc. (a) | 101,954 | 679,014 | |
Axcella Health, Inc. (a) | 397,149 | 1,449,594 | |
Bicycle Therapeutics PLC ADR (a)(b) | 211,444 | 7,548,551 | |
BioAtla, Inc. (b) | 906,880 | 37,263,699 | |
BioCryst Pharmaceuticals, Inc. (a)(b) | 1,123,884 | 17,892,233 | |
Biogen, Inc. (a) | 912,738 | 309,336,036 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 1,140,113 | 149,628,430 | |
BioMarin Pharmaceutical, Inc. (a) | 8,344 | 702,648 | |
Biomea Fusion, Inc. (a) | 335,863 | 4,685,289 | |
BioNTech SE ADR (a) | 48,428 | 15,942,013 | |
BioXcel Therapeutics, Inc. (a)(b) | 351,727 | 10,358,360 | |
Blueprint Medicines Corp. (a) | 1,044,509 | 97,421,354 | |
Bolt Biotherapeutics, Inc. | 423,000 | 7,512,480 | |
BridgeBio Pharma, Inc. (a)(b) | 696,761 | 34,914,694 | |
C4 Therapeutics, Inc. (b) | 579,281 | 23,246,547 | |
Candel Therapeutics, Inc. (b)(c) | 2,500,000 | 20,100,000 | |
CareDx, Inc. (a) | 178,500 | 13,080,480 | |
Celldex Therapeutics, Inc. (a)(b) | 827,877 | 43,587,724 | |
Cellectis SA sponsored ADR (a)(b) | 107,465 | 1,545,347 | |
Centessa Pharmaceuticals PLC ADR | 413,500 | 9,117,675 | |
Century Therapeutics, Inc. | 67,000 | 1,661,600 | |
Century Therapeutics, Inc. | 767,618 | 17,133,234 | |
Cerevel Therapeutics Holdings (a) | 1,064,870 | 33,713,784 | |
ChemoCentryx, Inc. (a)(b) | 1,819,622 | 28,768,224 | |
Chinook Therapeutics, Inc. (a) | 908,922 | 12,324,982 | |
Chinook Therapeutics, Inc. rights (a)(d) | 115,821 | 5,791 | |
Codiak Biosciences, Inc. | 402,539 | 6,923,671 | |
Coherus BioSciences, Inc. (a)(b) | 58,387 | 933,024 | |
Connect Biopharma Holdings Ltd. ADR (a) | 1,010,500 | 23,716,435 | |
ContraFect Corp. (a)(b) | 456,309 | 1,656,402 | |
Cortexyme, Inc. (a)(b) | 1,947 | 187,496 | |
Crinetics Pharmaceuticals, Inc. (a)(c) | 2,123,187 | 50,043,518 | |
CRISPR Therapeutics AG (a) | 260,522 | 32,552,224 | |
Cullinan Oncology, Inc. | 428,940 | 12,104,687 | |
Cyclerion Therapeutics, Inc. (a)(b) | 837,285 | 2,863,515 | |
Cyclerion Therapeutics, Inc. (a)(e) | 94,809 | 324,247 | |
Cytokinetics, Inc. (a)(b) | 2,338,471 | 77,099,389 | |
CytomX Therapeutics, Inc. (a) | 509,185 | 2,607,027 | |
Day One Biopharmaceuticals, Inc. (a)(b) | 736,607 | 20,499,773 | |
Decibel Therapeutics, Inc. | 213,800 | 1,725,366 | |
Deciphera Pharmaceuticals, Inc. (a)(b) | 397,200 | 12,511,800 | |
Denali Therapeutics, Inc. (a) | 714,051 | 37,987,513 | |
Design Therapeutics, Inc. (a)(b) | 1,000,000 | 15,720,000 | |
Dicerna Pharmaceuticals, Inc. (a) | 513,612 | 10,570,135 | |
Editas Medicine, Inc. (a) | 188,823 | 12,007,255 | |
Eledon Pharmaceuticals, Inc. (a)(b)(c) | 1,004,111 | 8,354,204 | |
Epizyme, Inc. (a)(b) | 1,799,135 | 9,283,537 | |
Equillium, Inc. (a)(b) | 209,800 | 1,290,270 | |
Erasca, Inc. | 367,588 | 8,789,029 | |
Essa Pharma, Inc. (a)(b) | 670,903 | 6,360,160 | |
Evelo Biosciences, Inc. (a)(b) | 833,899 | 9,481,432 | |
Exact Sciences Corp. (a)(b) | 460,712 | 48,089,119 | |
Exelixis, Inc. (a) | 2,830,644 | 54,263,445 | |
Fate Therapeutics, Inc. (a) | 941,687 | 68,978,573 | |
FibroGen, Inc. (a) | 8,231 | 95,727 | |
Foghorn Therapeutics, Inc. (b) | 587,199 | 7,621,843 | |
Forma Therapeutics Holdings, Inc. (a) | 745,509 | 17,914,581 | |
Fusion Pharmaceuticals, Inc. (a) | 1,258,323 | 11,740,154 | |
G1 Therapeutics, Inc. (a)(b) | 813,600 | 12,301,632 | |
Galapagos NV sponsored ADR (a)(b) | 46,497 | 2,734,954 | |
Gamida Cell Ltd. (a) | 795,067 | 3,609,604 | |
Generation Bio Co. (a) | 137,100 | 3,427,500 | |
Genmab A/S ADR (a) | 21,490 | 1,018,411 | |
Geron Corp. (a)(b) | 4,109,206 | 5,958,349 | |
Geron Corp. warrants 12/31/25 (a) | 2,100,000 | 670,821 | |
Gilead Sciences, Inc. | 1,713,322 | 124,695,575 | |
Global Blood Therapeutics, Inc. (a) | 478,016 | 13,714,279 | |
Graphite Bio, Inc. | 108,200 | 2,114,228 | |
Graphite Bio, Inc. | 1,204,453 | 21,181,510 | |
Gritstone Bio, Inc. (a)(b) | 354,880 | 3,264,896 | |
Halozyme Therapeutics, Inc. (a) | 280,308 | 11,770,133 | |
Heron Therapeutics, Inc. (a)(b) | 354,625 | 4,138,474 | |
Homology Medicines, Inc. (a)(b) | 1,253,091 | 9,009,724 | |
Hookipa Pharma, Inc. (a)(b) | 1,146,600 | 7,900,074 | |
Horizon Therapeutics PLC (a) | 554,629 | 59,949,849 | |
Icosavax, Inc. (a) | 45,100 | 1,701,172 | |
Ideaya Biosciences, Inc. (a)(b) | 313,500 | 7,367,250 | |
Idorsia Ltd. (a) | 1,218,641 | 28,744,358 | |
IGM Biosciences, Inc. (a)(b) | 89,368 | 6,363,895 | |
Imago BioSciences, Inc. | 272,800 | 7,166,456 | |
Immuneering Corp. (b) | 250,000 | 6,117,500 | |
Immunic, Inc. (a) | 602,072 | 5,930,409 | |
Immunocore Holdings PLC ADR | 400,875 | 13,854,240 | |
ImmunoGen, Inc. (a) | 1,191,123 | 7,206,294 | |
Incyte Corp. (a) | 760,067 | 58,137,525 | |
Inhibikase Therapeutics, Inc. (b) | 433,300 | 1,026,921 | |
Inozyme Pharma, Inc. (a) | 609,380 | 9,396,640 | |
Insmed, Inc. (a) | 713,120 | 19,995,885 | |
Instil Bio, Inc. (a) | 81,800 | 1,541,930 | |
Instil Bio, Inc. | 1,431,274 | 25,630,539 | |
Intellia Therapeutics, Inc. (a) | 839,801 | 134,813,255 | |
Invitae Corp. (a)(b) | 479,117 | 14,196,237 | |
Ionis Pharmaceuticals, Inc. (a) | 1,246,677 | 49,567,878 | |
Iovance Biotherapeutics, Inc. (a) | 968,579 | 23,313,697 | |
iTeos Therapeutics, Inc. (a) | 303,681 | 8,609,356 | |
Janux Therapeutics, Inc. (b) | 456,912 | 15,580,699 | |
Jounce Therapeutics, Inc. (a) | 790,934 | 4,919,609 | |
Kalvista Pharmaceuticals, Inc. (a) | 108,720 | 2,222,237 | |
Karuna Therapeutics, Inc. (a) | 229,311 | 27,265,078 | |
Keros Therapeutics, Inc. (a) | 294,886 | 9,919,965 | |
Kiniksa Pharmaceuticals Ltd. (a)(b) | 305,540 | 3,843,693 | |
Kinnate Biopharma, Inc. | 639,303 | 14,141,382 | |
Kodiak Sciences, Inc. (a)(b) | 226,368 | 21,319,338 | |
Kronos Bio, Inc. (b) | 52,276 | 1,093,091 | |
Kronos Bio, Inc. (f) | 495,356 | 10,357,894 | |
Krystal Biotech, Inc. (a)(c) | 1,341,897 | 77,749,512 | |
Kura Oncology, Inc. (a) | 1,150,809 | 21,243,934 | |
Kymera Therapeutics, Inc. (a) | 781,871 | 48,585,464 | |
Legend Biotech Corp. ADR (a) | 53,994 | 2,067,430 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 1,045,768 | 4,936,025 | |
LogicBio Therapeutics, Inc. (a) | 315,500 | 1,495,470 | |
Macrogenics, Inc. (a) | 963,450 | 22,747,055 | |
Madrigal Pharmaceuticals, Inc. (a)(b) | 166,540 | 13,781,185 | |
Magenta Therapeutics, Inc. (a) | 72,800 | 465,920 | |
MannKind Corp. (a)(b) | 4,446,462 | 21,343,018 | |
Mersana Therapeutics, Inc. (a) | 116,606 | 1,624,322 | |
Merus BV (a)(b) | 246,600 | 6,431,328 | |
Minerva Neurosciences, Inc. (a) | 394,479 | 725,841 | |
Mirati Therapeutics, Inc. (a) | 621,040 | 105,409,119 | |
Moderna, Inc. (a) | 1,033,105 | 389,160,322 | |
Molecular Templates, Inc. (a) | 138,914 | 905,719 | |
Monte Rosa Therapeutics, Inc. | 260,200 | 9,286,538 | |
Monte Rosa Therapeutics, Inc. | 1,433,576 | 46,047,895 | |
Morphic Holding, Inc. (a) | 805,337 | 50,744,284 | |
Myovant Sciences Ltd. (a)(b) | 31,466 | 765,882 | |
Natera, Inc. (a) | 580,733 | 68,776,209 | |
Neurocrine Biosciences, Inc. (a) | 456,498 | 43,458,610 | |
Neximmune, Inc. | 525,000 | 7,392,000 | |
Nkarta, Inc. (a)(b) | 60,200 | 1,946,868 | |
Novavax, Inc. (a) | 303,076 | 72,295,749 | |
NuCana PLC ADR (a)(b) | 627,100 | 1,668,086 | |
Nurix Therapeutics, Inc. (a)(b) | 656,385 | 21,129,033 | |
Nuvalent, Inc. Class A (a) | 173,846 | 6,333,210 | |
Olema Pharmaceuticals, Inc. | 61,997 | 1,854,950 | |
Omega Therapeutics, Inc. (a) | 79,800 | 1,450,764 | |
Omega Therapeutics, Inc. | 1,102,941 | 18,046,321 | |
Oragenics, Inc. (a)(e) | 155,806 | 112,009 | |
ORIC Pharmaceuticals, Inc. (a)(b) | 724,374 | 16,001,422 | |
Passage Bio, Inc. (a) | 518,162 | 6,228,307 | |
PMV Pharmaceuticals, Inc. (b) | 290,400 | 8,813,640 | |
Poseida Therapeutics, Inc. (a) | 615,283 | 5,316,045 | |
Praxis Precision Medicines, Inc. | 381,129 | 7,573,033 | |
Prelude Therapeutics, Inc. | 561,056 | 20,024,089 | |
Prometheus Biosciences, Inc. (a)(b) | 301,200 | 6,572,184 | |
ProQR Therapeutics BV (a)(b) | 555,016 | 3,707,507 | |
Protagonist Therapeutics, Inc. (a) | 797,178 | 38,663,133 | |
Prothena Corp. PLC (a) | 868,489 | 58,292,982 | |
PTC Therapeutics, Inc. (a) | 2,268,744 | 99,030,676 | |
Radius Health, Inc. (a) | 40,249 | 557,851 | |
Rallybio Corp. (a) | 1,196,785 | 15,737,723 | |
RAPT Therapeutics, Inc. (a) | 289,100 | 9,453,570 | |
Recursion Pharmaceuticals, Inc. (a)(b) | 250,300 | 6,312,566 | |
Regeneron Pharmaceuticals, Inc. (a) | 204,588 | 137,769,559 | |
Relay Therapeutics, Inc. (a)(b) | 1,319,943 | 42,277,774 | |
Reneo Pharmaceuticals, Inc. (a)(b) | 187,500 | 2,075,625 | |
Repare Therapeutics, Inc. (a) | 540,250 | 18,368,500 | |
Replimune Group, Inc. (a) | 1,054,117 | 33,478,756 | |
Revolution Medicines, Inc. (a)(b) | 785,492 | 22,849,962 | |
Rhythm Pharmaceuticals, Inc. (a) | 83,278 | 1,083,447 | |
Rigel Pharmaceuticals, Inc. (a) | 1,097,800 | 4,171,640 | |
Rocket Pharmaceuticals, Inc. (a)(b) | 359,736 | 12,306,569 | |
Rubius Therapeutics, Inc. (a)(b) | 743,329 | 16,145,106 | |
Sage Therapeutics, Inc. (a) | 475,835 | 21,988,335 | |
Sana Biotechnology, Inc. (b) | 15,490 | 371,605 | |
Sangamo Therapeutics, Inc. (a) | 360,627 | 3,573,814 | |
Sarepta Therapeutics, Inc. (a) | 651,004 | 50,856,432 | |
Scholar Rock Holding Corp. (a) | 1,543,247 | 61,004,554 | |
Seagen, Inc. (a) | 909,886 | 152,496,894 | |
Selecta Biosciences, Inc. (a) | 1,032,715 | 4,481,983 | |
Sensorion SA (a) | 3,270,000 | 7,374,610 | |
Seres Therapeutics, Inc. (a) | 687,847 | 4,409,099 | |
Shattuck Labs, Inc. | 110,936 | 2,344,078 | |
Silverback Therapeutics, Inc. | 16,978 | 373,516 | |
Silverback Therapeutics, Inc. (f) | 296,788 | 6,529,336 | |
Solid Biosciences, Inc. (a) | 769,800 | 2,086,158 | |
Springworks Therapeutics, Inc. (a)(b) | 530,020 | 39,804,502 | |
Spruce Biosciences, Inc. (b) | 698,273 | 5,355,754 | |
Stoke Therapeutics, Inc. (a) | 270,036 | 7,069,542 | |
Surface Oncology, Inc. (a)(b) | 885,265 | 5,603,727 | |
Sutro Biopharma, Inc. (a) | 737,300 | 16,014,156 | |
Syros Pharmaceuticals, Inc. (a) | 2,306,295 | 12,223,364 | |
Syros Pharmaceuticals, Inc. warrants 10/10/22 (a) | 21,625 | 7,274 | |
Talaris Therapeutics, Inc. (a) | 60,000 | 696,600 | |
Tango Therapeutics, Inc. (a) | 664,718 | 7,737,318 | |
Tango Therapeutics, Inc. (e) | 670,500 | 7,024,158 | |
Taysha Gene Therapies, Inc. (b) | 882,847 | 17,550,998 | |
TCR2 Therapeutics, Inc. (a) | 309,100 | 5,183,607 | |
Tenaya Therapeutics, Inc. (a) | 258,300 | 5,230,575 | |
Tenaya Therapeutics, Inc. | 1,206,563 | 21,989,611 | |
TG Therapeutics, Inc. (a) | 2,842,420 | 76,944,309 | |
Travere Therapeutics, Inc. (a) | 372,928 | 8,141,018 | |
Turning Point Therapeutics, Inc. (a) | 451,601 | 34,782,309 | |
Twist Bioscience Corp. (a) | 498,402 | 56,424,090 | |
Ultragenyx Pharmaceutical, Inc. (a) | 949,521 | 91,429,377 | |
uniQure B.V. (a) | 643,408 | 18,658,832 | |
United Therapeutics Corp. (a) | 278,316 | 59,804,542 | |
Vaxcyte, Inc. (a) | 559,915 | 14,686,570 | |
Vera Therapeutics, Inc. (a) | 50,600 | 745,844 | |
Vera Therapeutics, Inc. | 729,168 | 10,210,540 | |
Veracyte, Inc. (a) | 176,200 | 8,476,982 | |
Verastem, Inc. (a) | 254,200 | 673,630 | |
Vertex Pharmaceuticals, Inc. (a) | 747,206 | 149,657,890 | |
Verve Therapeutics, Inc. | 72,800 | 5,093,088 | |
Vor Biopharma, Inc. (a)(b) | 696,659 | 10,233,921 | |
Werewolf Therapeutics, Inc. (a)(b) | 232,800 | 4,143,840 | |
X4 Pharmaceuticals, Inc. (a) | 152,831 | 784,023 | |
X4 Pharmaceuticals, Inc. warrants 4/12/24 (a) | 450,000 | 173,756 | |
Xencor, Inc. (a) | 898,443 | 30,430,264 | |
Xenon Pharmaceuticals, Inc. (a) | 643,198 | 11,352,445 | |
Y-mAbs Therapeutics, Inc. (a) | 1,330,984 | 40,967,688 | |
Yumanity Therapeutics, Inc. (e) | 173,913 | 1,878,260 | |
Yumanity Therapeutics, Inc. (a) | 38,869 | 419,785 | |
Zai Lab Ltd. ADR (a) | 185,649 | 26,826,281 | |
Zealand Pharma A/S (a) | 528,544 | 16,280,451 | |
Zentalis Pharmaceuticals, Inc. (a) | 638,433 | 43,534,746 | |
Zymeworks, Inc. (a) | 709,195 | 23,396,343 | |
7,382,813,482 | |||
Capital Markets - 0.0% | |||
Asset Management & Custody Banks - 0.0% | |||
Arix Bioscience PLC (a)(f) | 1,411,100 | 3,356,288 | |
Chemicals - 0.1% | |||
Commodity Chemicals - 0.1% | |||
Zymergen, Inc. (a)(b) | 553,090 | 7,256,541 | |
Food & Staples Retailing - 0.0% | |||
Drug Retail - 0.0% | |||
MedAvail Holdings, Inc. (a)(e) | 2,777 | 9,275 | |
Health Care Equipment & Supplies - 0.1% | |||
Health Care Equipment - 0.1% | |||
Novocure Ltd. (a) | 38,713 | 5,195,672 | |
Health Care Supplies - 0.0% | |||
Pulmonx Corp. | 8,300 | 333,577 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 5,529,249 | ||
Health Care Providers & Services - 0.0% | |||
Health Care Services - 0.0% | |||
Guardant Health, Inc. (a) | 12,700 | 1,616,329 | |
Precipio, Inc. (a)(e) | 525 | 1,769 | |
1,618,098 | |||
Life Sciences Tools & Services - 1.4% | |||
Life Sciences Tools & Services - 1.4% | |||
10X Genomics, Inc. (a) | 122,919 | 21,623,910 | |
23andMe Holding Co. Class B | 3,206,518 | 24,818,449 | |
Absci Corp. (b) | 392,062 | 7,362,924 | |
Absci Corp. | 210,224 | 3,553,206 | |
Berkeley Lights, Inc. (a) | 10,200 | 362,712 | |
Compugen Ltd. (a)(b) | 515,388 | 3,618,024 | |
Evotec OAI AG (a) | 382,500 | 19,013,912 | |
Maravai LifeSciences Holdings, Inc. | 146,700 | 8,681,706 | |
Olink Holding AB ADR (a) | 120,900 | 3,870,009 | |
Pacific Biosciences of California, Inc. (a) | 252,282 | 7,898,949 | |
Seer, Inc. | 40,900 | 1,635,182 | |
Seer, Inc. Class A (e) | 263,158 | 10,521,057 | |
112,960,040 | |||
Pharmaceuticals - 6.6% | |||
Pharmaceuticals - 6.6% | |||
Aclaris Therapeutics, Inc. (a) | 844,089 | 13,682,683 | |
Adimab LLC (a)(d)(e)(g) | 1,954,526 | 105,271,552 | |
Aerie Pharmaceuticals, Inc. (a)(b) | 186,043 | 2,773,901 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 (a)(d) | 8,274,568 | 14,397,748 | |
Angion Biomedica Corp. (b) | 312,500 | 3,440,625 | |
Antengene Corp. (f) | 2,066,800 | 3,428,080 | |
Aradigm Corp. (a)(d) | 11,945 | 549 | |
Aradigm Corp. (a)(d) | 148,009 | 6,808 | |
Arvinas Holding Co. LLC (a) | 1,386,429 | 119,524,044 | |
Atea Pharmaceuticals, Inc. | 75,200 | 2,234,944 | |
Axsome Therapeutics, Inc. (a)(b) | 274,009 | 7,036,551 | |
Chiasma, Inc. warrants 12/16/24 (a)(d) | 382,683 | 4 | |
Corcept Therapeutics, Inc. (a) | 52,359 | 1,114,200 | |
Cyteir Therapeutics, Inc. | 225,700 | 4,306,356 | |
Edgewise Therapeutics, Inc. (a)(b) | 713,600 | 11,303,424 | |
Fulcrum Therapeutics, Inc. (a)(b) | 1,144,976 | 34,005,787 | |
GH Research PLC (b) | 829,336 | 18,137,578 | |
Harmony Biosciences Holdings, Inc. (a) | 30,600 | 1,037,034 | |
Ikena Oncology, Inc. (a) | 142,100 | 1,828,827 | |
Ikena Oncology, Inc. | 878,347 | 10,739,110 | |
IMARA, Inc. (a) | 413,291 | 1,979,664 | |
Intra-Cellular Therapies, Inc. (a) | 903,976 | 30,012,003 | |
Kaleido Biosciences, Inc. (a)(b) | 249,460 | 1,531,684 | |
Longboard Pharmaceuticals, Inc. (a) | 371,100 | 3,480,918 | |
Marinus Pharmaceuticals, Inc. (a)(b) | 474,765 | 5,868,095 | |
Nektar Therapeutics (a) | 232,631 | 3,601,128 | |
NGM Biopharmaceuticals, Inc. (a) | 152,200 | 3,322,526 | |
Nuvation Bio, Inc. (a)(b) | 483,691 | 4,464,468 | |
Nuvation Bio, Inc. (e) | 1,000,000 | 9,230,000 | |
Ocular Therapeutix, Inc. (a) | 120,253 | 1,269,872 | |
OptiNose, Inc. (a)(b) | 229,115 | 666,725 | |
Pharvaris BV | 551,507 | 11,162,502 | |
Pliant Therapeutics, Inc. (a) | 971,031 | 17,711,605 | |
Rain Therapeutics, Inc. (a)(b) | 800,000 | 14,024,000 | |
Reata Pharmaceuticals, Inc. (a)(b) | 99,032 | 10,547,898 | |
Revance Therapeutics, Inc. (a) | 88,100 | 2,359,318 | |
Royalty Pharma PLC | 470,720 | 18,193,328 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 876,163 | 9 | |
Terns Pharmaceuticals, Inc. | 689,509 | 9,280,791 | |
Theravance Biopharma, Inc. (a) | 413,500 | 3,432,050 | |
UCB SA | 312,677 | 35,767,454 | |
Verrica Pharmaceuticals, Inc. (a)(b) | 236,949 | 2,653,829 | |
544,829,672 | |||
TOTAL COMMON STOCKS | |||
(Cost $5,163,642,556) | 8,058,372,645 | ||
Convertible Preferred Stocks - 0.9% | |||
Biotechnology - 0.7% | |||
Biotechnology - 0.7% | |||
ElevateBio LLC Series C (d)(e) | 216,600 | 908,637 | |
EQRx, Inc. Series B (e) | 1,823,553 | 9,188,519 | |
National Resilience, Inc. Series B (d)(e) | 732,064 | 32,510,962 | |
ValenzaBio, Inc. Series A (d)(e) | 1,685,311 | 14,999,991 | |
57,608,109 | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
Scorpion Therapeutics, Inc. Series B (d)(e) | 3,099,905 | 7,500,000 | |
Pharmaceuticals - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Afferent Pharmaceuticals, Inc. Series C (a)(d)(e) | 8,274,568 | 83 | |
Aristea Therapeutics, Inc. Series B (d)(e) | 836,400 | 7,745,064 | |
7,745,147 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $43,020,283) | 72,853,256 | ||
Money Market Funds - 7.1% | |||
Fidelity Cash Central Fund 0.06% (h) | 43,022,540 | 43,031,144 | |
Fidelity Securities Lending Cash Central Fund 0.06% (h)(i) | 537,207,783 | 537,261,504 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $580,255,292) | 580,292,648 | ||
TOTAL INVESTMENT IN SECURITIES - 106.5% | |||
(Cost $5,786,918,131) | 8,711,518,549 | ||
NET OTHER ASSETS (LIABILITIES) - (6.5)% | (533,771,950) | ||
NET ASSETS - 100% | $8,177,746,599 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(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 $207,225,583 or 2.5% of net assets.
(f) 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 $23,671,598 or 0.3% of net assets.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) 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.
(i) 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 | $31,094,459 |
Afferent Pharmaceuticals, Inc. Series C | 7/1/15 | $0 |
Aristea Therapeutics, Inc. Series B | 10/6/20 | $4,611,659 |
Cyclerion Therapeutics, Inc. | 4/2/19 | $1,404,026 |
ElevateBio LLC Series C | 3/9/21 | $908,637 |
EQRx, Inc. Series B | 11/19/20 | $5,000,000 |
MedAvail Holdings, Inc. | 7/2/12 | $416,675 |
National Resilience, Inc. Series B | 12/1/20 | $9,999,994 |
Nuvation Bio, Inc. | 2/10/21 | $10,000,000 |
Oragenics, Inc. | 7/31/12 - 6/21/18 | $2,337,087 |
Precipio, Inc. | 2/3/12 | $2,828,200 |
Scorpion Therapeutics, Inc. Series B | 1/8/21 | $7,500,000 |
Seer, Inc. Class A | 12/8/20 | $5,000,002 |
Tango Therapeutics, Inc. | 4/13/21 | $6,705,000 |
ValenzaBio, Inc. Series A | 3/25/21 | $14,999,993 |
Yumanity Therapeutics, Inc. | 12/22/20 | $3,999,999 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $49,640,258 | $569,590,918 | $576,200,030 | $10,841 | $-- | $(2) | $43,031,144 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.06% | 509,290,976 | 1,203,998,972 | 1,176,028,444 | 950,546 | -- | -- | 537,261,504 | 1.6% |
Total | $558,931,234 | $1,773,589,890 | $1,752,228,474 | $961,387 | $-- | $(2) | $580,292,648 |
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 |
Candel Therapeutics, Inc. | $-- | $20,000,000 | $-- | $-- | $-- | $100,000 | $20,100,000 |
Crinetics Pharmaceuticals, Inc. | 32,463,529 | -- | -- | -- | -- | 17,579,989 | 50,043,518 |
Eledon Pharmaceuticals, Inc. | 16,136,064 | -- | -- | -- | -- | (7,781,860) | 8,354,204 |
Hookipa Pharma, Inc. | 19,760,960 | -- | 7,837,016 | -- | 2,007,634 | (6,031,504) | -- |
Krystal Biotech, Inc. | 105,862,254 | -- | -- | -- | -- | (28,112,742) | 77,749,512 |
Total | $174,222,807 | $20,000,000 | $7,837,016 | $-- | $2,007,634 | $(24,246,117) | $156,247,234 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 | $8,058,372,645 | $7,707,680,790 | $231,009,394 | $119,682,461 |
Convertible Preferred Stocks | 72,853,256 | -- | 9,188,519 | 63,664,737 |
Money Market Funds | 580,292,648 | 580,292,648 | -- | -- |
Total Investments in Securities: | $8,711,518,549 | $8,287,973,438 | $240,197,913 | $183,347,198 |
Net unrealized depreciation on unfunded commitments | $(2,612,500) | $ | $(2,612,500) | $ |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Common Stocks | |
Beginning Balance | $112,766,192 |
Total Realized Gain (Loss) | (468,770) |
Total Unrealized Gain (Loss) | 7,206,303 |
Cost of Purchases | 1,600 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | 177,136 |
Transfers out of Level 3 | -- |
Ending Balance | $119,682,461 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2021 | $6,737,533 |
Convertible Preferred Stocks | |
Beginning Balance | $92,480,149 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 24,225,585 |
Cost of Purchases | 15,908,630 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | (68,949,627) |
Ending Balance | $63,664,737 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2021 | $24,225,585 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. 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 reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Biotechnology Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $530,005,727) — See accompanying schedule: Unaffiliated issuers (cost $5,101,692,129) | $7,974,978,667 | |
Fidelity Central Funds (cost $580,255,292) | 580,292,648 | |
Other affiliated issuers (cost $104,970,710) | 156,247,234 | |
Total Investment in Securities (cost $5,786,918,131) | $8,711,518,549 | |
Receivable for investments sold | 32,391,568 | |
Receivable for fund shares sold | 3,758,021 | |
Dividends receivable | 530,086 | |
Distributions receivable from Fidelity Central Funds | 221,749 | |
Prepaid expenses | 51,204 | |
Other receivables | 1,471,848 | |
Total assets | 8,749,943,025 | |
Liabilities | ||
Payable to custodian bank | $1,286,091 | |
Payable for investments purchased | 16,965,223 | |
Unrealized depreciation on unfunded commitments | 2,612,500 | |
Payable for fund shares redeemed | 8,377,919 | |
Accrued management fee | 3,473,397 | |
Other affiliated payables | 1,033,518 | |
Other payables and accrued expenses | 1,347,342 | |
Collateral on securities loaned | 537,100,436 | |
Total liabilities | 572,196,426 | |
Net Assets | $8,177,746,599 | |
Net Assets consist of: | ||
Paid in capital | $5,107,587,315 | |
Total accumulated earnings (loss) | 3,070,159,284 | |
Net Assets | $8,177,746,599 | |
Net Asset Value, offering price and redemption price per share ($8,177,746,599 ÷ 348,449,562 shares) | $23.47 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $26,086,092 | |
Income from Fidelity Central Funds (including $950,546 from security lending) | 961,387 | |
Total income | 27,047,479 | |
Expenses | ||
Management fee | $21,068,939 | |
Transfer agent fees | 5,776,054 | |
Accounting fees | 602,408 | |
Custodian fees and expenses | 72,957 | |
Independent trustees' fees and expenses | 15,683 | |
Registration fees | 58,778 | |
Audit | 37,618 | |
Legal | 4,564 | |
Miscellaneous | 28,354 | |
Total expenses before reductions | 27,665,355 | |
Expense reductions | (350,584) | |
Total expenses after reductions | 27,314,771 | |
Net investment income (loss) | (267,292) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 186,088,769 | |
Affiliated issuers | 2,007,634 | |
Foreign currency transactions | (5,441) | |
Total net realized gain (loss) | 188,090,962 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (266,998,439) | |
Fidelity Central Funds | (2) | |
Other affiliated issuers | (24,246,117) | |
Unfunded commitments | (2,612,500) | |
Assets and liabilities in foreign currencies | 386 | |
Total change in net unrealized appreciation (depreciation) | (293,856,672) | |
Net gain (loss) | (105,765,710) | |
Net increase (decrease) in net assets resulting from operations | $(106,033,002) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(267,292) | $(1,969,781) |
Net realized gain (loss) | 188,090,962 | 1,876,348,651 |
Change in net unrealized appreciation (depreciation) | (293,856,672) | 1,046,772,045 |
Net increase (decrease) in net assets resulting from operations | (106,033,002) | 2,921,150,915 |
Distributions to shareholders | (585,706,639) | (1,503,254,696) |
Share transactions | ||
Proceeds from sales of shares | 294,273,836 | 1,129,372,944 |
Reinvestment of distributions | 554,188,529 | 1,417,160,740 |
Cost of shares redeemed | (852,600,221) | (1,715,557,877) |
Net increase (decrease) in net assets resulting from share transactions | (4,137,856) | 830,975,807 |
Total increase (decrease) in net assets | (695,877,497) | 2,248,872,026 |
Net Assets | ||
Beginning of period | 8,873,624,096 | 6,624,752,070 |
End of period | $8,177,746,599 | $8,873,624,096 |
Other Information | ||
Shares | ||
Sold | 12,938,890 | 47,593,369 |
Issued in reinvestment of distributions | 25,764,227 | 59,356,167 |
Redeemed | (37,944,892) | (74,376,813) |
Net increase (decrease) | 758,225 | 32,572,723 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Biotechnology Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.52 | $21.02 | $21.14 | $23.45 | $20.32 | $16.20 |
Income from Investment Operations | ||||||
Net investment income (loss)C | –D | (.01) | .05 | (.04) | (.05) | (.08) |
Net realized and unrealized gain (loss) | (.35) | 9.41 | 1.79 | (.29)E | 3.49 | 4.80 |
Total from investment operations | (.35) | 9.40 | 1.84 | (.33) | 3.44 | 4.72 |
Distributions from net investment income | (.03) | (.07) | (.03) | – | – | – |
Distributions from net realized gain | (1.67) | (4.84) | (1.93) | (1.98) | (.31) | (.60) |
Total distributions | (1.70) | (4.90)F | (1.96) | (1.98) | (.31) | (.60) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $23.47 | $25.52 | $21.02 | $21.14 | $23.45 | $20.32 |
Total ReturnG,H | (.75)% | 47.35% | 8.57% | (.46)%E | 17.04% | 29.67% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .69%K | .70% | .72% | .72% | .74% | .75% |
Expenses net of fee waivers, if any | .69%K | .70% | .72% | .72% | .74% | .75% |
Expenses net of all reductions | .68%K | .69% | .72% | .72% | .73% | .74% |
Net investment income (loss) | (.01)%K | (.03)% | .22% | (.20)% | (.25)% | (.43)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $8,177,747 | $8,873,624 | $6,624,752 | $7,583,722 | $8,940,767 | $9,573,681 |
Portfolio turnover rateL | 41%K | 78% | 50% | 37% | 26% | 28% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.53)%.
F Total distributions per share do not sum due to rounding.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Health Care Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
UnitedHealth Group, Inc. | 9.0 |
Danaher Corp. | 5.8 |
Boston Scientific Corp. | 5.7 |
Humana, Inc. | 5.3 |
Eli Lilly & Co. | 5.1 |
Cigna Corp. | 4.4 |
Penumbra, Inc. | 2.8 |
Regeneron Pharmaceuticals, Inc. | 2.8 |
Insulet Corp. | 2.8 |
Thermo Fisher Scientific, Inc. | 2.6 |
46.3 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Health Care Providers & Services | 27.5% | |
Health Care Equipment & Supplies | 22.4% | |
Biotechnology | 22.1% | |
Pharmaceuticals | 13.5% | |
Life Sciences Tools & Services | 10.5% | |
All Others* | 4.0% |
* Includes short-term investments and net other assets (liabilities).
Health Care Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
Biotechnology - 21.6% | |||
Biotechnology - 21.6% | |||
Acceleron Pharma, Inc. (a) | 400,000 | $53,552,000 | |
ADC Therapeutics SA (a)(b) | 964,675 | 28,139,570 | |
Agios Pharmaceuticals, Inc. (a)(b) | 1,000,000 | 44,680,000 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,000,000 | 201,430,000 | |
Ambrx Biopharma, Inc. ADR | 131,025 | 2,333,555 | |
Arcutis Biotherapeutics, Inc. (a) | 630,500 | 13,347,685 | |
Argenx SE ADR (a) | 690,000 | 228,403,800 | |
Ascendis Pharma A/S sponsored ADR (a) | 954,412 | 149,584,993 | |
Atara Biotherapeutics, Inc. (a) | 589,074 | 8,824,329 | |
Avid Bioservices, Inc. (a) | 1,280,000 | 31,027,200 | |
BeiGene Ltd. ADR (a) | 120,000 | 36,996,000 | |
BioAtla, Inc. (b) | 470,000 | 19,312,300 | |
Blueprint Medicines Corp. (a) | 400,000 | 37,308,000 | |
Celldex Therapeutics, Inc. (a) | 215,516 | 11,346,917 | |
Century Therapeutics, Inc. | 650,553 | 16,133,714 | |
Cerevel Therapeutics Holdings (a) | 1,017,037 | 32,199,391 | |
Cytokinetics, Inc. (a) | 1,280,000 | 42,201,600 | |
Denali Therapeutics, Inc. (a) | 540,000 | 28,728,000 | |
Erasca, Inc. | 1,000,000 | 23,910,000 | |
Exelixis, Inc. (a) | 1,500,000 | 28,755,000 | |
Fate Therapeutics, Inc. (a) | 500,000 | 36,625,000 | |
Forma Therapeutics Holdings, Inc. (a) | 700,000 | 16,821,000 | |
Generation Bio Co. (a) | 452,861 | 11,321,525 | |
Graphite Bio, Inc. | 500,000 | 9,770,000 | |
Imago BioSciences, Inc. | 42,400 | 1,113,848 | |
Innovent Biologics, Inc. (a)(c) | 6,600,000 | 53,207,671 | |
Instil Bio, Inc. (a) | 800,000 | 15,080,000 | |
Intellia Therapeutics, Inc. (a) | 228,000 | 36,600,840 | |
Janux Therapeutics, Inc. | 323,900 | 11,044,990 | |
Keros Therapeutics, Inc. (a) | 460,000 | 15,474,400 | |
Kinnate Biopharma, Inc. (b) | 228,000 | 5,043,360 | |
Kura Oncology, Inc. (a) | 1,400,000 | 25,844,000 | |
Kymera Therapeutics, Inc. (a) | 420,000 | 26,098,800 | |
Mirati Therapeutics, Inc. (a) | 560,000 | 95,048,800 | |
Morphic Holding, Inc. (a) | 300,000 | 18,903,000 | |
Novavax, Inc. (a) | 90,000 | 21,468,600 | |
Nuvalent, Inc. Class A (a) | 279,935 | 10,198,032 | |
ORIC Pharmaceuticals, Inc. (a) | 750,000 | 16,567,500 | |
Passage Bio, Inc. (a) | 700,000 | 8,414,000 | |
Poseida Therapeutics, Inc. (a) | 1,644,603 | 14,209,370 | |
Prelude Therapeutics, Inc. | 865,400 | 30,886,126 | |
PTC Therapeutics, Inc. (a) | 1,004,800 | 43,859,520 | |
Recursion Pharmaceuticals, Inc. (a)(b) | 200,000 | 5,044,000 | |
Regeneron Pharmaceuticals, Inc. (a) | 460,000 | 309,764,000 | |
Relay Therapeutics, Inc. (a) | 1,200,000 | 38,436,000 | |
Repare Therapeutics, Inc. (a) | 500,000 | 17,000,000 | |
Revolution Medicines, Inc. (a)(b) | 900,000 | 26,181,000 | |
Sarepta Therapeutics, Inc. (a) | 840,000 | 65,620,800 | |
Scholar Rock Holding Corp. (a)(b) | 141,147 | 5,579,541 | |
Shattuck Labs, Inc. | 1,135,833 | 24,000,151 | |
Stoke Therapeutics, Inc. (a) | 500,000 | 13,090,000 | |
Taysha Gene Therapies, Inc. | 393,072 | 7,814,271 | |
TG Therapeutics, Inc. (a) | 2,800,000 | 75,796,000 | |
Twist Bioscience Corp. (a) | 336,251 | 38,066,976 | |
uniQure B.V. (a) | 670,000 | 19,430,000 | |
Vaxcyte, Inc. (a) | 700,000 | 18,361,000 | |
Xencor, Inc. (a) | 1,280,000 | 43,353,600 | |
Zai Lab Ltd. (a) | 100,000 | 14,267,624 | |
Zentalis Pharmaceuticals, Inc. (a)(b) | 1,200,000 | 81,828,000 | |
Zymeworks, Inc. (a) | 1,000,000 | 32,990,000 | |
2,398,437,399 | |||
Health Care Equipment & Supplies - 22.4% | |||
Health Care Equipment - 22.4% | |||
Boston Scientific Corp. (a) | 14,000,000 | 632,100,000 | |
Danaher Corp. | 2,000,000 | 648,320,000 | |
DexCom, Inc. (a) | 100,000 | 52,942,000 | |
Envista Holdings Corp. (a) | 1,949,691 | 83,427,278 | |
Hologic, Inc. (a) | 1,500,000 | 118,725,000 | |
Insulet Corp. (a) | 1,026,100 | 305,582,841 | |
Intuitive Surgical, Inc. (a) | 84,000 | 88,499,040 | |
Masimo Corp. (a) | 400,000 | 108,616,000 | |
Outset Medical, Inc. | 1,080,000 | 53,233,200 | |
Penumbra, Inc. (a) | 1,150,000 | 316,192,500 | |
Tandem Diabetes Care, Inc. (a) | 700,000 | 78,519,000 | |
2,486,156,859 | |||
Health Care Providers & Services - 27.5% | |||
Health Care Facilities - 3.5% | |||
Cano Health, Inc. (a) | 1,100,000 | 13,167,000 | |
Cano Health, Inc. (d) | 4,023,300 | 48,158,901 | |
HCA Holdings, Inc. | 880,000 | 222,622,400 | |
Rede D'Oregon Sao Luiz SA (c) | 5,600,000 | 74,532,374 | |
Surgery Partners, Inc. (a) | 600,000 | 29,520,000 | |
388,000,675 | |||
Health Care Services - 6.6% | |||
agilon health, Inc. (a)(b) | 1,450,000 | 50,750,000 | |
Cigna Corp. | 2,280,000 | 482,562,000 | |
Guardant Health, Inc. (a) | 630,000 | 80,180,100 | |
LifeStance Health Group, Inc. | 1,784,161 | 26,512,632 | |
Oak Street Health, Inc. (a)(b) | 2,000,000 | 93,460,000 | |
733,464,732 | |||
Managed Health Care - 17.4% | |||
Alignment Healthcare, Inc. (a) | 511,812 | 9,043,718 | |
Alignment Healthcare, Inc. | 3,221,582 | 54,079,086 | |
Centene Corp. (a) | 4,540,000 | 285,929,200 | |
Humana, Inc. | 1,450,000 | 587,859,000 | |
UnitedHealth Group, Inc. | 2,400,000 | 999,048,002 | |
1,935,959,006 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 3,057,424,413 | ||
Health Care Technology - 2.1% | |||
Health Care Technology - 2.1% | |||
Castlight Health, Inc. (a) | 1,845,550 | 3,340,446 | |
Castlight Health, Inc. Class B (a) | 5,000,000 | 9,050,000 | |
Doximity, Inc. | 60,000 | 5,520,000 | |
Evolent Health, Inc. (a) | 477,346 | 11,723,618 | |
Health Catalyst, Inc. (a) | 1,290,000 | 70,446,900 | |
Inspire Medical Systems, Inc. (a) | 300,000 | 67,068,000 | |
Medlive Technology Co. Ltd. | 916,500 | 3,876,958 | |
Phreesia, Inc. (a) | 800,000 | 57,240,000 | |
228,265,922 | |||
Life Sciences Tools & Services - 10.5% | |||
Life Sciences Tools & Services - 10.5% | |||
10X Genomics, Inc. Class B (a)(c) | 1,060,000 | 186,475,200 | |
Bio-Rad Laboratories, Inc. Class A (a) | 208,000 | 167,402,560 | |
Bruker Corp. | 1,700,000 | 150,127,000 | |
Charles River Laboratories International, Inc. (a) | 218,000 | 96,761,480 | |
Lonza Group AG | 185,000 | 156,565,657 | |
Maravai LifeSciences Holdings, Inc. | 820,000 | 48,527,600 | |
Olink Holding AB ADR (a) | 768,535 | 24,600,805 | |
Seer, Inc. | 6,918 | 276,582 | |
Seer, Inc. Class A (d) | 443,082 | 17,714,418 | |
Stevanato Group SpA | 1,080,000 | 26,740,800 | |
Thermo Fisher Scientific, Inc. | 525,000 | 291,348,750 | |
1,166,540,852 | |||
Personal Products - 0.6% | |||
Personal Products - 0.6% | |||
The Beauty Health Co. (a) | 600,000 | 15,426,000 | |
The Beauty Health Co. (d) | 1,800,000 | 46,278,000 | |
61,704,000 | |||
Pharmaceuticals - 13.4% | |||
Pharmaceuticals - 13.4% | |||
Arvinas Holding Co. LLC (a) | 700,000 | 60,347,000 | |
AstraZeneca PLC (United Kingdom) | 2,080,000 | 243,242,367 | |
Atea Pharmaceuticals, Inc. | 260,000 | 7,727,200 | |
Bristol-Myers Squibb Co. | 2,000,000 | 133,720,000 | |
Eli Lilly & Co. | 2,200,000 | 568,238,000 | |
Harmony Biosciences Holdings, Inc. (a) | 37,257 | 1,262,640 | |
Nektar Therapeutics (a) | 1,718,882 | 26,608,293 | |
Pharvaris BV | 500,000 | 10,120,000 | |
Pliant Therapeutics, Inc. (a) | 918,521 | 16,753,823 | |
Revance Therapeutics, Inc. (a)(b) | 700,000 | 18,746,000 | |
Roche Holding AG (participation certificate) | 600,000 | 240,933,102 | |
Royalty Pharma PLC | 3,350,000 | 129,477,500 | |
Theravance Biopharma, Inc. (a) | 921,794 | 7,650,890 | |
UCB SA | 240,000 | 27,453,854 | |
1,492,280,669 | |||
TOTAL COMMON STOCKS | |||
(Cost $6,517,510,925) | 10,890,810,114 | ||
Preferred Stocks - 0.8% | |||
Convertible Preferred Stocks - 0.7% | |||
Biotechnology - 0.5% | |||
Biotechnology - 0.5% | |||
Caris Life Sciences, Inc. Series D (d)(e) | 3,206,021 | 25,968,770 | |
Element Biosciences, Inc. Series C (d)(e) | 572,265 | 11,764,052 | |
ElevateBio LLC Series C (d)(e) | 254,900 | 1,069,306 | |
Inscripta, Inc. Series E (d)(e) | 1,282,228 | 11,322,073 | |
50,124,201 | |||
Health Care Providers & Services - 0.0% | |||
Health Care Services - 0.0% | |||
dMed Biopharmaceutical Co. Ltd. Series C (d)(e) | 380,451 | 5,261,637 | |
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Aledade, Inc. Series B1 (d)(e) | 201,220 | 7,704,855 | |
Wugen, Inc. Series B (d)(e) | 454,342 | 3,523,377 | |
11,228,232 | |||
Pharmaceuticals - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Aristea Therapeutics, Inc. Series B (d)(e) | 1,037,400 | 9,606,324 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 76,220,394 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Thriveworks TopCo LLC Series B (d)(e)(f) | 295,300 | 8,476,058 | |
TOTAL PREFERRED STOCKS | |||
(Cost $80,951,833) | 84,696,452 | ||
Money Market Funds - 2.7% | |||
Fidelity Cash Central Fund 0.06% (g) | 132,599,784 | 132,626,304 | |
Fidelity Securities Lending Cash Central Fund 0.06% (g)(h) | 171,726,375 | 171,743,547 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $304,368,101) | 304,369,851 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $6,902,830,859) | 11,279,876,417 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (182,122,993) | ||
NET ASSETS - 100% | $11,097,753,424 |
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 $314,215,245 or 2.8% of net assets.
(d) 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 $196,847,771 or 1.8% of net assets.
(e) Level 3 security
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Aledade, Inc. Series B1 | 5/7/21 | $7,704,855 |
Aristea Therapeutics, Inc. Series B | 10/6/20 | $5,719,912 |
Cano Health, Inc. | 11/11/20 | $40,233,000 |
Caris Life Sciences, Inc. Series D | 5/11/21 | $25,968,770 |
dMed Biopharmaceutical Co. Ltd. Series C | 12/1/20 | $5,403,602 |
Element Biosciences, Inc. Series C | 6/21/21 | $11,763,880 |
ElevateBio LLC Series C | 3/9/21 | $1,069,306 |
Inscripta, Inc. Series E | 3/30/21 | $11,322,073 |
Seer, Inc. Class A | 12/8/20 | $8,418,558 |
The Beauty Health Co. | 12/8/20 | $18,000,000 |
Thriveworks TopCo LLC Series B | 7/23/21 | $8,476,058 |
Wugen, Inc. Series B | 7/9/21 | $3,523,377 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $22,296,160 | $820,472,398 | $710,142,254 | $11,849 | $-- | $-- | $132,626,304 | 0.2% |
Fidelity Securities Lending Cash Central Fund 0.06% | 28,140,400 | 536,472,456 | 392,869,309 | 134,231 | -- | -- | 171,743,547 | 0.5% |
Total | $50,436,560 | $1,356,944,854 | $1,103,011,563 | $146,080 | $-- | $-- | $304,369,851 |
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 August 31, 2021, 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 | $10,890,810,114 | $10,338,287,935 | $552,522,179 | $-- |
Preferred Stocks | 84,696,452 | -- | -- | 84,696,452 |
Money Market Funds | 304,369,851 | 304,369,851 | -- | -- |
Total Investments in Securities: | $11,279,876,417 | $10,642,657,786 | $552,522,179 | $84,696,452 |
Net unrealized depreciation on unfunded commitments | $(2,353,140) | $ | $(2,353,140) | $ |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.8% |
Switzerland | 3.9% |
Netherlands | 2.3% |
United Kingdom | 2.2% |
Denmark | 1.3% |
Cayman Islands | 1.1% |
Others (Individually Less Than 1%) | 1.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Health Care Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $167,593,469) — See accompanying schedule: Unaffiliated issuers (cost $6,598,462,758) | $10,975,506,566 | |
Fidelity Central Funds (cost $304,368,101) | 304,369,851 | |
Total Investment in Securities (cost $6,902,830,859) | $11,279,876,417 | |
Cash | 149 | |
Receivable for investments sold | 26,826,175 | |
Receivable for fund shares sold | 3,973,454 | |
Dividends receivable | 4,414,500 | |
Reclaims receivable | 8,206,815 | |
Distributions receivable from Fidelity Central Funds | 44,343 | |
Prepaid expenses | 47,198 | |
Other receivables | 1,105,258 | |
Total assets | 11,324,494,309 | |
Liabilities | ||
Payable for investments purchased | $36,288,773 | |
Unrealized depreciation on unfunded commitments | 2,353,140 | |
Payable for fund shares redeemed | 9,379,438 | |
Accrued management fee | 4,759,491 | |
Other affiliated payables | 1,329,422 | |
Other payables and accrued expenses | 908,899 | |
Collateral on securities loaned | 171,721,722 | |
Total liabilities | 226,740,885 | |
Net Assets | $11,097,753,424 | |
Net Assets consist of: | ||
Paid in capital | $6,265,880,220 | |
Total accumulated earnings (loss) | 4,831,873,204 | |
Net Assets | $11,097,753,424 | |
Net Asset Value, offering price and redemption price per share ($11,097,753,424 ÷ 321,388,480 shares) | $34.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $35,659,302 | |
Foreign tax reclaims | 1,899,536 | |
Income from Fidelity Central Funds (including $134,231 from security lending) | 146,080 | |
Income before foreign taxes withheld | 37,704,918 | |
Less foreign taxes withheld | (3,408,034) | |
Total income | 34,296,884 | |
Expenses | ||
Management fee | $27,921,652 | |
Transfer agent fees | 7,335,560 | |
Accounting fees | 655,887 | |
Custodian fees and expenses | 69,223 | |
Independent trustees' fees and expenses | 19,866 | |
Registration fees | 84,477 | |
Audit | 24,420 | |
Legal | 5,635 | |
Interest | 341 | |
Miscellaneous | 31,363 | |
Total expenses before reductions | 36,148,424 | |
Expense reductions | (514,805) | |
Total expenses after reductions | 35,633,619 | |
Net investment income (loss) | (1,336,735) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 508,509,879 | |
Foreign currency transactions | (62,964) | |
Total net realized gain (loss) | 508,446,915 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 618,307,229 | |
Unfunded commitments | (13,857,230) | |
Assets and liabilities in foreign currencies | (21,496) | |
Total change in net unrealized appreciation (depreciation) | 604,428,503 | |
Net gain (loss) | 1,112,875,418 | |
Net increase (decrease) in net assets resulting from operations | $1,111,538,683 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,336,735) | $(1,302,962) |
Net realized gain (loss) | 508,446,915 | 1,254,393,714 |
Change in net unrealized appreciation (depreciation) | 604,428,503 | 1,433,331,438 |
Net increase (decrease) in net assets resulting from operations | 1,111,538,683 | 2,686,422,190 |
Distributions to shareholders | (345,006,415) | (1,043,319,929) |
Share transactions | ||
Proceeds from sales of shares | 545,632,288 | 2,530,824,884 |
Reinvestment of distributions | 320,299,238 | 966,756,493 |
Cost of shares redeemed | (887,786,987) | (2,007,793,854) |
Net increase (decrease) in net assets resulting from share transactions | (21,855,461) | 1,489,787,523 |
Total increase (decrease) in net assets | 744,676,807 | 3,132,889,784 |
Net Assets | ||
Beginning of period | 10,353,076,617 | 7,220,186,833 |
End of period | $11,097,753,424 | $10,353,076,617 |
Other Information | ||
Shares | ||
Sold | 16,669,733 | 84,148,004 |
Issued in reinvestment of distributions | 10,177,924 | 31,895,088 |
Redeemed | (27,194,240) | (66,461,246) |
Net increase (decrease) | (346,583) | 49,581,846 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Health Care Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $32.18 | $26.53 | $24.48 | $23.56 | $20.89 | $18.05 |
Income from Investment Operations | ||||||
Net investment income (loss)C | –D | –D | .04 | .02 | .05 | .02 |
Net realized and unrealized gain (loss) | 3.43 | 9.23 | 2.40 | 2.90 | 3.17 | 2.93 |
Total from investment operations | 3.43 | 9.23 | 2.44 | 2.92 | 3.22 | 2.95 |
Distributions from net investment income | (.04) | (.18) | (.03) | (.03) | (.04) | (.02) |
Distributions from net realized gain | (1.04) | (3.40) | (.36) | (1.97) | (.51) | (.09) |
Total distributions | (1.08) | (3.58) | (.39) | (2.00) | (.55) | (.11) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $34.53 | $32.18 | $26.53 | $24.48 | $23.56 | $20.89 |
Total ReturnE,F | 10.99% | 36.00% | 9.84% | 13.30% | 15.49% | 16.43% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .68%I | .69% | .70% | .71% | .73% | .74% |
Expenses net of fee waivers, if any | .68%I | .69% | .70% | .71% | .73% | .73% |
Expenses net of all reductions | .67%I | .69% | .70% | .71% | .72% | .73% |
Net investment income (loss) | (.03)%I | (.01)% | .16% | .10% | .23% | .12% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $11,097,753 | $10,353,077 | $7,220,187 | $7,450,707 | $6,923,404 | $6,628,882 |
Portfolio turnover rateJ | 30%I | 52% | 36%K | 60%K | 75% | 49%K |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Health Care Services Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
UnitedHealth Group, Inc. | 24.5 |
Cigna Corp. | 8.6 |
Humana, Inc. | 7.1 |
HCA Holdings, Inc. | 6.6 |
CVS Health Corp. | 4.9 |
AmerisourceBergen Corp. | 4.9 |
Centene Corp. | 4.8 |
Molina Healthcare, Inc. | 4.5 |
Anthem, Inc. | 4.3 |
Chemed Corp. | 2.6 |
72.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Health Care Providers & Services | 98.1% | |
Health Care Technology | 0.8% | |
Diversified Financial Services | 0.1% | |
All Others* | 1.0% |
* Includes short-term investments and net other assets (liabilities).
Health Care Services Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
Health Care Providers & Services - 98.1% | |||
Health Care Distributors & Services - 4.9% | |||
AmerisourceBergen Corp. | 485,300 | $59,308,513 | |
Health Care Facilities - 16.8% | |||
Brookdale Senior Living, Inc. (a) | 2,728,900 | 19,920,970 | |
Cano Health, Inc. (a)(b) | 734,400 | 8,790,768 | |
Cano Health, Inc. (c) | 463,400 | 5,546,898 | |
Encompass Health Corp. | 169,400 | 13,289,430 | |
HCA Holdings, Inc. | 317,700 | 80,371,746 | |
Rede D'Oregon Sao Luiz SA (d) | 470,900 | 6,267,374 | |
Surgery Partners, Inc. (a)(b) | 562,700 | 27,684,840 | |
Tenet Healthcare Corp. (a) | 260,800 | 19,651,280 | |
U.S. Physical Therapy, Inc. (b) | 200,600 | 23,550,440 | |
205,073,746 | |||
Health Care Services - 30.1% | |||
agilon health, Inc. (a)(b) | 200,100 | 7,003,500 | |
Amedisys, Inc. (a) | 111,400 | 20,436,330 | |
Andlauer Healthcare Group, Inc. | 184,939 | 6,863,111 | |
CareMax, Inc. (c) | 379,900 | 3,426,698 | |
CareMax, Inc. Class A (a)(b) | 149,200 | 1,345,784 | |
Chemed Corp. | 67,500 | 32,177,250 | |
Cigna Corp. | 497,372 | 105,268,784 | |
CVS Health Corp. | 688,000 | 59,436,320 | |
DaVita HealthCare Partners, Inc. (a) | 184,900 | 24,179,373 | |
Guardant Health, Inc. (a) | 112,100 | 14,266,967 | |
LHC Group, Inc. (a) | 138,196 | 25,809,485 | |
LifeStance Health Group, Inc. | 603,749 | 8,971,710 | |
Oak Street Health, Inc. (a)(b) | 325,327 | 15,202,531 | |
Option Care Health, Inc. (a) | 1,054,432 | 28,206,056 | |
Quest Diagnostics, Inc. (b) | 100,400 | 15,344,132 | |
367,938,031 | |||
Managed Health Care - 46.3% | |||
Alignment Healthcare, Inc. (a)(b) | 466,200 | 8,237,754 | |
Alignment Healthcare, Inc. | 272,596 | 4,575,933 | |
Anthem, Inc. | 139,402 | 52,293,872 | |
Centene Corp. (a) | 931,650 | 58,675,317 | |
Humana, Inc. | 213,800 | 86,678,796 | |
Molina Healthcare, Inc. (a) | 207,100 | 55,662,267 | |
UnitedHealth Group, Inc. | 718,550 | 299,110,808 | |
565,234,747 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 1,197,555,037 | ||
Health Care Technology - 0.7% | |||
Health Care Technology - 0.7% | |||
Phreesia, Inc. (a) | 121,535 | 8,695,829 | |
TOTAL COMMON STOCKS | |||
(Cost $555,328,070) | 1,206,250,866 | ||
Preferred Stocks - 0.2% | |||
Convertible Preferred Stocks - 0.1% | |||
Health Care Technology - 0.1% | |||
Health Care Technology - 0.1% | |||
Aledade, Inc. Series B1 (c)(e) | 52,232 | 2,000,000 | |
Nonconvertible Preferred Stocks - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Thriveworks TopCo LLC Series B (c)(e)(f) | 34,800 | 998,872 | |
TOTAL PREFERRED STOCKS | |||
(Cost $2,998,872) | 2,998,872 | ||
Money Market Funds - 5.3% | |||
Fidelity Cash Central Fund 0.06% (g) | 8,573,436 | 8,575,151 | |
Fidelity Securities Lending Cash Central Fund 0.06% (g)(h) | 55,559,173 | 55,564,729 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $64,139,880) | 64,139,880 | ||
TOTAL INVESTMENT IN SECURITIES - 104.3% | |||
(Cost $622,466,822) | 1,273,389,618 | ||
NET OTHER ASSETS (LIABILITIES) - (4.3)% | (52,592,291) | ||
NET ASSETS - 100% | $1,220,797,327 |
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 $11,972,468 or 1.0% 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 $6,267,374 or 0.5% of net assets.
(e) Level 3 security
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Aledade, Inc. Series B1 | 5/7/21 | $2,000,000 |
Cano Health, Inc. | 11/11/20 | $4,634,000 |
CareMax, Inc. | 12/18/20 | $3,799,000 |
Thriveworks TopCo LLC Series B | 7/23/21 | $998,872 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,538,347 | $117,879,248 | $111,842,444 | $2,196 | $-- | $-- | $8,575,151 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 45,664,629 | 165,693,521 | 155,793,421 | 70,176 | -- | -- | 55,564,729 | 0.2% |
Total | $48,202,976 | $283,572,769 | $267,635,865 | $72,372 | $-- | $-- | $64,139,880 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,206,250,866 | $1,201,674,933 | $4,575,933 | $-- |
Preferred Stocks | 2,998,872 | -- | -- | 2,998,872 |
Money Market Funds | 64,139,880 | 64,139,880 | -- | -- |
Total Investments in Securities: | $1,273,389,618 | $1,265,814,813 | $4,575,933 | $2,998,872 |
Net unrealized depreciation on unfunded commitments | $(288,250) | $ | $(288,250) | $ |
See accompanying notes which are an integral part of the financial statements.
Health Care Services Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $53,922,105) — See accompanying schedule: Unaffiliated issuers (cost $558,326,942) | $1,209,249,738 | |
Fidelity Central Funds (cost $64,139,880) | 64,139,880 | |
Total Investment in Securities (cost $622,466,822) | $1,273,389,618 | |
Receivable for investments sold | 12,604,993 | |
Receivable for fund shares sold | 740,164 | |
Dividends receivable | 318,847 | |
Distributions receivable from Fidelity Central Funds | 7,412 | |
Prepaid expenses | 5,635 | |
Other receivables | 123,290 | |
Total assets | 1,287,189,959 | |
Liabilities | ||
Payable for investments purchased | $8,486,786 | |
Unrealized depreciation on unfunded commitments | 288,250 | |
Payable for fund shares redeemed | 1,221,071 | |
Accrued management fee | 533,350 | |
Other affiliated payables | 186,557 | |
Other payables and accrued expenses | 115,318 | |
Collateral on securities loaned | 55,561,300 | |
Total liabilities | 66,392,632 | |
Net Assets | $1,220,797,327 | |
Net Assets consist of: | ||
Paid in capital | $540,957,841 | |
Total accumulated earnings (loss) | 679,839,486 | |
Net Assets | $1,220,797,327 | |
Net Asset Value, offering price and redemption price per share ($1,220,797,327 ÷ 9,210,262 shares) | $132.55 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $5,670,729 | |
Income from Fidelity Central Funds (including $70,176 from security lending) | 72,372 | |
Total income | 5,743,101 | |
Expenses | ||
Management fee | $3,258,076 | |
Transfer agent fees | 918,035 | |
Accounting fees | 199,028 | |
Custodian fees and expenses | 5,897 | |
Independent trustees' fees and expenses | 2,279 | |
Registration fees | 21,185 | |
Audit | 17,201 | |
Legal | 1,889 | |
Interest | 145 | |
Miscellaneous | 3,744 | |
Total expenses before reductions | 4,427,479 | |
Expense reductions | (52,977) | |
Total expenses after reductions | 4,374,502 | |
Net investment income (loss) | 1,368,599 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 45,128,516 | |
Foreign currency transactions | (738) | |
Total net realized gain (loss) | 45,127,778 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 88,528,344 | |
Unfunded commitments | (3,047,549) | |
Assets and liabilities in foreign currencies | 616 | |
Total change in net unrealized appreciation (depreciation) | 85,481,411 | |
Net gain (loss) | 130,609,189 | |
Net increase (decrease) in net assets resulting from operations | $131,977,788 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,368,599 | $556,699 |
Net realized gain (loss) | 45,127,778 | 86,790,581 |
Change in net unrealized appreciation (depreciation) | 85,481,411 | 181,176,828 |
Net increase (decrease) in net assets resulting from operations | 131,977,788 | 268,524,108 |
Distributions to shareholders | (31,193,101) | (9,375,003) |
Share transactions | ||
Proceeds from sales of shares | 88,032,629 | 168,402,095 |
Reinvestment of distributions | 29,217,197 | 8,736,753 |
Cost of shares redeemed | (98,150,624) | (338,580,546) |
Net increase (decrease) in net assets resulting from share transactions | 19,099,202 | (161,441,698) |
Total increase (decrease) in net assets | 119,883,889 | 97,707,407 |
Net Assets | ||
Beginning of period | 1,100,913,438 | 1,003,206,031 |
End of period | $1,220,797,327 | $1,100,913,438 |
Other Information | ||
Shares | ||
Sold | 656,944 | 1,602,271 |
Issued in reinvestment of distributions | 224,059 | 89,436 |
Redeemed | (736,224) | (3,218,003) |
Net increase (decrease) | 144,779 | (1,526,296) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Health Care Services Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $121.44 | $94.72 | $89.28 | $92.21 | $89.93 | $78.59 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .15 | .06 | .23 | .13 | .11 | .12 |
Net realized and unrealized gain (loss) | 14.40 | 27.59 | 5.50 | 8.27 | 14.23 | 15.03 |
Total from investment operations | 14.55 | 27.65 | 5.73 | 8.40 | 14.34 | 15.15 |
Distributions from net investment income | (.10) | (.93) | (.29) | (.10) | (.10) | (.13) |
Distributions from net realized gain | (3.35) | – | – | (11.23) | (11.96) | (3.68) |
Total distributions | (3.44)C | (.93) | (.29) | (11.33) | (12.06) | (3.81) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $132.55 | $121.44 | $94.72 | $89.28 | $92.21 | $89.93 |
Total ReturnE,F | 12.03% | 29.43% | 6.39% | 9.61% | 17.03% | 19.71% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .71%I | .73% | .75% | .76% | .77% | .78% |
Expenses net of fee waivers, if any | .71%I | .73% | .75% | .76% | .77% | .78% |
Expenses net of all reductions | .71%I | .73% | .75% | .76% | .76% | .78% |
Net investment income (loss) | .22%I | .05% | .25% | .14% | .12% | .15% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,220,797 | $1,100,913 | $1,003,206 | $1,343,070 | $829,692 | $760,108 |
Portfolio turnover rateJ | 38%I | 34% | 37% | 60% | 65% | 26% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Medical Technology and Devices Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Danaher Corp. | 12.0 |
Thermo Fisher Scientific, Inc. | 11.5 |
Boston Scientific Corp. | 8.4 |
Charles River Laboratories International, Inc. | 3.6 |
Insulet Corp. | 3.5 |
Penumbra, Inc. | 3.3 |
DexCom, Inc. | 3.1 |
ResMed, Inc. | 3.0 |
Intuitive Surgical, Inc. | 2.7 |
Bio-Rad Laboratories, Inc. Class A | 2.5 |
53.6 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Health Care Equipment & Supplies | 55.8% | |
Life Sciences Tools & Services | 30.8% | |
Health Care Providers & Services | 4.9% | |
Health Care Technology | 3.9% | |
Biotechnology | 2.6% | |
All Others* | 2.0% |
* Includes short-term investments and net other assets (liabilities).
Medical Technology and Devices Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Preferred Securities - 0.2% | |||
Shares | Value | ||
Kardium, Inc. 0% (a)(b)(c) | |||
(Cost $19,551,861) | 19,551,861 | 19,551,861 | |
Common Stocks - 97.4% | |||
Biotechnology - 1.6% | |||
Biotechnology - 1.6% | |||
Abcam PLC (d) | 2,000,000 | 42,465,078 | |
Avid Bioservices, Inc. (d) | 1,800,000 | 43,632,000 | |
Natera, Inc. (d) | 280,000 | 33,160,400 | |
Twist Bioscience Corp. (d) | 506,100 | 57,295,581 | |
176,553,059 | |||
Health Care Equipment & Supplies - 55.2% | |||
Health Care Equipment - 50.5% | |||
Abbott Laboratories | 2,150,000 | 271,695,500 | |
Angiodynamics, Inc. (d)(e) | 1,950,000 | 55,185,000 | |
Axonics Modulation Technologies, Inc. (d) | 600,000 | 44,988,000 | |
Boston Scientific Corp. (d) | 20,180,000 | 911,127,000 | |
Danaher Corp. | 4,000,000 | 1,296,639,998 | |
DexCom, Inc. (d) | 640,000 | 338,828,800 | |
Envista Holdings Corp. (d) | 3,100,500 | 132,670,395 | |
Hologic, Inc. (d) | 2,960,000 | 234,284,000 | |
IDEXX Laboratories, Inc. (d) | 50,000 | 33,688,000 | |
Insulet Corp. (d) | 1,276,539 | 380,166,080 | |
Intuitive Surgical, Inc. (d) | 280,000 | 294,996,800 | |
Masimo Corp. (d) | 700,000 | 190,078,000 | |
Nevro Corp. (d) | 1,080,000 | 131,760,000 | |
Outset Medical, Inc. | 1,002,700 | 49,423,083 | |
Penumbra, Inc. (d) | 1,290,000 | 354,685,500 | |
ResMed, Inc. | 1,130,000 | 328,298,900 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. (A Shares) | 799,999 | 40,614,743 | |
Stryker Corp. | 800,000 | 221,680,000 | |
Tandem Diabetes Care, Inc. (d) | 1,400,000 | 157,038,000 | |
5,467,847,799 | |||
Health Care Supplies - 4.7% | |||
Align Technology, Inc. (d) | 200,000 | 141,800,000 | |
Nanosonics Ltd. (d)(e) | 22,000,000 | 106,542,942 | |
West Pharmaceutical Services, Inc. | 570,000 | 257,423,400 | |
505,766,342 | |||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 5,973,614,141 | ||
Health Care Providers & Services - 4.8% | |||
Health Care Services - 2.7% | |||
Cigna Corp. | 750,000 | 158,737,500 | |
Guardant Health, Inc. (d) | 865,000 | 110,088,550 | |
LifeStance Health Group, Inc. | 1,871,380 | 27,808,707 | |
296,634,757 | |||
Managed Health Care - 2.1% | |||
Humana, Inc. | 550,000 | 222,981,000 | |
TOTAL HEALTH CARE PROVIDERS & SERVICES | 519,615,757 | ||
Health Care Technology - 3.7% | |||
Health Care Technology - 3.7% | |||
Castlight Health, Inc. (d) | 983,300 | 1,779,773 | |
Castlight Health, Inc. Class B (d) | 7,750,000 | 14,027,500 | |
Doximity, Inc. | 150,000 | 13,800,000 | |
Evolent Health, Inc. (d) | 419,186 | 10,295,208 | |
Health Catalyst, Inc. (d)(f) | 2,025,065 | 110,588,800 | |
Inspire Medical Systems, Inc. (d) | 500,000 | 111,780,000 | |
Medlive Technology Co. Ltd. | 882,528 | 3,733,251 | |
Phreesia, Inc. (d) | 900,000 | 64,395,000 | |
Veeva Systems, Inc. Class A (d) | 200,000 | 66,396,000 | |
396,795,532 | |||
Life Sciences Tools & Services - 30.8% | |||
Life Sciences Tools & Services - 30.8% | |||
10X Genomics, Inc. (d) | 440,000 | 77,404,800 | |
10X Genomics, Inc. Class B (d)(g) | 392,772 | 69,096,450 | |
Avantor, Inc. (d) | 4,650,000 | 183,396,000 | |
Bio-Rad Laboratories, Inc. Class A (d) | 340,000 | 273,638,800 | |
Bio-Techne Corp. | 228,000 | 113,803,920 | |
Bruker Corp. | 2,800,000 | 247,268,000 | |
Charles River Laboratories International, Inc. (d) | 865,000 | 383,938,900 | |
Lonza Group AG | 305,000 | 258,121,758 | |
Maravai LifeSciences Holdings, Inc. | 1,050,000 | 62,139,000 | |
Nanostring Technologies, Inc. (d) | 800,200 | 46,571,640 | |
Olink Holding AB ADR (d) | 1,050,000 | 33,610,500 | |
Sartorius Stedim Biotech | 400,000 | 242,573,280 | |
Seer, Inc. (f) | 1,557,632 | 62,274,127 | |
Stevanato Group SpA (f) | 1,400,000 | 34,664,000 | |
Thermo Fisher Scientific, Inc. | 2,240,000 | 1,243,088,000 | |
3,331,589,175 | |||
Personal Products - 0.9% | |||
Personal Products - 0.9% | |||
The Beauty Health Co. (d) | 600,000 | 15,426,000 | |
The Beauty Health Co. (c) | 3,000,000 | 77,130,000 | |
92,556,000 | |||
Textiles, Apparel & Luxury Goods - 0.4% | |||
Apparel, Accessories & Luxury Goods - 0.4% | |||
Essilor International SA | 200,000 | 39,262,299 | |
TOTAL COMMON STOCKS | |||
(Cost $5,423,102,000) | 10,529,985,963 | ||
Convertible Preferred Stocks - 1.9% | |||
Biotechnology - 1.0% | |||
Biotechnology - 1.0% | |||
Caris Life Sciences, Inc. Series D (a)(c) | 2,803,935 | 22,711,874 | |
Element Biosciences, Inc. Series B (a)(c)(d) | 2,385,223 | 49,033,029 | |
ElevateBio LLC Series C (a)(c) | 214,700 | 900,667 | |
Inscripta, Inc. Series D (a)(c) | 3,938,731 | 34,778,995 | |
107,424,565 | |||
Health Care Equipment & Supplies - 0.4% | |||
Health Care Equipment - 0.3% | |||
Procept Biorobotics Corp. Series G (a)(c) | 6,213,557 | 29,452,260 | |
Health Care Supplies - 0.1% | |||
Kardium, Inc. Series D6 (a)(c) | 13,783,189 | 14,001,515 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 43,453,775 | ||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
Conformal Medical, Inc. Series C (a)(c)(d) | 2,605,625 | 13,184,463 | |
dMed Biopharmaceutical Co. Ltd. Series C (a)(c) | 309,255 | 4,276,997 | |
17,461,460 | |||
Health Care Technology - 0.2% | |||
Health Care Technology - 0.2% | |||
Aledade, Inc. Series B1 (a)(c) | 175,232 | 6,709,756 | |
PrognomIQ, Inc.: | |||
Series A5 (a)(c) | 833,333 | 2,783,332 | |
Series B (a)(c) | 2,735,093 | 9,135,211 | |
18,628,299 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Textiles - 0.2% | |||
Freenome, Inc. Series C (a)(c) | 2,268,156 | 20,617,538 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $135,524,779) | 207,585,637 | ||
Money Market Funds - 1.2% | |||
Fidelity Cash Central Fund 0.06% (h) | 59,011,815 | 59,023,617 | |
Fidelity Securities Lending Cash Central Fund 0.06% (h)(i) | 69,926,097 | 69,933,090 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $128,956,707) | 128,956,707 | ||
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $5,707,135,347) | 10,886,080,168 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (74,846,840) | ||
NET ASSETS - 100% | $10,811,233,328 |
Legend
(a) Level 3 security
(b) Security is perpetual in nature with no stated maturity date.
(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 $304,267,498 or 2.8% of net assets.
(d) Non-income producing
(e) Affiliated company
(f) Security or a portion of the security is on loan at period end.
(g) 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 $69,096,450 or 0.6% of net assets.
(h) 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.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Aledade, Inc. Series B1 | 5/7/21 | $6,709,756 |
Caris Life Sciences, Inc. Series D | 5/11/21 | $22,711,874 |
Conformal Medical, Inc. Series C | 7/24/20 | $9,554,996 |
dMed Biopharmaceutical Co. Ltd. Series C | 12/1/20 | $4,392,395 |
Element Biosciences, Inc. Series B | 12/13/19 | $12,500,000 |
ElevateBio LLC Series C | 3/9/21 | $900,667 |
Freenome, Inc. Series C | 8/14/20 | $14,999,996 |
Inscripta, Inc. Series D | 11/13/20 | $18,000,001 |
Kardium, Inc. Series D6 | 12/30/20 | $14,001,515 |
Kardium, Inc. 0% | 12/30/20 | $19,551,861 |
Procept Biorobotics Corp. Series G | 6/10/21 | $25,000,247 |
PrognomIQ, Inc. Series A5 | 8/20/20 | $503,333 |
PrognomIQ, Inc. Series B | 9/11/20 | $6,249,999 |
The Beauty Health Co. | 12/8/20 | $30,000,000 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $29,308,147 | $650,904,823 | $621,189,353 | $8,057 | $-- | $-- | $59,023,617 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.06% | 325,618,183 | 268,473,785 | 524,158,878 | 118,536 | -- | -- | 69,933,090 | 0.2% |
Total | $354,926,330 | $919,378,608 | $1,145,348,231 | $126,593 | $-- | $-- | $128,956,707 |
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 |
Angiodynamics, Inc. | $16,253,010 | $26,326,608 | $-- | $-- | $-- | $12,605,382 | $55,185,000 |
Intersect ENT, Inc. | 57,025,000 | 13,715,218 | 87,430,546 | -- | 31,932,434 | (15,242,106) | -- |
Nanosonics Ltd. | 101,147,280 | 951,723 | -- | -- | -- | 4,443,939 | 106,542,942 |
ViewRay, Inc. | 38,368,000 | -- | 45,339,866 | -- | 16,273,757 | (9,301,891) | -- |
Total | $212,793,290 | $40,993,549 | $132,770,412 | $-- | $48,206,191 | $(7,494,676) | $161,727,942 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 | $10,529,985,963 | $10,487,520,885 | $42,465,078 | $-- |
Convertible Preferred Stocks | 207,585,637 | -- | 29,452,260 | 178,133,377 |
Money Market Funds | 128,956,707 | 128,956,707 | -- | -- |
Preferred Securities | 19,551,861 | -- | -- | 19,551,861 |
Total Investments in Securities: | $10,886,080,168 | $10,616,477,592 | $71,917,338 | $197,685,238 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Convertible Preferred Stocks | |
Beginning Balance | $99,803,398 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | 48,007,683 |
Cost of Purchases | 30,322,296 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $178,133,377 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2021 | $48,007,683 |
Preferred Securities | |
Beginning Balance | $19,551,861 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | -- |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers in to Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $19,551,861 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2021 | $-- |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. 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 reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Medical Technology and Devices Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $70,474,412) — See accompanying schedule: Unaffiliated issuers (cost $5,483,789,104) | $10,595,395,519 | |
Fidelity Central Funds (cost $128,956,707) | 128,956,707 | |
Other affiliated issuers (cost $94,389,536) | 161,727,942 | |
Total Investment in Securities (cost $5,707,135,347) | $10,886,080,168 | |
Cash | 29,307 | |
Receivable for investments sold | 16,670,306 | |
Receivable for fund shares sold | 17,613,883 | |
Dividends receivable | 769,459 | |
Distributions receivable from Fidelity Central Funds | 8,851 | |
Prepaid expenses | 32,922 | |
Other receivables | 460,961 | |
Total assets | 10,921,665,857 | |
Liabilities | ||
Payable for investments purchased | $30,537,952 | |
Payable for fund shares redeemed | 3,839,913 | |
Accrued management fee | 4,539,203 | |
Other affiliated payables | 1,246,905 | |
Other payables and accrued expenses | 344,031 | |
Collateral on securities loaned | 69,924,525 | |
Total liabilities | 110,432,529 | |
Net Assets | $10,811,233,328 | |
Net Assets consist of: | ||
Paid in capital | $5,260,226,452 | |
Total accumulated earnings (loss) | 5,551,006,876 | |
Net Assets | $10,811,233,328 | |
Net Asset Value, offering price and redemption price per share ($10,811,233,328 ÷ 123,496,202 shares) | $87.54 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $11,933,625 | |
Income from Fidelity Central Funds (including $118,536 from security lending) | 126,593 | |
Total income | 12,060,218 | |
Expenses | ||
Management fee | $24,513,505 | |
Transfer agent fees | 6,653,878 | |
Accounting fees | 629,298 | |
Custodian fees and expenses | 63,306 | |
Independent trustees' fees and expenses | 16,876 | |
Registration fees | 82,980 | |
Audit | 19,612 | |
Legal | 3,553 | |
Interest | 101 | |
Miscellaneous | 23,732 | |
Total expenses before reductions | 32,006,841 | |
Expense reductions | (352,066) | |
Total expenses after reductions | 31,654,775 | |
Net investment income (loss) | (19,594,557) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 352,412,554 | |
Affiliated issuers | 48,206,191 | |
Foreign currency transactions | 188,384 | |
Total net realized gain (loss) | 400,807,129 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,576,167,798 | |
Affiliated issuers | (7,494,676) | |
Unfunded commitments | 192,000 | |
Assets and liabilities in foreign currencies | (1,910) | |
Total change in net unrealized appreciation (depreciation) | 1,568,863,212 | |
Net gain (loss) | 1,969,670,341 | |
Net increase (decrease) in net assets resulting from operations | $1,950,075,784 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(19,594,557) | $(26,124,031) |
Net realized gain (loss) | 400,807,129 | 876,677,539 |
Change in net unrealized appreciation (depreciation) | 1,568,863,212 | 1,661,035,472 |
Net increase (decrease) in net assets resulting from operations | 1,950,075,784 | 2,511,588,980 |
Distributions to shareholders | (419,953,023) | (514,309,620) |
Share transactions | ||
Proceeds from sales of shares | 961,537,261 | 1,910,160,299 |
Reinvestment of distributions | 394,696,463 | 484,677,137 |
Cost of shares redeemed | (748,422,466) | (1,777,583,064) |
Net increase (decrease) in net assets resulting from share transactions | 607,811,258 | 617,254,372 |
Total increase (decrease) in net assets | 2,137,934,019 | 2,614,533,732 |
Net Assets | ||
Beginning of period | 8,673,299,309 | 6,058,765,577 |
End of period | $10,811,233,328 | $8,673,299,309 |
Other Information | ||
Shares | ||
Sold | 12,266,803 | 27,985,720 |
Issued in reinvestment of distributions | 5,335,899 | 7,325,256 |
Redeemed | (9,769,663) | (28,081,786) |
Net increase (decrease) | 7,833,039 | 7,229,190 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Medical Technology and Devices Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $74.99 | $55.88 | $52.92 | $46.09 | $41.48 | $33.75 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.16) | (.24) | (.08) | (.04) | .05 | .01 |
Net realized and unrealized gain (loss) | 16.34 | 24.19 | 4.10 | 10.40 | 7.31 | 9.87 |
Total from investment operations | 16.18 | 23.95 | 4.02 | 10.36 | 7.36 | 9.88 |
Distributions from net investment income | – | – | – | – | (.08) | – |
Distributions from net realized gain | (3.63) | (4.84) | (1.06) | (3.53) | (2.67) | (2.15) |
Total distributions | (3.63) | (4.84) | (1.06) | (3.53) | (2.75) | (2.15) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $87.54 | $74.99 | $55.88 | $52.92 | $46.09 | $41.48 |
Total ReturnD,E | 22.47% | 44.20% | 7.46% | 23.85% | 18.01% | 30.13% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .69%H | .70% | .71% | .73% | .76% | .76% |
Expenses net of fee waivers, if any | .68%H | .70% | .71% | .73% | .76% | .76% |
Expenses net of all reductions | .68%H | .70% | .71% | .73% | .75% | .76% |
Net investment income (loss) | (.42)%H | (.36)% | (.15)% | (.07)% | .11% | .01% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $10,811,233 | $8,673,299 | $6,058,766 | $6,787,645 | $4,063,926 | $3,134,376 |
Portfolio turnover rateI | 32%H | 58% | 35% | 43% | 77% | 55% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Pharmaceuticals Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
AstraZeneca PLC sponsored ADR | 11.7 |
Eli Lilly & Co. | 11.4 |
Sanofi SA sponsored ADR | 8.9 |
Bristol-Myers Squibb Co. | 8.8 |
Roche Holding AG (participation certificate) | 7.5 |
Zoetis, Inc. Class A | 5.0 |
Merck & Co., Inc. | 4.8 |
Johnson & Johnson | 4.8 |
Novartis AG sponsored ADR | 4.7 |
UCB SA | 3.4 |
71.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Pharmaceuticals | 78.6% | |
Biotechnology | 14.6% | |
Life Sciences Tools & Services | 3.1% | |
Health Care Equipment & Supplies | 2.3% | |
Health Care Providers & Services | 0.4% | |
All Others* | 1.0% |
* Includes short-term investments and net other assets (liabilities).
Pharmaceuticals Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
Biotechnology - 14.3% | |||
Biotechnology - 14.3% | |||
Acceleron Pharma, Inc. (a) | 59,600 | $7,979,248 | |
Amgen, Inc. | 65,700 | 14,817,321 | |
Argenx SE (a) | 17,400 | 5,805,388 | |
Argenx SE ADR (a) | 11,000 | 3,641,220 | |
Ascendis Pharma A/S sponsored ADR (a) | 51,300 | 8,040,249 | |
BioNTech SE ADR (a) | 48 | 15,801 | |
Blueprint Medicines Corp. (a) | 79,000 | 7,368,330 | |
Celldex Therapeutics, Inc. (a) | 18,227 | 959,652 | |
Galapagos NV sponsored ADR (a) | 36,900 | 2,170,458 | |
Generation Bio Co. (a) | 40,076 | 1,001,900 | |
Horizon Therapeutics PLC (a) | 244,200 | 26,395,578 | |
Innovent Biologics, Inc. (a)(b) | 279,500 | 2,253,264 | |
Intellia Therapeutics, Inc. (a) | 15,400 | 2,472,162 | |
Kalvista Pharmaceuticals, Inc. (a) | 99,000 | 2,023,560 | |
Leap Therapeutics, Inc. warrants 1/31/26 (a) | 606,000 | 390,367 | |
Mersana Therapeutics, Inc. (a) | 142,000 | 1,978,060 | |
Protagonist Therapeutics, Inc. (a) | 73,900 | 3,584,150 | |
PTC Therapeutics, Inc. (a) | 136,600 | 5,962,590 | |
Springworks Therapeutics, Inc. (a) | 44,300 | 3,326,930 | |
Synlogic, Inc. (a) | 520,800 | 1,395,744 | |
TG Therapeutics, Inc. (a) | 41,900 | 1,134,233 | |
uniQure B.V. (a) | 170,500 | 4,944,500 | |
Vertex Pharmaceuticals, Inc. (a) | 76,200 | 15,262,098 | |
Xencor, Inc. (a) | 49,568 | 1,678,868 | |
XOMA Corp. (a)(c) | 53,300 | 1,658,696 | |
Zai Lab Ltd. ADR (a) | 4,800 | 693,600 | |
126,953,967 | |||
Food & Staples Retailing - 0.0% | |||
Drug Retail - 0.0% | |||
MedAvail Holdings, Inc. (a)(d) | 3,333 | 11,132 | |
Health Care Equipment & Supplies - 2.3% | |||
Health Care Equipment - 2.3% | |||
Angelalign Technology, Inc. (b) | 400 | 19,852 | |
Boston Scientific Corp. (a) | 452,100 | 20,412,315 | |
20,432,167 | |||
Health Care Providers & Services - 0.4% | |||
Health Care Services - 0.4% | |||
Guardant Health, Inc. (a) | 25,500 | 3,245,385 | |
Life Sciences Tools & Services - 3.1% | |||
Life Sciences Tools & Services - 3.1% | |||
23andMe Holding Co. Class B | 396,605 | 3,069,723 | |
Maravai LifeSciences Holdings, Inc. | 312,600 | 18,499,668 | |
Sartorius Stedim Biotech | 9,400 | 5,700,472 | |
27,269,863 | |||
Pharmaceuticals - 78.6% | |||
Pharmaceuticals - 78.6% | |||
Arvinas Holding Co. LLC (a) | 55,600 | 4,793,276 | |
AstraZeneca PLC sponsored ADR | 1,770,400 | 103,178,912 | |
Axsome Therapeutics, Inc. (a)(c) | 43,400 | 1,114,512 | |
Bausch Health Cos., Inc. (Canada) (a) | 165,100 | 4,810,428 | |
Bristol-Myers Squibb Co. | 1,168,480 | 78,124,573 | |
Catalent, Inc. (a) | 75,400 | 9,835,176 | |
Elanco Animal Health, Inc. (a) | 172,400 | 5,754,712 | |
Eli Lilly & Co. | 392,061 | 101,265,436 | |
Harmony Biosciences Holdings, Inc. (a) | 73,077 | 2,476,580 | |
Intra-Cellular Therapies, Inc. (a) | 107,000 | 3,552,400 | |
Johnson & Johnson | 243,250 | 42,113,873 | |
Merck & Co., Inc. | 557,736 | 42,549,679 | |
Nektar Therapeutics (a)(c) | 368,233 | 5,700,247 | |
NGM Biopharmaceuticals, Inc. (a) | 108,600 | 2,370,738 | |
Novartis AG sponsored ADR | 449,896 | 41,565,891 | |
Perrigo Co. PLC | 73,800 | 3,022,110 | |
Pliant Therapeutics, Inc. (a) | 300 | 5,472 | |
Reata Pharmaceuticals, Inc. (a)(c) | 64,600 | 6,880,546 | |
Richter Gedeon PLC | 157,700 | 4,726,524 | |
Roche Holding AG (participation certificate) | 165,346 | 66,395,541 | |
Royalty Pharma PLC | 328,300 | 12,688,795 | |
Sanofi SA sponsored ADR | 1,524,322 | 78,929,393 | |
UCB SA | 261,200 | 29,878,945 | |
Zoetis, Inc. Class A | 214,300 | 43,837,208 | |
Zogenix, Inc. (a)(c) | 800 | 11,848 | |
695,582,815 | |||
TOTAL COMMON STOCKS | |||
(Cost $562,698,272) | 873,495,329 | ||
Convertible Preferred Stocks - 0.5% | |||
Biotechnology - 0.3% | |||
Biotechnology - 0.3% | |||
ValenzaBio, Inc. Series A (d)(e) | 224,708 | 1,999,998 | |
Diversified Financial Services - 0.2% | |||
Other Diversified Financial Services - 0.2% | |||
Paragon Biosciences Emalex Capital, Inc. Series C (d)(e) | 158,879 | 1,700,005 | |
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series C (a)(d)(e) | 200 | 131,038 | |
Software - 0.0% | |||
Systems Software - 0.0% | |||
Evozyne LLC Series A (d)(e) | 5,900 | 132,573 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $3,914,946) | 3,963,614 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. 0%(d)(e)(f) | |||
(Cost $14,700) | 14,700 | 14,700 | |
Shares | Value | ||
Money Market Funds - 1.6% | |||
Fidelity Cash Central Fund 0.06% (g) | 5,353,401 | 5,354,472 | |
Fidelity Securities Lending Cash Central Fund 0.06% (g)(h) | 9,045,754 | 9,046,658 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,401,130) | 14,401,130 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $581,029,048) | 891,874,773 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (6,705,503) | ||
NET ASSETS - 100% | $885,169,270 |
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 $2,273,116 or 0.3% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) 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 $3,989,446 or 0.5% of net assets.
(e) Level 3 security
(f) Security is perpetual in nature with no stated maturity date.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Castle Creek Pharmaceutical Holdings, Inc. Series C | 12/9/19 | $82,370 |
Castle Creek Pharmaceutical Holdings, Inc. 0% | 6/28/21 | $14,700 |
Evozyne LLC Series A | 4/9/21 | $132,573 |
MedAvail Holdings, Inc. | 7/2/12 | $500,000 |
Paragon Biosciences Emalex Capital, Inc. Series C | 2/26/21 | $1,700,005 |
ValenzaBio, Inc. Series A | 3/25/21 | $1,999,998 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,505,192 | $90,933,733 | $88,084,453 | $2,093 | $-- | $-- | $5,354,472 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 109,402,533 | 204,258,353 | 304,614,228 | 109,546 | -- | -- | 9,046,658 | 0.0% |
Total | $111,907,725 | $295,192,086 | $392,698,681 | $111,639 | $-- | $-- | $14,401,130 |
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 August 31, 2021, 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 | $873,495,329 | $797,834,310 | $75,661,019 | $-- |
Convertible Preferred Stocks | 3,963,614 | -- | -- | 3,963,614 |
Convertible Bonds | 14,700 | -- | -- | 14,700 |
Money Market Funds | 14,401,130 | 14,401,130 | -- | -- |
Total Investments in Securities: | $891,874,773 | $812,235,440 | $75,661,019 | $3,978,314 |
Net unrealized depreciation on unfunded commitments | $(221,600) | $ | $(221,600) | $ |
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 | 55.8% |
Switzerland | 12.2% |
United Kingdom | 11.7% |
France | 9.5% |
Belgium | 3.6% |
Ireland | 3.3% |
Netherlands | 1.7% |
Others (Individually Less Than 1%) | 2.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Pharmaceuticals Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,972,834) — See accompanying schedule: Unaffiliated issuers (cost $566,627,918) | $877,473,643 | |
Fidelity Central Funds (cost $14,401,130) | 14,401,130 | |
Total Investment in Securities (cost $581,029,048) | $891,874,773 | |
Receivable for fund shares sold | 136,826 | |
Dividends receivable | 1,615,521 | |
Reclaims receivable | 1,998,111 | |
Distributions receivable from Fidelity Central Funds | 1,507 | |
Prepaid expenses | 4,540 | |
Other receivables | 178,322 | |
Total assets | 895,809,600 | |
Liabilities | ||
Payable for investments purchased | $105,010 | |
Unrealized depreciation on unfunded commitments | 221,600 | |
Payable for fund shares redeemed | 538,625 | |
Accrued management fee | 386,890 | |
Other affiliated payables | 148,674 | |
Other payables and accrued expenses | 193,581 | |
Collateral on securities loaned | 9,045,950 | |
Total liabilities | 10,640,330 | |
Net Assets | $885,169,270 | |
Net Assets consist of: | ||
Paid in capital | $538,630,241 | |
Total accumulated earnings (loss) | 346,539,029 | |
Net Assets | $885,169,270 | |
Net Asset Value, offering price and redemption price per share ($885,169,270 ÷ 34,006,056 shares) | $26.03 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $10,735,343 | |
Foreign tax reclaims | 971,806 | |
Income from Fidelity Central Funds (including $109,546 from security lending) | 111,639 | |
Income before foreign taxes withheld | 11,818,788 | |
Less foreign taxes withheld | (1,700,023) | |
Total income | 10,118,765 | |
Expenses | ||
Management fee | $2,232,739 | |
Transfer agent fees | 743,183 | |
Accounting fees | 145,364 | |
Custodian fees and expenses | 9,023 | |
Independent trustees' fees and expenses | 1,596 | |
Registration fees | 31,849 | |
Audit | 17,131 | |
Legal | 1,388 | |
Miscellaneous | 3,026 | |
Total expenses before reductions | 3,185,299 | |
Expense reductions | (18,258) | |
Total expenses after reductions | 3,167,041 | |
Net investment income (loss) | 6,951,724 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 31,757,098 | |
Foreign currency transactions | 3,209 | |
Total net realized gain (loss) | 31,760,307 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 61,326,212 | |
Unfunded commitments | (221,600) | |
Assets and liabilities in foreign currencies | (6,341) | |
Total change in net unrealized appreciation (depreciation) | 61,098,271 | |
Net gain (loss) | 92,858,578 | |
Net increase (decrease) in net assets resulting from operations | $99,810,302 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,951,724 | $9,601,491 |
Net realized gain (loss) | 31,760,307 | 75,654,169 |
Change in net unrealized appreciation (depreciation) | 61,098,271 | 69,300,533 |
Net increase (decrease) in net assets resulting from operations | 99,810,302 | 154,556,193 |
Distributions to shareholders | (26,500,888) | (72,330,079) |
Share transactions | ||
Proceeds from sales of shares | 37,600,917 | 263,105,559 |
Reinvestment of distributions | 25,266,864 | 68,862,070 |
Cost of shares redeemed | (84,387,609) | (345,098,612) |
Net increase (decrease) in net assets resulting from share transactions | (21,519,828) | (13,130,983) |
Total increase (decrease) in net assets | 51,789,586 | 69,095,131 |
Net Assets | ||
Beginning of period | 833,379,684 | 764,284,553 |
End of period | $885,169,270 | $833,379,684 |
Other Information | ||
Shares | ||
Sold | 1,531,559 | 11,435,481 |
Issued in reinvestment of distributions | 1,093,804 | 3,007,054 |
Redeemed | (3,455,025) | (14,811,031) |
Net increase (decrease) | (829,662) | (368,496) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Pharmaceuticals Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.92 | $21.71 | $21.07 | $18.82 | $18.11 | $18.20 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .20 | .27 | .29 | .29 | .27 | .22 |
Net realized and unrealized gain (loss) | 2.69 | 4.04 | 2.29 | 2.34 | .74 | (.13) |
Total from investment operations | 2.89 | 4.31 | 2.58 | 2.63 | 1.01 | .09 |
Distributions from net investment income | (.05) | (.31) | (.31) | (.28) | (.25) | (.18) |
Distributions from net realized gain | (.72) | (1.79) | (1.64) | (.10) | (.05) | – |
Total distributions | (.78)C | (2.10) | (1.94)C | (.38) | (.30) | (.18) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –D |
Net asset value, end of period | $26.03 | $23.92 | $21.71 | $21.07 | $18.82 | $18.11 |
Total ReturnE,F | 12.47% | 20.46% | 12.06% | 14.15% | 5.61% | .57% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .75%I | .77% | .78% | .80% | .81% | .80% |
Expenses net of fee waivers, if any | .75%I | .77% | .78% | .79% | .81% | .80% |
Expenses net of all reductions | .74%I | .76% | .77% | .79% | .80% | .79% |
Net investment income (loss) | 1.64%I | 1.13% | 1.36% | 1.48% | 1.44% | 1.16% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $885,169 | $833,380 | $764,285 | $747,604 | $744,563 | $1,000,937 |
Portfolio turnover rateJ | 20%I | 32% | 52% | 55% | 89% | 77% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Biotechnology Portfolio, Health Care Portfolio, Health Care Services Portfolio, Medical Technology and Devices Portfolio, and Pharmaceuticals Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 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 and preferred securities 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.
Biotechnology Portfolio:
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 183,347,198 | Recovery value | Recovery value | 0.0% | Increase |
Market approach | Transaction price | $2.42 - $44.41 / $28.60 | Increase | ||
Parity price | $0.05 | Increase | |||
Discounted cash flow | Discount rate | 8.0% - 11.6% / 10.6% | Decrease | ||
Disocunt for lack of marketability | 10.0% | Decrease |
(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.
Medical Technology and Devices Portfolio:
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 178,133,377 | Market approach | Transaction price | $1.02 - $38.29 / $11.49 | Increase |
Discount rate | 2.6% | Decrease | |||
Premium rate | 37.5% - 45.9% / 39.8% | Increase | |||
Preferred Securities | $ 19,551,861 | Market approach | Transaction price | $100.00 | 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 August 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends or foreign tax reclaims. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable or reclaims receivable.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Biotechnology Portfolio | $1,252,896 |
Health Care Portfolio | 831,330 |
Health Care Services Portfolio | 92,779 |
Medical Technology and Devices Portfolio | 273,744 |
Pharmaceuticals Portfolio | 168,260 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred Trustees compensation, net operating losses, capital loss carryforwards and 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) | |
Biotechnology Portfolio | $5,793,116,753 | $3,354,301,916 | $(435,900,120) | $2,918,401,796 |
Health Care Portfolio | 6,928,039,627 | 4,600,713,923 | (248,877,133) | 4,351,836,790 |
Health Care Services Portfolio | 635,273,377 | 649,995,437 | (11,879,196) | 638,116,241 |
Medical Technology and Devices Portfolio | 5,713,889,377 | 5,239,381,705 | (67,190,914) | 5,172,190,791 |
Pharmaceuticals Portfolio | 583,254,764 | 335,688,547 | (27,068,538) | 308,620,009 |
Restricted Securities (including Private Placements). 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, Health Care Portfolio, Biotechnology Portfolio, Pharmaceuticals Portfolio and Health Care Services Portfolio had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
Consolidated Subsidiary. The Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Biotechnology Portfolio | 105,271,552 | 1.29 |
Health Care Portfolio | 8,746,058 | .08 |
Health Care Services Portfolio | 998,872 | .08 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Biotechnology Portfolio | 1,674,275,712 | 2,260,151,134 |
Health Care Portfolio | 1,575,826,368 | 2,023,059,857 |
Health Care Services Portfolio | 233,765,710 | 251,888,098 |
Medical Technology and Devices Portfolio | 1,639,479,468 | 1,505,005,793 |
Pharmaceuticals Portfolio | 85,421,340 | 124,209,450 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Biotechnology Portfolio | .30% | .23% | .52% |
Health Care Portfolio | .30% | .23% | .53% |
Health Care Services Portfolio | .30% | .23% | .53% |
Medical Technology and Devices Portfolio | .30% | .23% | .53% |
Pharmaceuticals Portfolio | .30% | .23% | .53% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Biotechnology Portfolio | .14% |
Health Care Portfolio | .14% |
Health Care Services Portfolio | .15% |
Medical Technology and Devices Portfolio | .14% |
Pharmaceuticals Portfolio | .17% |
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 annualized rates:
% of Average Net Assets | |
Biotechnology Portfolio | .01 |
Health Care Portfolio | .01 |
Health Care Services Portfolio | .03 |
Medical Technology and Devices Portfolio | .01 |
Pharmaceuticals Portfolio | .03 |
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 | |
Biotechnology Portfolio | $88,455 |
Health Care Portfolio | 38,582 |
Health Care Services Portfolio | 6,497 |
Medical Technology and Devices Portfolio | 30,670 |
Pharmaceuticals Portfolio | 1,754 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Health Care Portfolio | Borrower | $7,981,800 | .31% | $341 |
Health Care Services Portfolio | Borrower | $4,077,500 | .32% | $145 |
Medical Technology and Devices Portfolio | Borrower | $6,263,000 | .29% | $101 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Biotechnology Portfolio | 109,589,448 | 108,100,188 |
Health Care Portfolio | 160,163,607 | 144,671,326 |
Health Care Services Portfolio | 7,945,178 | 19,416,005 |
Medical Technology and Devices Portfolio | 97,105,217 | 60,150,823 |
Pharmaceuticals Portfolio | 1,484,515 | 15,704,035 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Biotechnology Portfolio | $7,784 |
Health Care Portfolio | 9,647 |
Health Care Services Portfolio | 1,095 |
Medical Technology and Devices Portfolio | 8,128 |
Pharmaceuticals Portfolio | 773 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Biotechnology Portfolio | $98,021 | $12,484 | $3,354,091 |
Health Care Portfolio | $14,248 | $544 | $– |
Health Care Services Portfolio | $7,322 | $5,790 | $92,004 |
Medical Technology and Devices Portfolio | $12,254 | $– | $– |
Pharmaceuticals Portfolio | $11,422 | $– | $– |
8. Expense Reductions.
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 expenses. In addition, through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | Custodian credits | |
Biotechnology Portfolio | $289,422 | $155 |
Health Care Portfolio | 435,479 | 78 |
Health Care Services Portfolio | 43,636 | 10 |
Medical Technology and Devices Portfolio | 284,578 | 48 |
Pharmaceuticals Portfolio | 11,800 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Biotechnology Portfolio | $61,007 |
Health Care Portfolio | 79,248 |
Health Care Services Portfolio | 9,331 |
Medical Technology and Devices Portfolio | 67,440 |
Pharmaceuticals Portfolio | 6,458 |
9. Other.
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.
10. 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.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Biotechnology Portfolio | .69% | |||
Actual | $1,000.00 | $992.50 | $3.47 | |
Hypothetical-C | $1,000.00 | $1,021.73 | $3.52 | |
Health Care Portfolio | .68% | |||
Actual | $1,000.00 | $1,109.90 | $3.62 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 | |
Health Care Services Portfolio | .71% | |||
Actual | $1,000.00 | $1,120.30 | $3.79 | |
Hypothetical-C | $1,000.00 | $1,021.63 | $3.62 | |
Medical Technology and Devices Portfolio | .68% | |||
Actual | $1,000.00 | $1,224.70 | $3.81 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 | |
Pharmaceuticals Portfolio | .75% | |||
Actual | $1,000.00 | $1,124.70 | $4.02 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Biotechnology Portfolio
Health Care Portfolio
Health Care Services Portfolio
Medical Technology and Devices Portfolio
Pharmaceuticals Portfolio
Biotechnology Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197864.jpg)
Health Care Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198045.jpg)
Health Care Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198228.jpg)
Medical Technology and Devices Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198408.jpg)
Pharmaceuticals Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198606.jpg)
Biotechnology Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198910.jpg)
Health Care Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733199081.jpg)
Health Care Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733199219.jpg)
Medical Technology and Devices Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733199345.jpg)
Pharmaceuticals Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733199484.jpg)
SELHC-SANN-1021
1.813645.116
Fidelity® Select Portfolios®
Financials Sector
Banking Portfolio
Brokerage and Investment Management Portfolio
Consumer Finance Portfolio (to be renamed FinTech Portfolio effective October 23, 2021)
Financial Services Portfolio
Insurance Portfolio
Semi-Annual Report
August 31, 2021
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fipro_logo.jpg)
Contents
Banking Portfolio | |
Brokerage and Investment Management Portfolio | |
Consumer Finance Portfolio | |
Financial Services Portfolio | |
Insurance Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
In May 2021, the Board of Trustees approved a proposal to reposition Fidelity Select Consumer Finance Portfolio with a broader, modernized mandate and rename it Fidelity Select FinTech Portfolio on October 23, 2021. In conjunction with the repositioning, Fidelity intends to change the fund’s supplemental benchmark to the FactSet Financial Technologies Index, which better reflects the fund’s updated investment focus.
Banking Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Bank of America Corp. | 6.4 |
Wells Fargo & Co. | 6.1 |
PNC Financial Services Group, Inc. | 5.8 |
U.S. Bancorp | 5.5 |
Citigroup, Inc. | 5.1 |
Huntington Bancshares, Inc. | 4.2 |
M&T Bank Corp. | 3.2 |
East West Bancorp, Inc. | 2.8 |
MGIC Investment Corp. | 2.8 |
First Horizon National Corp. | 2.6 |
44.5 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Banks | 85.2% | |
Thrifts & Mortgage Finance | 7.8% | |
Capital Markets | 4.5% | |
Consumer Finance | 2.4% | |
All Others* | 0.1% |
* Includes short-term investments and net other assets (liabilities).
Banking Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value | ||
Banks - 85.2% | |||
Diversified Banks - 23.2% | |||
Bank of America Corp. | 943,776 | $39,402,649 | |
Citigroup, Inc. | 433,400 | 31,165,794 | |
Piraeus Financial Holdings SA (a) | 330,200 | 557,534 | |
U.S. Bancorp | 582,000 | 33,400,980 | |
Wells Fargo & Co. | 821,992 | 37,565,034 | |
142,091,991 | |||
Regional Banks - 62.0% | |||
1st Source Corp. | 162,681 | 7,646,007 | |
American National Bankshares, Inc. | 188,686 | 6,449,287 | |
Ameris Bancorp | 139,960 | 6,891,630 | |
Associated Banc-Corp. (b) | 585,000 | 12,062,700 | |
Bank OZK | 331,900 | 14,082,517 | |
BayCom Corp. (a) | 14,282 | 247,221 | |
BOK Financial Corp. | 159,900 | 14,079,195 | |
Cadence Bancorp Class A | 554,028 | 11,917,142 | |
Camden National Corp. | 9,632 | 449,525 | |
Comerica, Inc. | 138,100 | 10,206,971 | |
Community Trust Bancorp, Inc. | 169,776 | 7,072,868 | |
ConnectOne Bancorp, Inc. | 151,200 | 4,325,832 | |
East West Bancorp, Inc. | 233,200 | 17,102,888 | |
Eastern Bankshares, Inc. | 162,200 | 3,208,316 | |
First Horizon National Corp. | 977,500 | 16,021,225 | |
First Interstate Bancsystem, Inc. | 149,988 | 6,608,471 | |
First Midwest Bancorp, Inc., Delaware | 325,900 | 6,104,107 | |
Great Western Bancorp, Inc. | 375,362 | 11,621,208 | |
Heartland Financial U.S.A., Inc. | 256,900 | 12,082,007 | |
Huntington Bancshares, Inc. | 1,644,100 | 25,532,873 | |
KeyCorp | 787,800 | 16,008,096 | |
Lakeland Financial Corp. (b) | 65,000 | 4,316,650 | |
M&T Bank Corp. | 139,300 | 19,503,393 | |
PacWest Bancorp | 345,636 | 14,706,812 | |
Peoples United Financial, Inc. | 576,700 | 9,475,181 | |
PNC Financial Services Group, Inc. | 184,000 | 35,162,400 | |
Preferred Bank, Los Angeles | 137,095 | 8,759,000 | |
Sierra Bancorp | 136,100 | 3,459,662 | |
Signature Bank | 48,090 | 12,471,180 | |
Trico Bancshares | 106,087 | 4,195,741 | |
Truist Financial Corp. | 110,100 | 6,282,306 | |
UMB Financial Corp. | 79,666 | 7,295,812 | |
Univest Corp. of Pennsylvania | 299,300 | 8,105,044 | |
WesBanco, Inc. | 341,900 | 11,624,600 | |
Wintrust Financial Corp. | 157,100 | 11,757,364 | |
Zions Bancorp NA | 206,150 | 11,936,085 | |
378,771,316 | |||
TOTAL BANKS | 520,863,307 | ||
Capital Markets - 4.5% | |||
Asset Management & Custody Banks - 4.5% | |||
Bank of New York Mellon Corp. | 221,800 | 12,247,796 | |
State Street Corp. | 162,100 | 15,060,711 | |
27,308,507 | |||
Consumer Finance - 2.4% | |||
Consumer Finance - 2.4% | |||
Capital One Financial Corp. | 55,600 | 9,227,932 | |
OneMain Holdings, Inc. | 94,300 | 5,453,369 | |
14,681,301 | |||
Diversified Financial Services - 0.0% | |||
Other Diversified Financial Services - 0.0% | |||
Phoenix Vega Mezz PLC (a) | 330,200 | 14,036 | |
Thrifts & Mortgage Finance - 7.8% | |||
Thrifts & Mortgage Finance - 7.8% | |||
Essent Group Ltd. | 317,629 | 14,953,973 | |
MGIC Investment Corp. | 1,115,400 | 17,032,158 | |
NMI Holdings, Inc. (a) | 334,002 | 7,538,425 | |
Radian Group, Inc. | 345,836 | 8,172,105 | |
47,696,661 | |||
TOTAL COMMON STOCKS | |||
(Cost $455,294,666) | 610,563,812 | ||
Money Market Funds - 1.2% | |||
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | |||
(Cost $7,032,825) | 7,032,122 | 7,032,825 | |
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $462,327,491) | 617,596,637 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (6,558,748) | ||
NET ASSETS - 100% | $611,037,889 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $6,125,655 | $77,292,109 | $83,417,764 | $701 | $-- | $-- | $-- | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 21,658,344 | 14,625,519 | 232 | -- | -- | 7,032,825 | 0.0% |
Total | $6,125,655 | $98,950,453 | $98,043,283 | $933 | $-- | $-- | $7,032,825 |
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 August 31, 2021, 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 | $610,563,812 | $610,563,812 | $-- | $-- |
Money Market Funds | 7,032,825 | 7,032,825 | -- | -- |
Total Investments in Securities: | $617,596,637 | $617,596,637 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Banking Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,947,829) — See accompanying schedule: Unaffiliated issuers (cost $455,294,666) | $610,563,812 | |
Fidelity Central Funds (cost $7,032,825) | 7,032,825 | |
Total Investment in Securities (cost $462,327,491) | $617,596,637 | |
Receivable for investments sold | 1,093,651 | |
Receivable for fund shares sold | 912,619 | |
Dividends receivable | 755,970 | |
Distributions receivable from Fidelity Central Funds | 239 | |
Prepaid expenses | 4,869 | |
Other receivables | 16,715 | |
Total assets | 620,380,700 | |
Liabilities | ||
Payable to custodian bank | $431,115 | |
Payable for fund shares redeemed | 1,491,032 | |
Accrued management fee | 266,618 | |
Other affiliated payables | 99,330 | |
Other payables and accrued expenses | 21,891 | |
Collateral on securities loaned | 7,032,825 | |
Total liabilities | 9,342,811 | |
Net Assets | $611,037,889 | |
Net Assets consist of: | ||
Paid in capital | $442,682,042 | |
Total accumulated earnings (loss) | 168,355,847 | |
Net Assets | $611,037,889 | |
Net Asset Value, offering price and redemption price per share ($611,037,889 ÷ 20,855,818 shares) | $29.30 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $8,666,889 | |
Income from Fidelity Central Funds (including $232 from security lending) | 933 | |
Total income | 8,667,822 | |
Expenses | ||
Management fee | $1,726,926 | |
Transfer agent fees | 514,862 | |
Accounting fees | 118,883 | |
Custodian fees and expenses | 4,558 | |
Independent trustees' fees and expenses | 1,148 | |
Registration fees | 51,956 | |
Audit | 19,208 | |
Legal | 801 | |
Miscellaneous | 1,488 | |
Total expenses before reductions | 2,439,830 | |
Expense reductions | (33,843) | |
Total expenses after reductions | 2,405,987 | |
Net investment income (loss) | 6,261,835 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 11,909,297 | |
Foreign currency transactions | 469 | |
Total net realized gain (loss) | 11,909,766 | |
Change in net unrealized appreciation (depreciation) on investment securities | 39,810,360 | |
Net gain (loss) | 51,720,126 | |
Net increase (decrease) in net assets resulting from operations | $57,981,961 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $6,261,835 | $9,519,334 |
Net realized gain (loss) | 11,909,766 | (3,835,314) |
Change in net unrealized appreciation (depreciation) | 39,810,360 | 100,101,655 |
Net increase (decrease) in net assets resulting from operations | 57,981,961 | 105,785,675 |
Distributions to shareholders | (300,017) | (30,620,603) |
Share transactions | ||
Proceeds from sales of shares | 269,503,446 | 280,772,770 |
Reinvestment of distributions | 281,951 | 29,138,501 |
Cost of shares redeemed | (254,289,174) | (208,912,791) |
Net increase (decrease) in net assets resulting from share transactions | 15,496,223 | 100,998,480 |
Total increase (decrease) in net assets | 73,178,167 | 176,163,552 |
Net Assets | ||
Beginning of period | 537,859,722 | 361,696,170 |
End of period | $611,037,889 | $537,859,722 |
Other Information | ||
Shares | ||
Sold | 9,283,930 | 14,272,458 |
Issued in reinvestment of distributions | 9,807 | 1,749,438 |
Redeemed | (8,883,620) | (11,050,997) |
Net increase (decrease) | 410,117 | 4,970,899 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Banking Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.31 | $23.37 | $26.42 | $36.82 | $33.63 | $21.70 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .28 | .54 | .58 | .49 | .42 | .33 |
Net realized and unrealized gain (loss) | 2.72 | 4.32 | (1.96) | (3.62) | 3.68 | 11.85 |
Total from investment operations | 3.00 | 4.86 | (1.38) | (3.13) | 4.10 | 12.18 |
Distributions from net investment income | (.01) | (.55) | (.53) | (.54) | (.33) | (.25) |
Distributions from net realized gain | – | (1.37) | (1.14) | (6.73) | (.58) | – |
Total distributions | (.01) | (1.92) | (1.67) | (7.27) | (.91) | (.25) |
Redemption fees added to paid in capitalB | – | – | – | – | –C | –C |
Net asset value, end of period | $29.30 | $26.31 | $23.37 | $26.42 | $36.82 | $33.63 |
Total ReturnD,E | 11.41% | 25.90% | (6.05)% | (6.57)% | 12.31% | 56.16% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .74%H | .79% | .77% | .77% | .77% | .79% |
Expenses net of fee waivers, if any | .74%H | .79% | .77% | .77% | .77% | .79% |
Expenses net of all reductions | .73%H | .79% | .77% | .76% | .77% | .79% |
Net investment income (loss) | 1.91%H | 2.84% | 2.21% | 1.54% | 1.26% | 1.20% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $611,038 | $537,860 | $361,696 | $514,650 | $830,245 | $1,261,859 |
Portfolio turnover rateI | 36%H | 32% | 31% | 44% | 35% | 34% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Brokerage and Investment Management Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Morgan Stanley | 6.8 |
BlackRock, Inc. Class A | 6.3 |
S&P Global, Inc. | 6.0 |
Charles Schwab Corp. | 5.5 |
Intercontinental Exchange, Inc. | 5.1 |
Ameriprise Financial, Inc. | 4.9 |
LPL Financial | 4.9 |
Bank of New York Mellon Corp. | 4.9 |
MSCI, Inc. | 4.6 |
T. Rowe Price Group, Inc. | 4.1 |
53.1 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Capital Markets | 95.1% | |
Banks | 0.5% | |
IT Services | 0.2% | |
All Others* | 4.2% |
* Includes short-term investments and net other assets (liabilities).
Brokerage and Investment Management Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Banks - 0.5% | |||
Diversified Banks - 0.5% | |||
Wells Fargo & Co. | 78,300 | $3,578,310 | |
Capital Markets - 95.1% | |||
Asset Management & Custody Banks - 41.4% | |||
Affiliated Managers Group, Inc. | 14,000 | 2,381,540 | |
AllianceBernstein Holding LP | 27,000 | 1,413,990 | |
Ameriprise Financial, Inc. | 133,500 | 36,433,485 | |
Apollo Global Management LLC Class A (a) | 415,500 | 24,838,590 | |
Ares Management Corp. | 300,500 | 23,192,590 | |
Artisan Partners Asset Management, Inc. | 56,900 | 2,956,524 | |
Bank of New York Mellon Corp. | 651,700 | 35,986,874 | |
BlackRock, Inc. Class A | 49,800 | 46,975,842 | |
Blue Owl Capital, Inc. Class A (a) | 175,000 | 2,409,750 | |
Bridge Investment Group Holdings, Inc. | 110,800 | 2,106,308 | |
Carlyle Group LP | 241,200 | 11,910,456 | |
Cohen & Steers, Inc. | 11,328 | 993,579 | |
Franklin Resources, Inc. | 180,900 | 5,868,396 | |
Invesco Ltd. | 213,500 | 5,405,820 | |
KKR & Co. LP | 345,900 | 22,237,911 | |
Northern Trust Corp. | 87,100 | 10,323,092 | |
Patria Investments Ltd. | 349,972 | 5,767,539 | |
State Street Corp. | 175,500 | 16,305,705 | |
T. Rowe Price Group, Inc. | 136,300 | 30,513,481 | |
The Blackstone Group LP | 150,000 | 18,859,500 | |
Virtus Investment Partners, Inc. | 2,300 | 719,210 | |
307,600,182 | |||
Financial Exchanges & Data - 28.8% | |||
Cboe Global Markets, Inc. | 82,338 | 10,386,939 | |
CME Group, Inc. | 104,000 | 20,978,880 | |
Coinbase Global, Inc. (a)(b) | 5,400 | 1,398,600 | |
Intercontinental Exchange, Inc. | 316,300 | 37,807,339 | |
MarketAxess Holdings, Inc. | 19,400 | 9,232,848 | |
Moody's Corp. | 57,300 | 21,818,121 | |
MSCI, Inc. | 54,000 | 34,267,320 | |
NASDAQ, Inc. | 154,200 | 30,189,276 | |
Open Lending Corp. (b) | 98,900 | 3,656,333 | |
S&P Global, Inc. | 99,900 | 44,337,618 | |
214,073,274 | |||
Investment Banking & Brokerage - 24.9% | |||
BGC Partners, Inc. Class A | 424,600 | 2,186,690 | |
Charles Schwab Corp. | 565,561 | 41,201,119 | |
Goldman Sachs Group, Inc. | 54,900 | 22,701,699 | |
Interactive Brokers Group, Inc. | 21,700 | 1,402,688 | |
LPL Financial | 244,700 | 36,178,895 | |
Moelis & Co. Class A | 66,000 | 4,088,700 | |
Morgan Stanley | 486,716 | 50,827,750 | |
PJT Partners, Inc. (a) | 104,212 | 8,230,664 | |
Raymond James Financial, Inc. | 95,500 | 13,360,450 | |
Virtu Financial, Inc. Class A (a) | 197,900 | 4,844,592 | |
185,023,247 | |||
TOTAL CAPITAL MARKETS | 706,696,703 | ||
IT Services - 0.2% | |||
Data Processing & Outsourced Services - 0.2% | |||
PayPal Holdings, Inc. (b) | 5,100 | 1,472,166 | |
TOTAL COMMON STOCKS | |||
(Cost $405,615,337) | 711,747,179 | ||
Money Market Funds - 8.7% | |||
Fidelity Cash Central Fund 0.06% (c) | 34,435,430 | 34,442,317 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 30,053,670 | 30,056,675 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $64,498,992) | 64,498,992 | ||
TOTAL INVESTMENT IN SECURITIES - 104.5% | |||
(Cost $470,114,329) | 776,246,171 | ||
NET OTHER ASSETS (LIABILITIES) - (4.5)% | (33,359,204) | ||
NET ASSETS - 100% | $742,886,967 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $10,744,136 | $91,607,864 | $67,909,683 | $5,358 | $-- | $-- | $34,442,317 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 48,681,480 | 18,624,805 | 20,903 | -- | -- | 30,056,675 | 0.1% |
Total | $10,744,136 | $140,289,344 | $86,534,488 | $26,261 | $-- | $-- | $64,498,992 |
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 August 31, 2021, 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 | $711,747,179 | $711,747,179 | $-- | $-- |
Money Market Funds | 64,498,992 | 64,498,992 | -- | -- |
Total Investments in Securities: | $776,246,171 | $776,246,171 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Brokerage and Investment Management Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $29,510,647) — See accompanying schedule: Unaffiliated issuers (cost $405,615,337) | $711,747,179 | |
Fidelity Central Funds (cost $64,498,992) | 64,498,992 | |
Total Investment in Securities (cost $470,114,329) | $776,246,171 | |
Cash | 82,755 | |
Foreign currency held at value (cost $1) | 1 | |
Receivable for fund shares sold | 5,347,770 | |
Dividends receivable | 425,417 | |
Distributions receivable from Fidelity Central Funds | 14,406 | |
Prepaid expenses | 2,981 | |
Other receivables | 61,338 | |
Total assets | 782,180,839 | |
Liabilities | ||
Payable for investments purchased | $7,744,278 | |
Payable for fund shares redeemed | 1,019,209 | |
Accrued management fee | 297,844 | |
Other affiliated payables | 96,671 | |
Other payables and accrued expenses | 79,195 | |
Collateral on securities loaned | 30,056,675 | |
Total liabilities | 39,293,872 | |
Net Assets | $742,886,967 | |
Net Assets consist of: | ||
Paid in capital | $433,795,091 | |
Total accumulated earnings (loss) | 309,091,876 | |
Net Assets | $742,886,967 | |
Net Asset Value, offering price and redemption price per share ($742,886,967 ÷ 5,831,364 shares) | $127.40 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $5,167,077 | |
Income from Fidelity Central Funds (including $20,903 from security lending) | 26,261 | |
Total income | 5,193,338 | |
Expenses | ||
Management fee | $1,463,792 | |
Transfer agent fees | 425,600 | |
Accounting fees | 104,740 | |
Custodian fees and expenses | 2,552 | |
Independent trustees' fees and expenses | 929 | |
Registration fees | 38,453 | |
Audit | 17,374 | |
Legal | 188 | |
Miscellaneous | 1,150 | |
Total expenses before reductions | 2,054,778 | |
Expense reductions | (8,165) | |
Total expenses after reductions | 2,046,613 | |
Net investment income (loss) | 3,146,725 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 722,543 | |
Total net realized gain (loss) | 722,543 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 127,390,192 | |
Assets and liabilities in foreign currencies | (623) | |
Total change in net unrealized appreciation (depreciation) | 127,389,569 | |
Net gain (loss) | 128,112,112 | |
Net increase (decrease) in net assets resulting from operations | $131,258,837 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,146,725 | $3,819,295 |
Net realized gain (loss) | 722,543 | 7,728,775 |
Change in net unrealized appreciation (depreciation) | 127,389,569 | 105,207,119 |
Net increase (decrease) in net assets resulting from operations | 131,258,837 | 116,755,189 |
Distributions to shareholders | (4,552,818) | (11,912,054) |
Share transactions | ||
Proceeds from sales of shares | 237,442,574 | 84,488,611 |
Reinvestment of distributions | 4,278,844 | 11,152,814 |
Cost of shares redeemed | (54,860,634) | (80,252,501) |
Net increase (decrease) in net assets resulting from share transactions | 186,860,784 | 15,388,924 |
Total increase (decrease) in net assets | 313,566,803 | 120,232,059 |
Net Assets | ||
Beginning of period | 429,320,164 | 309,088,105 |
End of period | $742,886,967 | $429,320,164 |
Other Information | ||
Shares | ||
Sold | 2,013,922 | 981,489 |
Issued in reinvestment of distributions | 39,295 | 139,657 |
Redeemed | (473,067) | (991,927) |
Net increase (decrease) | 1,580,150 | 129,219 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Brokerage and Investment Management Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $100.99 | $74.99 | $71.71 | $84.47 | $71.13 | $54.65 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .65 | .93 | 1.01 | .77 | 1.15 | .89 |
Net realized and unrealized gain (loss) | 26.77 | 28.01 | 5.70 | (7.60) | 17.88 | 16.44 |
Total from investment operations | 27.42 | 28.94 | 6.71 | (6.83) | 19.03 | 17.33 |
Distributions from net investment income | – | (1.06) | (.98) | (.96) | (.82) | (.83) |
Distributions from net realized gain | (1.01) | (1.88) | (2.45) | (4.96) | (4.87) | (.01) |
Total distributions | (1.01) | (2.94) | (3.43) | (5.93)C | (5.69) | (.85)C |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $127.40 | $100.99 | $74.99 | $71.71 | $84.47 | $71.13 |
Total ReturnE,F | 27.32% | 39.69% | 9.28% | (8.04)% | 27.51% | 31.76% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .74%I | .76% | .77% | .78% | .79% | .82% |
Expenses net of fee waivers, if any | .74%I | .76% | .77% | .77% | .79% | .82% |
Expenses net of all reductions | .73%I | .76% | .77% | .77% | .78% | .80% |
Net investment income (loss) | 1.13%I | 1.14% | 1.33% | 1.01% | 1.49% | 1.43% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $742,887 | $429,320 | $309,088 | $327,128 | $461,981 | $405,283 |
Portfolio turnover rateJ | - %I,K | 11% | 9% | 30% | 75% | 146% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Consumer Finance Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Capital One Financial Corp. | 8.4 |
Ally Financial, Inc. | 7.1 |
Synchrony Financial | 6.2 |
American Express Co. | 5.4 |
Discover Financial Services | 4.9 |
AGNC Investment Corp. | 4.4 |
MasterCard, Inc. Class A | 4.2 |
Visa, Inc. Class A | 4.1 |
MGIC Investment Corp. | 4.1 |
Santander Consumer U.S.A. Holdings, Inc. | 3.7 |
52.5 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Consumer Finance | 49.2% | |
Thrifts & Mortgage Finance | 16.4% | |
IT Services | 13.0% | |
Mortgage Real Estate Investment Trusts | 11.4% | |
Banks | 3.7% | |
All Others* | 6.3% |
* Includes short-term investments and net other assets (liabilities).
Consumer Finance Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
Banks - 3.7% | |||
Diversified Banks - 0.9% | |||
Wells Fargo & Co. | 67,100 | $3,066,470 | |
Regional Banks - 2.8% | |||
Huntington Bancshares, Inc. | 257,100 | 3,992,763 | |
Signature Bank | 20,000 | 5,186,600 | |
9,179,363 | |||
TOTAL BANKS | 12,245,833 | ||
Capital Markets - 0.2% | |||
Financial Exchanges & Data - 0.2% | |||
Open Lending Corp. (a) | 21,700 | 802,249 | |
Consumer Finance - 49.2% | |||
Consumer Finance - 49.2% | |||
Ally Financial, Inc. | 444,000 | 23,487,600 | |
American Express Co. | 107,400 | 17,824,104 | |
Capital One Financial Corp. | 167,700 | 27,833,168 | |
Credit Acceptance Corp. (a)(b) | 16,775 | 9,724,132 | |
Discover Financial Services | 128,200 | 16,437,804 | |
First Cash Financial Services, Inc. | 73,911 | 6,333,434 | |
LendingClub Corp. (a) | 105,400 | 3,273,724 | |
Navient Corp. | 378,000 | 8,773,380 | |
OneMain Holdings, Inc. | 162,682 | 9,407,900 | |
Santander Consumer U.S.A. Holdings, Inc. | 297,700 | 12,423,021 | |
SLM Corp. | 415,500 | 7,790,625 | |
Synchrony Financial | 411,710 | 20,482,573 | |
163,791,465 | |||
Entertainment - 0.2% | |||
Interactive Home Entertainment - 0.2% | |||
Sea Ltd. ADR (a) | 2,200 | 744,304 | |
Insurance - 0.8% | |||
Multi-Line Insurance - 0.8% | |||
Assurant, Inc. | 16,300 | 2,772,793 | |
Internet & Direct Marketing Retail - 0.3% | |||
Internet & Direct Marketing Retail - 0.3% | |||
MercadoLibre, Inc. (a) | 500 | 933,725 | |
IT Services - 13.0% | |||
Data Processing & Outsourced Services - 13.0% | |||
Dlocal Ltd. | 3,200 | 204,800 | |
Fidelity National Information Services, Inc. | 13,010 | 1,662,288 | |
Flywire Corp. (a) | 8,500 | 373,235 | |
Global Payments, Inc. | 22,669 | 3,686,886 | |
Marqeta, Inc. Class A | 1,200 | 34,848 | |
MasterCard, Inc. Class A | 40,840 | 14,140,033 | |
MoneyGram International, Inc. (a) | 143,100 | 1,286,469 | |
Nuvei Corp. (a)(c) | 23,300 | 2,959,100 | |
Paya Holdings, Inc. (a)(b) | 129,200 | 1,246,780 | |
PayPal Holdings, Inc. (a) | 6,100 | 1,760,826 | |
Repay Holdings Corp. (a) | 60,400 | 1,389,804 | |
Visa, Inc. Class A | 59,836 | 13,708,428 | |
Worldline SA (a)(c) | 9,300 | 826,538 | |
43,280,035 | |||
Mortgage Real Estate Investment Trusts - 11.4% | |||
Mortgage REITs - 11.4% | |||
AGNC Investment Corp. | 903,400 | 14,734,454 | |
Annaly Capital Management, Inc. | 236,815 | 2,057,922 | |
MFA Financial, Inc. | 1,108,500 | 5,320,800 | |
New Residential Investment Corp. | 817,750 | 8,929,830 | |
Redwood Trust, Inc. | 541,700 | 6,754,999 | |
37,798,005 | |||
Professional Services - 0.3% | |||
Research & Consulting Services - 0.3% | |||
Equifax, Inc. | 3,700 | 1,007,362 | |
Software - 1.9% | |||
Application Software - 1.9% | |||
Black Knight, Inc. (a) | 48,400 | 3,662,428 | |
Blend Labs, Inc. | 37,200 | 602,268 | |
BTRS Holdings, Inc. (a)(b) | 41,400 | 451,674 | |
BTRS Holdings, Inc. (d) | 20,000 | 218,200 | |
Lightspeed Commerce, Inc. (Canada) (a) | 13,400 | 1,487,579 | |
Riskified Ltd. (a) | 1,000 | 32,250 | |
6,454,399 | |||
Thrifts & Mortgage Finance - 16.4% | |||
Thrifts & Mortgage Finance - 16.4% | |||
Essent Group Ltd. | 55,400 | 2,608,232 | |
Meta Financial Group, Inc. | 84,800 | 4,171,312 | |
MGIC Investment Corp. | 886,628 | 13,538,810 | |
Mr. Cooper Group, Inc. (a) | 175,000 | 6,804,000 | |
New York Community Bancorp, Inc. | 474,900 | 5,945,748 | |
NMI Holdings, Inc. (a) | 42,400 | 956,968 | |
Pennymac Financial Services, Inc. | 75,300 | 5,011,215 | |
TFS Financial Corp. | 47,700 | 953,523 | |
Washington Federal, Inc. | 224,500 | 7,475,850 | |
WSFS Financial Corp. | 157,700 | 7,161,157 | |
54,626,815 | |||
TOTAL COMMON STOCKS | |||
(Cost $238,854,465) | 324,456,985 | ||
Money Market Funds - 6.0% | |||
Fidelity Cash Central Fund 0.06% (e) | 9,162,558 | 9,164,390 | |
Fidelity Securities Lending Cash Central Fund 0.06% (e)(f) | 10,832,385 | 10,833,468 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $19,997,858) | 19,997,858 | ||
TOTAL INVESTMENT IN SECURITIES - 103.4% | |||
(Cost $258,852,323) | 344,454,843 | ||
NET OTHER ASSETS (LIABILITIES) - (3.4)% | (11,168,953) | ||
NET ASSETS - 100% | $333,285,890 |
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 $3,785,638 or 1.1% of net assets.
(d) 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 $218,200 or 0.1% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
BTRS Holdings, Inc. | 1/12/21 | $200,000 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $355,405 | $55,957,679 | $47,148,694 | $1,402 | $-- | $-- | $9,164,390 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 3,320,368 | 33,176,275 | 25,663,175 | 5,517 | -- | -- | 10,833,468 | 0.0% |
Total | $3,675,773 | $89,133,954 | $72,811,869 | $6,919 | $-- | $-- | $19,997,858 |
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 August 31, 2021, 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 | $324,456,985 | $324,456,985 | $-- | $-- |
Money Market Funds | 19,997,858 | 19,997,858 | -- | -- |
Total Investments in Securities: | $344,454,843 | $344,454,843 | $-- | $-- |
Net unrealized depreciation on unfunded commitments | $(7,670) | $-- | $(7,670) | $-- |
See accompanying notes which are an integral part of the financial statements.
Consumer Finance Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $10,614,277) — See accompanying schedule: Unaffiliated issuers (cost $238,854,465) | $324,456,985 | |
Fidelity Central Funds (cost $19,997,858) | 19,997,858 | |
Total Investment in Securities (cost $258,852,323) | $344,454,843 | |
Cash | 115,871 | |
Receivable for investments sold | 131,567 | |
Receivable for fund shares sold | 1,579,941 | |
Dividends receivable | 224,521 | |
Distributions receivable from Fidelity Central Funds | 2,296 | |
Prepaid expenses | 965 | |
Other receivables | 4,593 | |
Total assets | 346,514,597 | |
Liabilities | ||
Payable for investments purchased | $1,386,320 | |
Unrealized depreciation on unfunded commitments | 7,670 | |
Payable for fund shares redeemed | 772,195 | |
Accrued management fee | 138,425 | |
Other affiliated payables | 54,171 | |
Other payables and accrued expenses | 37,301 | |
Collateral on securities loaned | 10,832,625 | |
Total liabilities | 13,228,707 | |
Net Assets | $333,285,890 | |
Net Assets consist of: | ||
Paid in capital | $246,760,033 | |
Total accumulated earnings (loss) | 86,525,857 | |
Net Assets | $333,285,890 | |
Net Asset Value, offering price and redemption price per share ($333,285,890 ÷ 13,936,428 shares) | $23.91 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,350,786 | |
Income from Fidelity Central Funds (including $5,517 from security lending) | 6,919 | |
Total income | 3,357,705 | |
Expenses | ||
Management fee | $647,701 | |
Transfer agent fees | 228,949 | |
Accounting fees | 47,962 | |
Custodian fees and expenses | 7,028 | |
Independent trustees' fees and expenses | 379 | |
Registration fees | 43,578 | |
Audit | 17,374 | |
Legal | 2,573 | |
Miscellaneous | 13,098 | |
Total expenses before reductions | 1,008,642 | |
Expense reductions | (8,278) | |
Total expenses after reductions | 1,000,364 | |
Net investment income (loss) | 2,357,341 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 713,038 | |
Foreign currency transactions | (366) | |
Total net realized gain (loss) | 712,672 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 39,679,953 | |
Unfunded commitments | (7,670) | |
Total change in net unrealized appreciation (depreciation) | 39,672,283 | |
Net gain (loss) | 40,384,955 | |
Net increase (decrease) in net assets resulting from operations | $42,742,296 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,357,341 | $2,680,400 |
Net realized gain (loss) | 712,672 | (1,770,483) |
Change in net unrealized appreciation (depreciation) | 39,672,283 | 19,426,786 |
Net increase (decrease) in net assets resulting from operations | 42,742,296 | 20,336,703 |
Distributions to shareholders | (128,388) | (2,613,470) |
Share transactions | ||
Proceeds from sales of shares | 219,467,426 | 60,803,718 |
Reinvestment of distributions | 115,939 | 2,390,791 |
Cost of shares redeemed | (73,791,498) | (84,284,960) |
Net increase (decrease) in net assets resulting from share transactions | 145,791,867 | (21,090,451) |
Total increase (decrease) in net assets | 188,405,775 | (3,367,218) |
Net Assets | ||
Beginning of period | 144,880,115 | 148,247,333 |
End of period | $333,285,890 | $144,880,115 |
Other Information | ||
Shares | ||
Sold | 9,694,878 | 4,293,129 |
Issued in reinvestment of distributions | 5,479 | 153,801 |
Redeemed | (3,245,413) | (6,098,211) |
Net increase (decrease) | 6,454,944 | (1,651,281) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Consumer Finance Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.37 | $16.23 | $15.80 | $16.29 | $14.02 | $10.94 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .22 | .34C | .39 | .24 | .20 | .21 |
Net realized and unrealized gain (loss) | 4.34 | 3.14 | .35 | .43 | 2.33D | 3.38 |
Total from investment operations | 4.56 | 3.48 | .74 | .67 | 2.53 | 3.59 |
Distributions from net investment income | (.02) | (.34) | (.31) | (.20) | (.26) | (.23) |
Distributions from net realized gain | – | – | (.01) | (.95) | – | (.28) |
Total distributions | (.02) | (.34) | (.31)E | (1.16)E | (.26) | (.51) |
Redemption fees added to paid in capitalB | – | – | – | – | –F | –F |
Net asset value, end of period | $23.91 | $19.37 | $16.23 | $15.80 | $16.29 | $14.02 |
Total ReturnG,H | 23.53% | 21.94% | 4.54% | 4.83% | 18.07%D | 33.57% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .81%K,L | .89% | .86% | .87% | .90% | .94% |
Expenses net of fee waivers, if any | .81%K,L | .89% | .86% | .87% | .89% | .94% |
Expenses net of all reductions | .81%K,L | .89% | .85% | .86% | .89% | .93% |
Net investment income (loss) | 1.92%K,L | 2.35%C | 2.29% | 1.57% | 1.38% | 1.72% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $333,286 | $144,880 | $148,247 | $102,334 | $104,105 | $101,823 |
Portfolio turnover rateM | 6%K | 25% | 20% | 32% | 81% | 44% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.89%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.28 per share. Excluding these litigation proceeds, the total return would have been 16.18%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Proxy expenses are not annualized.
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Financial Services Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Wells Fargo & Co. | 5.2 |
Morgan Stanley | 4.9 |
Citigroup, Inc. | 4.8 |
Bank of America Corp. | 4.5 |
American Express Co. | 4.3 |
Capital One Financial Corp. | 3.6 |
The Travelers Companies, Inc. | 3.4 |
State Street Corp. | 3.2 |
Bank of New York Mellon Corp. | 2.6 |
PNC Financial Services Group, Inc. | 2.6 |
39.1 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Banks | 35.3% | |
Insurance | 23.1% | |
Capital Markets | 21.8% | |
Consumer Finance | 9.0% | |
Thrifts & Mortgage Finance | 5.0% | |
All Others* | 5.8% |
* Includes short-term investments and net other assets (liabilities).
Financial Services Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
Banks - 35.3% | |||
Diversified Banks - 17.0% | |||
Bank of America Corp. | 941,800 | $39,320,150 | |
Citigroup, Inc. | 595,200 | 42,800,832 | |
Piraeus Financial Holdings SA (a) | 380,900 | 643,139 | |
U.S. Bancorp | 364,700 | 20,930,133 | |
Wells Fargo & Co. | 1,009,090 | 46,115,412 | |
149,809,666 | |||
Regional Banks - 18.3% | |||
Ameris Bancorp | 77,200 | 3,801,328 | |
Associated Banc-Corp. | 212,100 | 4,373,502 | |
Bank OZK | 181,100 | 7,684,073 | |
BOK Financial Corp. | 59,700 | 5,256,585 | |
Cadence Bancorp Class A | 326,900 | 7,031,619 | |
East West Bancorp, Inc. | 123,300 | 9,042,822 | |
First Horizon National Corp. | 557,500 | 9,137,425 | |
First Interstate Bancsystem, Inc. | 77,400 | 3,410,244 | |
Great Western Bancorp, Inc. | 81,700 | 2,529,432 | |
Heartland Financial U.S.A., Inc. | 99,000 | 4,655,970 | |
Huntington Bancshares, Inc. | 1,358,800 | 21,102,164 | |
KeyCorp | 391,900 | 7,963,408 | |
M&T Bank Corp. | 128,300 | 17,963,283 | |
PacWest Bancorp | 150,900 | 6,420,795 | |
Peoples United Financial, Inc. | 210,900 | 3,465,087 | |
PNC Financial Services Group, Inc. | 117,800 | 22,511,580 | |
Signature Bank | 48,700 | 12,629,371 | |
WesBanco, Inc. | 130,800 | 4,447,200 | |
Wintrust Financial Corp. | 115,900 | 8,673,956 | |
162,099,844 | |||
TOTAL BANKS | 311,909,510 | ||
Capital Markets - 21.8% | |||
Asset Management & Custody Banks - 12.2% | |||
Affiliated Managers Group, Inc. | 54,500 | 9,270,995 | |
AllianceBernstein Holding LP | 230,173 | 12,054,160 | |
Bank of New York Mellon Corp. | 410,400 | 22,662,288 | |
Brookfield Asset Management, Inc. Class A (b) | 231,600 | 12,865,380 | |
Carlyle Group LP | 236,000 | 11,653,680 | |
Northern Trust Corp. | 38,800 | 4,598,576 | |
Patria Investments Ltd. (b) | 396,800 | 6,539,264 | |
State Street Corp. | 301,800 | 28,040,238 | |
107,684,581 | |||
Financial Exchanges & Data - 2.0% | |||
Bolsa Mexicana de Valores S.A.B. de CV | 2,409,900 | 4,991,627 | |
Cboe Global Markets, Inc. | 98,600 | 12,438,390 | |
17,430,017 | |||
Investment Banking & Brokerage - 7.6% | |||
Lazard Ltd. Class A | 225,200 | 10,674,480 | |
Morgan Stanley | 416,000 | 43,442,880 | |
Raymond James Financial, Inc. | 66,000 | 9,233,400 | |
Virtu Financial, Inc. Class A (b) | 165,700 | 4,056,336 | |
67,407,096 | |||
TOTAL CAPITAL MARKETS | 192,521,694 | ||
Consumer Finance - 9.0% | |||
Consumer Finance - 9.0% | |||
American Express Co. | 227,700 | 37,789,092 | |
Capital One Financial Corp. | 192,200 | 31,899,434 | |
OneMain Holdings, Inc. | 171,100 | 9,894,713 | |
79,583,239 | |||
Diversified Financial Services - 1.2% | |||
Multi-Sector Holdings - 1.2% | |||
Cannae Holdings, Inc. (a) | 335,390 | 10,705,649 | |
Other Diversified Financial Services - 0.0% | |||
Phoenix Vega Mezz PLC (a) | 380,900 | 16,191 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 10,721,840 | ||
Insurance - 23.1% | |||
Insurance Brokers - 3.5% | |||
Arthur J. Gallagher & Co. | 134,600 | 19,331,252 | |
Willis Towers Watson PLC | 53,769 | 11,867,894 | |
31,199,146 | |||
Life & Health Insurance - 1.4% | |||
CNO Financial Group, Inc. (b) | 254,900 | 6,234,854 | |
Primerica, Inc. | 40,000 | 6,117,600 | |
12,352,454 | |||
Multi-Line Insurance - 6.6% | |||
American Financial Group, Inc. | 98,400 | 13,573,296 | |
American International Group, Inc. | 362,700 | 19,788,912 | |
Assurant, Inc. | 74,000 | 12,588,140 | |
Hartford Financial Services Group, Inc. | 180,200 | 12,113,044 | |
58,063,392 | |||
Property & Casualty Insurance - 8.4% | |||
Chubb Ltd. | 91,800 | 16,883,856 | |
First American Financial Corp. | 114,100 | 8,047,473 | |
Hiscox Ltd. (a) | 627,200 | 7,922,867 | |
Kemper Corp. | 65,600 | 4,500,160 | |
Old Republic International Corp. | 284,700 | 7,402,200 | |
The Travelers Companies, Inc. | 187,500 | 29,945,625 | |
74,702,181 | |||
Reinsurance - 3.2% | |||
Brookfield Asset Management Reinsurance Partners Ltd. (b) | 1,692 | 103,381 | |
Reinsurance Group of America, Inc. | 143,800 | 16,654,916 | |
RenaissanceRe Holdings Ltd. | 72,700 | 11,394,271 | |
28,152,568 | |||
TOTAL INSURANCE | 204,469,741 | ||
IT Services - 2.1% | |||
Data Processing & Outsourced Services - 2.1% | |||
Computer Services, Inc. | 32,281 | 1,872,298 | |
Fidelity National Information Services, Inc. | 44,100 | 5,634,657 | |
MasterCard, Inc. Class A | 33,400 | 11,564,082 | |
19,071,037 | |||
Professional Services - 2.1% | |||
Research & Consulting Services - 2.1% | |||
Dun & Bradstreet Holdings, Inc. (a) | 495,000 | 9,073,350 | |
Equifax, Inc. | 34,400 | 9,365,744 | |
18,439,094 | |||
Thrifts & Mortgage Finance - 5.0% | |||
Thrifts & Mortgage Finance - 5.0% | |||
Essent Group Ltd. | 315,000 | 14,830,200 | |
MGIC Investment Corp. | 1,044,300 | 15,946,461 | |
NMI Holdings, Inc. (a) | 523,600 | 11,817,652 | |
Radian Group, Inc. | 59,700 | 1,410,711 | |
44,005,024 | |||
TOTAL COMMON STOCKS | |||
(Cost $641,830,654) | 880,721,179 | ||
Money Market Funds - 1.1% | |||
Fidelity Cash Central Fund 0.06% (c) | 2,072,550 | 2,072,965 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 7,669,883 | 7,670,650 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $9,743,615) | 9,743,615 | ||
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $651,574,269) | 890,464,794 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (6,597,041) | ||
NET ASSETS - 100% | $883,867,753 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $3,527,615 | $112,222,212 | $113,676,862 | $1,144 | $-- | $-- | $2,072,965 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 71,567,738 | 63,897,088 | 1,445 | -- | -- | 7,670,650 | 0.0% |
Total | $3,527,615 | $183,789,950 | $177,573,950 | $2,589 | $-- | $-- | $9,743,615 |
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 August 31, 2021, 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 | $880,721,179 | $880,721,179 | $-- | $-- |
Money Market Funds | 9,743,615 | 9,743,615 | -- | -- |
Total Investments in Securities: | $890,464,794 | $890,464,794 | $-- | $-- |
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% |
Bermuda | 5.1% |
Switzerland | 1.9% |
Canada | 1.5% |
United Kingdom | 1.3% |
Others (Individually Less Than 1%) | 0.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Services Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,348,286) — See accompanying schedule: Unaffiliated issuers (cost $641,830,654) | $880,721,179 | |
Fidelity Central Funds (cost $9,743,615) | 9,743,615 | |
Total Investment in Securities (cost $651,574,269) | $890,464,794 | |
Receivable for fund shares sold | 1,117,640 | |
Dividends receivable | 948,788 | |
Distributions receivable from Fidelity Central Funds | 444 | |
Prepaid expenses | 7,277 | |
Other receivables | 22,839 | |
Total assets | 892,561,782 | |
Liabilities | ||
Payable for fund shares redeemed | $485,996 | |
Accrued management fee | 383,094 | |
Other affiliated payables | 129,085 | |
Other payables and accrued expenses | 25,204 | |
Collateral on securities loaned | 7,670,650 | |
Total liabilities | 8,694,029 | |
Net Assets | $883,867,753 | |
Net Assets consist of: | ||
Paid in capital | $630,589,656 | |
Total accumulated earnings (loss) | 253,278,097 | |
Net Assets | $883,867,753 | |
Net Asset Value, offering price and redemption price per share ($883,867,753 ÷ 66,530,513 shares) | $13.29 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $11,386,825 | |
Income from Fidelity Central Funds (including $1,445 from security lending) | 2,589 | |
Total income | 11,389,414 | |
Expenses | ||
Management fee | $2,154,097 | |
Transfer agent fees | 611,173 | |
Accounting fees | 141,250 | |
Custodian fees and expenses | 8,059 | |
Independent trustees' fees and expenses | 1,375 | |
Registration fees | 69,155 | |
Audit | 17,662 | |
Legal | 1,056 | |
Miscellaneous | 2,019 | |
Total expenses before reductions | 3,005,846 | |
Expense reductions | (36,360) | |
Total expenses after reductions | 2,969,486 | |
Net investment income (loss) | 8,419,928 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,370,214 | |
Foreign currency transactions | 6,128 | |
Total net realized gain (loss) | 9,376,342 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 100,360,268 | |
Assets and liabilities in foreign currencies | (538) | |
Total change in net unrealized appreciation (depreciation) | 100,359,730 | |
Net gain (loss) | 109,736,072 | |
Net increase (decrease) in net assets resulting from operations | $118,156,000 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021�� | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,419,928 | $10,290,805 |
Net realized gain (loss) | 9,376,342 | (3,240,756) |
Change in net unrealized appreciation (depreciation) | 100,359,730 | 109,247,900 |
Net increase (decrease) in net assets resulting from operations | 118,156,000 | 116,297,949 |
Distributions to shareholders | (660,280) | (29,274,755) |
Share transactions | ||
Proceeds from sales of shares | 327,514,676 | 213,063,603 |
Reinvestment of distributions | 626,158 | 27,752,133 |
Cost of shares redeemed | (167,816,503) | (205,127,889) |
Net increase (decrease) in net assets resulting from share transactions | 160,324,331 | 35,687,847 |
Total increase (decrease) in net assets | 277,820,051 | 122,711,041 |
Net Assets | ||
Beginning of period | 606,047,702 | 483,336,661 |
End of period | $883,867,753 | $606,047,702 |
Other Information | ||
Shares | ||
Sold | 25,876,636 | 23,964,944 |
Issued in reinvestment of distributions | 50,742 | 3,577,346 |
Redeemed | (13,224,719) | (24,643,342) |
Net increase (decrease) | 12,702,659 | 2,898,948 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Financial Services Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.26 | $9.49 | $9.65 | $11.67 | $10.31 | $7.50 |
Income from Investment Operations | ||||||
Net investment income (loss)C | .13 | .20 | .19 | .14 | .09 | .10 |
Net realized and unrealized gain (loss) | 1.91 | 2.17 | .26 | (1.04) | 1.76 | 2.81 |
Total from investment operations | 2.04 | 2.37 | .45 | (.90) | 1.85 | 2.91 |
Distributions from net investment income | (.01) | (.21) | (.16) | (.14) | (.07) | (.10) |
Distributions from net realized gain | – | (.39) | (.45) | (.98) | (.42) | – |
Total distributions | (.01) | (.60) | (.61) | (1.12) | (.49) | (.10) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $13.29 | $11.26 | $9.49 | $9.65 | $11.67 | $10.31 |
Total ReturnE,F | 18.13% | 27.89% | 3.81% | (6.91)% | 18.33% | 38.78% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .73%I | .77% | .77% | .76% | .77% | .77% |
Expenses net of fee waivers, if any | .73%I | .77% | .77% | .76% | .77% | .77% |
Expenses net of all reductions | .73%I | .77% | .76% | .75% | .76% | .76% |
Net investment income (loss) | 2.06%I | 2.36% | 1.81% | 1.28% | .87% | 1.10% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $883,868 | $606,048 | $483,337 | $558,429 | $1,308,254 | $1,019,656 |
Portfolio turnover rateJ | 23%I | 63% | 61%K | 49%K | 54% | 84%K |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Insurance Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Chubb Ltd. | 9.7 |
Marsh & McLennan Companies, Inc. | 9.6 |
The Travelers Companies, Inc. | 8.0 |
American International Group, Inc. | 6.7 |
Hartford Financial Services Group, Inc. | 5.2 |
Allstate Corp. | 5.1 |
Arthur J. Gallagher & Co. | 4.3 |
MetLife, Inc. | 4.2 |
Progressive Corp. | 4.0 |
Willis Towers Watson PLC | 3.9 |
60.7 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Insurance | 91.4% | |
Capital Markets | 3.9% | |
Diversified Financial Services | 3.5% | |
Consumer Finance | 0.6% | |
All Others* | 0.6% |
* Includes short-term investments and net other assets (liabilities).
Insurance Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Capital Markets - 3.9% | |||
Asset Management & Custody Banks - 3.7% | |||
Apollo Global Management LLC Class A | 47,144 | $2,818,268 | |
Ares Management Corp. | 49,314 | 3,806,055 | |
BlackRock, Inc. Class A | 1,300 | 1,226,277 | |
7,850,600 | |||
Financial Exchanges & Data - 0.2% | |||
Moody's Corp. | 1,300 | 495,001 | |
TOTAL CAPITAL MARKETS | 8,345,601 | ||
Consumer Finance - 0.6% | |||
Consumer Finance - 0.6% | |||
OneMain Holdings, Inc. | 21,800 | 1,260,694 | |
Diversified Financial Services - 3.5% | |||
Multi-Sector Holdings - 2.9% | |||
Berkshire Hathaway, Inc. Class B (a) | 22,000 | 6,286,940 | |
Other Diversified Financial Services - 0.6% | |||
Voya Financial, Inc. | 21,600 | 1,403,568 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 7,690,508 | ||
Insurance - 91.4% | |||
Insurance Brokers - 23.9% | |||
Aon PLC | 27,300 | 7,831,278 | |
Arthur J. Gallagher & Co. | 64,000 | 9,191,680 | |
Brown & Brown, Inc. | 92,500 | 5,369,625 | |
Marsh & McLennan Companies, Inc. | 131,300 | 20,640,360 | |
Willis Towers Watson PLC | 38,628 | 8,525,972 | |
51,558,915 | |||
Life & Health Insurance - 14.7% | |||
AFLAC, Inc. | 33,400 | 1,893,112 | |
Athene Holding Ltd. (a) | 36,300 | 2,431,011 | |
CNO Financial Group, Inc. | 105,600 | 2,582,976 | |
Globe Life, Inc. | 26,200 | 2,517,034 | |
MetLife, Inc. | 147,275 | 9,131,050 | |
Primerica, Inc. | 22,100 | 3,379,974 | |
Principal Financial Group, Inc. | 60,400 | 4,035,324 | |
Prudential Financial, Inc. | 47,989 | 5,081,075 | |
Prudential PLC (a) | 35,800 | 745,880 | |
31,797,436 | |||
Multi-Line Insurance - 13.8% | |||
American Financial Group, Inc. | 200 | 27,588 | |
American International Group, Inc. | 264,050 | 14,406,568 | |
Assurant, Inc. | 16,600 | 2,823,826 | |
China Pacific Insurance (Group) Co. Ltd. (H Shares) | 161,800 | 455,602 | |
Hartford Financial Services Group, Inc. | 166,400 | 11,185,408 | |
Zurich Insurance Group Ltd. | 2,116 | 928,483 | |
29,827,475 | |||
Property & Casualty Insurance - 35.3% | |||
Allstate Corp. | 81,800 | 11,065,904 | |
Arch Capital Group Ltd. (a) | 100,600 | 4,134,660 | |
Assured Guaranty Ltd. | 63,200 | 3,151,152 | |
Chubb Ltd. | 113,905 | 20,949,407 | |
Cincinnati Financial Corp. | 10,800 | 1,332,720 | |
Fidelity National Financial, Inc. | 35,300 | 1,723,699 | |
First American Financial Corp. | 36,500 | 2,574,345 | |
Loews Corp. | 56,000 | 3,128,720 | |
Markel Corp. (a) | 1,820 | 2,311,855 | |
Mercury General Corp. | 200 | 11,942 | |
Progressive Corp. | 89,600 | 8,632,064 | |
The Travelers Companies, Inc. | 107,700 | 17,200,767 | |
76,217,235 | |||
Reinsurance - 3.7% | |||
Everest Re Group Ltd. | 3,300 | 874,170 | |
Maiden Holdings Ltd. (a) | 400 | 1,252 | |
Reinsurance Group of America, Inc. | 60,900 | 7,053,438 | |
7,928,860 | |||
TOTAL INSURANCE | 197,329,921 | ||
TOTAL COMMON STOCKS | |||
(Cost $99,647,112) | 214,626,724 | ||
Money Market Funds - 0.5% | |||
Fidelity Cash Central Fund 0.06% (b) | |||
(Cost $1,080,542) | 1,080,326 | 1,080,542 | |
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $100,727,654) | 215,707,266 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 230,965 | ||
NET ASSETS - 100% | $215,938,231 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,833,851 | $15,421,892 | $17,175,201 | $293 | $-- | $-- | $1,080,542 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 21,970,276 | 21,970,276 | 364 | -- | -- | -- | 0.0% |
Total | $2,833,851 | $37,392,168 | $39,145,477 | $657 | $-- | $-- | $1,080,542 |
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 August 31, 2021, 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 | $214,626,724 | $212,952,361 | $1,674,363 | $-- |
Money Market Funds | 1,080,542 | 1,080,542 | -- | -- |
Total Investments in Securities: | $215,707,266 | $214,032,903 | $1,674,363 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 77.0% |
Switzerland | 10.1% |
Bermuda | 4.9% |
United Kingdom | 4.2% |
Ireland | 3.6% |
Others (Individually Less Than 1%) | 0.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Insurance Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $99,647,112) | $214,626,724 | |
Fidelity Central Funds (cost $1,080,542) | 1,080,542 | |
Total Investment in Securities (cost $100,727,654) | $215,707,266 | |
Receivable for fund shares sold | 268,085 | |
Dividends receivable | 401,866 | |
Distributions receivable from Fidelity Central Funds | 279 | |
Prepaid expenses | 1,814 | |
Other receivables | 2,613 | |
Total assets | 216,381,923 | |
Liabilities | ||
Payable for fund shares redeemed | $293,073 | |
Accrued management fee | 92,337 | |
Transfer agent fee payable | 32,115 | |
Other affiliated payables | 6,843 | |
Other payables and accrued expenses | 19,324 | |
Total liabilities | 443,692 | |
Net Assets | $215,938,231 | |
Net Assets consist of: | ||
Paid in capital | $95,864,629 | |
Total accumulated earnings (loss) | 120,073,602 | |
Net Assets | $215,938,231 | |
Net Asset Value, offering price and redemption price per share ($215,938,231 ÷ 3,133,043 shares) | $68.92 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $2,130,560 | |
Income from Fidelity Central Funds (including $364 from security lending) | 657 | |
Total income | 2,131,217 | |
Expenses | ||
Management fee | $535,260 | |
Transfer agent fees | 194,306 | |
Accounting fees | 39,629 | |
Custodian fees and expenses | 1,404 | |
Independent trustees' fees and expenses | 370 | |
Registration fees | 16,062 | |
Audit | 17,374 | |
Legal | 296 | |
Miscellaneous | 632 | |
Total expenses before reductions | 805,333 | |
Expense reductions | (5,166) | |
Total expenses after reductions | 800,167 | |
Net investment income (loss) | 1,331,050 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,054,325 | |
Foreign currency transactions | 6 | |
Total net realized gain (loss) | 4,054,331 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 27,790,950 | |
Assets and liabilities in foreign currencies | (494) | |
Total change in net unrealized appreciation (depreciation) | 27,790,456 | |
Net gain (loss) | 31,844,787 | |
Net increase (decrease) in net assets resulting from operations | $33,175,837 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,331,050 | $2,932,917 |
Net realized gain (loss) | 4,054,331 | 15,506,232 |
Change in net unrealized appreciation (depreciation) | 27,790,456 | 2,201,218 |
Net increase (decrease) in net assets resulting from operations | 33,175,837 | 20,640,367 |
Distributions to shareholders | (9,216,200) | (16,870,459) |
Share transactions | ||
Proceeds from sales of shares | 24,645,757 | 34,006,375 |
Reinvestment of distributions | 8,649,758 | 15,964,972 |
Cost of shares redeemed | (26,018,062) | (88,579,235) |
Net increase (decrease) in net assets resulting from share transactions | 7,277,453 | (38,607,888) |
Total increase (decrease) in net assets | 31,237,090 | (34,837,980) |
Net Assets | ||
Beginning of period | 184,701,141 | 219,539,121 |
End of period | $215,938,231 | $184,701,141 |
Other Information | ||
Shares | ||
Sold | 375,205 | 655,154 |
Issued in reinvestment of distributions | 137,823 | 317,057 |
Redeemed | (399,385) | (1,709,560) |
Net increase (decrease) | 113,643 | (737,349) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Insurance Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $61.17 | $58.44 | $59.27 | $78.49 | $80.60 | $63.15 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .43 | .88 | .87 | .98 | 1.08 | .99 |
Net realized and unrealized gain (loss) | 10.39 | 6.99 | 2.77 | (2.40) | 6.76 | 18.64 |
Total from investment operations | 10.82 | 7.87 | 3.64 | (1.42) | 7.84 | 19.63 |
Distributions from net investment income | (.15) | (.94) | (.91) | (1.16) | (.96) | (.89) |
Distributions from net realized gain | (2.92) | (4.20) | (3.56) | (16.63) | (8.99) | (1.29) |
Total distributions | (3.07) | (5.14) | (4.47) | (17.80)C | (9.95) | (2.18) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $68.92 | $61.17 | $58.44 | $59.27 | $78.49 | $80.60 |
Total ReturnE,F | 18.18% | 15.54% | 5.95% | (.29)% | 9.62% | 31.60% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .79%I | .83% | .81% | .82% | .79% | .80% |
Expenses net of fee waivers, if any | .79%I | .83% | .81% | .81% | .79% | .79% |
Expenses net of all reductions | .79%I | .83% | .80% | .81% | .79% | .79% |
Net investment income (loss) | 1.31%I | 1.68% | 1.37% | 1.48% | 1.30% | 1.37% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $215,938 | $184,701 | $219,539 | $223,081 | $341,743 | $647,787 |
Portfolio turnover rateJ | 15%I | 18% | 28% | 9% | 21% | 16% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Banking Portfolio, Brokerage and Investment Management Portfolio, Consumer Finance Portfolio, Financial Services Portfolio, and Insurance Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds.
In May 2021, the Board of Trustees approved a change in the name of Consumer Finance Portfolio to FinTech Portfolio effective October 23, 2021.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. 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 August 31, 2021 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Brokerage and Investment Management Portfolio | $58,872 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. 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, equity-debt classifications, partnerships, deferred Trustees compensation, capital loss carryforwards, and 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) | |
Banking Portfolio | $463,617,787 | $160,295,043 | $(6,316,193) | $153,978,850 |
Brokerage and Investment Management Portfolio | 470,555,786 | 308,218,689 | (2,528,304) | 305,690,385 |
Consumer Finance Portfolio | 260,001,224 | 91,739,724 | (7,286,105) | 84,453,619 |
Financial Services Portfolio | 653,496,262 | 247,750,401 | (10,781,869) | 236,968,532 |
Insurance Portfolio | 101,095,450 | 115,037,972 | (426,156) | 114,611,816 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |||
Short-term | Long-term | Total capital loss carryforward | |
Banking Portfolio | $(3,598,632) | $(–) | $(3,598,632) |
Consumer Finance Portfolio | (1,064,601) | (–) | (1,064,601) |
Financial Services Portfolio | (1,726,128) | (–) | (1,726,128) |
Certain of the Funds elected to defer to the next fiscal year ordinary losses recognized during the period January 1, 2021 to February 28, 2021. Loss deferrals were as follows:
Ordinary losses | |
Brokerage and Investment Management Portfolio | $241,015 |
Restricted Securities (including Private Placements). 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, the Consumer Finance Portfolio had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Banking Portfolio | 140,936,757 | 115,906,834 |
Brokerage and Investment Management Portfolio | 166,693,334 | 356,105 |
Consumer Finance Portfolio | 147,585,704 | 7,478,542 |
Financial Services Portfolio | 259,316,641 | 91,473,535 |
Insurance Portfolio | 16,494,920 | 15,314,901 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Banking Portfolio | .30% | .23% | .53% |
Brokerage and Investment Management Portfolio | .30% | .23% | .53% |
Consumer Finance Portfolio | .30% | .23% | .53% |
Financial Services Portfolio | .30% | .23% | .53% |
Insurance Portfolio | .30% | .23% | .53% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Banking Portfolio | .16% |
Brokerage and Investment Management Portfolio | .15% |
Consumer Finance Portfolio | .19% |
Financial Services Portfolio | .15% |
Insurance Portfolio | .19% |
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 annualized rates:
% of Average Net Assets | |
Banking Portfolio | .04 |
Brokerage and Investment Management Portfolio | .04 |
Consumer Finance Portfolio | .04 |
Financial Services Portfolio | .03 |
Insurance Portfolio | .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 | |
Banking Portfolio | $2,011 |
Brokerage and Investment Management Portfolio | 700 |
Consumer Finance Portfolio | 2,293 |
Financial Services Portfolio | 2,732 |
Insurance Portfolio | 66 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Purchases ($) | Sales ($) | |
Banking Portfolio | 13,325,847 | 2,921,640 |
Brokerage and Investment Management Portfolio | 4,954,865 | – |
Consumer Finance Portfolio | 5,347,299 | – |
Financial Services Portfolio | 15,791,082 | 3,987,173 |
Insurance Portfolio | – | – |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Banking Portfolio | $548 |
Brokerage and Investment Management Portfolio | 435 |
Consumer Finance Portfolio | 171 |
Financial Services Portfolio | 644 |
Insurance Portfolio | 178 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Banking Portfolio | $26 | $– | $– |
Brokerage and Investment Management Portfolio | $2,250 | $– | $– |
Consumer Finance Portfolio | $573 | $155 | $– |
Financial Services Portfolio | $155 | $– | $– |
Insurance Portfolio | $38 | $– | $– |
8. Expense Reductions.
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 expenses. In addition, through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | Custodian credits | |
Banking Portfolio | $28,963 | $– |
Brokerage and Investment Management Portfolio | 4,181 | 7 |
Consumer Finance Portfolio | 6,364 | – |
Financial Services Portfolio | 30,197 | – |
Insurance Portfolio | 3,649 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Banking Portfolio | $4,880 |
Brokerage and Investment Management Portfolio | 3,977 |
Consumer Finance Portfolio | 1,914 |
Financial Services Portfolio | 6,163 |
Insurance Portfolio | 1,517 |
9. Other.
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.
10. 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.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Banking Portfolio | .74% | |||
Actual | $1,000.00 | $1,114.10 | $3.94 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Brokerage and Investment Management Portfolio | .74% | |||
Actual | $1,000.00 | $1,273.20 | $4.24 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Consumer Finance Portfolio | .81% | |||
Actual | $1,000.00 | $1,235.30 | $4.56 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Financial Services Portfolio | .73% | |||
Actual | $1,000.00 | $1,181.30 | $4.01 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 | |
Insurance Portfolio | .79% | |||
Actual | $1,000.00 | $1,181.80 | $4.34 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Banking Portfolio
Brokerage and Investment Management Portfolio
Consumer Finance Portfolio
Financial Services Portfolio
Insurance Portfolio
Banking Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733196825.jpg)
Brokerage and Investment Management Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197060.jpg)
Consumer Finance Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197185.jpg)
Financial Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197350.jpg)
Insurance Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197489.jpg)
Banking Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197790.jpg)
Brokerage and Investment Management Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733197974.jpg)
Consumer Finance Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198155.jpg)
Financial Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198337.jpg)
Insurance Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733198518.jpg)
SELFIN-SANN-1021
1.813666.116
Fidelity® Select Portfolios®
Industrials Sector
Air Transportation Portfolio
Defense and Aerospace Portfolio
Industrials Portfolio
Transportation Portfolio
Semi-Annual Report
August 31, 2021
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fipro_logo.jpg)
Contents
Air Transportation Portfolio | |
Defense and Aerospace Portfolio | |
Industrials Portfolio | |
Transportation Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Air Transportation Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
United Parcel Service, Inc. Class B | 9.9 |
Air Transport Services Group, Inc. | 8.2 |
Raytheon Technologies Corp. | 6.9 |
Delta Air Lines, Inc. | 6.0 |
Atlas Air Worldwide Holdings, Inc. | 4.7 |
FedEx Corp. | 4.6 |
The Boeing Co. | 4.4 |
Southwest Airlines Co. | 4.0 |
Alaska Air Group, Inc. | 3.9 |
Textron, Inc. | 3.6 |
56.2 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Aerospace & Defense | 34.6% | |
Air Freight & Logistics | 31.9% | |
Airlines | 24.7% | |
Machinery | 2.8% | |
Road & Rail | 1.8% | |
All Others* | 4.2% |
* Includes short-term investments and net other assets (liabilities).
Air Transportation Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
Aerospace & Defense - 34.6% | |||
Aerospace & Defense - 34.6% | |||
CAE, Inc. (a) | 296,400 | $8,558,516 | |
Curtiss-Wright Corp. | 27,800 | 3,385,484 | |
Elbit Systems Ltd. (Israel) | 15,800 | 2,297,743 | |
HEICO Corp. Class A | 22,200 | 2,536,128 | |
Heroux-Devtek, Inc. (a) | 219,600 | 3,298,395 | |
Howmet Aerospace, Inc. | 347,700 | 11,039,475 | |
Huntington Ingalls Industries, Inc. | 4,900 | 1,000,433 | |
Moog, Inc. Class A | 60,500 | 4,806,120 | |
Northrop Grumman Corp. | 11,400 | 4,191,780 | |
Raytheon Technologies Corp. | 282,200 | 23,919,272 | |
Spirit AeroSystems Holdings, Inc. Class A | 46,600 | 1,828,584 | |
Teledyne Technologies, Inc. (a) | 24,000 | 11,121,120 | |
Textron, Inc. | 172,500 | 12,535,575 | |
The Boeing Co. (a) | 69,310 | 15,213,545 | |
TransDigm Group, Inc. (a) | 18,600 | 11,298,942 | |
Virgin Galactic Holdings, Inc. (a)(b) | 96,900 | 2,626,959 | |
119,658,071 | |||
Air Freight & Logistics - 31.9% | |||
Air Freight & Logistics - 31.9% | |||
Air Transport Services Group, Inc. (a)(b) | 1,033,150 | 28,297,979 | |
Atlas Air Worldwide Holdings, Inc. (a)(b) | 223,700 | 16,368,129 | |
Cargojet, Inc. | 67,200 | 11,145,405 | |
Expeditors International of Washington, Inc. | 18,100 | 2,255,984 | |
FedEx Corp. | 60,500 | 16,074,245 | |
Hub Group, Inc. Class A (a) | 29,500 | 2,070,900 | |
United Parcel Service, Inc. Class B | 175,550 | 34,342,847 | |
110,555,489 | |||
Airlines - 24.7% | |||
Airlines - 24.7% | |||
Air Canada (a) | 436,100 | 8,472,089 | |
Alaska Air Group, Inc. (a) | 234,200 | 13,429,028 | |
Allegiant Travel Co. (a) | 12,300 | 2,367,012 | |
Canada Jetlines Ltd. (c) | 1,250 | 59 | |
Canada Jetlines Ltd. (c) | 1,250 | 59 | |
Copa Holdings SA Class A (a) | 43,300 | 3,258,325 | |
Delta Air Lines, Inc. (a) | 513,102 | 20,749,845 | |
Global Crossing Airlines Group (a) | 5,000 | 10,502 | |
Hawaiian Holdings, Inc. (a) | 300 | 6,066 | |
Jet2 PLC (a) | 43,900 | 696,507 | |
Mesa Air Group, Inc. (a) | 16,700 | 133,266 | |
SkyWest, Inc. (a)(b) | 224,600 | 10,477,590 | |
Southwest Airlines Co. (a) | 276,200 | 13,749,236 | |
United Airlines Holdings, Inc. (a) | 258,200 | 12,008,882 | |
85,358,466 | |||
Electrical Equipment - 0.5% | |||
Electrical Components & Equipment - 0.5% | |||
Sensata Technologies, Inc. PLC (a) | 27,900 | 1,651,122 | |
Internet & Direct Marketing Retail - 1.1% | |||
Internet & Direct Marketing Retail - 1.1% | |||
Points International Ltd. (a) | 212,300 | 3,872,352 | |
Machinery - 2.8% | |||
Industrial Machinery - 2.8% | |||
Park-Ohio Holdings Corp. (b) | 50,590 | 1,304,210 | |
RBC Bearings, Inc. (a) | 18,000 | 4,167,360 | |
Woodward, Inc. | 34,500 | 4,172,430 | |
9,644,000 | |||
Professional Services - 0.9% | |||
Research & Consulting Services - 0.9% | |||
CACI International, Inc. Class A (a) | 12,600 | 3,245,004 | |
Road & Rail - 1.8% | |||
Trucking - 1.8% | |||
TFI International, Inc. | 55,200 | 6,243,120 | |
U.S.A. Truck, Inc. (a) | 10,400 | 150,800 | |
6,393,920 | |||
Trading Companies & Distributors - 0.6% | |||
Trading Companies & Distributors - 0.6% | |||
Air Lease Corp. Class A | 49,000 | 1,947,260 | |
Willis Lease Finance Corp. (a) | 6,000 | 225,900 | |
2,173,160 | |||
TOTAL COMMON STOCKS | |||
(Cost $224,698,743) | 342,551,584 | ||
Money Market Funds - 3.2% | |||
Fidelity Cash Central Fund 0.06% (d) | 4,106,456 | 4,107,277 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 6,785,376 | 6,786,055 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $10,893,332) | 10,893,332 | ||
TOTAL INVESTMENT IN SECURITIES - 102.1% | |||
(Cost $235,592,075) | 353,444,916 | ||
NET OTHER ASSETS (LIABILITIES) - (2.1)% | (7,234,521) | ||
NET ASSETS - 100% | $346,210,395 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $10,445,552 | $53,409,699 | $59,747,974 | $1,540 | $-- | $-- | $4,107,277 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 5,701,355 | 61,112,908 | 60,028,208 | 12,580 | -- | -- | 6,786,055 | 0.0% |
Total | $16,146,907 | $114,522,607 | $119,776,182 | $14,120 | $-- | $-- | $10,893,332 |
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 August 31, 2021, 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 | $342,551,584 | $342,551,466 | $-- | $118 |
Money Market Funds | 10,893,332 | 10,893,332 | -- | -- |
Total Investments in Securities: | $353,444,916 | $353,444,798 | $-- | $118 |
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 | 85.7% |
Canada | 12.0% |
Others (Individually Less Than 1%) | 2.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Air Transportation Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,784,502) — See accompanying schedule: Unaffiliated issuers (cost $224,698,743) | $342,551,584 | |
Fidelity Central Funds (cost $10,893,332) | 10,893,332 | |
Total Investment in Securities (cost $235,592,075) | $353,444,916 | |
Receivable for fund shares sold | 47,230 | |
Dividends receivable | 356,457 | |
Distributions receivable from Fidelity Central Funds | 356 | |
Prepaid expenses | 2,330 | |
Other receivables | 5,950 | |
Total assets | 353,857,239 | |
Liabilities | ||
Payable for fund shares redeemed | 582,721 | |
Accrued management fee | 152,784 | |
Other affiliated payables | 69,513 | |
Other payables and accrued expenses | 56,476 | |
Collateral on securities loaned | 6,785,350 | |
Total liabilities | 7,646,844 | |
Net Assets | $346,210,395 | |
Net Assets consist of: | ||
Paid in capital | $240,841,368 | |
Total accumulated earnings (loss) | 105,369,027 | |
Net Assets | $346,210,395 | |
Net Asset Value, offering price and redemption price per share ($346,210,395 ÷ 4,966,161 shares) | $69.71 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,010,288 | |
Income from Fidelity Central Funds (including $12,580 from security lending) | 14,120 | |
Total income | 1,024,408 | |
Expenses | ||
Management fee | $1,006,666 | |
Transfer agent fees | 371,654 | |
Accounting fees | 74,527 | |
Custodian fees and expenses | 5,299 | |
Independent trustees' fees and expenses | 712 | |
Registration fees | 29,458 | |
Audit | 17,392 | |
Legal | 153 | |
Miscellaneous | 34,514 | |
Total expenses before reductions | 1,540,375 | |
Expense reductions | (9,884) | |
Total expenses after reductions | 1,530,491 | |
Net investment income (loss) | (506,083) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,318,154 | |
Foreign currency transactions | (1,051) | |
Total net realized gain (loss) | 12,317,103 | |
Change in net unrealized appreciation (depreciation) on investment securities | 6,273,017 | |
Net gain (loss) | 18,590,120 | |
Net increase (decrease) in net assets resulting from operations | $18,084,037 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(506,083) | $(495,442) |
Net realized gain (loss) | 12,317,103 | (21,488,851) |
Change in net unrealized appreciation (depreciation) | 6,273,017 | 84,474,244 |
Net increase (decrease) in net assets resulting from operations | 18,084,037 | 62,489,951 |
Distributions to shareholders | – | (5,293,284) |
Share transactions | ||
Proceeds from sales of shares | 63,310,036 | 328,745,456 |
Reinvestment of distributions | – | 5,072,639 |
Cost of shares redeemed | (96,734,568) | (245,559,011) |
Net increase (decrease) in net assets resulting from share transactions | (33,424,532) | 88,259,084 |
Total increase (decrease) in net assets | (15,340,495) | 145,455,751 |
Net Assets | ||
Beginning of period | 361,550,890 | 216,095,139 |
End of period | $346,210,395 | $361,550,890 |
Other Information | ||
Shares | ||
Sold | 896,620 | 6,518,277 |
Issued in reinvestment of distributions | – | 121,734 |
Redeemed | (1,377,022) | (4,752,310) |
Net increase (decrease) | (480,402) | 1,887,701 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Air Transportation Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.38 | $60.72 | $76.52 | $82.64 | $76.04 | $60.60 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.09) | (.10) | .90C | .54 | .48D | .32 |
Net realized and unrealized gain (loss) | 3.42 | 7.07 | (10.09) | 1.73 | 13.85 | 15.61 |
Total from investment operations | 3.33 | 6.97 | (9.19) | 2.27 | 14.33 | 15.93 |
Distributions from net investment income | – | (.32) | (.70) | (.48) | (.38) | (.25) |
Distributions from net realized gain | – | (1.00) | (5.92) | (7.91) | (7.36) | (.24) |
Total distributions | – | (1.31)E | (6.61)E | (8.39) | (7.73)E | (.49) |
Redemption fees added to paid in capitalB | – | – | – | – | –F | –F |
Net asset value, end of period | $69.71 | $66.38 | $60.72 | $76.52 | $82.64 | $76.04 |
Total ReturnG,H | 5.02% | 12.76% | (13.48)% | 3.79% | 19.07% | 26.30% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .80%K,L | .85% | .81% | .81% | .82% | .85% |
Expenses net of fee waivers, if any | .79%K,L | .84% | .81% | .81% | .82% | .85% |
Expenses net of all reductions | .79%K,L | .83% | .81% | .81% | .82% | .84% |
Net investment income (loss) | (.26)%K,L | (.18)% | 1.19%C | .70% | .59%D | .48% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $346,210 | $361,551 | $216,095 | $306,863 | $382,530 | $394,143 |
Portfolio turnover rateM | 22%K | 93% | 95% | 32% | 86% | 106% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.54 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .48%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.22 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .31%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Proxy expenses are not annualized.
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Defense and Aerospace Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
The Boeing Co. | 22.2 |
Northrop Grumman Corp. | 12.2 |
Raytheon Technologies Corp. | 6.7 |
Huntington Ingalls Industries, Inc. | 5.0 |
TransDigm Group, Inc. | 4.9 |
HEICO Corp. Class A | 4.8 |
BWX Technologies, Inc. | 4.7 |
Kratos Defense & Security Solutions, Inc. | 4.5 |
Teledyne Technologies, Inc. | 4.5 |
Woodward, Inc. | 3.7 |
73.2 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Aerospace & Defense | 89.5% | |
Machinery | 4.8% | |
Professional Services | 3.6% | |
Trading Companies & Distributors | 1.1% | |
All Others* | 1.0% |
* Includes short-term investments and net other assets (liabilities).
Defense and Aerospace Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
Aerospace & Defense - 89.5% | |||
Aerospace & Defense - 89.5% | |||
AerSale Corp. (a)(b) | 400,000 | $5,412,000 | |
Airbus Group NV (a) | 325,000 | 44,458,744 | |
Axon Enterprise, Inc. (a) | 50,000 | 9,093,500 | |
BWX Technologies, Inc. | 1,325,000 | 76,094,750 | |
Curtiss-Wright Corp. | 57,821 | 7,041,441 | |
Elbit Systems Ltd. (b) | 200,000 | 29,022,000 | |
General Dynamics Corp. | 40,000 | 8,012,400 | |
HEICO Corp. Class A | 680,000 | 77,683,200 | |
Howmet Aerospace, Inc. | 1,900,000 | 60,325,000 | |
Huntington Ingalls Industries, Inc. | 400,000 | 81,668,000 | |
Kratos Defense & Security Solutions, Inc. (a) | 3,000,000 | 74,160,000 | |
Lockheed Martin Corp. | 150,000 | 53,970,000 | |
Maxar Technologies, Inc. (b) | 900,000 | 28,611,000 | |
Moog, Inc. Class A | 275,000 | 21,846,000 | |
Northrop Grumman Corp. | 540,000 | 198,558,000 | |
Parsons Corp. (a)(b) | 150,000 | 5,314,500 | |
Raytheon Technologies Corp. | 1,300,000 | 110,188,000 | |
Teledyne Technologies, Inc. (a) | 160,000 | 74,140,800 | |
The Boeing Co. (a) | 1,650,000 | 362,175,001 | |
TransDigm Group, Inc. (a) | 132,500 | 80,489,775 | |
Triumph Group, Inc. (a) | 1,250,000 | 23,075,000 | |
Vectrus, Inc. (a) | 425,000 | 21,381,750 | |
Virgin Galactic Holdings, Inc. (a)(b) | 350,000 | 9,488,500 | |
1,462,209,361 | |||
Machinery - 4.8% | |||
Industrial Machinery - 4.8% | |||
RBC Bearings, Inc. (a) | 75,000 | 17,364,000 | |
Woodward, Inc. | 500,000 | 60,470,000 | |
77,834,000 | |||
Professional Services - 3.6% | |||
Research & Consulting Services - 3.6% | |||
Booz Allen Hamilton Holding Corp. Class A | 50,000 | 4,095,500 | |
CACI International, Inc. Class A (a) | 175,000 | 45,069,500 | |
KBR, Inc. | 250,000 | 9,735,000 | |
58,900,000 | |||
Trading Companies & Distributors - 1.1% | |||
Trading Companies & Distributors - 1.1% | |||
AerCap Holdings NV (a) | 200,000 | 10,786,000 | |
Air Lease Corp. Class A | 200,000 | 7,948,000 | |
18,734,000 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,037,710,891) | 1,617,677,361 | ||
Money Market Funds - 0.9% | |||
Fidelity Cash Central Fund 0.06% (c) | 5,108,338 | 5,109,360 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 10,196,643 | 10,197,663 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,307,023) | 15,307,023 | ||
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $1,053,017,914) | 1,632,984,384 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 818,738 | ||
NET ASSETS - 100% | $1,633,803,122 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $6,176,790 | $95,479,033 | $96,546,463 | $481 | $-- | $-- | $5,109,360 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 12,101,306 | 129,998,712 | 131,902,355 | 198,585 | -- | -- | 10,197,663 | 0.0% |
Total | $18,278,096 | $225,477,745 | $228,448,818 | $199,066 | $-- | $-- | $15,307,023 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,617,677,361 | $1,573,218,617 | $44,458,744 | $-- |
Money Market Funds | 15,307,023 | 15,307,023 | -- | -- |
Total Investments in Securities: | $1,632,984,384 | $1,588,525,640 | $44,458,744 | $-- |
See accompanying notes which are an integral part of the financial statements.
Defense and Aerospace Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $9,918,126) — See accompanying schedule: Unaffiliated issuers (cost $1,037,710,891) | $1,617,677,361 | |
Fidelity Central Funds (cost $15,307,023) | 15,307,023 | |
Total Investment in Securities (cost $1,053,017,914) | $1,632,984,384 | |
Receivable for investments sold | 16,623,640 | |
Receivable for fund shares sold | 181,990 | |
Dividends receivable | 2,704,050 | |
Distributions receivable from Fidelity Central Funds | 4,578 | |
Prepaid expenses | 15,949 | |
Other receivables | 167,079 | |
Total assets | 1,652,681,670 | |
Liabilities | ||
Payable for investments purchased | $5,216,222 | |
Payable for fund shares redeemed | 2,292,680 | |
Accrued management fee | 722,209 | |
Other affiliated payables | 291,831 | |
Other payables and accrued expenses | 157,802 | |
Collateral on securities loaned | 10,197,804 | |
Total liabilities | 18,878,548 | |
Net Assets | $1,633,803,122 | |
Net Assets consist of: | ||
Paid in capital | $959,885,871 | |
Total accumulated earnings (loss) | 673,917,251 | |
Net Assets | $1,633,803,122 | |
Net Asset Value, offering price and redemption price per share ($1,633,803,122 ÷ 91,958,522 shares) | $17.77 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $6,417,522 | |
Income from Fidelity Central Funds (including $198,585 from security lending) | 199,066 | |
Total income | 6,616,588 | |
Expenses | ||
Management fee | $4,552,044 | |
Transfer agent fees | 1,537,147 | |
Accounting fees | 266,748 | |
Custodian fees and expenses | 7,636 | |
Independent trustees' fees and expenses | 3,287 | |
Registration fees | 25,206 | |
Audit | 17,462 | |
Legal | 719 | |
Interest | 291 | |
Miscellaneous | 7,638 | |
Total expenses before reductions | 6,418,178 | |
Expense reductions | (60,667) | |
Total expenses after reductions | 6,357,511 | |
Net investment income (loss) | 259,077 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 203,816,312 | |
Foreign currency transactions | 1,398 | |
Total net realized gain (loss) | 203,817,710 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (53,849,649) | |
Assets and liabilities in foreign currencies | (2,541) | |
Total change in net unrealized appreciation (depreciation) | (53,852,190) | |
Net gain (loss) | 149,965,520 | |
Net increase (decrease) in net assets resulting from operations | $150,224,597 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $259,077 | $(5,434,899) |
Net realized gain (loss) | 203,817,710 | (89,410,294) |
Change in net unrealized appreciation (depreciation) | (53,852,190) | (50,492,112) |
Net increase (decrease) in net assets resulting from operations | 150,224,597 | (145,337,305) |
Distributions to shareholders | – | (52,505,082) |
Share transactions | ||
Proceeds from sales of shares | 55,605,540 | 299,665,979 |
Reinvestment of distributions | – | 49,624,011 |
Cost of shares redeemed | (210,220,612) | (1,242,213,028) |
Net increase (decrease) in net assets resulting from share transactions | (154,615,072) | (892,923,038) |
Total increase (decrease) in net assets | (4,390,475) | (1,090,765,425) |
Net Assets | ||
Beginning of period | 1,638,193,597 | 2,728,959,022 |
End of period | $1,633,803,122 | $1,638,193,597 |
Other Information | ||
Shares | ||
Sold | 3,092,973 | 21,539,155 |
Issued in reinvestment of distributions | – | 3,901,259 |
Redeemed | (11,742,811) | (89,147,504) |
Net increase (decrease) | (8,649,838) | (63,707,090) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Defense and Aerospace Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $16.28 | $16.61 | $17.27 | $18.45 | $13.83 | $10.81 |
Income from Investment Operations | ||||||
Net investment income (loss)C | –D | (.04) | .27E | .11 | .09F | .13G |
Net realized and unrealized gain (loss) | 1.49 | .06H | (.45) | .33 | 5.14 | 3.52 |
Total from investment operations | 1.49 | .02 | (.18) | .44 | 5.23 | 3.65 |
Distributions from net investment income | – | (.05) | (.22) | (.10) | (.07) | (.12) |
Distributions from net realized gain | – | (.30) | (.26) | (1.52) | (.54) | (.51) |
Total distributions | – | (.35) | (.48) | (1.62) | (.61) | (.63) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $17.77 | $16.28 | $16.61 | $17.27 | $18.45 | $13.83 |
Total ReturnI,J | 9.15% | .69% | (1.32)% | 3.57% | 38.46% | 34.36% |
Ratios to Average Net AssetsK,L | ||||||
Expenses before reductions | .74%M | .77% | .75% | .75% | .76% | .79% |
Expenses net of fee waivers, if any | .74%M | .77% | .74% | .75% | .76% | .79% |
Expenses net of all reductions | .73%M | .76% | .74% | .75% | .76% | .79% |
Net investment income (loss) | .03%M | (.29)% | 1.49%E | .66% | .58%F | 1.03%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,633,803 | $1,638,194 | $2,728,959 | $2,795,259 | $3,073,789 | $1,601,468 |
Portfolio turnover rateN | 41%M | 30% | 40% | 44% | 32% | 24% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.18 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .48%.
F Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .14%.
G Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .64%.
H 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.
I Total returns for periods of less than one year are not annualized.
J Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
K 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.
L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
M Annualized
N Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Industrials Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Roper Technologies, Inc. | 8.6 |
Ingersoll Rand, Inc. | 5.4 |
AMETEK, Inc. | 5.1 |
Honeywell International, Inc. | 4.7 |
Fortive Corp. | 4.3 |
Teledyne Technologies, Inc. | 3.9 |
The Boeing Co. | 3.8 |
XPO Logistics, Inc. | 3.7 |
Johnson Controls International PLC | 3.5 |
General Electric Co. | 3.2 |
46.2 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Machinery | 19.7% | |
Industrial Conglomerates | 16.5% | |
Aerospace & Defense | 15.0% | |
Road & Rail | 12.2% | |
Electrical Equipment | 12.2% | |
All Others* | 24.4% |
* Includes short-term investments and net other assets (liabilities).
Industrials Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
Aerospace & Defense - 15.0% | |||
Aerospace & Defense - 15.0% | |||
Airbus Group NV (a) | 25,400 | $3,474,622 | |
Axon Enterprise, Inc. (a) | 6,200 | 1,127,594 | |
General Dynamics Corp. | 11,500 | 2,303,565 | |
HEICO Corp. Class A | 13,500 | 1,542,240 | |
Howmet Aerospace, Inc. | 346,400 | 10,998,200 | |
Raytheon Technologies Corp. | 39,000 | 3,305,640 | |
Teledyne Technologies, Inc. (a) | 34,700 | 16,079,286 | |
The Boeing Co. (a) | 72,160 | 15,839,120 | |
TransDigm Group, Inc. (a) | 11,437 | 6,947,634 | |
Triumph Group, Inc. (a) | 10,322 | 190,544 | |
61,808,445 | |||
Air Freight & Logistics - 0.7% | |||
Air Freight & Logistics - 0.7% | |||
GXO Logistics, Inc. (a) | 19,240 | 1,573,640 | |
United Parcel Service, Inc. Class B | 5,900 | 1,154,217 | |
2,727,857 | |||
Building Products - 5.8% | |||
Building Products - 5.8% | |||
Advanced Drain Systems, Inc. | 6,500�� | 741,975 | |
Allegion PLC | 3,600 | 518,364 | |
Johnson Controls International PLC | 193,600 | 14,481,280 | |
Trane Technologies PLC | 41,365 | 8,210,953 | |
23,952,572 | |||
Commercial Services & Supplies - 5.1% | |||
Diversified Support Services - 2.5% | |||
Copart, Inc. (a) | 72,400 | 10,448,768 | |
Environmental & Facility Services - 2.6% | |||
GFL Environmental, Inc. | 90,000 | 3,167,100 | |
Waste Connections, Inc. (United States) | 56,800 | 7,339,128 | |
10,506,228 | |||
TOTAL COMMERCIAL SERVICES & SUPPLIES | 20,954,996 | ||
Construction & Engineering - 0.1% | |||
Construction & Engineering - 0.1% | |||
AECOM (a) | 9,300 | 609,708 | |
Electrical Equipment - 12.2% | |||
Electrical Components & Equipment - 12.2% | |||
Acuity Brands, Inc. | 49,116 | 9,063,375 | |
AMETEK, Inc. | 153,820 | 20,914,905 | |
Generac Holdings, Inc. (a) | 16,600 | 7,253,868 | |
nVent Electric PLC | 243,700 | 8,373,532 | |
Regal Beloit Corp. | 11,913 | 1,780,040 | |
Vertiv Holdings Co. | 107,400 | 3,025,458 | |
50,411,178 | |||
Industrial Conglomerates - 16.5% | |||
Industrial Conglomerates - 16.5% | |||
General Electric Co. | 127,787 | 13,470,028 | |
Honeywell International, Inc. | 83,598 | 19,387,212 | |
Roper Technologies, Inc. | 73,504 | 35,523,014 | |
68,380,254 | |||
Machinery - 19.7% | |||
Industrial Machinery - 19.7% | |||
Chart Industries, Inc. (a) | 3,500 | 659,330 | |
Crane Co. | 82,700 | 8,416,379 | |
Dover Corp. | 32,000 | 5,579,520 | |
Evoqua Water Technologies Corp. (a)(b) | 104,900 | 4,082,708 | |
Fortive Corp. | 241,900 | 17,869,153 | |
IDEX Corp. | 20,500 | 4,592,000 | |
Ingersoll Rand, Inc. (a) | 422,800 | 22,416,856 | |
ITT, Inc. | 33,745 | 3,228,384 | |
Middleby Corp. (a) | 22,500 | 4,116,150 | |
Otis Worldwide Corp. | 45,000 | 4,149,900 | |
Pentair PLC | 26,400 | 2,037,024 | |
Rexnord Corp. (b) | 68,500 | 4,162,060 | |
81,309,464 | |||
Professional Services - 6.2% | |||
Human Resource & Employment Services - 3.0% | |||
TriNet Group, Inc. (a) | 136,781 | 12,594,794 | |
Research & Consulting Services - 3.2% | |||
Clarivate Analytics PLC (a)(b) | 145,700 | 3,670,183 | |
CoStar Group, Inc. (a) | 111,000 | 9,406,140 | |
13,076,323 | |||
TOTAL PROFESSIONAL SERVICES | 25,671,117 | ||
Road & Rail - 12.2% | |||
Railroads - 3.9% | |||
CSX Corp. | 224,400 | 7,299,732 | |
Norfolk Southern Corp. | 13,609 | 3,450,426 | |
Union Pacific Corp. | 25,221 | 5,468,922 | |
16,219,080 | |||
Trucking - 8.3% | |||
J.B. Hunt Transport Services, Inc. | 17,600 | 3,122,240 | |
Old Dominion Freight Lines, Inc. | 43,923 | 12,681,449 | |
Saia, Inc. (a) | 12,700 | 3,049,651 | |
XPO Logistics, Inc. (a) | 176,640 | 15,351,782 | |
34,205,122 | |||
TOTAL ROAD & RAIL | 50,424,202 | ||
Software - 1.1% | |||
Application Software - 1.1% | |||
Descartes Systems Group, Inc. (a) | 56,200 | 4,406,080 | |
Trading Companies & Distributors - 5.0% | |||
Trading Companies & Distributors - 5.0% | |||
Herc Holdings, Inc. (a)(b) | 81,004 | 10,647,976 | |
United Rentals, Inc. (a) | 28,700 | 10,121,055 | |
20,769,031 | |||
TOTAL COMMON STOCKS | |||
(Cost $315,742,640) | 411,424,904 | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund 0.06% (c) | 1,643,091 | 1,643,420 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 7,134,012 | 7,134,725 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $8,778,145) | 8,778,145 | ||
TOTAL INVESTMENT IN SECURITIES - 101.7% | |||
(Cost $324,520,785) | 420,203,049 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (7,141,624) | ||
NET ASSETS - 100% | $413,061,425 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $915 | $164,429,661 | $162,787,156 | $853 | $-- | $-- | $1,643,420 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 4,412,646 | 42,106,708 | 39,384,629 | 580 | -- | -- | 7,134,725 | 0.0% |
Total | $4,413,561 | $206,536,369 | $202,171,785 | $1,433 | $-- | $-- | $8,778,145 |
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 August 31, 2021, 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 | $411,424,904 | $407,950,282 | $3,474,622 | $-- |
Money Market Funds | 8,778,145 | 8,778,145 | -- | -- |
Total Investments in Securities: | $420,203,049 | $416,728,427 | $3,474,622 | $-- |
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 | 86.5% |
Ireland | 8.1% |
Canada | 3.7% |
Others (Individually Less Than 1%) | 1.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Industrials Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,940,023) — See accompanying schedule: Unaffiliated issuers (cost $315,742,640) | $411,424,904 | |
Fidelity Central Funds (cost $8,778,145) | 8,778,145 | |
Total Investment in Securities (cost $324,520,785) | $420,203,049 | |
Receivable for investments sold | 1,534,906 | |
Receivable for fund shares sold | 447,958 | |
Dividends receivable | 241,835 | |
Distributions receivable from Fidelity Central Funds | 225 | |
Prepaid expenses | 5,395 | |
Other receivables | 186,427 | |
Total assets | 422,619,795 | |
Liabilities | ||
Payable for investments purchased | $1,306,526 | |
Payable for fund shares redeemed | 717,812 | |
Accrued management fee | 179,952 | |
Other affiliated payables | 69,173 | |
Other payables and accrued expenses | 150,182 | |
Collateral on securities loaned | 7,134,725 | |
Total liabilities | 9,558,370 | |
Net Assets | $413,061,425 | |
Net Assets consist of: | ||
Paid in capital | $252,855,347 | |
Total accumulated earnings (loss) | 160,206,078 | |
Net Assets | $413,061,425 | |
Net Asset Value, offering price and redemption price per share ($413,061,425 ÷ 10,761,021 shares) | $38.38 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,499,565 | |
Income from Fidelity Central Funds (including $580 from security lending) | 1,433 | |
Total income | 1,500,998 | |
Expenses | ||
Management fee | $1,315,317 | |
Transfer agent fees | 394,210 | |
Accounting fees | 95,364 | |
Custodian fees and expenses | 11,564 | |
Independent trustees' fees and expenses | 1,016 | |
Registration fees | 21,875 | |
Audit | 17,087 | |
Legal | 672 | |
Interest | 1,176 | |
Miscellaneous | 1,798 | |
Total expenses before reductions | 1,860,079 | |
Expense reductions | (109,417) | |
Total expenses after reductions | 1,750,662 | |
Net investment income (loss) | (249,664) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 70,881,313 | |
Foreign currency transactions | (3,119) | |
Total net realized gain (loss) | 70,878,194 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (2,907,530) | |
Assets and liabilities in foreign currencies | (157) | |
Total change in net unrealized appreciation (depreciation) | (2,907,687) | |
Net gain (loss) | 67,970,507 | |
Net increase (decrease) in net assets resulting from operations | $67,720,843 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(249,664) | $(234,474) |
Net realized gain (loss) | 70,878,194 | 58,530,818 |
Change in net unrealized appreciation (depreciation) | (2,907,687) | 32,495,500 |
Net increase (decrease) in net assets resulting from operations | 67,720,843 | 90,791,844 |
Distributions to shareholders | (55,857,799) | (17,106,826) |
Share transactions | ||
Proceeds from sales of shares | 74,733,600 | 130,225,348 |
Reinvestment of distributions | 52,860,462 | 16,136,117 |
Cost of shares redeemed | (290,604,545) | (184,860,626) |
Net increase (decrease) in net assets resulting from share transactions | (163,010,483) | (38,499,161) |
Total increase (decrease) in net assets | (151,147,439) | 35,185,857 |
Net Assets | ||
Beginning of period | 564,208,864 | 529,023,007 |
End of period | $413,061,425 | $564,208,864 |
Other Information | ||
Shares | ||
Sold | 1,977,932 | 3,871,976 |
Issued in reinvestment of distributions | 1,438,771 | 620,923 |
Redeemed | (7,835,550) | (5,894,475) |
Net increase (decrease) | (4,418,847) | (1,401,576) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Industrials Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.17 | $31.90 | $33.84 | $36.96 | $33.72 | $28.10 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.02) | (.02) | .28C | .32 | .21 | .26 |
Net realized and unrealized gain (loss) | 4.83 | 6.38 | (.76) | (.70) | 4.95 | 6.76 |
Total from investment operations | 4.81 | 6.36 | (.48) | (.38) | 5.16 | 7.02 |
Distributions from net investment income | – | (.07)D | (.24) | (.25) | (.22) | (.19) |
Distributions from net realized gain | (3.60) | (1.02)D | (1.23) | (2.49) | (1.71) | (1.21) |
Total distributions | (3.60) | (1.09) | (1.46)E | (2.74) | (1.92)E | (1.40) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –F |
Net asset value, end of period | $38.38 | $37.17 | $31.90 | $33.84 | $36.96 | $33.72 |
Total ReturnG,H | 13.36% | 21.41% | (1.82)% | (.45)% | 15.73% | 25.18% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .74%K | .76% | .76% | .76% | .77% | .77% |
Expenses net of fee waivers, if any | .74%K | .76% | .76% | .76% | .77% | .77% |
Expenses net of all reductions | .70%K | .74% | .75% | .75% | .77% | .77% |
Net investment income (loss) | (.10)%K | (.05)% | .81%C | .92% | .60% | .83% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $413,061 | $564,209 | $529,023 | $632,470 | $1,076,950 | $1,006,420 |
Portfolio turnover rateL | 178%K | 272% | 143%M | 88%M | 64%N | 62%M |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .64%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M Portfolio turnover rate excludes securities received or delivered in-kind.
N The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Transportation Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
United Parcel Service, Inc. Class B | 15.2 |
Union Pacific Corp. | 13.9 |
Air Transport Services Group, Inc. | 7.5 |
CSX Corp. | 6.3 |
FedEx Corp. | 4.5 |
Kansas City Southern | 3.3 |
Expeditors International of Washington, Inc. | 3.3 |
Eagle Bulk Shipping, Inc. | 3.2 |
Uber Technologies, Inc. | 3.0 |
Genco Shipping & Trading Ltd. | 2.8 |
63.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Road & Rail | 41.6% | |
Air Freight & Logistics | 38.1% | |
Marine | 10.4% | |
Airlines | 5.2% | |
Internet & Direct Marketing Retail | 1.1% | |
All Others* | 3.6% |
* Includes short-term investments and net other assets (liabilities).
Transportation Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
Aerospace & Defense - 0.6% | |||
Aerospace & Defense - 0.6% | |||
Curtiss-Wright Corp. | 6,800 | $828,104 | |
Northrop Grumman Corp. | 3,600 | 1,323,720 | |
2,151,824 | |||
Air Freight & Logistics - 38.1% | |||
Air Freight & Logistics - 38.1% | |||
Air Transport Services Group, Inc. (a) | 1,073,912 | 29,414,450 | |
Atlas Air Worldwide Holdings, Inc. (a) | 79,300 | 5,802,381 | |
C.H. Robinson Worldwide, Inc. | 95,096 | 8,564,346 | |
Echo Global Logistics, Inc. (a) | 85,000 | 2,794,800 | |
Expeditors International of Washington, Inc. | 103,438 | 12,892,512 | |
FedEx Corp. | 67,241 | 17,865,261 | |
Forward Air Corp. | 20,300 | 1,789,851 | |
GXO Logistics, Inc. (a) | 55,922 | 4,573,860 | |
Hub Group, Inc. Class A (a)(b) | 82,849 | 5,816,000 | |
United Parcel Service, Inc. Class B | 305,823 | 59,828,155 | |
149,341,616 | |||
Airlines - 5.2% | |||
Airlines - 5.2% | |||
Alaska Air Group, Inc. (a) | 27,200 | 1,559,648 | |
Copa Holdings SA Class A (a)(b) | 24,600 | 1,851,150 | |
Delta Air Lines, Inc. (a) | 153,859 | 6,222,058 | |
Frontier Group Holdings, Inc. (a) | 180,800 | 2,771,664 | |
SkyWest, Inc. (a) | 90,500 | 4,221,825 | |
United Airlines Holdings, Inc. (a) | 79,979 | 3,719,823 | |
20,346,168 | |||
Electrical Equipment - 0.5% | |||
Electrical Components & Equipment - 0.5% | |||
Sensata Technologies, Inc. PLC (a) | 30,200 | 1,787,236 | |
Internet & Direct Marketing Retail - 1.1% | |||
Internet & Direct Marketing Retail - 1.1% | |||
Points International Ltd. (a) | 237,763 | 4,336,797 | |
Marine - 10.4% | |||
Marine - 10.4% | |||
2020 Bulkers Ltd. | 45,200 | 707,042 | |
Diana Shipping, Inc. (a) | 819,700 | 4,073,909 | |
Eagle Bulk Shipping, Inc. (a)(b) | 256,000 | 12,643,840 | |
Genco Shipping & Trading Ltd. | 572,536 | 11,158,727 | |
Golden Ocean Group Ltd. | 356,800 | 4,096,064 | |
Kirby Corp. (a) | 24,400 | 1,307,596 | |
Matson, Inc. (b) | 25,195 | 1,994,688 | |
Star Bulk Carriers Corp. | 185,700 | 4,284,099 | |
ZIM Integrated Shipping Services Ltd. (b) | 15,000 | 724,500 | |
40,990,465 | |||
Professional Services - 0.3% | |||
Research & Consulting Services - 0.3% | |||
CACI International, Inc. Class A (a) | 4,900 | 1,261,946 | |
Road & Rail - 41.6% | |||
Railroads - 26.2% | |||
CSX Corp. | 754,184 | 24,533,606 | |
Kansas City Southern | 46,200 | 12,966,954 | |
Norfolk Southern Corp. | 42,427 | 10,756,942 | |
Union Pacific Corp. | 251,010 | 54,429,008 | |
102,686,510 | |||
Trucking - 15.4% | |||
AMERCO | 5,469 | 3,615,829 | |
ArcBest Corp. | 21,500 | 1,434,695 | |
Covenant Transport Group, Inc. Class A (a) | 58,174 | 1,417,119 | |
J.B. Hunt Transport Services, Inc. | 37,811 | 6,707,671 | |
Knight-Swift Transportation Holdings, Inc. Class A | 107,200 | 5,566,896 | |
Ryder System, Inc. | 87,707 | 6,971,829 | |
Schneider National, Inc. Class B | 19,200 | 432,768 | |
TFI International, Inc. | 58,300 | 6,593,730 | |
TFI International, Inc. (Canada) | 66,800 | 7,547,529 | |
U.S. Xpress Enterprises, Inc. (a)(b) | 85,000 | 742,900 | |
U.S.A. Truck, Inc. (a)(b) | 53,300 | 772,850 | |
Uber Technologies, Inc. (a) | 301,858 | 11,814,722 | |
Universal Logistics Holdings, Inc. | 45,600 | 997,272 | |
Werner Enterprises, Inc. | 26,383 | 1,244,222 | |
XPO Logistics, Inc. (a) | 55,322 | 4,808,035 | |
60,668,067 | |||
TOTAL ROAD & RAIL | 163,354,577 | ||
Transportation Infrastructure - 0.9% | |||
Airport Services - 0.9% | |||
Macquarie Infrastructure Co. LLC (a) | 92,900 | 3,702,065 | |
TOTAL COMMON STOCKS | |||
(Cost $205,540,009) | 387,272,694 | ||
Money Market Funds - 3.6% | |||
Fidelity Cash Central Fund 0.06% (c) | 4,763,150 | 4,764,103 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 9,459,769 | 9,460,715 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $14,224,818) | 14,224,818 | ||
TOTAL INVESTMENT IN SECURITIES - 102.3% | |||
(Cost $219,764,827) | 401,497,512 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (9,100,957) | ||
NET ASSETS - 100% | $392,396,555 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $7,057,985 | $80,061,697 | $82,355,579 | $1,744 | $-- | $-- | $4,764,103 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 1,190,125 | 69,752,717 | 61,482,127 | 5,148 | -- | -- | 9,460,715 | 0.0% |
Total | $8,248,110 | $149,814,414 | $143,837,706 | $6,892 | $-- | $-- | $14,224,818 |
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 August 31, 2021, 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 | $387,272,694 | $387,272,694 | $-- | $-- |
Money Market Funds | 14,224,818 | 14,224,818 | -- | -- |
Total Investments in Securities: | $401,497,512 | $401,497,512 | $-- | $-- |
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 | 84.7% |
Marshall Islands | 8.1% |
Canada | 4.7% |
Bermuda | 1.1% |
Others (Individually Less Than 1%) | 1.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Transportation Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $9,132,895) — See accompanying schedule: Unaffiliated issuers (cost $205,540,009) | $387,272,694 | |
Fidelity Central Funds (cost $14,224,818) | 14,224,818 | |
Total Investment in Securities (cost $219,764,827) | $401,497,512 | |
Receivable for investments sold | 1,667,801 | |
Receivable for fund shares sold | 145,624 | |
Dividends receivable | 886,641 | |
Distributions receivable from Fidelity Central Funds | 2,849 | |
Prepaid expenses | 2,945 | |
Other receivables | 7,699 | |
Total assets | 404,211,071 | |
Liabilities | ||
Payable for investments purchased | $1,615,576 | |
Payable for fund shares redeemed | 469,996 | |
Accrued management fee | 171,395 | |
Other affiliated payables | 73,478 | |
Other payables and accrued expenses | 23,356 | |
Collateral on securities loaned | 9,460,715 | |
Total liabilities | 11,814,516 | |
Net Assets | $392,396,555 | |
Net Assets consist of: | ||
Paid in capital | $185,387,077 | |
Total accumulated earnings (loss) | 207,009,478 | |
Net Assets | $392,396,555 | |
Net Asset Value, offering price and redemption price per share ($392,396,555 ÷ 3,577,202 shares) | $109.69 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $2,462,924 | |
Income from Fidelity Central Funds (including $5,148 from security lending) | 6,892 | |
Total income | 2,469,816 | |
Expenses | ||
Management fee | $1,047,697 | |
Transfer agent fees | 361,657 | |
Accounting fees | 77,569 | |
Custodian fees and expenses | 6,296 | |
Independent trustees' fees and expenses | 717 | |
Registration fees | 26,985 | |
Audit | 25,233 | |
Legal | 149 | |
Interest | 193 | |
Miscellaneous | 1,029 | |
Total expenses before reductions | 1,547,525 | |
Expense reductions | (14,298) | |
Total expenses after reductions | 1,533,227 | |
Net investment income (loss) | 936,589 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 25,074,357 | |
Foreign currency transactions | 2,209 | |
Total net realized gain (loss) | 25,076,566 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,240,136 | |
Assets and liabilities in foreign currencies | (62) | |
Total change in net unrealized appreciation (depreciation) | 21,240,074 | |
Net gain (loss) | 46,316,640 | |
Net increase (decrease) in net assets resulting from operations | $47,253,229 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $936,589 | $3,883,427 |
Net realized gain (loss) | 25,076,566 | 10,993,185 |
Change in net unrealized appreciation (depreciation) | 21,240,074 | 72,710,640 |
Net increase (decrease) in net assets resulting from operations | 47,253,229 | 87,587,252 |
Distributions to shareholders | (11,070,172) | (27,097,439) |
Share transactions | ||
Proceeds from sales of shares | 85,831,010 | 67,825,627 |
Reinvestment of distributions | 10,505,950 | 25,610,516 |
Cost of shares redeemed | (75,903,057) | (128,587,302) |
Net increase (decrease) in net assets resulting from share transactions | 20,433,903 | (35,151,159) |
Total increase (decrease) in net assets | 56,616,960 | 25,338,654 |
Net Assets | ||
Beginning of period | 335,779,595 | 310,440,941 |
End of period | $392,396,555 | $335,779,595 |
Other Information | ||
Shares | ||
Sold | 791,658 | 836,595 |
Issued in reinvestment of distributions | 99,535 | 390,206 |
Redeemed | (706,901) | (1,614,325) |
Net increase (decrease) | 184,292 | (387,524) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Transportation Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $98.97 | $82.12 | $95.41 | $99.07 | $92.98 | $73.25 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .25 | 1.06C | .93 | .85 | .78 | .63 |
Net realized and unrealized gain (loss) | 13.58 | 23.43 | (10.43) | 5.05 | 10.83 | 20.86 |
Total from investment operations | 13.83 | 24.49 | (9.50) | 5.90 | 11.61 | 21.49 |
Distributions from net investment income | (.50) | (.76) | (1.10) | (.78) | (.67) | (.38) |
Distributions from net realized gain | (2.61) | (6.88) | (2.70) | (8.78) | (4.85) | (1.39) |
Total distributions | (3.11) | (7.64) | (3.79)D | (9.56) | (5.52) | (1.77) |
Redemption fees added to paid in capitalB | – | – | – | – | –E | .01 |
Net asset value, end of period | $109.69 | $98.97 | $82.12 | $95.41 | $99.07 | $92.98 |
Total ReturnF,G | 14.10% | 34.62% | (10.49)% | 6.85% | 12.48% | 29.40% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .78%J | .80% | .79% | .79% | .80% | .83% |
Expenses net of fee waivers, if any | .78%J | .80% | .79% | .79% | .80% | .83% |
Expenses net of all reductions | .77%J | .80% | .79% | .78% | .80% | .82% |
Net investment income (loss) | .47%J | 1.29%C | 1.00% | .87% | .80% | .76% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $392,397 | $335,780 | $310,441 | $451,192 | $512,155 | $643,067 |
Portfolio turnover rateK | 58%J | 52% | 78% | 58% | 47% | 104% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.34 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .88%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Air Transportation Portfolio, Defense and Aerospace Portfolio, Industrials Portfolio, and Transportation Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. Effective June 7, 2021 Air Transportation Portfolio is closed to new accounts with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. 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 August 31, 2021 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Defense and Aerospace Portfolio | 133,787 |
Industrials Portfolio | 124,164 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications.
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, net operating losses, 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 for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
Air Transportation Portfolio | $239,648,737 | $120,634,969 | $(6,838,790) | $113,796,179 |
Defense and Aerospace Portfolio | 1,053,746,427 | 603,757,682 | (24,519,725) | 579,237,957 |
Industrials Portfolio | 325,655,802 | 96,673,355 | (2,126,108) | 94,547,247 |
Transportation Portfolio | 220,668,205 | 186,678,905 | (5,849,598) | 180,829,307 |
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 | |
Air Transportation Portfolio | $(6,467,342) | $(11,160,763) | $(17,628,105) |
Defense and Aerospace Portfolio | (101,572,404) | (1,768,918) | (103,341,322) |
Environment and Alternative Energy Portfolio | (3,214,228) | (–) | (3,214,228) |
Certain of the Funds elected to defer to the next fiscal year ordinary losses recognized during the period January 1, 2021 to February 28, 2021. Loss deferrals were as follows:
Ordinary losses | |
Air Transportation Portfolio | $477,992 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Air Transportation Portfolio | 41,848,806 | 68,473,917 |
Defense and Aerospace Portfolio | 348,596,474 | 497,264,107 |
Industrials Portfolio | 438,322,675 | 660,696,061 |
Transportation Portfolio | 124,835,944 | 112,038,301 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Air Transportation Portfolio | .30% | .23% | .53% |
Defense and Aerospace Portfolio | .30% | .23% | .53% |
Industrials Portfolio | .30% | .23% | .52% |
Transportation Portfolio | .30% | .23% | .53% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Air Transportation Portfolio | .19% |
Defense and Aerospace Portfolio | .18% |
Industrials Portfolio | .16% |
Transportation Portfolio | .18% |
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 annualized rates:
% of Average Net Assets | |
Air Transportation Portfolio | .04 |
Defense and Aerospace Portfolio | .03 |
Industrials Portfolio | .04 |
Transportation Portfolio | .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 | |
Air Transportation Portfolio | $413 |
Defense and Aerospace Portfolio | 7,582 |
Industrials Portfolio | 8,181 |
Transportation Portfolio | 2,886 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Defense and Aerospace Portfolio | Borrower | $8,203,000 | .32% | $291 |
Industrials Portfolio | Borrower | $10,463,308 | .31% | $1,176 |
Transportation Portfolio | Borrower | $5,355,500 | .33% | $193 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Air Transportation Portfolio | 3,109,777 | 793,577 |
Defense and Aerospace Portfolio | 9,717,710 | 44,131,454 |
Industrials Portfolio | 14,964,742 | 38,510,375 |
Transportation Portfolio | 10,062,619 | 2,446,070 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Air Transportation Portfolio | $343 |
Defense and Aerospace Portfolio | 1,590 |
Industrials Portfolio | 509 |
Transportation Portfolio | 339 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Air Transportation Portfolio | $1,318 | $– | $– |
Defense and Aerospace Portfolio | $20,730 | $35,003 | $– |
Industrials Portfolio | $57 | $– | $– |
Transportation Portfolio | $541 | $20 | $– |
8. Expense Reductions.
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 expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | |
Air Transportation Portfolio | $6,944 |
Defense and Aerospace Portfolio | 47,153 |
Industrials Portfolio | 105,768 |
Transportation Portfolio | 11,227 |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Air Transportation Portfolio | $2,940 |
Defense and Aerospace Portfolio | 13,514 |
Industrials Portfolio | 3,649 |
Transportation Portfolio | 3,071 |
9. Other.
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.
10. 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.
11. Proposed Reorganization.
The Board of Trustees of Air Transportation Portfolio and Transportation Portfolio approved an Agreement and Plan of Reorganization (the Agreement) between Air Transportation Portfolio and Transportation Portfolio. The Agreement provides for the transfer of all the assets and the assumption of all the liabilities of Air Transportation Portfolio in exchange for shares of Transportation Portfolio equal in value to the net assets of Air Transportation Portfolio on the day the reorganization is effective. The reorganization provides shareholders of Air Transportation Portfolio access to a larger portfolio with a similar investment objective. The reorganization is expected to qualify as a tax-free transaction for federal income tax purposes with no gain or loss recognized by the funds or their shareholders.
A meeting of shareholders of Air Transportation Portfolio is expected to be held during the fourth quarter of 2021 to vote on the reorganization. If approved by shareholders, the reorganization is expected to become effective on or about November 12, 2021.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Air Transportation Portfolio | .79% | |||
Actual | $1,000.00 | $1,050.20 | $4.08 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Defense and Aerospace Portfolio | .74% | |||
Actual | $1,000.00 | $1,091.50 | $3.90 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Industrials Portfolio | .74% | |||
Actual | $1,000.00 | $1,133.60 | $3.98 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Transportation Portfolio | .78% | |||
Actual | $1,000.00 | $1,141.00 | $4.21 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Air Transportation Portfolio
Defense and Aerospace Portfolio
Industrials Portfolio
Transportation Portfolio
Air Transportation Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733205805.jpg)
Defense and Aerospace Portfolio
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Industrials Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206084.jpg)
Transportation Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206239.jpg)
Air Transportation Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206668.jpg)
Defense and Aerospace Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206851.jpg)
Industrials Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207031.jpg)
Transportation Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207211.jpg)
SELCI-SANN-1021
1.813660.116
Fidelity® Select Portfolios®
Utilities Sector
Utilities Portfolio
Semi-Annual Report
August 31, 2021
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
NextEra Energy, Inc. | 13.1 |
Exelon Corp. | 9.3 |
Southern Co. | 9.1 |
Sempra Energy | 6.6 |
FirstEnergy Corp. | 5.4 |
Public Service Enterprise Group, Inc. | 4.9 |
American Electric Power Co., Inc. | 4.9 |
Dominion Energy, Inc. | 4.8 |
Duke Energy Corp. | 4.7 |
Evergy, Inc. | 4.6 |
67.4 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Electric Utilities | 66.0% | |
Multi-Utilities | 23.6% | |
Independent Power and Renewable Electricity Producers | 8.7% | |
All Others* | 1.7% |
* Includes short-term investments and net other assets (liabilities).
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
Electric Utilities - 66.0% | |||
Electric Utilities - 66.0% | |||
American Electric Power Co., Inc. | 555,650 | $49,769,571 | |
Duke Energy Corp. | 458,279 | 47,963,480 | |
Edison International | 804,299 | 46,520,654 | |
Entergy Corp. | 270,540 | 29,924,429 | |
Evergy, Inc. | 687,082 | 47,030,763 | |
Exelon Corp. | 1,919,689 | 94,103,155 | |
FirstEnergy Corp. | 1,406,092 | 54,654,796 | |
NextEra Energy, Inc. | 1,583,488 | 132,997,157 | |
NRG Energy, Inc. | 499,414 | 22,808,237 | |
OGE Energy Corp. | 380,300 | 13,466,423 | |
PG&E Corp. (a) | 4,269,071 | 39,147,381 | |
Southern Co. | 1,403,677 | 92,263,689 | |
670,649,735 | |||
Independent Power and Renewable Electricity Producers - 8.7% | |||
Independent Power Producers & Energy Traders - 6.4% | |||
Clearway Energy, Inc.: | |||
Class A | 119,624 | 3,557,618 | |
Class C | 70,991 | 2,228,407 | |
The AES Corp. | 1,876,315 | 44,787,639 | |
Vistra Corp. | 753,373 | 14,381,891 | |
64,955,555 | |||
Renewable Electricity - 2.3% | |||
NextEra Energy Partners LP (b) | 207,324 | 16,571,407 | |
Sunnova Energy International, Inc. (a)(b) | 192,600 | 6,972,120 | |
23,543,527 | |||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 88,499,082 | ||
Multi-Utilities - 23.6% | |||
Multi-Utilities - 23.6% | |||
CenterPoint Energy, Inc. (b) | 1,594,408 | 40,003,697 | |
Dominion Energy, Inc. | 622,560 | 48,460,070 | |
NiSource, Inc. | 1,396,443 | 34,422,320 | |
Public Service Enterprise Group, Inc. | 784,705 | 50,174,038 | |
Sempra Energy | 507,108 | 67,120,815 | |
240,180,940 | |||
TOTAL COMMON STOCKS | |||
(Cost $764,582,525) | 999,329,757 | ||
Money Market Funds - 6.5% | |||
Fidelity Cash Central Fund 0.06% (c) | 12,195,069 | 12,197,508 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 53,709,504 | 53,714,875 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $65,912,383) | 65,912,383 | ||
TOTAL INVESTMENT IN SECURITIES - 104.8% | |||
(Cost $830,494,908) | 1,065,242,140 | ||
NET OTHER ASSETS (LIABILITIES) - (4.8)% | (48,500,890) | ||
NET ASSETS - 100% | $1,016,741,250 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $33,119,837 | $100,679,356 | $121,601,685 | $3,641 | $-- | $-- | $12,197,508 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 57,500 | 139,468,839 | 85,811,464 | 4,078 | -- | -- | 53,714,875 | 0.2% |
Total | $33,177,337 | $240,148,195 | $207,413,149 | $7,719 | $-- | $-- | $65,912,383 |
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 August 31, 2021, 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 | $999,329,757 | $999,329,757 | $-- | $-- |
Money Market Funds | 65,912,383 | 65,912,383 | -- | -- |
Total Investments in Securities: | $1,065,242,140 | $1,065,242,140 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $52,153,134) — See accompanying schedule: Unaffiliated issuers (cost $764,582,525) | $999,329,757 | |
Fidelity Central Funds (cost $65,912,383) | 65,912,383 | |
Total Investment in Securities (cost $830,494,908) | $1,065,242,140 | |
Receivable for investments sold | 3,848,788 | |
Receivable for fund shares sold | 468,215 | |
Dividends receivable | 4,688,114 | |
Distributions receivable from Fidelity Central Funds | 2,439 | |
Prepaid expenses | 4,584 | |
Other receivables | 48,636 | |
Total assets | 1,074,302,916 | |
Liabilities | ||
Payable for fund shares redeemed | $3,214,915 | |
Accrued management fee | 444,415 | |
Other affiliated payables | 166,681 | |
Other payables and accrued expenses | 20,780 | |
Collateral on securities loaned | 53,714,875 | |
Total liabilities | 57,561,666 | |
Net Assets | $1,016,741,250 | |
Net Assets consist of: | ||
Paid in capital | $762,789,479 | |
Total accumulated earnings (loss) | 253,951,771 | |
Net Assets | $1,016,741,250 | |
Net Asset Value, offering price and redemption price per share ($1,016,741,250 ÷ 10,192,608 shares) | $99.75 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $16,091,289 | |
Income from Fidelity Central Funds (including $4,078 from security lending) | 7,719 | |
Total income | 16,099,008 | |
Expenses | ||
Management fee | $2,582,558 | |
Transfer agent fees | 837,436 | |
Accounting fees | 163,672 | |
Custodian fees and expenses | 3,039 | |
Independent trustees' fees and expenses | 1,837 | |
Registration fees | 36,162 | |
Audit | 17,374 | |
Legal | 835 | |
Miscellaneous | 3,402 | |
Total expenses before reductions | 3,646,315 | |
Expense reductions | (72,817) | |
Total expenses after reductions | 3,573,498 | |
Net investment income (loss) | 12,525,510 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,037,096 | |
Total net realized gain (loss) | 12,037,096 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 111,460,834 | |
Assets and liabilities in foreign currencies | (408) | |
Total change in net unrealized appreciation (depreciation) | 111,460,426 | |
Net gain (loss) | 123,497,522 | |
Net increase (decrease) in net assets resulting from operations | $136,023,032 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,525,510 | $18,646,908 |
Net realized gain (loss) | 12,037,096 | 144,321 |
Change in net unrealized appreciation (depreciation) | 111,460,426 | (44,461,017) |
Net increase (decrease) in net assets resulting from operations | 136,023,032 | (25,669,788) |
Distributions to shareholders | – | (52,597,101) |
Share transactions | ||
Proceeds from sales of shares | 105,441,568 | 248,831,567 |
Reinvestment of distributions | – | 49,416,895 |
Cost of shares redeemed | (121,008,005) | (570,705,990) |
Net increase (decrease) in net assets resulting from share transactions | (15,566,437) | (272,457,528) |
Total increase (decrease) in net assets | 120,456,595 | (350,724,417) |
Net Assets | ||
Beginning of period | 896,284,655 | 1,247,009,072 |
End of period | $1,016,741,250 | $896,284,655 |
Other Information | ||
Shares | ||
Sold | 1,107,630 | 2,920,974 |
Issued in reinvestment of distributions | – | 585,913 |
Redeemed | (1,270,330) | (6,824,868) |
Net increase (decrease) | (162,700) | (3,317,981) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Utilities Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $86.55 | $91.20 | $85.32 | $76.75 | $77.05 | $66.88 |
Income from Investment Operations | ||||||
Net investment income (loss)B | 1.22 | 1.61 | 2.09 | 2.06 | 1.62 | 1.52 |
Net realized and unrealized gain (loss) | 11.98 | (1.81) | 5.99 | 13.35 | 2.56 | 10.44 |
Total from investment operations | 13.20 | (.20) | 8.08 | 15.41 | 4.18 | 11.96 |
Distributions from net investment income | – | (2.12) | (1.94) | (1.37) | (1.29) | (1.77) |
Distributions from net realized gain | – | (2.34) | (.26) | (5.46) | (3.19) | (.02) |
Total distributions | – | (4.45)C | (2.20) | (6.84)C | (4.48) | (1.79) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $99.75 | $86.55 | $91.20 | $85.32 | $76.75 | $77.05 |
Total ReturnE,F | 15.25% | (.05)% | 9.34% | 20.17% | 4.99% | 18.21% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .74%I | .76% | .75% | .78% | .78% | .79% |
Expenses net of fee waivers, if any | .74%I | .76% | .75% | .78% | .78% | .79% |
Expenses net of all reductions | .73%I | .75% | .74% | .76% | .77% | .78% |
Net investment income (loss) | 2.55%I | 1.88% | 2.25% | 2.45% | 2.00% | 2.09% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,016,741 | $896,285 | $1,247,009 | $1,040,763 | $716,979 | $696,138 |
Portfolio turnover rateJ | 40%I | 64% | 65%K | 97%K | 66%K | 70%K |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended August 31, 2021
1. Organization.
Utilities Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 invests primarily in securities of companies whose principal business activities fall within specific industries.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 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.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, capital loss carryforwards and 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 | $239,606,032 |
Gross unrealized depreciation | (7,002,571) |
Net unrealized appreciation (depreciation) | $232,603,461 |
Tax cost | $832,638,679 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(825,347) |
The Fund intends to elect to defer to its next fiscal year $2,075,326 of ordinary losses recognized during the period January 1, 2021 to February 28, 2021.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Utilities Portfolio | 206,501,462 | 191,144,152 |
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 annualized management fee rate was .53% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
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 annualized rates:
% of Average Net Assets | |
Utilities Portfolio | .03 |
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 | |
Utilities Portfolio | $4,221 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Utilities Portfolio | 8,503,756 | 3,821,640 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Utilities Portfolio | 30,732 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Utilities Portfolio | $886 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Utilities Portfolio | $433 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $65,498 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $7,319.
9. Other.
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.
10. 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.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Utilities Portfolio | .74% | |||
Actual | $1,000.00 | $1,152.50 | $4.01 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Utilities Portfolio
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its May 2021 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that, in the past, it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index). In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended September 30, 2020, as shown below.Utilities Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733222457.jpg)
Utilities Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733222894.jpg)
SELUTL-SANN-1021
1.813630.116
Fidelity® Select Portfolios®
Materials Sector
Chemicals Portfolio
Gold Portfolio
Materials Portfolio
Semi-Annual Report
August 31, 2021
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
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Contents
Chemicals Portfolio | |
Gold Portfolio | |
Materials Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Chemicals Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Linde PLC | 20.3 |
Sherwin-Williams Co. | 9.9 |
Olin Corp. | 5.4 |
PPG Industries, Inc. | 5.1 |
Corteva, Inc. | 4.9 |
DuPont de Nemours, Inc. | 4.6 |
Air Products & Chemicals, Inc. | 4.5 |
International Flavors & Fragrances, Inc. | 3.9 |
The Chemours Co. LLC | 3.8 |
Celanese Corp. Class A | 3.7 |
66.1 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Chemicals | 97.6% | |
Trading Companies & Distributors | 1.5% | |
Containers & Packaging | 0.4% | |
All Others* | 0.5% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Chemicals Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
Chemicals - 97.6% | |||
Commodity Chemicals - 15.8% | |||
Dow, Inc. | 248,900 | $15,655,810 | |
LyondellBasell Industries NV Class A | 101,100 | 10,145,385 | |
Olin Corp. | 864,000 | 43,061,760 | |
Orion Engineered Carbons SA (a) | 523,726 | 9,254,238 | |
Trinseo SA | 42,471 | 2,205,519 | |
Tronox Holdings PLC | 1,265,069 | 26,730,908 | |
Westlake Chemical Corp. | 196,756 | 17,186,637 | |
124,240,257 | |||
Diversified Chemicals - 8.2% | |||
Eastman Chemical Co. | 113,600 | 12,854,976 | |
Huntsman Corp. | 825,800 | 21,825,894 | |
The Chemours Co. LLC (b) | 896,459 | 30,040,341 | |
64,721,211 | |||
Fertilizers & Agricultural Chemicals - 10.2% | |||
CF Industries Holdings, Inc. | 335,417 | 15,234,640 | |
Corteva, Inc. | 869,893 | 38,249,195 | |
The Mosaic Co. | 699,000 | 22,493,820 | |
The Scotts Miracle-Gro Co. Class A | 28,500 | 4,469,655 | |
80,447,310 | |||
Industrial Gases - 24.8% | |||
Air Products & Chemicals, Inc. | 132,211 | 35,632,187 | |
Linde PLC | 506,416 | 159,313,411 | |
194,945,598 | |||
Specialty Chemicals - 38.6% | |||
Albemarle Corp. U.S. | 19,800 | 4,687,452 | |
Avient Corp. | 165,000 | 8,594,850 | |
Axalta Coating Systems Ltd. (a) | 454,100 | 13,868,214 | |
Celanese Corp. Class A | 182,300 | 28,912,780 | |
DuPont de Nemours, Inc. | 492,894 | 36,484,014 | |
Ecolab, Inc. | 101,300 | 22,828,968 | |
Element Solutions, Inc. | 911,443 | 20,717,099 | |
H.B. Fuller Co. | 168,500 | 11,385,545 | |
HEXPOL AB (B Shares) | 492,700 | 6,331,855 | |
International Flavors & Fragrances, Inc. | 204,016 | 30,908,424 | |
Livent Corp. (a) | 200 | 4,974 | |
PPG Industries, Inc. | 253,700 | 40,477,835 | |
Quaker Chemical Corp. (b) | 3,900 | 1,010,568 | |
Sherwin-Williams Co. | 255,099 | 77,465,913 | |
303,678,491 | |||
TOTAL CHEMICALS | 768,032,867 | ||
Containers & Packaging - 0.4% | |||
Metal & Glass Containers - 0.4% | |||
O-I Glass, Inc. (a) | 230,500 | 3,487,465 | |
Trading Companies & Distributors - 1.5% | |||
Trading Companies & Distributors - 1.5% | |||
Univar, Inc. (a) | 497,800 | 11,753,058 | |
TOTAL COMMON STOCKS | |||
(Cost $443,138,298) | 783,273,390 | ||
Money Market Funds - 2.0% | |||
Fidelity Cash Central Fund 0.06% (c) | 3,109,655 | 3,110,277 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 12,387,064 | 12,388,302 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,498,579) | 15,498,579 | ||
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $458,636,877) | 798,771,969 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (12,025,758) | ||
NET ASSETS - 100% | $786,746,211 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $322,782 | $53,722,025 | $50,934,530 | $814 | $-- | $-- | $3,110,277 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 23,872,852 | 48,506,610 | 59,991,160 | 36,570 | -- | -- | 12,388,302 | 0.0% |
Total | $24,195,634 | $102,228,635 | $110,925,690 | $37,384 | $-- | $-- | $15,498,579 |
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 August 31, 2021, 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 | $783,273,390 | $783,273,390 | $-- | $-- |
Money Market Funds | 15,498,579 | 15,498,579 | -- | -- |
Total Investments in Securities: | $798,771,969 | $798,771,969 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 70.9% |
Ireland | 20.3% |
United Kingdom | 3.4% |
Bermuda | 1.8% |
Luxembourg | 1.5% |
Netherlands | 1.3% |
Others (Individually Less Than 1%) | 0.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Chemicals Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $11,941,369) — See accompanying schedule: Unaffiliated issuers (cost $443,138,298) | $783,273,390 | |
Fidelity Central Funds (cost $15,498,579) | 15,498,579 | |
Total Investment in Securities (cost $458,636,877) | $798,771,969 | |
Receivable for fund shares sold | 94,816 | |
Dividends receivable | 1,866,749 | |
Distributions receivable from Fidelity Central Funds | 778 | |
Prepaid expenses | 9,144 | |
Other receivables | 178,509 | |
Total assets | 800,921,965 | |
Liabilities | ||
Payable for investments purchased | $319,225 | |
Payable for fund shares redeemed | 813,379 | |
Accrued management fee | 342,826 | |
Other affiliated payables | 136,446 | |
Other payables and accrued expenses | 187,728 | |
Collateral on securities loaned | 12,376,150 | |
Total liabilities | 14,175,754 | |
Net Assets | $786,746,211 | |
Net Assets consist of: | ||
Paid in capital | $444,988,553 | |
Total accumulated earnings (loss) | 341,757,658 | |
Net Assets | $786,746,211 | |
Net Asset Value, offering price and redemption price per share ($786,746,211 ÷ 45,868,424 shares) | $17.15 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $6,895,158 | |
Income from Fidelity Central Funds (including $36,570 from security lending) | 37,384 | |
Total income | 6,932,542 | |
Expenses | ||
Management fee | $2,071,984 | |
Transfer agent fees | 695,477 | |
Accounting fees | 136,947 | |
Custodian fees and expenses | 3,136 | |
Independent trustees' fees and expenses | 1,444 | |
Registration fees | 23,802 | |
Audit | 28,395 | |
Legal | 1,252 | |
Miscellaneous | 3,068 | |
Total expenses before reductions | 2,965,505 | |
Expense reductions | (20,548) | |
Total expenses after reductions | 2,944,957 | |
Net investment income (loss) | 3,987,585 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,051,815 | |
Foreign currency transactions | (6,393) | |
Total net realized gain (loss) | 21,045,422 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 92,032,216 | |
Assets and liabilities in foreign currencies | (7,884) | |
Total change in net unrealized appreciation (depreciation) | 92,024,332 | |
Net gain (loss) | 113,069,754 | |
Net increase (decrease) in net assets resulting from operations | $117,057,339 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,987,585 | $8,353,372 |
Net realized gain (loss) | 21,045,422 | 17,936,269 |
Change in net unrealized appreciation (depreciation) | 92,024,332 | 200,509,119 |
Net increase (decrease) in net assets resulting from operations | 117,057,339 | 226,798,760 |
Distributions to shareholders | – | (7,889,774) |
Share transactions | ||
Proceeds from sales of shares | 52,374,221 | 51,330,497 |
Reinvestment of distributions | – | 7,425,299 |
Cost of shares redeemed | (83,365,556) | (233,425,777) |
Net increase (decrease) in net assets resulting from share transactions | (30,991,335) | (174,669,981) |
Total increase (decrease) in net assets | 86,066,004 | 44,239,005 |
Net Assets | ||
Beginning of period | 700,680,207 | 656,441,202 |
End of period | $786,746,211 | $700,680,207 |
Other Information | ||
Shares | ||
Sold | 3,110,513 | 4,348,003 |
Issued in reinvestment of distributions | – | 515,288 |
Redeemed | (5,014,614) | (19,763,574) |
Net increase (decrease) | (1,904,101) | (14,900,283) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Chemicals Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.67 | $10.47 | $13.57 | $17.34 | $16.24 | $12.32 |
Income from Investment Operations | ||||||
Net investment income (loss)C | .08 | .15 | .15 | .23 | .19 | .18 |
Net realized and unrealized gain (loss) | 2.40 | 4.21 | (2.39) | (2.17) | 2.36 | 4.44 |
Total from investment operations | 2.48 | 4.36 | (2.24) | (1.94) | 2.55 | 4.62 |
Distributions from net investment income | – | (.16) | (.20) | (.21) | (.16) | (.17) |
Distributions from net realized gain | – | – | (.66) | (1.62) | (1.29) | (.53) |
Total distributions | – | (.16) | (.86) | (1.83) | (1.45) | (.70) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $17.15 | $14.67 | $10.47 | $13.57 | $17.34 | $16.24 |
Total ReturnE,F | 16.91% | 41.65% | (17.63)% | (11.10)% | 16.31% | 38.02% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .75%I | .79% | .78% | .77% | .77% | .80% |
Expenses net of fee waivers, if any | .75%I | .79% | .78% | .77% | .77% | .80% |
Expenses net of all reductions | .75%I | .78% | .77% | .76% | .77% | .79% |
Net investment income (loss) | 1.01%I | 1.28% | 1.21% | 1.50% | 1.12% | 1.26% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $786,746 | $700,680 | $656,441 | $1,153,379 | $1,790,221 | $1,626,642 |
Portfolio turnover rateJ | 16%I | 50% | 77% | 62% | 62% | 85% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Chemicals Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 invests primarily in securities of companies whose principal business activities fall within specific industries.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 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. 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.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Chemicals Portfolio | $167,316 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred Trustees compensation, capital loss carryforwards and 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 | $341,210,792 |
Gross unrealized depreciation | (1,769,973) |
Net unrealized appreciation (depreciation) | $339,440,819 |
Tax cost | $459,331,150 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(6,780,235) |
Long-term | (15,783,649) |
Total capital loss carryforward | $(22,563,884) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Chemicals Portfolio | 62,857,762 | 90,457,031 |
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 annualized management fee rate was .53% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
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 annualized rates:
% of Average Net Assets | |
Chemicals Portfolio | .03 |
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 | |
Chemicals Portfolio | $1,484 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Chemicals Portfolio | 2,929,772 | 3,715,264 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Chemicals Portfolio | $697 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Chemicals Portfolio | $590 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $14,560 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $5,988.
9. Other.
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.
10. 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.
Gold Portfolio
Investment Summary (Unaudited)
The information in the following tables is based on the consolidated investments of the Fund.Top Ten Holdings as of August 31, 2021
(excluding repurchase agreements) | % of fund's net assets |
Newmont Corp. | 14.3 |
Barrick Gold Corp. (Canada) | 11.0 |
Franco-Nevada Corp. | 9.6 |
Wheaton Precious Metals Corp. | 7.4 |
Agnico Eagle Mines Ltd. (Canada) | 5.5 |
Kirkland Lake Gold Ltd. | 4.6 |
Zijin Mining Group Co. Ltd. (H Shares) | 3.5 |
Northern Star Resources Ltd. | 3.3 |
Kinross Gold Corp. | 2.8 |
Royal Gold, Inc. | 2.7 |
64.7 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Gold | 92.7% | |
Diversified Metals & Mining | 2.4% | |
Silver | 1.9% | |
Precious Metals & Minerals | 0.9% | |
Environmental & Facility Services | 0.4% | |
All Others*,** | 1.0% |
* Includes gold bullion and/or silver bullion.
** Includes Short-Term investments and Net Other Assets (Liabilities).
Geographic Diversification (% of fund's net assets)
As of August 31, 2021 | ||
Canada | 70.0% | |
United States of America* | 19.9% | |
Australia | 6.2% | |
China | 3.5% | |
United Kingdom | 0.4% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable.
Gold Portfolio
Consolidated Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
Australia - 6.2% | |||
Metals & Mining - 6.2% | |||
Gold - 6.2% | |||
Evolution Mining Ltd. | 15,000,000 | $42,905,408 | |
Newcrest Mining Ltd. | 500,000 | 9,049,274 | |
Northern Star Resources Ltd. | 8,500,000 | 60,689,388 | |
112,644,070 | |||
Canada - 70.0% | |||
Commercial Services & Supplies - 0.4% | |||
Environmental & Facility Services - 0.4% | |||
Alexco Resource Corp. (a)(b) | 4,000,000 | 7,070,107 | |
Metals & Mining - 69.6% | |||
Diversified Metals & Mining - 2.4% | |||
BeMetals Corp. (a) | 2,000,000 | 475,568 | |
New Pacific Metals Corp. (a)(b) | 4,700,000 | 18,402,885 | |
Triple Flag Precious Metals Corp. | 1,000,000 | 10,730,000 | |
Western Copper & Gold Corp. (c) | 500,000 | 759,719 | |
Western Copper & Gold Corp. (TSX) (a)(b)(c) | 7,500,000 | 12,661,990 | |
43,030,162 | |||
Gold - 65.6% | |||
Agnico Eagle Mines Ltd. (Canada) (b) | 1,750,000 | 100,701,462 | |
Alamos Gold, Inc. | 3,000,000 | 23,683,272 | |
Artemis Gold, Inc. (a) | 2,000,000 | 8,766,298 | |
Ascot Resources Ltd. (a) | 10,000,000 | 9,352,832 | |
B2Gold Corp. | 7,000,000 | 27,075,655 | |
Barrick Gold Corp. (Canada) (b) | 10,000,000 | 201,006,618 | |
Bonterra Resources, Inc. (a)(c) | 5,342,600 | 5,208,574 | |
Franco-Nevada Corp. | 1,200,000 | 175,056,474 | |
Gold Standard Ventures Corp. (a)(b)(c) | 25,000,000 | 12,285,499 | |
i-80 Gold Corp. (a)(b)(c) | 10,000,000 | 21,638,331 | |
i-80 Gold Corp. warrants 9/30/22 (a) | 625,000 | 101,265 | |
Kinross Gold Corp. | 8,500,000 | 51,135,418 | |
Kirkland Lake Gold Ltd. | 2,100,000 | 83,740,340 | |
Lundin Gold, Inc. (a)(b) | 3,500,000 | 31,847,184 | |
Maple Gold Mines Ltd. (a)(b)(c) | 20,000,000 | 5,389,767 | |
Marathon Gold Corp. (a) | 5,284,700 | 12,817,487 | |
Novagold Resources, Inc. (a) | 5,000,000 | 36,103,515 | |
OceanaGold Corp. (a) | 10,000,000 | 18,705,663 | |
Orla Mining Ltd. (a)(c) | 12,368,300 | 48,722,269 | |
Osisko Gold Royalties Ltd. | 2,000,000 | 24,428,328 | |
Osisko Mining, Inc. (a) | 4,000,000 | 9,384,536 | |
Pretium Resources, Inc. (a) | 2,000,000 | 20,275,037 | |
Pure Gold Mining, Inc. (a)(b) | 12,000,000 | 10,557,603 | |
Seabridge Gold, Inc. (a) | 1,500,000 | 26,976,578 | |
Skeena Resources Ltd. (a) | 2,000,000 | 22,954,068 | |
Torex Gold Resources, Inc. (a) | 1,000,000 | 11,175,841 | |
Victoria Gold Corp. (a)(b) | 1,707,500 | 20,368,466 | |
Wesdome Gold Mines, Inc. (a) | 3,000,000 | 29,508,976 | |
Wheaton Precious Metals Corp. (b) | 3,000,000 | 135,203,900 | |
Yamana Gold, Inc. | 3,000,000 | 13,244,561 | |
1,197,415,817 | |||
Precious Metals & Minerals - 0.9% | |||
SilverCrest Metals, Inc. (a) | 2,000,000 | 15,979,075 | |
Silver - 0.7% | |||
Pan American Silver Corp. (b) | 500,000 | 12,970,000 | |
TOTAL METALS & MINING | 1,269,395,054 | ||
TOTAL CANADA | 1,276,465,161 | ||
China - 3.5% | |||
Metals & Mining - 3.5% | |||
Gold - 3.5% | |||
Zijin Mining Group Co. Ltd. (H Shares) (b) | 45,000,000 | 64,108,416 | |
United Kingdom - 0.4% | |||
Metals & Mining - 0.4% | |||
Gold - 0.4% | |||
Solgold PLC (a) | 20,000,000 | 8,111,615 | |
United States of America - 18.2% | |||
Metals & Mining - 18.2% | |||
Gold - 17.0% | |||
Newmont Corp. | 4,500,000 | 260,955,001 | |
Royal Gold, Inc. | 450,000 | 50,098,500 | |
311,053,501 | |||
Silver - 1.2% | |||
Gatos Silver, Inc. (b) | 1,500,000 | 21,510,000 | |
TOTAL METALS & MINING | 332,563,501 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,218,791,305) | 1,793,892,763 | ||
Troy Ounces | |||
Commodities - 0.7% | |||
Gold Bullion(a) | |||
(Cost $6,051,546) | 6,980 | 12,666,466 | |
Shares | |||
Money Market Funds - 4.6% | |||
Fidelity Cash Central Fund 0.06% (d) | 19,299,617 | 19,303,477 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 65,223,556 | 65,230,078 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $84,533,555) | 84,533,555 | ||
TOTAL INVESTMENT IN SECURITIES - 103.6% | |||
(Cost $1,309,376,406) | 1,891,092,784 | ||
NET OTHER ASSETS (LIABILITIES) - (3.6)% | (66,139,914) | ||
NET ASSETS - 100% | $1,824,952,870 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $17,142,312 | $238,886,211 | $236,725,046 | $2,942 | $-- | $-- | $19,303,477 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 1,230,395 | 291,273,480 | 227,273,797 | 169,267 | -- | -- | 65,230,078 | 0.2% |
Total | $18,372,707 | $530,159,691 | $463,998,843 | $172,209 | $-- | $-- | $84,533,555 |
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.
Consolidated Subsidiary
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period |
Fidelity Select Cayman Gold Ltd. | $12,094,884 | $-- | $-- | $-- | $-- | $592,579 | $12,687,463 |
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 |
Battle North Gold Corp. | $11,931,045 | $-- | $18,949,829 | $-- | $5,997,126 | $1,021,658 | $-- |
Bonterra Resources, Inc. | -- | 4,388,009 | -- | -- | -- | -- | -- |
Bonterra Resources, Inc. | -- | 136,916 | -- | -- | -- | 683,649 | 5,208,574 |
Gold Standard Ventures Corp. | 14,928,498 | 1,424,335 | 376,999 | -- | (68,120) | (3,622,215) | 12,285,499 |
i-80 Gold Corp. | -- | 15,180,925 | -- | -- | -- | 1,306,987 | 21,638,331 |
Maple Gold Mines Ltd. | 4,243,281 | -- | -- | -- | -- | 1,146,486 | 5,389,767 |
Orla Mining Ltd. | 41,395,568 | 1,449,917 | -- | -- | -- | 5,876,784 | 48,722,269 |
Premier Gold Mines Ltd. | 27,251,297 | -- | 4,523,160 | 8,060,976 | 412,961 | (11,170,783) | -- |
Western Copper & Gold Corp. | -- | 888,853 | -- | -- | -- | (129,134) | 759,719 |
Western Copper & Gold Corp. (TSX) | 11,659,180 | 648,417 | 308,568 | -- | 92,622 | 570,339 | 12,661,990 |
Total | $111,408,869 | $24,117,372 | $24,158,556 | $8,060,976 | $6,434,589 | $(4,316,229) | $106,666,149 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 Consolidated Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,793,892,763 | $1,793,031,779 | $860,984 | $-- |
Commodities | 12,666,466 | 12,666,466 | -- | -- |
Money Market Funds | 84,533,555 | 84,533,555 | -- | -- |
Total Investments in Securities: | $1,891,092,784 | $1,890,231,800 | $860,984 | $-- |
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio
Consolidated Financial Statements
Consolidated Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $61,955,374) — See accompanying schedule: Unaffiliated issuers (cost $1,137,068,257) | $1,687,226,614 | |
Fidelity Central Funds (cost $84,533,555) | 84,533,555 | |
Commodities (cost $6,051,546) | 12,666,466 | |
Other affiliated issuers (cost $81,723,048) | 106,666,149 | |
Total Investment in Securities (cost $1,309,376,406) | $1,891,092,784 | |
Cash | 21,726 | |
Foreign currency held at value (cost $125,504) | 126,015 | |
Receivable for fund shares sold | 1,666,362 | |
Dividends receivable | 4,108,038 | |
Distributions receivable from Fidelity Central Funds | 38,182 | |
Prepaid expenses | 8,464 | |
Other receivables | 245,079 | |
Total assets | 1,897,306,650 | |
Liabilities | ||
Payable for investments purchased | $4,178,733 | |
Payable for fund shares redeemed | 1,510,289 | |
Accrued management fee | 799,657 | |
Distribution and service plan fees payable | 69,704 | |
Other affiliated payables | 338,187 | |
Other payables and accrued expenses | 226,426 | |
Collateral on securities loaned | 65,230,784 | |
Total liabilities | 72,353,780 | |
Net Assets | $1,824,952,870 | |
Net Assets consist of: | ||
Paid in capital | $2,685,789,059 | |
Total accumulated earnings (loss) | (860,836,189) | |
Net Assets | $1,824,952,870 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($88,862,792 ÷ 3,392,925 shares)(a) | $26.19 | |
Maximum offering price per share (100/94.25 of $26.19) | $27.79 | |
Class M: | ||
Net Asset Value and redemption price per share ($26,980,069 ÷ 1,057,023 shares)(a) | $25.52 | |
Maximum offering price per share (100/96.50 of $25.52) | $26.45 | |
Class C: | ||
Net Asset Value and offering price per share ($47,494,015 ÷ 1,971,010 shares)(a) | $24.10 | |
Gold: | ||
Net Asset Value, offering price and redemption price per share ($1,398,995,849 ÷ 51,663,014 shares) | $27.08 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($150,846,219 ÷ 5,570,432 shares) | $27.08 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($111,773,926 ÷ 4,122,959 shares) | $27.11 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the consolidated financial statements.
Consolidated Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $17,111,792 | |
Non-Cash dividends (including $8,060,976 earned from other affiliated issuers) | 8,060,976 | |
Income from Fidelity Central Funds (including $169,267 from security lending) | 172,209 | |
Total income | 25,344,977 | |
Expenses | ||
Management fee | $5,000,059 | |
Transfer agent fees | 1,631,577 | |
Distribution and service plan fees | 455,359 | |
Accounting fees | 420,691 | |
Custodian fees and expenses | 43,246 | |
Independent trustees' fees and expenses | 3,680 | |
Registration fees | 80,633 | |
Audit | 30,744 | |
Legal | 792 | |
Interest | 497 | |
Miscellaneous | 6,760 | |
Total expenses before reductions | 7,674,038 | |
Expense reductions | (135,281) | |
Total expenses after reductions | 7,538,757 | |
Net investment income (loss) | 17,806,220 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investments: | ||
Unaffiliated issuers | 63,770,449 | |
Affiliated issuers | 6,434,589 | |
Foreign currency transactions | 81,937 | |
Total net realized gain (loss) | 70,286,975 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investments: | ||
Investments | 55,605,128 | |
Affiliated issuers | (4,316,229) | |
Assets and liabilities in foreign currencies | 2,671 | |
Commodities | 593,439 | |
Total change in net unrealized appreciation (depreciation) | 51,885,009 | |
Net gain (loss) | 122,171,984 | |
Net increase (decrease) in net assets resulting from operations | $139,978,204 |
See accompanying notes which are an integral part of the consolidated financial statements.
Consolidated Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $17,806,220 | $3,205,459 |
Net realized gain (loss) | 70,286,975 | 211,518,523 |
Change in net unrealized appreciation (depreciation) | 51,885,009 | 78,075,976 |
Net increase (decrease) in net assets resulting from operations | 139,978,204 | 292,799,958 |
Distributions to shareholders | – | (91,091,449) |
Share transactions - net increase (decrease) | (36,093,782) | (120,585,130) |
Total increase (decrease) in net assets | 103,884,422 | 81,123,379 |
Net Assets | ||
Beginning of period | 1,721,068,448 | 1,639,945,069 |
End of period | $1,824,952,870 | $1,721,068,448 |
See accompanying notes which are an integral part of the consolidated financial statements.
Consolidated Financial Highlights
Gold Portfolio Class A
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.15 | $21.67 | $18.52 | $18.30 | $20.54 | $17.70 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .22C | (.04) | (.01)D | (.03) | (.12) | (.16) |
Net realized and unrealized gain (loss) | 1.82 | 3.74 | 3.20 | .25 | (2.09) | 3.59 |
Total from investment operations | 2.04 | 3.70 | 3.19 | .22 | (2.21) | 3.43 |
Distributions from net investment income | – | (1.22) | (.01) | – | – | – |
Distributions from net realized gain | – | – | (.03) | – | (.03) | (.60) |
Total distributions | – | (1.22) | (.04) | – | (.03) | (.60) |
Redemption fees added to paid in capitalB | – | – | – | – | – | .01 |
Net asset value, end of period | $26.19 | $24.15 | $21.67 | $18.52 | $18.30 | $20.54 |
Total ReturnE,F,G | 8.45% | 16.59% | 17.23% | 1.20% | (10.77)% | 19.97% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.07%J | 1.08% | 1.13% | 1.19% | 1.18% | 1.19% |
Expenses net of fee waivers, if any | 1.07%J | 1.08% | 1.13% | 1.18% | 1.16% | 1.16% |
Expenses net of all reductions | 1.06%J | 1.07% | 1.12% | 1.18% | 1.16% | 1.16% |
Net investment income (loss) | 1.61%C,J | (.12)% | (.05)%D | (.15)% | (.58)% | (.71)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $88,863 | $82,989 | $64,971 | $50,479 | $61,703 | $83,589 |
Portfolio turnover rateK | 38%J | 46% | 56% | 37% | 13% | 28% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .76%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.26) %.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio Class M
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.57 | $21.16 | $18.11 | $17.94 | $20.19 | $17.37 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .18C | (.12) | (.07)D | (.07) | (.17) | (.22) |
Net realized and unrealized gain (loss) | 1.77 | 3.67 | 3.12 | .24 | (2.05) | 3.54 |
Total from investment operations | 1.95 | 3.55 | 3.05 | .17 | (2.22) | 3.32 |
Distributions from net investment income | – | (1.14) | – | – | – | – |
Distributions from net realized gain | – | – | – | – | (.03) | (.51) |
Total distributions | – | (1.14) | – | – | (.03) | (.51) |
Redemption fees added to paid in capitalB | – | – | – | – | – | .01 |
Net asset value, end of period | $25.52 | $23.57 | $21.16 | $18.11 | $17.94 | $20.19 |
Total ReturnE,F,G | 8.27% | 16.28% | 16.84% | .95% | (11.04)% | 19.62% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.36%J | 1.37% | 1.42% | 1.48% | 1.48% | 1.49% |
Expenses net of fee waivers, if any | 1.36%J | 1.37% | 1.42% | 1.46% | 1.47% | 1.46% |
Expenses net of all reductions | 1.35%J | 1.36% | 1.41% | 1.46% | 1.47% | 1.46% |
Net investment income (loss) | 1.32%C,J | (.42)% | (.34)%D | (.43)% | (.88)% | (1.01)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $26,980 | $24,535 | $19,620 | $17,401 | $19,355 | $25,170 |
Portfolio turnover rateK | 38%J | 46% | 56% | 37% | 13% | 28% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.11 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .47%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.56) %.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio Class C
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $22.30 | $20.07 | $17.24 | $17.15 | $19.36 | $16.68 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .11C | (.22) | (.14)D | (.13) | (.24) | (.29) |
Net realized and unrealized gain (loss) | 1.69 | 3.49 | 2.97 | .22 | (1.95) | 3.42 |
Total from investment operations | 1.80 | 3.27 | 2.83 | .09 | (2.19) | 3.13 |
Distributions from net investment income | – | (1.04) | – | – | – | – |
Distributions from net realized gain | – | – | – | – | (.02) | (.45) |
Total distributions | – | (1.04) | – | – | (.02) | (.45) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $24.10 | $22.30 | $20.07 | $17.24 | $17.15 | $19.36 |
Total ReturnF,G,H | 8.07% | 15.81% | 16.42% | .52% | (11.35)% | 19.19% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.78%K | 1.78% | 1.80% | 1.84% | 1.85% | 1.88% |
Expenses net of fee waivers, if any | 1.78%K | 1.78% | 1.80% | 1.83% | 1.83% | 1.85% |
Expenses net of all reductions | 1.76%K | 1.77% | 1.79% | 1.83% | 1.83% | 1.84% |
Net investment income (loss) | .90%C,K | (.83)% | (.72)%D | (.80)% | (1.25)% | (1.40)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $47,494 | $51,195 | $52,375 | $67,760 | $92,724 | $101,215 |
Portfolio turnover rateL | 38%K | 46% | 56% | 37% | 13% | 28% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.11 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .05%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.94) %.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.93 | $22.33 | $19.07 | $18.78 | $21.02 | $18.12 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .27C | .06 | .06D | .03 | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.88 | 3.84 | 3.30 | .26 | (2.14) | 3.66 |
Total from investment operations | 2.15 | 3.90 | 3.36 | .29 | (2.19) | 3.57 |
Distributions from net investment income | – | (1.30) | (.06) | – | – | – |
Distributions from net realized gain | – | – | (.03) | – | (.05) | (.68) |
Total distributions | – | (1.30) | (.10)E | – | (.05) | (.68) |
Redemption fees added to paid in capitalB | – | – | – | – | – | .01 |
Net asset value, end of period | $27.08 | $24.93 | $22.33 | $19.07 | $18.78 | $21.02 |
Total ReturnF,G | 8.62% | 16.96% | 17.60% | 1.54% | (10.47)% | 20.38% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .76%J | .76% | .79% | .86% | .86% | .87% |
Expenses net of fee waivers, if any | .76%J | .76% | .79% | .85% | .85% | .84% |
Expenses net of all reductions | .75%J | .75% | .78% | .85% | .84% | .84% |
Net investment income (loss) | 1.92%C,J | .19% | .29%D | .18% | (.26)% | (.39)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,398,996 | $1,319,440 | $1,292,204 | $1,035,697 | $1,011,412 | $1,271,458 |
Portfolio turnover rateK | 38%J | 46% | 56% | 37% | 13% | 28% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.07%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .07%.
E Total distributions per share do not sum due to rounding.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio Class I
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $24.93 | $22.33 | $19.07 | $18.78 | $21.02 | $18.13 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .27C | .05 | .06D | .04 | (.05) | (.09) |
Net realized and unrealized gain (loss) | 1.88 | 3.85 | 3.30 | .25 | (2.14) | 3.67 |
Total from investment operations | 2.15 | 3.90 | 3.36 | .29 | (2.19) | 3.58 |
Distributions from net investment income | – | (1.30) | (.07) | – | – | – |
Distributions from net realized gain | – | – | (.03) | – | (.05) | (.70) |
Total distributions | – | (1.30) | (.10) | – | (.05) | (.70) |
Redemption fees added to paid in capitalB | – | – | – | – | – | .01 |
Net asset value, end of period | $27.08 | $24.93 | $22.33 | $19.07 | $18.78 | $21.02 |
Total ReturnE,F | 8.62% | 16.96% | 17.60% | 1.54% | (10.47)% | 20.41% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .76%I | .77% | .79% | .84% | .85% | .87% |
Expenses net of fee waivers, if any | .76%I | .77% | .79% | .82% | .83% | .84% |
Expenses net of all reductions | .75%I | .76% | .77% | .82% | .83% | .84% |
Net investment income (loss) | 1.91%C,I | .18% | .30%D | .21% | (.24)% | (.39)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $150,846 | $137,617 | $115,699 | $84,956 | $61,677 | $58,673 |
Portfolio turnover rateJ | 38%I | 46% | 56% | 37% | 13% | 28% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.07%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .08%.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Gold Portfolio Class Z
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $24.94 | $22.34 | $19.08 | $16.62 |
Income from Investment Operations | ||||
Net investment income (loss)C | .29D | .09 | .10E | .07 |
Net realized and unrealized gain (loss) | 1.88 | 3.85 | 3.29 | 2.39 |
Total from investment operations | 2.17 | 3.94 | 3.39 | 2.46 |
Distributions from net investment income | – | (1.34) | (.10) | – |
Distributions from net realized gain | – | – | (.03) | – |
Total distributions | – | (1.34) | (.13) | – |
Redemption fees added to paid in capitalC | – | – | – | – |
Net asset value, end of period | $27.11 | $24.94 | $22.34 | $19.08 |
Total ReturnF,G | 8.70% | 17.12% | 17.75% | 14.80% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .63%J | .64% | .65% | .68%J |
Expenses net of fee waivers, if any | .63%J | .64% | .64% | .68%J |
Expenses net of all reductions | .62%J | .62% | .63% | .67%J |
Net investment income (loss) | 2.05%D,J | .32% | .44%E | .97%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $111,774 | $105,293 | $95,076 | $3,037 |
Portfolio turnover rateK | 38%J | 46% | 56% | 37% |
A For the year ended February 29.
B For the period October 2, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.12 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.20%.
E Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .22%.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the consolidated financial statements.
Notes to Consolidated Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Gold Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (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 invests primarily in securities of companies whose principal business activities fall within specific industries. The Fund offers Class A, Class M, Class C, Gold, 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. Effective June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions. Prior to June 21, 2021, Class C shares automatically converted to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Consolidated Subsidiary.
The Funds included in the table below hold certain commodity-related investments through a wholly owned subsidiary (the "Subsidiary"). As of period end, the investments in the Subsidiaries, were as follows:
Subsidiary Name | $ Amount | % of Fund's Net Assets | |
Gold Portfolio | Fidelity Select Gold Cayman Ltd. | 12,687,463 | .7 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
3. Investments in Fidelity Central Funds.
Funds may 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 Consolidated Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
4. 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 consolidated 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 Fund's Consolidated Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 commodities are valued at their last traded price at 4:00 p.m. Eastern time each business day and are categorized as Level 1 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 August 31, 2021 is included at the end of the Fund's Consolidated Schedule of Investments.
Foreign Currency. Certain 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 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations in "Non-cash dividends" and the impact of these dividends is presented in the Financial Highlights. 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Gold Portfolio | $154,707 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary's income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
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 consolidated financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), controlled foreign corporations, deferred Trustees compensation, capital loss carryforwards and 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 on an unconsolidated basis were as follows:
Gross unrealized appreciation | $613,556,368 |
Gross unrealized depreciation | (109,648,358) |
Net unrealized appreciation (depreciation) | $503,908,010 |
Tax cost | $1,387,184,774 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(169,623,784) |
Long-term | (1,213,294,892) |
Total capital loss carryforward | $(1,382,918,676) |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Gold Portfolio | 349,691,326 | 371,408,442 |
6. 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 annualized management fee rate was .53% of the Fund's average net assets.
The investment adviser, either through itself or through an affiliate provides investment management related services to the Subsidiary. The Subsidiary does not pay the investment adviser a fee for these services. Under the management contract with the subsidiary, the investment adviser pays all other expenses of the Subsidiary, except custodian fees.
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% | $114,164 | $3,510 |
Class M | .25% | .25% | 70,912 | – |
Class C | .75% | .25% | 270,283 | 22,261 |
$455,359 | $25,771 |
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 | $26,435 |
Class M | 3,103 |
Class C(a) | 2,374 |
$31,912 |
(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.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $107,773 | .24 |
Class M | 38,710 | .27 |
Class C | 51,208 | .19 |
Gold | 1,271,308 | .17 |
Class I | 137,606 | .18 |
Class Z | 24,972 | .04 |
$1,631,577 |
(a) Annualized
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 annualized rates:
% of Average Net Assets | |
Gold Portfolio | .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 Consolidated Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Gold Portfolio | $1,545 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Gold Portfolio | Borrower | $7,027,500 | .29% | $456 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Gold Portfolio | 664,854 | 10,695,205 |
7. 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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Gold Portfolio | $1,794 |
8. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Gold Portfolio | $17,547 | $– | $– |
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Gold Portfolio | $2,574,000 | .57% | $41 |
10. 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 expenses. This amount totaled $119,645 for the period. 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 $304.
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 $15,332.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Gold Portfolio | ||
Distributions to shareholders | ||
Class A | $– | $4,010,639 |
Class M | – | 1,115,063 |
Class C | – | 2,524,863 |
Gold | – | 70,600,050 |
Class I | – | 7,213,998 |
Class Z | – | 5,626,836 |
Total | $– | $91,091,449 |
12. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended August 31, 2021 | Year ended February 28, 2021 | Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Gold Portfolio | ||||
Class A | ||||
Shares sold | 634,175 | 1,602,411 | $17,613,541 | $46,307,419 |
Reinvestment of distributions | – | 147,580 | – | 3,943,292 |
Shares redeemed | (677,849) | (1,311,852) | (18,361,660) | (36,279,681) |
Net increase (decrease) | (43,674) | 438,139 | $(748,119) | $13,971,030 |
Class M | ||||
Shares sold | 132,410 | 473,868 | $3,611,736 | $13,282,274 |
Reinvestment of distributions | – | 42,585 | – | 1,111,652 |
Shares redeemed | (116,421) | (402,439) | (3,073,207) | (10,890,832) |
Net increase (decrease) | 15,989 | 114,014 | $538,529 | $3,503,094 |
Class C | ||||
Shares sold | 102,714 | 543,437 | $2,610,037 | $14,501,134 |
Reinvestment of distributions | – | 100,321 | – | 2,470,926 |
Shares redeemed | (427,876) | (956,996) | (10,711,557) | (23,855,420) |
Net increase (decrease) | (325,162) | (313,238) | $(8,101,520) | $(6,883,360) |
Gold | ||||
Shares sold | 8,633,003 | 34,425,719 | $245,763,922 | $1,017,936,027 |
Reinvestment of distributions | – | 2,470,762 | – | 67,701,953 |
Shares redeemed | (9,900,250) | (41,839,156) | (272,250,302) | (1,230,854,903) |
Net increase (decrease) | (1,267,247) | (4,942,675) | $(26,486,380) | $(145,216,923) |
Class I | ||||
Shares sold | 703,787 | 2,639,229 | $19,883,937 | $75,390,235 |
Reinvestment of distributions | – | 255,414 | – | 7,033,514 |
Shares redeemed | (653,343) | (2,555,501) | (18,374,866) | (72,639,886) |
Net increase (decrease) | 50,444 | 339,142 | $1,509,071 | $9,783,863 |
Class Z | ||||
Shares sold | 816,022 | 3,622,415 | $23,027,854 | $106,573,896 |
Reinvestment of distributions | – | 201,508 | – | 5,545,241 |
Shares redeemed | (914,623) | (3,857,752) | (25,833,217) | (107,861,971) |
Net increase (decrease) | (98,601) | (33,829) | $(2,805,363) | $4,257,166 |
13. Other.
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.
14. 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.
Materials Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Linde PLC | 11.0 |
Sherwin-Williams Co. | 5.3 |
Freeport-McMoRan, Inc. | 4.9 |
Air Products & Chemicals, Inc. | 4.2 |
Ecolab, Inc. | 4.1 |
Newmont Corp. | 3.6 |
Tronox Holdings PLC | 3.5 |
Olin Corp. | 3.5 |
Martin Marietta Materials, Inc. | 3.2 |
International Flavors & Fragrances, Inc. | 3.1 |
46.4 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Chemicals | 60.6% | |
Metals & Mining | 21.8% | |
Containers & Packaging | 8.4% | |
Construction Materials | 7.0% | |
Paper & Forest Products | 1.4% | |
All Others* | 0.8% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Materials Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value | ||
Chemicals - 60.6% | |||
Commodity Chemicals - 9.2% | |||
LyondellBasell Industries NV Class A | 299,400 | $30,044,790 | |
Olin Corp. | 947,700 | 47,233,368 | |
Tronox Holdings PLC | 2,278,803 | 48,151,107 | |
125,429,265 | |||
Diversified Chemicals - 1.4% | |||
Eastman Chemical Co. | 81,500 | 9,222,540 | |
Huntsman Corp. | 384,600 | 10,164,978 | |
19,387,518 | |||
Fertilizers & Agricultural Chemicals - 7.3% | |||
CF Industries Holdings, Inc. | 272,100 | 12,358,782 | |
Corteva, Inc. | 775,911 | 34,116,807 | |
FMC Corp. | 166,417 | 15,581,624 | |
Nutrien Ltd. | 455,600 | 27,697,476 | |
The Mosaic Co. | 227,600 | 7,324,168 | |
The Scotts Miracle-Gro Co. Class A | 20,500 | 3,215,015 | |
100,293,872 | |||
Industrial Gases - 15.2% | |||
Air Products & Chemicals, Inc. | 211,700 | 57,055,267 | |
Linde PLC | 481,986 | 151,627,974 | |
208,683,241 | |||
Specialty Chemicals - 27.5% | |||
Albemarle Corp. U.S. | 144,500 | 34,208,930 | |
Ashland Global Holdings, Inc. | 71,100 | 6,477,921 | |
Balchem Corp. | 137,900 | 19,363,918 | |
Corbion NV | 42,200 | 2,268,155 | |
Diversey Holdings Ltd. (a) | 305,900 | 5,344,073 | |
DuPont de Nemours, Inc. | 379,617 | 28,099,250 | |
Ecolab, Inc. | 250,910 | 56,545,078 | |
Element Solutions, Inc. | 1,076,300 | 24,464,299 | |
Ingevity Corp. (a) | 34,100 | 2,741,299 | |
Innospec, Inc. | 106,600 | 9,977,760 | |
International Flavors & Fragrances, Inc. | 278,215 | 42,149,573 | |
Livent Corp. (a)(b) | 461,597 | 11,479,917 | |
PPG Industries, Inc. | 221,200 | 35,292,460 | |
RPM International, Inc. | 151,600 | 12,475,164 | |
Sherwin-Williams Co. | 239,900 | 72,850,433 | |
Stepan Co. | 20,400 | 2,398,224 | |
Wacker Chemie AG | 66,300 | 11,691,674 | |
377,828,128 | |||
TOTAL CHEMICALS | 831,622,024 | ||
Construction Materials - 7.0% | |||
Construction Materials - 7.0% | |||
Martin Marietta Materials, Inc. | 113,200 | 43,157,500 | |
Summit Materials, Inc. (a) | 302,000 | 10,168,340 | |
Vulcan Materials Co. | 226,600 | 42,131,738 | |
95,457,578 | |||
Containers & Packaging - 8.4% | |||
Metal & Glass Containers - 5.5% | |||
Aptargroup, Inc. | 114,600 | 15,448,080 | |
Ball Corp. | 351,500 | 33,729,940 | |
Crown Holdings, Inc. | 238,459 | 26,180,414 | |
75,358,434 | |||
Paper Packaging - 2.9% | |||
Avery Dennison Corp. | 121,100 | 27,294,729 | |
Packaging Corp. of America | 82,500 | 12,515,250 | |
39,809,979 | |||
TOTAL CONTAINERS & PACKAGING | 115,168,413 | ||
Metals & Mining - 21.8% | |||
Aluminum - 0.7% | |||
Alcoa Corp. (a) | 144,400 | 6,407,028 | |
Kaiser Aluminum Corp. | 29,600 | 3,737,296 | |
10,144,324 | |||
Copper - 8.3% | |||
First Quantum Minerals Ltd. (b) | 856,600 | 17,842,863 | |
Freeport-McMoRan, Inc. | 1,866,100 | 67,907,379 | |
Lundin Mining Corp. | 3,505,500 | 28,340,744 | |
114,090,986 | |||
Diversified Metals & Mining - 0.4% | |||
MMC Norilsk Nickel PJSC sponsored ADR | 168,100 | 5,522,085 | |
Gold - 4.3% | |||
Newmont Corp. | 853,200 | 49,477,068 | |
Royal Gold, Inc. | 88,300 | 9,830,439 | |
59,307,507 | |||
Steel - 8.1% | |||
Allegheny Technologies, Inc. (a) | 142,000 | 2,536,120 | |
Cleveland-Cliffs, Inc. (a) | 734,200 | 17,231,674 | |
Commercial Metals Co. | 513,500 | 16,750,370 | |
Nucor Corp. | 324,500 | 38,148,220 | |
Reliance Steel & Aluminum Co. | 128,900 | 19,340,156 | |
Steel Dynamics, Inc. | 246,700 | 16,649,783 | |
110,656,323 | |||
TOTAL METALS & MINING | 299,721,225 | ||
Paper & Forest Products - 1.4% | |||
Forest Products - 1.4% | |||
Louisiana-Pacific Corp. | 212,200 | 13,461,968 | |
West Fraser Timber Co. Ltd. | 81,500 | 6,293,132 | |
19,755,100 | |||
TOTAL COMMON STOCKS | |||
(Cost $947,192,058) | 1,361,724,340 | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 0.06% (c) | 10,362,847 | 10,364,920 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 24,272,403 | 24,274,830 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $34,639,750) | 34,639,750 | ||
TOTAL INVESTMENT IN SECURITIES - 101.7% | |||
(Cost $981,831,808) | 1,396,364,090 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (23,705,022) | ||
NET ASSETS - 100% | $1,372,659,068 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $13,784,731 | $272,140,164 | $275,559,975 | $3,277 | $-- | $-- | $10,364,920 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 6,640,430 | 97,630,743 | 79,996,343 | 6,112 | -- | -- | 24,274,830 | 0.1% |
Total | $20,425,161 | $369,770,907 | $355,556,318 | $9,389 | $-- | $-- | $34,639,750 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,361,724,340 | $1,361,724,340 | $-- | $-- |
Money Market Funds | 34,639,750 | 34,639,750 | -- | -- |
Total Investments in Securities: | $1,396,364,090 | $1,396,364,090 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 75.7% |
Ireland | 11.0% |
Canada | 5.8% |
United Kingdom | 3.5% |
Netherlands | 2.4% |
Others (Individually Less Than 1%) | 1.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $22,430,020) — See accompanying schedule: Unaffiliated issuers (cost $947,192,058) | $1,361,724,340 | |
Fidelity Central Funds (cost $34,639,750) | 34,639,750 | |
Total Investment in Securities (cost $981,831,808) | $1,396,364,090 | |
Foreign currency held at value (cost $20,118) | 20,411 | |
Receivable for fund shares sold | 916,878 | |
Dividends receivable | 2,013,640 | |
Distributions receivable from Fidelity Central Funds | 967 | |
Prepaid expenses | 10,775 | |
Other receivables | 214,451 | |
Total assets | 1,399,541,212 | |
Liabilities | ||
Payable for fund shares redeemed | $1,506,078 | |
Accrued management fee | 599,380 | |
Distribution and service plan fees payable | 60,183 | |
Other affiliated payables | 226,073 | |
Other payables and accrued expenses | 232,105 | |
Collateral on securities loaned | 24,258,325 | |
Total liabilities | 26,882,144 | |
Net Assets | $1,372,659,068 | |
Net Assets consist of: | ||
Paid in capital | $1,030,190,864 | |
Total accumulated earnings (loss) | 342,468,204 | |
Net Assets | $1,372,659,068 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($134,113,466 ÷ 1,334,804 shares)(a) | $100.47 | |
Maximum offering price per share (100/94.25 of $100.47) | $106.60 | |
Class M: | ||
Net Asset Value and redemption price per share ($33,770,047 ÷ 340,050 shares)(a) | $99.31 | |
Maximum offering price per share (100/96.50 of $99.31) | $102.91 | |
Class C: | ||
Net Asset Value and offering price per share ($22,932,668 ÷ 238,041 shares)(a) | $96.34 | |
Materials: | ||
Net Asset Value, offering price and redemption price per share ($838,077,833 ÷ 8,288,294 shares) | $101.12 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($262,786,494 ÷ 2,603,943 shares) | $100.92 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($80,978,560 ÷ 803,207 shares) | $100.82 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $10,114,207 | |
Income from Fidelity Central Funds (including $6,112 from security lending) | 9,389 | |
Total income | 10,123,596 | |
Expenses | ||
Management fee | $3,361,706 | |
Transfer agent fees | 1,096,754 | |
Distribution and service plan fees | 355,398 | |
Accounting fees | 204,464 | |
Custodian fees and expenses | 12,095 | |
Independent trustees' fees and expenses | 2,143 | |
Registration fees | 109,203 | |
Audit | 22,666 | |
Legal | 1,002 | |
Interest | 475 | |
Miscellaneous | 3,556 | |
Total expenses before reductions | 5,169,462 | |
Expense reductions | (30,608) | |
Total expenses after reductions | 5,138,854 | |
Net investment income (loss) | 4,984,742 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (2,095,840) | |
Foreign currency transactions | (18,045) | |
Total net realized gain (loss) | (2,113,885) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 141,253,984 | |
Assets and liabilities in foreign currencies | (6,470) | |
Total change in net unrealized appreciation (depreciation) | 141,247,514 | |
Net gain (loss) | 139,133,629 | |
Net increase (decrease) in net assets resulting from operations | $144,118,371 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,984,742 | $5,000,942 |
Net realized gain (loss) | (2,113,885) | 30,735,588 |
Change in net unrealized appreciation (depreciation) | 141,247,514 | 247,967,950 |
Net increase (decrease) in net assets resulting from operations | 144,118,371 | 283,704,480 |
Distributions to shareholders | – | (5,297,912) |
Share transactions - net increase (decrease) | 308,982,875 | (36,201,462) |
Total increase (decrease) in net assets | 453,101,246 | 242,205,106 |
Net Assets | ||
Beginning of period | 919,557,822 | 677,352,716 |
End of period | $1,372,659,068 | $919,557,822 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Materials Portfolio Class A
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $87.03 | $59.39 | $69.57 | $88.50 | $81.27 | $62.94 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .27 | .33 | .58 | .84 | .55 | .70 |
Net realized and unrealized gain (loss) | 13.17 | 27.72 | (10.10) | (12.01) | 11.18 | 18.26 |
Total from investment operations | 13.44 | 28.05 | (9.52) | (11.17) | 11.73 | 18.96 |
Distributions from net investment income | – | (.41) | (.66) | (.67) | (.50) | (.63) |
Distributions from net realized gain | – | – | – | (7.09) | (4.00) | – |
Total distributions | – | (.41) | (.66) | (7.76) | (4.50) | (.63) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $100.47 | $87.03 | $59.39 | $69.57 | $88.50 | $81.27 |
Total ReturnD,E,F | 15.44% | 47.27% | (13.81)% | (12.59)% | 14.65% | 30.18% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.05%I | 1.08% | 1.08% | 1.06% | 1.07% | 1.08% |
Expenses net of fee waivers, if any | 1.04%I | 1.08% | 1.08% | 1.06% | 1.07% | 1.08% |
Expenses net of all reductions | 1.04%I | 1.08% | 1.07% | 1.05% | 1.06% | 1.07% |
Net investment income (loss) | .55%I | .48% | .87% | 1.08% | .64% | .96% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $134,113 | $101,238 | $76,869 | $126,182 | $201,933 | $229,086 |
Portfolio turnover rateJ | 26%I | 36% | 69% | 77%K | 67% | 49%K |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio Class M
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $86.14 | $58.84 | $68.98 | $87.79 | $80.66 | $62.52 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .14 | .14 | .39 | .61 | .30 | .47 |
Net realized and unrealized gain (loss) | 13.03 | 27.42 | (10.01) | (11.88) | 11.08 | 18.12 |
Total from investment operations | 13.17 | 27.56 | (9.62) | (11.27) | 11.38 | 18.59 |
Distributions from net investment income | – | (.26) | (.52) | (.45) | (.25) | (.45) |
Distributions from net realized gain | – | – | – | (7.09) | (4.00) | – |
Total distributions | – | (.26) | (.52) | (7.54) | (4.25) | (.45) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $99.31 | $86.14 | $58.84 | $68.98 | $87.79 | $80.66 |
Total ReturnD,E,F | 15.29% | 46.86% | (14.05)% | (12.84)% | 14.30% | 29.78% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.31%I | 1.36% | 1.37% | 1.35% | 1.36% | 1.39% |
Expenses net of fee waivers, if any | 1.31%I | 1.36% | 1.36% | 1.35% | 1.36% | 1.39% |
Expenses net of all reductions | 1.30%I | 1.36% | 1.36% | 1.34% | 1.35% | 1.38% |
Net investment income (loss) | .28%I | .21% | .58% | .79% | .35% | .65% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $33,770 | $24,768 | $19,423 | $27,436 | $40,107 | $40,935 |
Portfolio turnover rateJ | 26%I | 36% | 69% | 77%K | 67% | 49%K |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio Class C
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $83.76 | $57.30 | $67.13 | $85.52 | $78.72 | $61.09 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.10) | (.18) | .08 | .25 | (.09) | .15 |
Net realized and unrealized gain (loss) | 12.68 | 26.64 | (9.76) | (11.50) | 10.80 | 17.68 |
Total from investment operations | 12.58 | 26.46 | (9.68) | (11.25) | 10.71 | 17.83 |
Distributions from net investment income | – | – | (.15) | (.04) | (.02) | (.20) |
Distributions from net realized gain | – | – | – | (7.09) | (3.89) | – |
Total distributions | – | – | (.15) | (7.14)C | (3.91) | (.20) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –D |
Net asset value, end of period | $96.34 | $83.76 | $57.30 | $67.13 | $85.52 | $78.72 |
Total ReturnE,F,G | 15.02% | 46.18% | (14.46)% | (13.24)% | 13.78% | 29.21% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.80%J | 1.83% | 1.82% | 1.81% | 1.82% | 1.83% |
Expenses net of fee waivers, if any | 1.80%J | 1.83% | 1.82% | 1.81% | 1.82% | 1.82% |
Expenses net of all reductions | 1.79%J | 1.83% | 1.81% | 1.79% | 1.82% | 1.82% |
Net investment income (loss) | (.21)%J | (.27)% | .12% | .33% | (.11)% | .21% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $22,933 | $23,296 | $24,239 | $51,659 | $85,792 | $80,225 |
Portfolio turnover rateK | 26%J | 36% | 69% | 77%L | 67% | 49%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $87.46 | $59.63 | $69.84 | $88.90 | $81.64 | $63.20 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .41 | .53 | .77 | 1.06 | .79 | .90 |
Net realized and unrealized gain (loss) | 13.25 | 27.87 | (10.14) | (12.09) | 11.24 | 18.34 |
Total from investment operations | 13.66 | 28.40 | (9.37) | (11.03) | 12.03 | 19.24 |
Distributions from net investment income | – | (.57) | (.84) | (.93) | (.77) | (.80) |
Distributions from net realized gain | – | – | – | (7.09) | (4.00) | – |
Total distributions | – | (.57) | (.84) | (8.03)C | (4.77) | (.80) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –D |
Net asset value, end of period | $101.12 | $87.46 | $59.63 | $69.84 | $88.90 | $81.64 |
Total ReturnE,F | 15.62% | 47.68% | (13.57)% | (12.35)% | 14.96% | 30.52% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .75%I | .80% | .80% | .79% | .79% | .81% |
Expenses net of fee waivers, if any | .75%I | .80% | .80% | .79% | .79% | .81% |
Expenses net of all reductions | .75%I | .80% | .79% | .78% | .79% | .81% |
Net investment income (loss) | .84%I | .76% | 1.14% | 1.35% | .91% | 1.22% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $838,078 | $533,073 | $405,668 | $626,759 | $1,043,704 | $882,504 |
Portfolio turnover rateJ | 26%I | 36% | 69% | 77%K | 67% | 49%K |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions per share do not sum due to rounding.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio Class I
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $87.29 | $59.52 | $69.70 | $88.73 | $81.49 | $63.07 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .41 | .55 | .78 | 1.07 | .80 | .91 |
Net realized and unrealized gain (loss) | 13.22 | 27.80 | (10.12) | (12.08) | 11.22 | 18.31 |
Total from investment operations | 13.63 | 28.35 | (9.34) | (11.01) | 12.02 | 19.22 |
Distributions from net investment income | – | (.58) | (.84) | (.93) | (.78) | (.80) |
Distributions from net realized gain | – | – | – | (7.09) | (4.00) | – |
Total distributions | – | (.58) | (.84) | (8.02) | (4.78) | (.80) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $100.92 | $87.29 | $59.52 | $69.70 | $88.73 | $81.49 |
Total ReturnD,E | 15.61% | 47.70% | (13.55)% | (12.34)% | 14.97% | 30.55% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .76%H | .78% | .79% | .78% | .79% | .79% |
Expenses net of fee waivers, if any | .76%H | .78% | .79% | .78% | .79% | .79% |
Expenses net of all reductions | .75%H | .78% | .78% | .77% | .78% | .78% |
Net investment income (loss) | .83%H | .78% | 1.16% | 1.36% | .92% | 1.25% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $262,786 | $190,132 | $137,887 | $254,240 | $511,062 | $335,124 |
Portfolio turnover rateI | 26%H | 36% | 69% | 77%J | 67% | 49%J |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Materials Portfolio Class Z
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $87.14 | $59.40 | $69.58 | $79.81 |
Income from Investment Operations | ||||
Net investment income (loss)C | .47 | .67 | .88 | .62 |
Net realized and unrealized gain (loss) | 13.21 | 27.75 | (10.10) | (6.96) |
Total from investment operations | 13.68 | 28.42 | (9.22) | (6.34) |
Distributions from net investment income | – | (.68) | (.96) | (.96) |
Distributions from net realized gain | – | – | – | (2.93) |
Total distributions | – | (.68) | (.96) | (3.89) |
Redemption fees added to paid in capitalC | – | – | – | – |
Net asset value, end of period | $100.82 | $87.14 | $59.40 | $69.58 |
Total ReturnD,E | 15.70% | 47.92% | (13.43)% | (7.35)% |
Ratios to Average Net AssetsF,G | ||||
Expenses before reductions | .63%H | .64% | .63% | .63%H |
Expenses net of fee waivers, if any | .62%H | .64% | .63% | .62%H |
Expenses net of all reductions | .62%H | .63% | .62% | .61%H |
Net investment income (loss) | .97%H | .93% | 1.31% | 2.27%H |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $80,979 | $47,051 | $13,267 | $10,039 |
Portfolio turnover rateI | 26%H | 36% | 69% | 77%J |
A For the year ended February 29.
B For the period October 2, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J 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 (Unaudited)
For the period ended August 31, 2021
1. Organization.
Materials Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (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 invests primarily in securities of companies whose principal business activities fall within specific industries. The Fund offers Class A, Class M, Class C, Materials, 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. Effective June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions. Prior to June 21, 2021, Class C shares automatically converted to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 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. 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Materials Portfolio | $200,797 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, deferred Trustees compensation, capital loss carryforwards and 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 | $428,124,143 |
Gross unrealized depreciation | (15,121,723) |
Net unrealized appreciation (depreciation) | $413,002,420 |
Tax cost | $983,361,670 |
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 prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(54,734,346) |
Long-term | (18,045,734) |
Total capital loss carryforward | $(72,780,080) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Materials Portfolio | 478,382,130 | 159,804,094 |
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 annualized 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% | $153,507 | $2,308 |
Class M | .25% | .25% | 76,542 | – |
Class C | .75% | .25% | 125,349 | 22,097 |
$355,398 | $24,405 |
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 | $34,239 |
Class M | 4,095 |
Class C(a) | 559 |
$38,893 |
(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.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $130,115 | .21 |
Class M | 34,440 | .23 |
Class C | 26,814 | .21 |
Materials | 676,704 | .17 |
Class I | 214,317 | .18 |
Class Z | 14,364 | .04 |
$1,096,754 |
(a) Annualized
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 annualized rates:
% of Average Net Assets | |
Materials Portfolio | .03 |
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 | |
Materials Portfolio | $6,118 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Materials Portfolio | Borrower | $11,137,800 | .31% | $475 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Materials Portfolio | 18,940,786 | 7,047,473 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Materials Portfolio | $1,002 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Materials Portfolio | $626 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $20,605 for the period.
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 $10,003.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Materials Portfolio | ||
Distributions to shareholders | ||
Class A | $– | $459,155 |
Class M | – | 75,042 |
Materials | – | 3,226,797 |
Class I | – | 1,194,642 |
Class Z | – | 342,276 |
Total | $– | $5,297,912 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended August 31, 2021 | Year ended February 28, 2021 | Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Materials Portfolio | ||||
Class A | ||||
Shares sold | 304,395 | 232,580 | $29,801,314 | $16,623,421 |
Reinvestment of distributions | – | 5,436 | – | 445,844 |
Shares redeemed | (132,857) | (369,056) | (12,907,885) | (24,644,731) |
Net increase (decrease) | 171,538 | (131,040) | $16,893,429 | $(7,575,466) |
Class M | ||||
Shares sold | 102,592 | 67,506 | $10,030,294 | $4,689,948 |
Reinvestment of distributions | – | 920 | – | 74,674 |
Shares redeemed | (50,091) | (110,988) | (4,741,462) | (7,406,306) |
Net increase (decrease) | 52,501 | (42,562) | $5,288,832 | $(2,641,684) |
Class C | ||||
Shares sold | 73,786 | 32,214 | $7,020,399 | $2,496,383 |
Shares redeemed | (113,863) | (177,084) | (10,543,585) | (11,686,701) |
Net increase (decrease) | (40,077) | (144,870) | $(3,523,186) | $(9,190,318) |
Materials | ||||
Shares sold | 4,257,386 | 1,230,906 | $425,746,166 | $96,760,419 |
Reinvestment of distributions | – | 36,660 | – | 3,019,633 |
Shares redeemed | (2,064,391) | (1,975,420) | (202,860,176) | (133,695,250) |
Net increase (decrease) | 2,192,995 | (707,854) | $222,885,990 | $(33,915,198) |
Class I | ||||
Shares sold | 970,448 | 1,182,584 | $94,695,699 | $83,979,012 |
Reinvestment of distributions | – | 13,454 | – | 1,106,042 |
Shares redeemed | (544,621) | (1,334,747) | (53,108,796) | (91,748,212) |
Net increase (decrease) | 425,827 | (138,709) | $41,586,903 | $(6,663,158) |
Class Z | ||||
Shares sold | 364,019 | 507,135 | $35,659,796 | $36,121,225 |
Reinvestment of distributions | – | 4,066 | – | 333,648 |
Shares redeemed | (100,737) | (194,628) | (9,808,889) | (12,670,511) |
Net increase (decrease) | 263,282 | 316,573 | $25,850,907 | $23,784,362 |
11. Other.
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.
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 Fund's performance.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Chemicals Portfolio | .75% | |||
Actual | $1,000.00 | $1,169.10 | $4.10 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 | |
Gold Portfolio | ||||
Class A | 1.07% | |||
Actual | $1,000.00 | $1,084.50 | $5.62 | |
Hypothetical-C | $1,000.00 | $1,019.81 | $5.45 | |
Class M | 1.36% | |||
Actual | $1,000.00 | $1,082.70 | $7.14 | |
Hypothetical-C | $1,000.00 | $1,018.35 | $6.92 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,080.70 | $9.34 | |
Hypothetical-C | $1,000.00 | $1,016.23 | $9.05 | |
Gold | .76% | |||
Actual | $1,000.00 | $1,086.20 | $4.00 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Class I | .76% | |||
Actual | $1,000.00 | $1,086.20 | $4.00 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Class Z | .63% | |||
Actual | $1,000.00 | $1,087.00 | $3.31 | |
Hypothetical-C | $1,000.00 | $1,022.03 | $3.21 | |
Materials Portfolio | ||||
Class A | 1.04% | |||
Actual | $1,000.00 | $1,154.40 | $5.65 | |
Hypothetical-C | $1,000.00 | $1,019.96 | $5.30 | |
Class M | 1.31% | |||
Actual | $1,000.00 | $1,152.90 | $7.11 | |
Hypothetical-C | $1,000.00 | $1,018.60 | $6.67 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,150.20 | $9.76 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Materials | .75% | |||
Actual | $1,000.00 | $1,156.20 | $4.08 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 | |
Class I | .76% | |||
Actual | $1,000.00 | $1,156.10 | $4.13 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Class Z | .62% | |||
Actual | $1,000.00 | $1,157.00 | $3.37 | |
Hypothetical-C | $1,000.00 | $1,022.08 | $3.16 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Chemicals Portfolio
Gold Portfolio
Materials Portfolio
Chemicals Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733218274.jpg)
Gold Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733218413.jpg)
Materials Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733218668.jpg)
Chemicals Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733219034.jpg)
Gold Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733219172.jpg)
Materials Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733219355.jpg)
SELMT-SANN-1021
1.846035.114
Fidelity® Select Portfolios®
Telecommunications Services Sector
Telecommunications Portfolio
Wireless Portfolio
Semi-Annual Report
August 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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Contents
Telecommunications Portfolio | |
Wireless Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Telecommunications Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Verizon Communications, Inc. | 24.6 |
AT&T, Inc. | 15.4 |
T-Mobile U.S., Inc. | 7.1 |
Liberty Global PLC Class C | 5.0 |
Liberty Latin America Ltd. Class C | 4.8 |
Iridium Communications, Inc. | 4.7 |
Cogent Communications Group, Inc. | 4.7 |
Comcast Corp. Class A | 4.5 |
Liberty Broadband Corp. Class C | 4.3 |
Bandwidth, Inc. | 2.7 |
77.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Diversified Telecommunication Services | 68.4% | |
Wireless Telecommunication Services | 14.5% | |
Media | 10.6% | |
Software | 1.6% | |
Construction & Engineering | 1.2% | |
All Others* | 3.7% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Telecommunications Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
Communications Equipment - 0.8% | |||
Communications Equipment - 0.8% | |||
EchoStar Holding Corp. Class A (a)(b) | 97,500 | $2,632,500 | |
Construction & Engineering - 1.2% | |||
Construction & Engineering - 1.2% | |||
Dycom Industries, Inc. (a) | 52,800 | 3,977,424 | |
Diversified Telecommunication Services - 68.4% | |||
Alternative Carriers - 25.8% | |||
Bandwidth, Inc. (a) | 85,700 | 8,818,530 | |
Cogent Communications Group, Inc. | 209,739 | 15,222,857 | |
Globalstar, Inc. (a) | 528,900 | 1,052,511 | |
Iridium Communications, Inc. (a) | 342,311 | 15,236,263 | |
Liberty Global PLC Class C (a) | 555,336 | 16,093,637 | |
Liberty Latin America Ltd. Class C (a) | 1,078,033 | 15,512,895 | |
Lumen Technologies, Inc. (b) | 638,700 | 7,856,010 | |
ORBCOMM, Inc. (a) | 324,549 | 3,729,068 | |
83,521,771 | |||
Integrated Telecommunication Services - 42.6% | |||
AT&T, Inc. | 1,819,120 | 49,880,270 | |
ATN International, Inc. | 89,400 | 4,075,746 | |
Radius Global Infrastructure, Inc. (a)(b) | 251,100 | 4,489,668 | |
Verizon Communications, Inc. | 1,450,797 | 79,793,837 | |
138,239,521 | |||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | 221,761,292 | ||
Equity Real Estate Investment Trusts (REITs) - 0.8% | |||
Specialized REITs - 0.8% | |||
American Tower Corp. | 8,600 | 2,512,662 | |
IT Services - 0.4% | |||
IT Consulting & Other Services - 0.4% | |||
Amdocs Ltd. | 17,300 | 1,332,619 | |
Media - 10.6% | |||
Cable & Satellite - 10.6% | |||
Charter Communications, Inc. Class A (a) | 7,300 | 5,961,618 | |
Comcast Corp. Class A | 239,900 | 14,557,132 | |
Liberty Broadband Corp. Class C (a) | 72,624 | 13,894,424 | |
34,413,174 | |||
Oil, Gas & Consumable Fuels - 0.5% | |||
Oil & Gas Refining & Marketing - 0.5% | |||
Reliance Industries Ltd. | 56,800 | 1,758,206 | |
Software - 1.6% | |||
Application Software - 1.6% | |||
RingCentral, Inc. (a) | 6,000 | 1,513,560 | |
Vonage Holdings Corp. (a) | 254,771 | 3,592,271 | |
5,105,831 | |||
Wireless Telecommunication Services - 14.5% | |||
Wireless Telecommunication Services - 14.5% | |||
Gogo, Inc. (a) | 446,500 | 6,005,425 | |
Millicom International Cellular SA (a)(b) | 67,800 | 2,555,382 | |
Shenandoah Telecommunications Co. (b) | 86,523 | 2,580,981 | |
T-Mobile U.S., Inc. (a) | 168,424 | 23,077,456 | |
Telephone & Data Systems, Inc. | 335,764 | 6,822,724 | |
U.S. Cellular Corp. (a)(b) | 183,700 | 5,869,215 | |
46,911,183 | |||
TOTAL COMMON STOCKS | |||
(Cost $239,892,758) | 320,404,891 | ||
Money Market Funds - 4.8% | |||
Fidelity Cash Central Fund 0.06% (c) | 3,575,829 | 3,576,544 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 11,887,762 | 11,888,951 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $15,465,495) | 15,465,495 | ||
TOTAL INVESTMENT IN SECURITIES - 103.6% | |||
(Cost $255,358,253) | 335,870,386 | ||
NET OTHER ASSETS (LIABILITIES) - (3.6)% | (11,591,508) | ||
NET ASSETS - 100% | $324,278,878 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $2,585,116 | $42,454,713 | $41,463,285 | $590 | $-- | $-- | $3,576,544 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 6,843,676 | 47,574,527 | 42,529,252 | 1,326 | -- | -- | 11,888,951 | 0.0% |
Total | $9,428,792 | $90,029,240 | $83,992,537 | $1,916 | $-- | $-- | $15,465,495 |
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 August 31, 2021, 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 | $320,404,891 | $320,404,891 | $-- | $-- |
Money Market Funds | 15,465,495 | 15,465,495 | -- | -- |
Total Investments in Securities: | $335,870,386 | $335,870,386 | $-- | $-- |
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 | 89.3% |
United Kingdom | 5.0% |
Bermuda | 4.8% |
Others (Individually Less Than 1%) | 0.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $11,884,535) — See accompanying schedule: Unaffiliated issuers (cost $239,892,758) | $320,404,891 | |
Fidelity Central Funds (cost $15,465,495) | 15,465,495 | |
Total Investment in Securities (cost $255,358,253) | $335,870,386 | |
Receivable for investments sold | 641,940 | |
Receivable for fund shares sold | 78,908 | |
Dividends receivable | 329,835 | |
Distributions receivable from Fidelity Central Funds | 413 | |
Prepaid expenses | 2,089 | |
Other receivables | 13,248 | |
Total assets | 336,936,819 | |
Liabilities | ||
Payable for fund shares redeemed | $419,371 | |
Accrued management fee | 141,895 | |
Distribution and service plan fees payable | 16,800 | |
Other affiliated payables | 60,295 | |
Other payables and accrued expenses | 131,105 | |
Collateral on securities loaned | 11,888,475 | |
Total liabilities | 12,657,941 | |
Net Assets | $324,278,878 | |
Net Assets consist of: | ||
Paid in capital | $222,944,681 | |
Total accumulated earnings (loss) | 101,334,197 | |
Net Assets | $324,278,878 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($31,953,104 ÷ 458,550 shares)(a) | $69.68 | |
Maximum offering price per share (100/94.25 of $69.68) | $73.93 | |
Class M: | ||
Net Asset Value and redemption price per share ($9,704,484 ÷ 140,340 shares)(a) | $69.15 | |
Maximum offering price per share (100/96.50 of $69.15) | $71.66 | |
Class C: | ||
Net Asset Value and offering price per share ($7,259,619 ÷ 105,005 shares)(a) | $69.14 | |
Telecommunications: | ||
Net Asset Value, offering price and redemption price per share ($247,849,826 ÷ 3,525,010 shares) | $70.31 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($17,865,606 ÷ 254,811 shares) | $70.11 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($9,646,239 ÷ 137,720 shares) | $70.04 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $4,944,269 | |
Special dividends | 1,663,556 | |
Income from Fidelity Central Funds (including $1,326 from security lending) | 1,916 | |
Total income | 6,609,741 | |
Expenses | ||
Management fee | $892,568 | |
Transfer agent fees | 308,336 | |
Distribution and service plan fees | 103,669 | |
Accounting fees | 66,081 | |
Custodian fees and expenses | 1,438 | |
Independent trustees' fees and expenses | 658 | |
Registration fees | 47,358 | |
Audit | 28,851 | |
Legal | 361 | |
Interest | 190 | |
Miscellaneous | 983 | |
Total expenses before reductions | 1,450,493 | |
Expense reductions | (17,683) | |
Total expenses after reductions | 1,432,810 | |
Net investment income (loss) | 5,176,931 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,804,008 | |
Foreign currency transactions | (58) | |
Total net realized gain (loss) | 17,803,950 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $28,246) | 3,867,022 | |
Assets and liabilities in foreign currencies | 68 | |
Total change in net unrealized appreciation (depreciation) | 3,867,090 | |
Net gain (loss) | 21,671,040 | |
Net increase (decrease) in net assets resulting from operations | $26,847,971 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,176,931 | $4,177,193 |
Net realized gain (loss) | 17,803,950 | 27,898,525 |
Change in net unrealized appreciation (depreciation) | 3,867,090 | 25,037,863 |
Net increase (decrease) in net assets resulting from operations | 26,847,971 | 57,113,581 |
Distributions to shareholders | (9,667,841) | (27,468,287) |
Share transactions - net increase (decrease) | (43,717,407) | 28,880,302 |
Total increase (decrease) in net assets | (26,537,277) | 58,525,596 |
Net Assets | ||
Beginning of period | 350,816,155 | 292,290,559 |
End of period | $324,278,878 | $350,816,155 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Telecommunications Portfolio Class A
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.52 | $60.60 | $55.68 | $55.58 | $69.61 | $62.32 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .98C | .66 | .87 | 1.10D | 1.05 | .88 |
Net realized and unrealized gain (loss) | 4.16 | 10.61 | 5.86 | .56 | (3.38) | 10.68 |
Total from investment operations | 5.14 | 11.27 | 6.73 | 1.66 | (2.33) | 11.56 |
Distributions from net investment income | (.27) | (.39) | (.96) | (.94) | (1.31) | (1.11) |
Distributions from net realized gain | (1.72) | (4.96) | (.85) | (.62) | (10.39) | (3.16) |
Total distributions | (1.98)E | (5.35) | (1.81) | (1.56) | (11.70) | (4.27) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –F |
Net asset value, end of period | $69.68 | $66.52 | $60.60 | $55.68 | $55.58 | $69.61 |
Total ReturnG,H,I | 7.75% | 18.75% | 12.12% | 3.03% | (4.06)% | 18.65% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.09%L | 1.11% | 1.18% | 1.18% | 1.14% | 1.14% |
Expenses net of fee waivers, if any | 1.08%L | 1.11% | 1.17% | 1.17% | 1.14% | 1.14% |
Expenses net of all reductions | 1.08%L | 1.10% | 1.17% | 1.16% | 1.12% | 1.12% |
Net investment income (loss) | 2.81%C,L | 1.01% | 1.47% | 1.96%D | 1.59% | 1.28% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $31,953 | $29,800 | $21,376 | $20,589 | $17,816 | $31,966 |
Portfolio turnover rateM | 25%L | 58% | 58% | 64%N | 66% | 105%N |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.34 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.84%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.25 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.52%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
N Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio Class M
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.09 | $60.25 | $55.40 | $55.31 | $69.33 | $61.95 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .87C | .46 | .70 | .92D | .81 | .65 |
Net realized and unrealized gain (loss) | 4.14 | 10.54 | 5.83 | .55 | (3.36) | 10.62 |
Total from investment operations | 5.01 | 11.00 | 6.53 | 1.47 | (2.55) | 11.27 |
Distributions from net investment income | (.23) | (.20) | (.83) | (.76) | (1.07) | (.73) |
Distributions from net realized gain | (1.72) | (4.96) | (.85) | (.62) | (10.39) | (3.16) |
Total distributions | (1.95) | (5.16) | (1.68) | (1.38) | (11.47)E | (3.89) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –F |
Net asset value, end of period | $69.15 | $66.09 | $60.25 | $55.40 | $55.31 | $69.33 |
Total ReturnG,H,I | 7.59% | 18.39% | 11.81% | 2.69% | (4.40)% | 18.26% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.39%L | 1.41% | 1.46% | 1.50% | 1.49% | 1.46% |
Expenses net of fee waivers, if any | 1.38%L | 1.41% | 1.46% | 1.49% | 1.49% | 1.46% |
Expenses net of all reductions | 1.38%L | 1.40% | 1.45% | 1.48% | 1.48% | 1.44% |
Net investment income (loss) | 2.51%C,L | .71% | 1.19% | 1.64%D | 1.24% | .96% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $9,704 | $9,038 | $6,919 | $6,018 | $4,847 | $6,933 |
Portfolio turnover rateM | 25%L | 58% | 58% | 64%N | 66% | 105%N |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.34 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.53%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.25 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.19%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
N Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio Class C
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.17 | $60.32 | $55.45 | $55.29 | $69.24 | $62.10 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .72C | .17 | .46 | .70D | .57 | .37 |
Net realized and unrealized gain (loss) | 4.14 | 10.54 | 5.82 | .56 | (3.36) | 10.62 |
Total from investment operations | 4.86 | 10.71 | 6.28 | 1.26 | (2.79) | 10.99 |
Distributions from net investment income | (.18) | (.07) | (.56) | (.48) | (.77) | (.69) |
Distributions from net realized gain | (1.72) | (4.79) | (.85) | (.62) | (10.39) | (3.16) |
Total distributions | (1.89)E | (4.86) | (1.41) | (1.10) | (11.16) | (3.85) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –F |
Net asset value, end of period | $69.14 | $66.17 | $60.32 | $55.45 | $55.29 | $69.24 |
Total ReturnG,H,I | 7.36% | 17.88% | 11.34% | 2.30% | (4.75)% | 17.77% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.83%L | 1.86% | 1.88% | 1.88% | 1.86% | 1.88% |
Expenses net of fee waivers, if any | 1.83%L | 1.86% | 1.87% | 1.88% | 1.86% | 1.88% |
Expenses net of all reductions | 1.82%L | 1.84% | 1.87% | 1.86% | 1.85% | 1.86% |
Net investment income (loss) | 2.07%C,L | .26% | .77% | 1.26%D | .87% | .54% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $7,260 | $7,801 | $6,491 | $6,994 | $8,396 | $13,528 |
Portfolio turnover rateM | 25%L | 58% | 58% | 64%N | 66% | 105%N |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.34 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.09%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.25 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .81%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the contingent deferred sales charge.
J Fees and expenses of any underlying 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
N Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $67.04 | $60.99 | $56.04 | $55.88 | $69.97 | $62.58 |
Income from Investment Operations | ||||||
Net investment income (loss)B | 1.10C | .86 | 1.09 | 1.30D | 1.28 | 1.12 |
Net realized and unrealized gain (loss) | 4.19 | 10.71 | 5.90 | .56 | (3.42) | 10.74 |
Total from investment operations | 5.29 | 11.57 | 6.99 | 1.86 | (2.14) | 11.86 |
Distributions from net investment income | (.30) | (.57) | (1.19) | (1.08) | (1.56) | (1.31) |
Distributions from net realized gain | (1.72) | (4.96) | (.85) | (.62) | (10.39) | (3.16) |
Total distributions | (2.02) | (5.52)E | (2.04) | (1.70) | (11.95) | (4.47) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –F |
Net asset value, end of period | $70.31 | $67.04 | $60.99 | $56.04 | $55.88 | $69.97 |
Total ReturnG,H | 7.91% | 19.15% | 12.50% | 3.38% | (3.76)% | 19.06% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .79%K | .81% | .83% | .84% | .82% | .80% |
Expenses net of fee waivers, if any | .79%K | .81% | .82% | .83% | .82% | .80% |
Expenses net of all reductions | .78%K | .79% | .82% | .82% | .80% | .78% |
Net investment income (loss) | 3.11%C,K | 1.31% | 1.82% | 2.30%D | 1.92% | 1.62% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $247,850 | $242,284 | $219,854 | $227,438 | $320,908 | $690,720 |
Portfolio turnover rateL | 25%K | 58% | 58% | 64%M | 66% | 105%M |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.35 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 2.13%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.25 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.85%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio Class I
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $66.84 | $60.86 | $55.84 | $55.74 | $69.82 | $62.46 |
Income from Investment Operations | ||||||
Net investment income (loss)B | 1.10C | .88 | 1.04 | 1.27D | 1.26 | 1.12 |
Net realized and unrealized gain (loss) | 4.18 | 10.66 | 5.91 | .57 | (3.39) | 10.70 |
Total from investment operations | 5.28 | 11.54 | 6.95 | 1.84 | (2.13) | 11.82 |
Distributions from net investment income | (.29) | (.60) | (1.08) | (1.12) | (1.56) | (1.30) |
Distributions from net realized gain | (1.72) | (4.96) | (.85) | (.62) | (10.39) | (3.16) |
Total distributions | (2.01) | (5.56) | (1.93) | (1.74) | (11.95) | (4.46) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $70.11 | $66.84 | $60.86 | $55.84 | $55.74 | $69.82 |
Total ReturnF,G | 7.92% | 19.13% | 12.47% | 3.35% | (3.75)% | 19.03% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .78%J | .79% | .88% | .91% | .82% | .80% |
Expenses net of fee waivers, if any | .78%J | .79% | .88% | .90% | .82% | .80% |
Expenses net of all reductions | .77%J | .78% | .88% | .88% | .80% | .78% |
Net investment income (loss) | 3.12%C,J | 1.33% | 1.76% | 2.23%D | 1.91% | 1.62% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $17,866 | $30,622 | $12,428 | $25,181 | $8,332 | $14,550 |
Portfolio turnover rateK | 25%J | 58% | 58% | 64%L | 66% | 105%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.35 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 2.14%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.25 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.79%.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Telecommunications Portfolio Class Z
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $66.75 | $60.75 | $55.84 | $60.97 |
Income from Investment Operations | ||||
Net investment income (loss)C | 1.15D | .95 | 1.20 | .39E |
Net realized and unrealized gain (loss) | 4.16 | 10.67 | 5.86 | (4.55) |
Total from investment operations | 5.31 | 11.62 | 7.06 | (4.16) |
Distributions from net investment income | (.31) | (.67) | (1.30) | (.97) |
Distributions from net realized gain | (1.72) | (4.96) | (.85) | – |
Total distributions | (2.02)F | (5.62)F | (2.15) | (.97) |
Redemption fees added to paid in capitalC | – | – | – | – |
Net asset value, end of period | $70.04 | $66.75 | $60.75 | $55.84 |
Total ReturnG,H | 7.99% | 19.31% | 12.68% | (6.80)% |
Ratios to Average Net AssetsI,J | ||||
Expenses before reductions | .65%K | .67% | .68% | .68%K |
Expenses net of fee waivers, if any | .65%K | .67% | .67% | .66%K |
Expenses net of all reductions | .64%K | .65% | .67% | .64%K |
Net investment income (loss) | 3.25%D,K | 1.45% | 1.97% | 1.67%E,K |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $9,646 | $31,271 | $25,223 | $383 |
Portfolio turnover rateL | 25%K | 58% | 58% | 64%K,M |
A For the year ended February 29.
B For the period October 2, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.35 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 2.27%.
E Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.10 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.23%.
F Total distributions per share do not sum due to rounding.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M 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 (Unaudited)
For the period ended August 31, 2021
1. Organization.
Telecommunications Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (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 invests primarily in securities of companies whose principal business activities fall within specific industries. The Fund offers Class A, Class M, Class C, Telecommunications, 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. Effective June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions. Prior to June 21, 2021, Class C shares automatically converted to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 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. 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. 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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, certain foreign taxes 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 | $91,243,514 |
Gross unrealized depreciation | (11,735,253) |
Net unrealized appreciation (depreciation) | $79,508,261 |
Tax cost | $256,362,125 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Telecommunications Portfolio | 41,245,456 | 88,532,823 |
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 annualized 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% | $40,116 | $691 |
Class M | .25% | .25% | 24,334 | – |
Class C | .75% | .25% | 39,219 | 6,842 |
$103,669 | $7,533 |
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 | $6,518 |
Class M | 1,039 |
Class C(a) | 243 |
$7,800 |
(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.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $36,009 | .22 |
Class M | 13,372 | .27 |
Class C | 8,769 | .22 |
Telecommunications | 228,749 | .18 |
Class I | 18,733 | .17 |
Class Z | 2,704 | .04 |
$308,336 |
(a) Annualized
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 annualized rates:
% of Average Net Assets | |
Telecommunications Portfolio | .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 | |
Telecommunications Portfolio | $4,033 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Telecommunications Portfolio | Borrower | $7,875,000 | .29% | $190 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Telecommunications Portfolio | 244,586 | 2,151,595 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Telecommunications Portfolio | $323 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Telecommunications Portfolio | $132 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $15,106 for the period.
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 $2,577.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Telecommunications Portfolio | ||
Distributions to shareholders | ||
Class A | $882,997 | $2,060,688 |
Class M | 268,760 | 618,358 |
Class C | 218,321 | 543,576 |
Telecommunications | 7,329,864 | 19,537,940 |
Class I | 650,581 | 2,189,998 |
Class Z | 317,318 | 2,517,727 |
Total | $9,667,841 | $27,468,287 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended August 31, 2021 | Year ended February 28, 2021 | Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Telecommunications Portfolio | ||||
Class A | ||||
Shares sold | 59,156 | 237,010 | $4,145,180 | $15,495,311 |
Reinvestment of distributions | 11,961 | 28,925 | 827,365 | 1,927,122 |
Shares redeemed | (60,548) | (170,717) | (4,213,071) | (10,895,362) |
Net increase (decrease) | 10,569 | 95,218 | $759,474 | $6,527,071 |
Class M | ||||
Shares sold | 15,808 | 67,415 | $1,097,645 | $4,343,394 |
Reinvestment of distributions | 3,905 | 9,283 | 268,365 | 615,502 |
Shares redeemed | (16,131) | (54,788) | (1,116,092) | (3,462,804) |
Net increase (decrease) | 3,582 | 21,910 | $249,918 | $1,496,092 |
Class C | ||||
Shares sold | 7,076 | 46,003 | $494,231 | $2,905,117 |
Reinvestment of distributions | 3,123 | 8,022 | 214,983 | 531,076 |
Shares redeemed | (23,085) | (43,758) | (1,611,992) | (2,786,911) |
Net increase (decrease) | (12,886) | 10,267 | $(902,778) | $649,282 |
Telecommunications | ||||
Shares sold | 197,854 | 1,081,282 | $13,940,302 | $67,328,134 |
Reinvestment of distributions | 98,326 | 273,796 | 6,854,274 | 18,231,068 |
Shares redeemed | (385,327) | (1,345,550) | (27,240,767) | (84,870,427) |
Net increase (decrease) | (89,147) | 9,528 | $(6,446,191) | $688,775 |
Class I | ||||
Shares sold | 30,903 | 484,027 | $2,172,044 | $30,288,296 |
Reinvestment of distributions | 8,740 | 30,580 | 607,542 | 2,061,536 |
Shares redeemed | (242,972) | (260,669) | (16,837,907) | (16,122,830) |
Net increase (decrease) | (203,329) | 253,938 | $(14,058,321) | $16,227,002 |
Class Z | ||||
Shares sold | 30,784 | 150,655 | $2,162,135 | $9,378,903 |
Reinvestment of distributions | 3,164 | 25,742 | 219,642 | 1,706,940 |
Shares redeemed | (364,722) | (123,085) | (25,701,286) | (7,793,763) |
Net increase (decrease) | (330,774) | 53,312 | $(23,319,509) | $3,292,080 |
11. Other.
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.
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 Fund's performance.
Wireless Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Apple, Inc. | 12.8 |
American Tower Corp. | 9.5 |
AT&T, Inc. | 6.5 |
T-Mobile U.S., Inc. | 6.1 |
Qualcomm, Inc. | 4.8 |
Marvell Technology, Inc. | 4.7 |
Facebook, Inc. Class A | 4.4 |
Verizon Communications, Inc. | 2.8 |
Ericsson (B Shares) sponsored ADR | 2.8 |
SBA Communications Corp. Class A | 2.6 |
57.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Diversified Telecommunication Services | 18.3% | |
Technology Hardware, Storage & Peripherals | 14.6% | |
Equity Real Estate Investment Trusts (Reits) | 13.7% | |
Semiconductors & Semiconductor Equipment | 13.4% | |
Wireless Telecommunication Services | 10.5% | |
All Others* | 29.5% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Wireless Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
Communications Equipment - 9.1% | |||
Communications Equipment - 9.1% | |||
CommScope Holding Co., Inc. (a) | 265,600 | $4,196,480 | |
Ericsson: | |||
(B Shares) | 172,600 | 2,044,466 | |
(B Shares) sponsored ADR | 1,147,700 | 13,565,814 | |
Motorola Solutions, Inc. | 41,068 | 10,029,627 | |
Nokia Corp. sponsored ADR (a) | 1,834,500 | 10,933,620 | |
ViaSat, Inc. (a) | 67,401 | 3,480,588 | |
44,250,595 | |||
Diversified Telecommunication Services - 18.3% | |||
Alternative Carriers - 2.8% | |||
Iridium Communications, Inc. (a) | 70,600 | 3,142,406 | |
Liberty Global PLC Class A (a) | 246,900 | 7,095,906 | |
Liberty Latin America Ltd. Class C (a) | 236,900 | 3,408,991 | |
13,647,303 | |||
Integrated Telecommunication Services - 15.5% | |||
AT&T, Inc. | 1,160,600 | 31,823,652 | |
Bezeq The Israel Telecommunication Corp. Ltd. (a) | 5,060,100 | 6,010,032 | |
Cellnex Telecom SA (b) | 91,115 | 6,239,874 | |
Elisa Corp. (A Shares) | 58,900 | 3,772,185 | |
Orange SA ADR (c) | 918,600 | 10,444,482 | |
Telefonica SA sponsored ADR | 704,937 | 3,489,438 | |
Verizon Communications, Inc. | 248,301 | 13,656,555 | |
75,436,218 | |||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | 89,083,521 | ||
Entertainment - 2.8% | |||
Interactive Home Entertainment - 2.3% | |||
Activision Blizzard, Inc. | 97,200 | 8,006,364 | |
Zynga, Inc. (a) | 361,700 | 3,201,045 | |
11,207,409 | |||
Movies & Entertainment - 0.5% | |||
Spotify Technology SA (a) | 10,200 | 2,390,268 | |
TOTAL ENTERTAINMENT | 13,597,677 | ||
Equity Real Estate Investment Trusts (REITs) - 13.7% | |||
Specialized REITs - 13.7% | |||
American Tower Corp. | 157,892 | 46,131,306 | |
Crown Castle International Corp. | 40,301 | 7,846,202 | |
SBA Communications Corp. Class A | 34,900 | 12,528,053 | |
66,505,561 | |||
Interactive Media & Services - 7.3% | |||
Interactive Media & Services - 7.3% | |||
Alphabet, Inc. Class A (a) | 3,900 | 11,286,405 | |
Facebook, Inc. Class A (a) | 56,300 | 21,359,094 | |
Snap, Inc. Class A (a) | 39,200 | 2,983,512 | |
35,629,011 | |||
Internet & Direct Marketing Retail - 1.6% | |||
Internet & Direct Marketing Retail - 1.6% | |||
Amazon.com, Inc. (a) | 2,200 | 7,635,738 | |
Media - 1.0% | |||
Cable & Satellite - 1.0% | |||
DISH Network Corp. Class A (a) | 115,249 | 5,023,704 | |
Oil, Gas & Consumable Fuels - 1.6% | |||
Oil & Gas Refining & Marketing - 1.6% | |||
Reliance Industries Ltd. | 243,900 | 7,549,763 | |
Road & Rail - 2.0% | |||
Trucking - 2.0% | |||
Lyft, Inc. (a) | 208,000 | 9,902,880 | |
Semiconductors & Semiconductor Equipment - 13.4% | |||
Semiconductors - 13.4% | |||
Marvell Technology, Inc. | 375,600 | 22,982,964 | |
NXP Semiconductors NV | 33,000 | 7,099,290 | |
Qorvo, Inc. (a) | 63,300 | 11,902,299 | |
Qualcomm, Inc. | 157,550 | 23,111,010 | |
65,095,563 | |||
Software - 3.8% | |||
Application Software - 3.8% | |||
LivePerson, Inc. (a) | 84,000 | 5,384,400 | |
RingCentral, Inc. (a) | 39,300 | 9,913,818 | |
Unity Software, Inc. (c) | 25,500 | 3,232,125 | |
Zoom Video Communications, Inc. Class A (a) | 300 | 86,850 | |
18,617,193 | |||
Technology Hardware, Storage & Peripherals - 14.6% | |||
Technology Hardware, Storage & Peripherals - 14.6% | |||
Apple, Inc. | 411,020 | 62,405,165 | |
Samsung Electronics Co. Ltd. | 131,560 | 8,707,057 | |
71,112,222 | |||
Wireless Telecommunication Services - 10.5% | |||
Wireless Telecommunication Services - 10.5% | |||
Bharti Airtel Ltd. | 670,600 | 6,104,261 | |
Millicom International Cellular SA (a)(c) | 116,600 | 4,394,654 | |
Rogers Communications, Inc. Class B (non-vtg.) | 98,100 | 4,998,112 | |
Shenandoah Telecommunications Co. | 300 | 8,949 | |
Spok Holdings, Inc. | 1 | 10 | |
T-Mobile U.S., Inc. (a) | 215,216 | 29,488,896 | |
Vodafone Group PLC sponsored ADR (c) | 358,681 | 6,122,685 | |
51,117,567 | |||
TOTAL COMMON STOCKS | |||
(Cost $295,097,597) | 485,120,995 | ||
Money Market Funds - 3.3% | |||
Fidelity Cash Central Fund 0.06% (d) | 1,772,124 | 1,772,479 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 14,317,586 | 14,319,018 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $16,091,497) | 16,091,497 | ||
TOTAL INVESTMENT IN SECURITIES - 103.0% | |||
(Cost $311,189,094) | 501,212,492 | ||
NET OTHER ASSETS (LIABILITIES) - (3.0)% | (14,591,349) | ||
NET ASSETS - 100% | $486,621,143 |
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 $6,239,874 or 1.3% 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 are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $4,131,250 | $49,024,723 | $51,383,494 | $605 | $-- | $-- | $1,772,479 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 16,980,003 | 117,526,393 | 120,187,378 | 20,256 | -- | -- | 14,319,018 | 0.0% |
Total | $21,111,253 | $166,551,116 | $171,570,872 | $20,861 | $-- | $-- | $16,091,497 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. 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 August 31, 2021, 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 | $485,120,995 | $483,076,529 | $2,044,466 | $-- |
Money Market Funds | 16,091,497 | 16,091,497 | -- | -- |
Total Investments in Securities: | $501,212,492 | $499,168,026 | $2,044,466 | $-- |
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 | 77.3% |
Sweden | 3.2% |
Finland | 3.0% |
India | 2.8% |
United Kingdom | 2.8% |
France | 2.2% |
Spain | 2.0% |
Korea (South) | 1.8% |
Netherlands | 1.5% |
Israel | 1.2% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Wireless Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $13,878,181) — See accompanying schedule: Unaffiliated issuers (cost $295,097,597) | $485,120,995 | |
Fidelity Central Funds (cost $16,091,497) | 16,091,497 | |
Total Investment in Securities (cost $311,189,094) | $501,212,492 | |
Receivable for investments sold | 2,678,299 | |
Receivable for fund shares sold | 142,219 | |
Dividends receivable | 77,455 | |
Distributions receivable from Fidelity Central Funds | 2,037 | |
Prepaid expenses | 1,961 | |
Other receivables | 27,437 | |
Total assets | 504,141,900 | |
Liabilities | ||
Payable for investments purchased | $1,636,144 | |
Payable for fund shares redeemed | 414,914 | |
Accrued management fee | 211,253 | |
Other affiliated payables | 84,952 | |
Other payables and accrued expenses | 854,406 | |
Collateral on securities loaned | 14,319,088 | |
Total liabilities | 17,520,757 | |
Net Assets | $486,621,143 | |
Net Assets consist of: | ||
Paid in capital | $282,373,403 | |
Total accumulated earnings (loss) | 204,247,740 | |
Net Assets | $486,621,143 | |
Net Asset Value, offering price and redemption price per share ($486,621,143 ÷ 32,904,136 shares) | $14.79 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,441,290 | |
Income from Fidelity Central Funds (including $20,256 from security lending) | 20,861 | |
Total income | 3,462,151 | |
Expenses | ||
Management fee | $1,228,362 | |
Transfer agent fees | 413,842 | |
Accounting fees | 90,946 | |
Custodian fees and expenses | 9,009 | |
Independent trustees' fees and expenses | 867 | |
Registration fees | 30,726 | |
Audit | 25,798 | |
Legal | 184 | |
Miscellaneous | 1,094 | |
Total expenses before reductions | 1,800,828 | |
Expense reductions | (24,314) | |
Total expenses after reductions | 1,776,514 | |
Net investment income (loss) | 1,685,637 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $12,218) | 14,749,776 | |
Foreign currency transactions | 2,358 | |
Total net realized gain (loss) | 14,752,134 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $45,060) | 45,309,203 | |
Assets and liabilities in foreign currencies | 2,656 | |
Total change in net unrealized appreciation (depreciation) | 45,311,859 | |
Net gain (loss) | 60,063,993 | |
Net increase (decrease) in net assets resulting from operations | $61,749,630 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,685,637 | $3,203,439 |
Net realized gain (loss) | 14,752,134 | 21,464,476 |
Change in net unrealized appreciation (depreciation) | 45,311,859 | 92,679,813 |
Net increase (decrease) in net assets resulting from operations | 61,749,630 | 117,347,728 |
Distributions to shareholders | (13,751,465) | (30,160,728) |
Share transactions | ||
Proceeds from sales of shares | 31,036,909 | 151,879,800 |
Reinvestment of distributions | 13,051,136 | 28,391,578 |
Cost of shares redeemed | (45,760,830) | (182,471,304) |
Net increase (decrease) in net assets resulting from share transactions | (1,672,785) | (2,199,926) |
Total increase (decrease) in net assets | 46,325,380 | 84,987,074 |
Net Assets | ||
Beginning of period | 440,295,763 | 355,308,689 |
End of period | $486,621,143 | $440,295,763 |
Other Information | ||
Shares | ||
Sold | 2,205,599 | 12,945,504 |
Issued in reinvestment of distributions | 943,001 | 2,648,817 |
Redeemed | (3,261,289) | (15,799,791) |
Net increase (decrease) | (112,689) | (205,470) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Wireless Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.34 | $10.69 | $8.93 | $10.29 | $9.11 | $7.85 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .05 | .10 | .14 | .20C | .16 | .10 |
Net realized and unrealized gain (loss) | 1.82 | 3.50 | 1.93 | (.24)D | 1.39 | 1.71 |
Total from investment operations | 1.87 | 3.60 | 2.07 | (.04) | 1.55 | 1.81 |
Distributions from net investment income | – | (.10) | (.12) | (.19) | (.14) | (.09) |
Distributions from net realized gain | (.42) | (.86) | (.19) | (1.13) | (.24) | (.46) |
Total distributions | (.42) | (.95)E | (.31) | (1.32) | (.37)E | (.55) |
Redemption fees added to paid in capitalB | – | – | – | – | –F | –F |
Net asset value, end of period | $14.79 | $13.34 | $10.69 | $8.93 | $10.29 | $9.11 |
Total ReturnG,H | 14.26% | 36.09% | 23.01% | .21% | 17.21% | 24.09% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .77%K | .79% | .81% | .83% | .83% | .87% |
Expenses net of fee waivers, if any | .77%K | .79% | .81% | .83% | .83% | .87% |
Expenses net of all reductions | .76%K | .78% | .81% | .82% | .82% | .86% |
Net investment income (loss) | .72%K | .80% | 1.39% | 2.07%C | 1.61% | 1.23% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $486,621 | $440,296 | $355,309 | $237,907 | $275,742 | $239,359 |
Portfolio turnover rateL | 38%K | 55% | 78% | 54% | 85% | 98% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.74%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been .12%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Wireless Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 invests primarily in securities of companies whose principal business activities fall within specific industries.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 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.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income 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, certain foreign taxes and 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 | $203,220,098 |
Gross unrealized depreciation | (13,566,614) |
Net unrealized appreciation (depreciation) | $189,653,484 |
Tax cost | $311,559,008 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Wireless Portfolio | 88,218,498 | 100,353,528 |
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 annualized management fee rate was .53% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
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 annualized rates:
% of Average Net Assets | |
Wireless Portfolio | .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 | |
Wireless Portfolio | $2,251 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Wireless Portfolio | 2,565,331 | 4,588,537 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Wireless Portfolio | $419 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Wireless Portfolio | $2,046 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $20,797 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $3,517.
9. Other.
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.
10. 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.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Telecommunications Portfolio | ||||
Class A | 1.08% | |||
Actual | $1,000.00 | $1,077.50 | $5.66 | |
Hypothetical-C | $1,000.00 | $1,019.76 | $5.50 | |
Class M | 1.38% | |||
Actual | $1,000.00 | $1,075.90 | $7.22 | |
Hypothetical-C | $1,000.00 | $1,018.25 | $7.02 | |
Class C | 1.83% | |||
Actual | $1,000.00 | $1,073.60 | $9.56 | |
Hypothetical-C | $1,000.00 | $1,015.98 | $9.30 | |
Telecommunications | .79% | |||
Actual | $1,000.00 | $1,079.10 | $4.14 | |
Hypothetical-C | $1,000.00 | $1,021.22 | $4.02 | |
Class I | .78% | |||
Actual | $1,000.00 | $1,079.20 | $4.09 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 | |
Class Z | .65% | |||
Actual | $1,000.00 | $1,079.90 | $3.41 | |
Hypothetical-C | $1,000.00 | $1,021.93 | $3.31 | |
Wireless Portfolio | .77% | |||
Actual | $1,000.00 | $1,142.60 | $4.16 | |
Hypothetical-C | $1,000.00 | $1,021.32 | $3.92 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Telecommunications Portfolio
Wireless Portfolio
Telecommunications Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733219284.jpg)
Wireless Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733219477.jpg)
Telecommunications Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733220214.jpg)
Wireless Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733220341.jpg)
SELTS-SANN-1021
1.846053.114
Fidelity® Select Portfolios®
Information Technology Sector
Communications Equipment Portfolio
Computers Portfolio (to be renamed Tech Hardware Portfolio effective November 13, 2021)
IT Services Portfolio
Semiconductors Portfolio
Software and IT Services Portfolio
Technology Portfolio
Semi-Annual Report
August 31, 2021
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Contents
Communications Equipment Portfolio | |
Computers Portfolio | |
IT Services Portfolio | |
Semiconductors Portfolio | |
Software and IT Services Portfolio | |
Technology Portfolio | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
In May 2021, the Board of Trustees approved a proposal to reposition Fidelity Select Computers Portfolio with a broader, modernized mandate and rename it Fidelity Select Tech Hardware Portfolio on November 13, 2021. In conjunction with the repositioning, Fidelity intends to change the fund’s supplemental benchmark to the FactSet Technology Hardware Index, which better reflects the fund’s updated investment focus.
Communications Equipment Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Cisco Systems, Inc. | 23.9 |
Ericsson (B Shares) sponsored ADR | 14.0 |
Motorola Solutions, Inc. | 6.4 |
Nokia Corp. sponsored ADR | 5.1 |
Lumentum Holdings, Inc. | 4.9 |
Arista Networks, Inc. | 4.9 |
F5 Networks, Inc. | 4.9 |
Ciena Corp. | 4.6 |
Calix, Inc. | 4.5 |
Juniper Networks, Inc. | 3.6 |
76.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Communications Equipment | 96.7% | |
Software | 1.5% | |
All Others* | 1.8% |
* Includes short-term investments and net other assets (liabilities).
Communications Equipment Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
Communications Equipment - 96.7% | |||
Communications Equipment - 96.7% | |||
ADTRAN, Inc. | 129,625 | $2,678,053 | |
Arista Networks, Inc. (a) | 24,571 | 9,079,722 | |
Calix, Inc. (a) | 177,019 | 8,249,085 | |
Cambium Networks Corp. (a) | 55,800 | 2,090,826 | |
Casa Systems, Inc. (a) | 189,303 | 1,332,693 | |
Ciena Corp. (a) | 150,019 | 8,570,585 | |
Cisco Systems, Inc. | 750,414 | 44,289,436 | |
CommScope Holding Co., Inc. (a) | 305,914 | 4,833,441 | |
Digi International, Inc. (a)(b) | 60,700 | 1,334,186 | |
EchoStar Holding Corp. Class A (a)(b) | 132,378 | 3,574,206 | |
Ericsson (B Shares) sponsored ADR | 2,185,456 | 25,832,090 | |
Evertz Technologies Ltd. | 43,996 | 460,308 | |
Extreme Networks, Inc. (a) | 304,078 | 3,293,165 | |
F5 Networks, Inc. (a) | 44,162 | 8,990,058 | |
Harmonic, Inc. (a) | 151,068 | 1,395,868 | |
Inseego Corp. (a)(b) | 71,031 | 596,660 | |
Juniper Networks, Inc. | 232,229 | 6,729,996 | |
Lumentum Holdings, Inc. (a) | 105,238 | 9,117,820 | |
Motorola Solutions, Inc. | 48,356 | 11,809,502 | |
NetScout Systems, Inc. (a) | 117,459 | 3,220,726 | |
Nokia Corp. sponsored ADR (a) | 1,583,990 | 9,440,580 | |
Radware Ltd. (a) | 8 | 274 | |
Ribbon Communications, Inc. (a) | 97,827 | 638,810 | |
Sierra Wireless, Inc. (a) | 92,711 | 1,515,973 | |
ViaSat, Inc. (a) | 91,968 | 4,749,228 | |
Viavi Solutions, Inc. (a) | 313,869 | 5,112,926 | |
178,936,217 | |||
Software - 1.5% | |||
Application Software - 0.1% | |||
Citrix Systems, Inc. | 13 | 1,337 | |
Smith Micro Software, Inc. (a)(b) | 25,706 | 128,273 | |
129,610 | |||
Systems Software - 1.4% | |||
Cloudflare, Inc. (a) | 7,513 | 907,120 | |
CommVault Systems, Inc. (a) | 30 | 2,429 | |
Palo Alto Networks, Inc. (a) | 2,100 | 968,184 | |
Ping Identity Holding Corp. (a) | 11,100 | 288,045 | |
Rapid7, Inc. (a) | 3,998 | 485,837 | |
2,651,615 | |||
TOTAL SOFTWARE | 2,781,225 | ||
TOTAL COMMON STOCKS | |||
(Cost $112,515,155) | 181,717,442 | ||
Money Market Funds - 4.2% | |||
Fidelity Cash Central Fund 0.06% (c) | 3,344,033 | 3,344,702 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 4,396,974 | 4,397,414 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,742,116) | 7,742,116 | ||
TOTAL INVESTMENT IN SECURITIES - 102.4% | |||
(Cost $120,257,271) | 189,459,558 | ||
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (4,512,267) | ||
NET ASSETS - 100% | $184,947,291 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $1,167,158 | $24,440,604 | $22,263,060 | $409 | $-- | $-- | $3,344,702 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 9,410,314 | 37,892,808 | 42,905,708 | 3,947 | -- | -- | 4,397,414 | 0.0% |
Total | $10,577,472 | $62,333,412 | $65,168,768 | $4,356 | $-- | $-- | $7,742,116 |
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 August 31, 2021, 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 | $181,717,442 | $181,717,442 | $-- | $-- |
Money Market Funds | 7,742,116 | 7,742,116 | -- | -- |
Total Investments in Securities: | $189,459,558 | $189,459,558 | $-- | $-- |
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 | 78.7% |
Sweden | 14.0% |
Finland | 5.1% |
Cayman Islands | 1.1% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 0.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,367,558) — See accompanying schedule: Unaffiliated issuers (cost $112,515,155) | $181,717,442 | |
Fidelity Central Funds (cost $7,742,116) | 7,742,116 | |
Total Investment in Securities (cost $120,257,271) | $189,459,558 | |
Foreign currency held at value (cost $8) | 8 | |
Receivable for fund shares sold | 8,187 | |
Dividends receivable | 58,112 | |
Distributions receivable from Fidelity Central Funds | 427 | |
Prepaid expenses | 1,208 | |
Other receivables | 4,667 | |
Total assets | 189,532,167 | |
Liabilities | ||
Payable for fund shares redeemed | $24,519 | |
Accrued management fee | 80,080 | |
Other affiliated payables | 34,028 | |
Other payables and accrued expenses | 49,099 | |
Collateral on securities loaned | 4,397,150 | |
Total liabilities | 4,584,876 | |
Net Assets | $184,947,291 | |
Net Assets consist of: | ||
Paid in capital | $102,971,701 | |
Total accumulated earnings (loss) | 81,975,590 | |
Net Assets | $184,947,291 | |
Net Asset Value, offering price and redemption price per share ($184,947,291 ÷ 3,960,443 shares) | $46.70 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $973,981 | |
Income from Fidelity Central Funds (including $3,947 from security lending) | 4,356 | |
Total income | 978,337 | |
Expenses | ||
Management fee | $474,687 | |
Transfer agent fees | 171,877 | |
Accounting fees | 35,145 | |
Custodian fees and expenses | 1,535 | |
Independent trustees' fees and expenses | 333 | |
Registration fees | 14,625 | |
Audit | 17,383 | |
Legal | 288 | |
Miscellaneous | 30,133 | |
Total expenses before reductions | 746,006 | |
Expense reductions | (7,620) | |
Total expenses after reductions | 738,386 | |
Net investment income (loss) | 239,951 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 13,884,975 | |
Foreign currency transactions | 1,492 | |
Total net realized gain (loss) | 13,886,467 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,254,271 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | 12,254,270 | |
Net gain (loss) | 26,140,737 | |
Net increase (decrease) in net assets resulting from operations | $26,380,688 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $239,951 | $629,632 |
Net realized gain (loss) | 13,886,467 | 3,203,919 |
Change in net unrealized appreciation (depreciation) | 12,254,270 | 36,373,245 |
Net increase (decrease) in net assets resulting from operations | 26,380,688 | 40,206,796 |
Distributions to shareholders | (1,405,022) | (643,329) |
Share transactions | ||
Proceeds from sales of shares | 6,708,731 | 16,670,458 |
Reinvestment of distributions | 1,316,710 | 600,577 |
Cost of shares redeemed | (18,928,078) | (31,097,669) |
Net increase (decrease) in net assets resulting from share transactions | (10,902,637) | (13,826,634) |
Total increase (decrease) in net assets | 14,073,029 | 25,736,833 |
Net Assets | ||
Beginning of period | 170,874,262 | 145,137,429 |
End of period | $184,947,291 | $170,874,262 |
Other Information | ||
Shares | ||
Sold | 153,787 | 454,656 |
Issued in reinvestment of distributions | 29,993 | 16,299 |
Redeemed | (433,240) | (918,846) |
Net increase (decrease) | (249,460) | (447,891) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Communications Equipment Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.59 | $31.16 | $40.36 | $39.13 | $34.12 | $26.71 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .06 | .15 | .19 | .25 | .17 | .38 |
Net realized and unrealized gain (loss) | 6.39 | 9.44 | (7.51) | 3.76 | 5.45C | 7.39 |
Total from investment operations | 6.45 | 9.59 | (7.32) | 4.01 | 5.62 | 7.77 |
Distributions from net investment income | (.01) | (.16) | (.20) | (.17)D | (.33) | (.36) |
Distributions from net realized gain | (.33) | – | (1.69) | (2.61)D | (.28) | – |
Total distributions | (.34) | (.16) | (1.88)E | (2.78) | (.61) | (.36) |
Redemption fees added to paid in capitalB | – | – | – | – | –F | –F |
Net asset value, end of period | $46.70 | $40.59 | $31.16 | $40.36 | $39.13 | $34.12 |
Total ReturnG,H | 15.95% | 30.81% | (18.84)% | 11.11% | 16.71%C | 29.24% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .81%K,L | .87% | .83% | .84% | .85% | .88% |
Expenses net of fee waivers, if any | .81%K,L | .87% | .83% | .84% | .85% | .88% |
Expenses net of all reductions | .80%K,L | .84% | .82% | .83% | .85% | .88% |
Net investment income (loss) | .28%K,L | .43% | .50% | .66% | .48% | 1.27% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $184,947 | $170,874 | $145,137 | $218,945 | $209,178 | $204,651 |
Portfolio turnover rateM | 39%K | 110% | 108% | 71% | 56% | 38% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been 16.67%..
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Proxy expenses are not annualized.
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Computers Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Apple, Inc. | 16.5 |
Sony Group Corp. | 13.6 |
Samsung Electronics Co. Ltd. | 13.5 |
Dell Technologies, Inc. | 6.2 |
FUJIFILM Holdings Corp. | 4.3 |
Western Digital Corp. | 3.6 |
Seagate Technology Holdings PLC | 3.5 |
NetApp, Inc. | 3.5 |
Pure Storage, Inc. Class A | 3.5 |
HP, Inc. | 3.4 |
71.6 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Technology Hardware, Storage & Peripherals | 70.6% | |
Household Durables | 16.0% | |
Electronic Equipment & Components | 3.8% | |
Software | 3.7% | |
Interactive Media & Services | 3.2% | |
All Others* | 2.7% |
* Includes short-term investments and net other assets (liabilities).
Computers Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
Electronic Equipment & Components - 3.8% | |||
Electronic Components - 3.8% | |||
AU Optronics Corp. | 12,492,634 | $7,892,903 | |
Kyocera Corp. | 356,369 | 22,176,087 | |
30,068,990 | |||
Household Durables - 16.0% | |||
Consumer Electronics - 16.0% | |||
LG Electronics, Inc. | 101,326 | 12,415,420 | |
Sonos, Inc. (a) | 169,974 | 6,753,067 | |
Sony Group Corp. | 1,046,490 | 108,202,233 | |
127,370,720 | |||
Interactive Media & Services - 3.2% | |||
Interactive Media & Services - 3.2% | |||
Alphabet, Inc. Class A (a) | 8,694 | 25,160,001 | |
Internet & Direct Marketing Retail - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Doordash, Inc. | 1,800 | 344,520 | |
Machinery - 1.0% | |||
Industrial Machinery - 1.0% | |||
Kornit Digital Ltd. (a) | 59,390 | 7,742,674 | |
Semiconductors & Semiconductor Equipment - 0.5% | |||
Semiconductors - 0.5% | |||
NVIDIA Corp. | 17,844 | 3,994,379 | |
Software - 3.7% | |||
Application Software - 0.0% | |||
Jamf Holding Corp. (a)(b) | 700 | 24,605 | |
Systems Software - 3.7% | |||
CyberArk Software Ltd. (a) | 24,159 | 4,057,262 | |
FireEye, Inc. (a) | 222,500 | 4,047,275 | |
KnowBe4, Inc. (a) | 116,108 | 2,857,418 | |
Microsoft Corp. | 40,326 | 12,173,613 | |
NortonLifeLock, Inc. | 68,988 | 1,832,321 | |
Ping Identity Holding Corp. (a)(b) | 150,721 | 3,911,210 | |
SentinelOne, Inc. | 3,500 | 223,755 | |
Varonis Systems, Inc. (a) | 11,609 | 801,137 | |
29,903,991 | |||
TOTAL SOFTWARE | 29,928,596 | ||
Technology Hardware, Storage & Peripherals - 70.6% | |||
Technology Hardware, Storage & Peripherals - 70.6% | |||
Apple, Inc. | 869,089 | 131,953,784 | |
ASUSTeK Computer, Inc. | 523,956 | 6,138,333 | |
Canon, Inc. | 959,500 | 22,828,548 | |
Dell Technologies, Inc. (a) | 507,614 | 49,472,060 | |
Diebold Nixdorf, Inc. (a)(b) | 235,447 | 2,561,663 | |
FUJIFILM Holdings Corp. | 420,223 | 34,636,933 | |
Hewlett Packard Enterprise Co. | 1,583,041 | 24,473,814 | |
HP, Inc. | 923,851 | 27,475,329 | |
Lenovo Group Ltd. | 4,584,297 | 5,080,925 | |
Logitech International SA (b) | 31,169 | 3,190,147 | |
Logitech International SA (Reg.) | 227,344 | 23,247,057 | |
NCR Corp. (a)(b) | 240,350 | 10,210,068 | |
NetApp, Inc. | 316,162 | 28,116,287 | |
Pure Storage, Inc. Class A (a) | 1,067,568 | 27,575,281 | |
Samsung Electronics Co. Ltd. | 1,622,811 | 107,402,767 | |
Seagate Technology Holdings PLC | 321,007 | 28,117,003 | |
Western Digital Corp. (a) | 458,046 | 28,948,507 | |
Xerox Holdings Corp. | 118,610 | 2,669,911 | |
564,098,417 | |||
TOTAL COMMON STOCKS | |||
(Cost $438,103,897) | 788,708,297 | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 0.06% (c) | 10,963,771 | 10,965,964 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 9,021,023 | 9,021,925 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $19,987,889) | 19,987,889 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $458,091,786) | 808,696,186 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (10,196,148) | ||
NET ASSETS - 100% | $798,500,038 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $10,715,475 | $122,568,226 | $122,317,737 | $2,377 | $-- | $-- | $10,965,964 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 289,425 | 99,125,366 | 90,392,866 | 17,458 | -- | -- | 9,021,925 | 0.0% |
Total | $11,004,900 | $221,693,592 | $212,710,603 | $19,835 | $-- | $-- | $19,987,889 |
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 August 31, 2021, 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 | $788,708,297 | $649,784,613 | $138,923,684 | $-- |
Money Market Funds | 19,987,889 | 19,987,889 | -- | -- |
Total Investments in Securities: | $808,696,186 | $669,772,502 | $138,923,684 | $-- |
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 | 50.6% |
Japan | 23.6% |
Korea (South) | 15.1% |
Ireland | 3.5% |
Switzerland | 3.3% |
Taiwan | 1.8% |
Israel | 1.5% |
Others (Individually Less Than 1%) | 0.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Computers Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $8,707,465) — See accompanying schedule: Unaffiliated issuers (cost $438,103,897) | $788,708,297 | |
Fidelity Central Funds (cost $19,987,889) | 19,987,889 | |
Total Investment in Securities (cost $458,091,786) | $808,696,186 | |
Receivable for fund shares sold | 122,860 | |
Dividends receivable | 195,833 | |
Distributions receivable from Fidelity Central Funds | 3,326 | |
Prepaid expenses | 3,661 | |
Other receivables | 232,078 | |
Total assets | 809,253,944 | |
Liabilities | ||
Payable for fund shares redeemed | $1,149,410 | |
Accrued management fee | 343,991 | |
Other affiliated payables | 111,629 | |
Other payables and accrued expenses | 126,951 | |
Collateral on securities loaned | 9,021,925 | |
Total liabilities | 10,753,906 | |
Net Assets | $798,500,038 | |
Net Assets consist of: | ||
Paid in capital | $409,263,028 | |
Total accumulated earnings (loss) | 389,237,010 | |
Net Assets | $798,500,038 | |
Net Asset Value, offering price and redemption price per share ($798,500,038 ÷ 7,004,580 shares) | $114.00 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $4,952,679 | |
Income from Fidelity Central Funds (including $17,458 from security lending) | 19,835 | |
Total income | 4,972,514 | |
Expenses | ||
Management fee | $2,082,721 | |
Transfer agent fees | 551,228 | |
Accounting fees | 137,508 | |
Custodian fees and expenses | 25,853 | |
Independent trustees' fees and expenses | 1,472 | |
Registration fees | 30,740 | |
Audit | 17,856 | |
Legal | 1,443 | |
Interest | 662 | |
Miscellaneous | 25,096 | |
Total expenses before reductions | 2,874,579 | |
Expense reductions | (81,049) | |
Total expenses after reductions | 2,793,530 | |
Net investment income (loss) | 2,178,984 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 42,006,222 | |
Foreign currency transactions | (88,294) | |
Total net realized gain (loss) | 41,917,928 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,877,740 | |
Assets and liabilities in foreign currencies | 54,195 | |
Total change in net unrealized appreciation (depreciation) | 17,931,935 | |
Net gain (loss) | 59,849,863 | |
Net increase (decrease) in net assets resulting from operations | $62,028,847 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,178,984 | $6,103,803 |
Net realized gain (loss) | 41,917,928 | 94,734,806 |
Change in net unrealized appreciation (depreciation) | 17,931,935 | 193,184,672 |
Net increase (decrease) in net assets resulting from operations | 62,028,847 | 294,023,281 |
Distributions to shareholders | (66,247,900) | (61,816,773) |
Share transactions | ||
Proceeds from sales of shares | 76,589,601 | 88,420,400 |
Reinvestment of distributions | 63,329,782 | 59,014,619 |
Cost of shares redeemed | (107,976,339) | (142,658,039) |
Net increase (decrease) in net assets resulting from share transactions | 31,943,044 | 4,776,980 |
Total increase (decrease) in net assets | 27,723,991 | 236,983,488 |
Net Assets | ||
Beginning of period | 770,776,047 | 533,792,559 |
End of period | $798,500,038 | $770,776,047 |
Other Information | ||
Shares | ||
Sold | 677,567 | 905,980 |
Issued in reinvestment of distributions | 563,132 | 681,911 |
Redeemed | (953,878) | (1,658,159) |
Net increase (decrease) | 286,821 | (70,268) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Computers Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $114.74 | $78.64 | $75.84 | $92.81 | $83.01 | $62.46 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .31 | .93C | 1.51D | .81 | .67 | .73 |
Net realized and unrealized gain (loss) | 8.80 | 44.83 | 11.48 | (1.67) | 19.24 | 24.69 |
Total from investment operations | 9.11 | 45.76 | 12.99 | (.86) | 19.91 | 25.42 |
Distributions from net investment income | (.46) | (1.61) | (.77) | (.88)E | (.73)E | (.88) |
Distributions from net realized gain | (9.39) | (8.05) | (9.42) | (15.23)E | (9.38)E | (4.00) |
Total distributions | (9.85) | (9.66) | (10.19) | (16.11) | (10.11) | (4.87)F |
Redemption fees added to paid in capitalB | – | – | – | – | –G | –G |
Net asset value, end of period | $114.00 | $114.74 | $78.64 | $75.84 | $92.81 | $83.01 |
Total ReturnH,I | 8.06% | 62.60% | 17.80% | .54% | 24.82% | 41.57% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | .72%L,M | .74% | .76% | .77% | .79% | .81% |
Expenses net of fee waivers, if any | .72%L,M | .74% | .76% | .77% | .79% | .81% |
Expenses net of all reductions | .70%L,M | .73% | .75% | .77% | .78% | .81% |
Net investment income (loss) | .55%L,M | 1.04%C | 1.95%D | .90% | .75% | 1.01% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $798,500 | $770,776 | $533,793 | $491,780 | $538,332 | $472,745 |
Portfolio turnover rateN | 61%L | 78% | 116% | 81% | 57% | 49% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.44 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .55%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.78 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .94%.
E The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
F Total distributions per share do not sum due to rounding.
G Amount represents less than $.005 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Proxy expenses are not annualized.
N Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
IT Services Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
MasterCard, Inc. Class A | 16.0 |
Visa, Inc. Class A | 14.2 |
PayPal Holdings, Inc. | 13.3 |
Square, Inc. | 6.1 |
Intuit, Inc. | 4.2 |
Accenture PLC Class A | 3.6 |
Twilio, Inc. Class A | 3.3 |
Fiserv, Inc. | 2.9 |
DXC Technology Co. | 2.6 |
Cognizant Technology Solutions Corp. Class A | 2.4 |
68.6 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
IT Services | 83.8% | |
Software | 9.4% | |
Interactive Media & Services | 2.3% | |
Media | 1.9% | |
Professional Services | 0.9% | |
All Others* | 1.7% |
* Includes short-term investments and net other assets (liabilities).
IT Services Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
Interactive Media & Services - 2.3% | |||
Interactive Media & Services - 2.3% | |||
Facebook, Inc. Class A (a) | 171,700 | $65,139,546 | |
Match Group, Inc. (a) | 238,130 | 32,728,587 | |
97,868,133 | |||
Internet & Direct Marketing Retail - 0.5% | |||
Internet & Direct Marketing Retail - 0.5% | |||
Global-e Online Ltd. (a) | 274,225 | 21,652,806 | |
IT Services - 83.8% | |||
Data Processing & Outsourced Services - 62.8% | |||
Adyen BV (a)(b) | 10,600 | 34,224,865 | |
Automatic Data Processing, Inc. | 234,075 | 48,931,038 | |
Dlocal Ltd. | 48,500 | 3,104,000 | |
Fidelity National Information Services, Inc. | 649,097 | 82,935,124 | |
Fiserv, Inc. (a) | 1,069,617 | 125,990,186 | |
FleetCor Technologies, Inc. (a) | 95,000 | 25,011,600 | |
Flywire Corp. (a) | 63,500 | 2,788,285 | |
Genpact Ltd. | 1,198,080 | 62,156,390 | |
Global Payments, Inc. | 471,803 | 76,734,040 | |
MasterCard, Inc. Class A | 2,006,400 | 694,675,873 | |
Paymentus Holdings, Inc. (a) | 97,600 | 2,503,440 | |
PayPal Holdings, Inc. (a) | 1,996,140 | 576,205,772 | |
Square, Inc. (a) | 991,000 | 265,657,370 | |
TaskUs, Inc. | 179,937 | 11,318,037 | |
The Western Union Co. | 4,800 | 103,872 | |
Ttec Holdings, Inc. | 2,000 | 210,920 | |
Visa, Inc. Class A (c) | 2,691,148 | 616,542,007 | |
WEX, Inc. (a) | 700 | 128,499 | |
WNS Holdings Ltd. sponsored ADR (a) | 1,102,692 | 91,457,274 | |
2,720,678,592 | |||
Internet Services & Infrastructure - 6.9% | |||
GoDaddy, Inc. (a) | 873,927 | 64,067,588 | |
MongoDB, Inc. Class A (a) | 141,900 | 55,600,677 | |
Snowflake Computing, Inc. | 67,700 | 20,604,495 | |
Twilio, Inc. Class A (a) | 405,100 | 144,604,496 | |
VeriSign, Inc. (a) | 70,000 | 15,138,200 | |
300,015,456 | |||
IT Consulting & Other Services - 14.1% | |||
Accenture PLC Class A | 461,680 | 155,383,021 | |
Amdocs Ltd. | 800,100 | 61,631,703 | |
Cognizant Technology Solutions Corp. Class A | 1,377,732 | 105,134,729 | |
DXC Technology Co. (a) | 3,057,200 | 112,260,384 | |
EPAM Systems, Inc. (a) | 129,500 | 81,948,895 | |
Gartner, Inc. (a) | 106,700 | 32,942,558 | |
Globant SA (a) | 79,200 | 25,524,576 | |
IBM Corp. | 142,550 | 20,005,467 | |
Liveramp Holdings, Inc. (a) | 247,200 | 12,112,800 | |
Unisys Corp. (a) | 167,753 | 4,061,300 | |
611,005,433 | |||
TOTAL IT SERVICES | 3,631,699,481 | ||
Media - 1.9% | |||
Advertising - 1.9% | |||
S4 Capital PLC (a) | 7,291,988 | 81,606,673 | |
Professional Services - 0.9% | |||
Human Resource & Employment Services - 0.9% | |||
Alight, Inc. (d) | 2,500,000 | 27,475,000 | |
Alight, Inc. Class A (a) | 1,235,200 | 13,574,848 | |
41,049,848 | |||
Research & Consulting Services - 0.0% | |||
Science Applications Internati | 800 | 67,384 | |
TOTAL PROFESSIONAL SERVICES | 41,117,232 | ||
Software - 9.4% | |||
Application Software - 8.9% | |||
Adobe, Inc. (a) | 36,169 | 24,005,365 | |
Alkami Technology, Inc. (a) | 2,200 | 62,832 | |
Black Knight, Inc. (a) | 405,900 | 30,714,453 | |
Blend Labs, Inc. (c) | 910,253 | 14,736,996 | |
Ceridian HCM Holding, Inc. (a) | 761,473 | 85,551,492 | |
Intuit, Inc. | 321,356 | 181,922,845 | |
Paycom Software, Inc. (a) | 92,600 | 45,272,140 | |
Riskified Ltd. (a) | 15,100 | 486,975 | |
382,753,098 | |||
Systems Software - 0.5% | |||
UiPath, Inc. Class A (a)(c) | 355,500 | 22,467,600 | |
TOTAL SOFTWARE | 405,220,698 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,734,542,937) | 4,279,165,023 | ||
Money Market Funds - 4.0% | |||
Fidelity Cash Central Fund 0.06% (e) | 14,411,277 | 14,414,159 | |
Fidelity Securities Lending Cash Central Fund 0.06% (e)(f) | 159,582,381 | 159,598,340 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $174,012,499) | 174,012,499 | ||
TOTAL INVESTMENT IN SECURITIES - 102.8% | |||
(Cost $1,908,555,436) | 4,453,177,522 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (121,158,177) | ||
NET ASSETS - 100% | $4,332,019,345 |
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 $34,224,865 or 0.8% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) 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 $27,475,000 or 0.6% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Alight, Inc. | 1/25/21 | $25,000,000 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $-- | $281,227,061 | $266,812,902 | $1,724 | $-- | $-- | $14,414,159 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 136,234,240 | 168,316,442 | 144,952,342 | 114,502 | -- | -- | 159,598,340 | 0.5% |
Total | $136,234,240 | $449,543,503 | $411,765,244 | $116,226 | $-- | $-- | $174,012,499 |
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 August 31, 2021, 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 | $4,279,165,023 | $4,279,165,023 | $-- | $-- |
Money Market Funds | 174,012,499 | 174,012,499 | -- | -- |
Total Investments in Securities: | $4,453,177,522 | $4,453,177,522 | $-- | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.7% |
Ireland | 3.6% |
Bailiwick of Jersey | 2.1% |
United Kingdom | 1.9% |
Bermuda | 1.4% |
Bailiwick of Guernsey | 1.4% |
Others (Individually Less Than 1%) | 1.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
IT Services Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $154,703,525) — See accompanying schedule: Unaffiliated issuers (cost $1,734,542,937) | $4,279,165,023 | |
Fidelity Central Funds (cost $174,012,499) | 174,012,499 | |
Total Investment in Securities (cost $1,908,555,436) | $4,453,177,522 | |
Receivable for investments sold | 43,432,224 | |
Receivable for fund shares sold | 570,242 | |
Dividends receivable | 1,201,331 | |
Distributions receivable from Fidelity Central Funds | 59,255 | |
Prepaid expenses | 16,446 | |
Other receivables | 65,118 | |
Total assets | 4,498,522,138 | |
Liabilities | ||
Payable for fund shares redeemed | $4,387,997 | |
Accrued management fee | 1,897,727 | |
Other affiliated payables | 605,628 | |
Other payables and accrued expenses | 29,191 | |
Collateral on securities loaned | 159,582,250 | |
Total liabilities | 166,502,793 | |
Net Assets | $4,332,019,345 | |
Net Assets consist of: | ||
Paid in capital | $1,473,746,113 | |
Total accumulated earnings (loss) | 2,858,273,232 | |
Net Assets | $4,332,019,345 | |
Net Asset Value, offering price and redemption price per share ($4,332,019,345 ÷ 42,988,520 shares) | $100.77 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $7,753,260 | |
Income from Fidelity Central Funds (including $114,502 from security lending) | 116,226 | |
Total income | 7,869,486 | |
Expenses | ||
Management fee | $11,158,607 | |
Transfer agent fees | 3,100,178 | |
Accounting fees | 525,076 | |
Custodian fees and expenses | 12,590 | |
Independent trustees' fees and expenses | 7,950 | |
Registration fees | 22,603 | |
Audit | 25,740 | |
Legal | 1,710 | |
Interest | 2,954 | |
Miscellaneous | 13,241 | |
Total expenses before reductions | 14,870,649 | |
Expense reductions | (127,462) | |
Total expenses after reductions | 14,743,187 | |
Net investment income (loss) | (6,873,701) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 324,191,549 | |
Foreign currency transactions | (44,309) | |
Total net realized gain (loss) | 324,147,240 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 121,822,816 | |
Unfunded commitments | 1,600,000 | |
Assets and liabilities in foreign currencies | 225 | |
Total change in net unrealized appreciation (depreciation) | 123,423,041 | |
Net gain (loss) | 447,570,281 | |
Net increase (decrease) in net assets resulting from operations | $440,696,580 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(6,873,701) | $(4,189,911) |
Net realized gain (loss) | 324,147,240 | 390,511,242 |
Change in net unrealized appreciation (depreciation) | 123,423,041 | 769,091,316 |
Net increase (decrease) in net assets resulting from operations | 440,696,580 | 1,155,412,647 |
Distributions to shareholders | (144,562,152) | (223,164,335) |
Share transactions | ||
Proceeds from sales of shares | 171,739,585 | 802,890,356 |
Reinvestment of distributions | 136,391,600 | 210,531,333 |
Cost of shares redeemed | (407,557,258) | (1,909,473,070) |
Net increase (decrease) in net assets resulting from share transactions | (99,426,073) | (896,051,381) |
Total increase (decrease) in net assets | 196,708,355 | 36,196,931 |
Net Assets | ||
Beginning of period | 4,135,310,990 | 4,099,114,059 |
End of period | $4,332,019,345 | $4,135,310,990 |
Other Information | ||
Shares | ||
Sold | 1,772,376 | 10,373,759 |
Issued in reinvestment of distributions | 1,425,349 | 2,363,917 |
Redeemed | (4,231,243) | (24,393,398) |
Net increase (decrease) | (1,033,518) | (11,655,722) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
IT Services Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $93.94 | $73.62 | $64.96 | $58.69 | $44.84 | $37.16 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.16) | (.09) | .03 | .04 | .04 | .13C |
Net realized and unrealized gain (loss) | 10.32 | 25.34 | 10.36 | 8.92 | 15.50 | 7.68 |
Total from investment operations | 10.16 | 25.25 | 10.39 | 8.96 | 15.54 | 7.81 |
Distributions from net investment income | – | (.01) | (.03) | (.03) | (.02) | (.13) |
Distributions from net realized gain | (3.33) | (4.93) | (1.70) | (2.66) | (1.67) | – |
Total distributions | (3.33) | (4.93)D | (1.73) | (2.69) | (1.69) | (.13) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $100.77 | $93.94 | $73.62 | $64.96 | $58.69 | $44.84 |
Total ReturnF,G | 11.01% | 34.67% | 15.99% | 16.04% | 35.17% | 21.05% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .70%J | .72% | .73% | .74% | .77% | .79% |
Expenses net of fee waivers, if any | .70%J | .72% | .73% | .74% | .77% | .79% |
Expenses net of all reductions | .69%J | .72% | .73% | .74% | .77% | .79% |
Net investment income (loss) | (.32)%J | (.11)% | .04% | .06% | .08% | .33%C |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,332,019 | $4,135,311 | $4,099,114 | $2,867,321 | $2,284,152 | $1,663,802 |
Portfolio turnover rateK | 30%J | 31% | 24% | 26% | 26% | 27% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.13 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .02%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Semiconductors Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
NVIDIA Corp. | 24.8 |
NXP Semiconductors NV | 8.0 |
Marvell Technology, Inc. | 7.4 |
Microchip Technology, Inc. | 5.1 |
ON Semiconductor Corp. | 4.7 |
Lam Research Corp. | 4.4 |
Analog Devices, Inc. | 4.1 |
Texas Instruments, Inc. | 3.7 |
Intel Corp. | 3.6 |
Broadcom, Inc. | 3.3 |
69.1 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Semiconductors & Semiconductor Equipment | 93.0% | |
Electronic Equipment & Components | 2.1% | |
Software | 2.0% | |
Technology Hardware, Storage & Peripherals | 0.9% | |
Electrical Equipment | 0.2% | |
All Others* | 1.8% |
* Includes short-term investments and net other assets (liabilities).
Semiconductors Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
Electrical Equipment - 0.2% | |||
Electrical Components & Equipment - 0.2% | |||
Array Technologies, Inc. | 983,600 | 18,757,252 | |
Electronic Equipment & Components - 2.1% | |||
Electronic Equipment & Instruments - 0.3% | |||
Advanced Energy Industries, Inc. | 200,564 | 18,086,862 | |
Electronic Manufacturing Services - 1.8% | |||
Flex Ltd. (a) | 1,904,000 | 35,376,320 | |
Jabil, Inc. | 1,544,658 | 95,428,971 | |
130,805,291 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 148,892,153 | ||
Semiconductors & Semiconductor Equipment - 92.9% | |||
Semiconductor Equipment - 11.6% | |||
Applied Materials, Inc. | 959,000 | 129,589,670 | |
Enphase Energy, Inc. (a) | 175,700 | 30,524,361 | |
KLA Corp. | 234,113 | 79,589,055 | |
Lam Research Corp. | 522,973 | 316,304,530 | |
Nova Ltd. (a)(b) | 900,300 | 91,065,345 | |
Teradyne, Inc. | 1,574,622 | 191,222,096 | |
838,295,057 | |||
Semiconductors - 81.3% | |||
Advanced Micro Devices, Inc. (a) | 1,392,400 | 154,166,528 | |
Alpha & Omega Semiconductor Ltd. (a) | 742,296 | 21,563,699 | |
Analog Devices, Inc. | 1,804,338 | 294,016,877 | |
ASE Technology Holding Co. Ltd. ADR | 1,396,600 | 12,946,482 | |
Broadcom, Inc. | 478,650 | 237,989,567 | |
Cirrus Logic, Inc. (a) | 1,302,760 | 109,001,929 | |
Cree, Inc. (a) | 166,100 | 14,115,178 | |
Diodes, Inc. (a) | 764,000 | 73,978,120 | |
Intel Corp. | 4,801,442 | 259,565,955 | |
MACOM Technology Solutions Holdings, Inc. (a) | 1,343,900 | 81,588,169 | |
Marvell Technology, Inc. | 8,737,841 | 534,668,491 | |
MaxLinear, Inc. Class A (a) | 817,731 | 42,710,090 | |
Microchip Technology, Inc. | 2,315,437 | 364,357,166 | |
Micron Technology, Inc. | 1,998,860 | 147,315,982 | |
Monolithic Power Systems, Inc. | 122,100 | 60,430,953 | |
NVIDIA Corp. | 7,961,068 | 1,782,085,072 | |
NXP Semiconductors NV | 2,669,288 | 574,243,927 | |
ON Semiconductor Corp. (a) | 7,545,059 | 334,698,817 | |
Qualcomm, Inc. | 1,412,188 | 207,153,858 | |
SMART Global Holdings, Inc. (a) | 450,100 | 21,811,846 | |
Synaptics, Inc. (a) | 266,364 | 50,550,560 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,053,500 | 125,377,035 | |
Texas Instruments, Inc. | 1,408,400 | 268,877,644 | |
Xilinx, Inc. | 418,066 | 65,046,889 | |
5,838,260,834 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 6,676,555,891 | ||
Software - 2.0% | |||
Application Software - 2.0% | |||
Cadence Design Systems, Inc. (a) | 875,200 | 143,077,696 | |
Technology Hardware, Storage & Peripherals - 0.9% | |||
Technology Hardware, Storage & Peripherals - 0.9% | |||
Samsung Electronics Co. Ltd. | 959,730 | 63,517,968 | |
TOTAL COMMON STOCKS | |||
(Cost $3,595,226,427) | 7,050,800,960 | ||
Convertible Preferred Stocks - 0.1% | |||
Metals & Mining - 0.1% | |||
Precious Metals & Minerals - 0.1% | |||
Diamond Foundry, Inc. Series C (c)(d) | 189,999 | 4,559,976 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
Semiconductor Equipment - 0.0% | |||
Astera Labs, Inc. Series C (c)(d) | 185,800 | 624,622 | |
Semiconductors - 0.0% | |||
SiMa.ai Series B (c)(d) | 309,900 | 1,588,981 | |
Tenstorrent, Inc. Series C1 (c)(d) | 8,800 | 523,198 | |
2,112,179 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 2,736,801 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $7,296,777) | 7,296,777 | ||
Preferred Securities - 0.0% | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
Semiconductors - 0.0% | |||
Tenstorrent, Inc. 0%(c)(d)(e) | |||
(Cost $490,000) | 490,000 | 490,000 | |
Principal Amount | Value | ||
Convertible Bonds - 0.1% | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Semiconductors - 0.1% | |||
SMART Global Holdings, Inc. 2.25% 2/15/26 | |||
(Cost $3,590,000) | 3,590,000 | 4,990,100 | |
Shares | Value | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund 0.06% (f) | 96,163,583 | 96,182,816 | |
Fidelity Securities Lending Cash Central Fund 0.06% (f)(g) | 1,376,412 | 1,376,550 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $97,559,366) | 97,559,366 | ||
TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
(Cost $3,704,162,570) | 7,161,137,203 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 22,144,851 | ||
NET ASSETS - 100% | $7,183,282,054 |
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 $7,786,777 or 0.1% of net assets.
(d) Level 3 security
(e) Security is perpetual in nature with no stated maturity date.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Astera Labs, Inc. Series C | 8/24/21 | $624,622 |
Diamond Foundry, Inc. Series C | 3/15/21 | $4,559,976 |
SiMa.ai Series B | 5/10/21 | $1,588,981 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $523,198 |
Tenstorrent, Inc. 0% | 4/23/21 | $490,000 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $71,828,946 | $834,585,284 | $810,231,414 | $18,168 | $-- | $-- | $96,182,816 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.06% | 17,131,154 | 258,387,759 | 274,142,363 | 3,805 | -- | -- | 1,376,550 | 0.0% |
Total | $88,960,100 | $1,092,973,043 | $1,084,373,777 | $21,973 | $-- | $-- | $97,559,366 |
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 August 31, 2021, 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 | $7,050,800,960 | $7,050,800,960 | $-- | $-- |
Convertible Preferred Stocks | 7,296,777 | -- | -- | 7,296,777 |
Convertible Bonds | 4,990,100 | -- | 4,990,100 | -- |
Money Market Funds | 97,559,366 | 97,559,366 | -- | -- |
Preferred Securities | 490,000 | -- | -- | 490,000 |
Total Investments in Securities: | $7,161,137,203 | $7,148,360,326 | $4,990,100 | $7,786,777 |
Net unrealized depreciation on unfunded commitments | $(157,000) | $-- | $(157,000) | $-- |
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 | 86.9% |
Netherlands | 8.0% |
Taiwan | 2.0% |
Israel | 1.3% |
Others (Individually Less Than 1%) | 1.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiconductors Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,345,295) — See accompanying schedule: Unaffiliated issuers (cost $3,606,603,204) | $7,063,577,837 | |
Fidelity Central Funds (cost $97,559,366) | 97,559,366 | |
Total Investment in Securities (cost $3,704,162,570) | $7,161,137,203 | |
Receivable for investments sold | 36,078,350 | |
Receivable for fund shares sold | 19,289,668 | |
Dividends receivable | 4,733,967 | |
Interest receivable | 3,590 | |
Distributions receivable from Fidelity Central Funds | 5,300 | |
Prepaid expenses | 26,564 | |
Other receivables | 322,284 | |
Total assets | 7,221,596,926 | |
Liabilities | ||
Payable for investments purchased | $29,084,947 | |
Unrealized depreciation on unfunded commitments | 157,000 | |
Payable for fund shares redeemed | 3,584,985 | |
Accrued management fee | 3,016,773 | |
Other affiliated payables | 793,025 | |
Other payables and accrued expenses | 301,592 | |
Collateral on securities loaned | 1,376,550 | |
Total liabilities | 38,314,872 | |
Net Assets | $7,183,282,054 | |
Net Assets consist of: | ||
Paid in capital | $3,360,254,859 | |
Total accumulated earnings (loss) | 3,823,027,195 | |
Net Assets | $7,183,282,054 | |
Net Asset Value, offering price and redemption price per share ($7,183,282,054 ÷ 356,598,184 shares) | $20.14 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $22,874,272 | |
Interest | 40,388 | |
Income from Fidelity Central Funds (including $3,805 from security lending) | 21,973 | |
Total income | 22,936,633 | |
Expenses | ||
Management fee | $16,328,761 | |
Transfer agent fees | 4,031,057 | |
Accounting fees | 565,426 | |
Custodian fees and expenses | 45,312 | |
Independent trustees' fees and expenses | 11,071 | |
Registration fees | 136,785 | |
Audit | 17,489 | |
Legal | 4,027 | |
Miscellaneous | 15,559 | |
Total expenses before reductions | 21,155,487 | |
Expense reductions | (126,826) | |
Total expenses after reductions | 21,028,661 | |
Net investment income (loss) | 1,907,972 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 372,573,846 | |
Foreign currency transactions | (46,491) | |
Total net realized gain (loss) | 372,527,355 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 739,522,602 | |
Unfunded commitments | (157,000) | |
Assets and liabilities in foreign currencies | 7,846 | |
Total change in net unrealized appreciation (depreciation) | 739,373,448 | |
Net gain (loss) | 1,111,900,803 | |
Net increase (decrease) in net assets resulting from operations | $1,113,808,775 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,907,972 | $22,689,307 |
Net realized gain (loss) | 372,527,355 | 401,601,319 |
Change in net unrealized appreciation (depreciation) | 739,373,448 | 1,906,111,692 |
Net increase (decrease) in net assets resulting from operations | 1,113,808,775 | 2,330,402,318 |
Distributions to shareholders | (235,470,215) | (410,556,842) |
Share transactions | ||
Proceeds from sales of shares | 939,786,015 | 950,485,975 |
Reinvestment of distributions | 223,566,375 | 392,773,812 |
Cost of shares redeemed | (576,195,029) | (1,323,875,912) |
Net increase (decrease) in net assets resulting from share transactions | 587,157,361 | 19,383,875 |
Total increase (decrease) in net assets | 1,465,495,921 | 1,939,229,351 |
Net Assets | ||
Beginning of period | 5,717,786,133 | 3,778,556,782 |
End of period | $7,183,282,054 | $5,717,786,133 |
Other Information | ||
Shares | ||
Sold | 51,437,047 | 69,181,684 |
Issued in reinvestment of distributions | 12,344,913 | 32,498,838 |
Redeemed | (32,207,484) | (106,078,454) |
Net increase (decrease) | 31,574,476 | (4,397,932) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Semiconductors Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.59 | $11.47 | $9.41 | $11.77 | $10.12 | $6.99 |
Income from Investment Operations | ||||||
Net investment income (loss)C | .01 | .07 | .09 | .10 | .05 | .10 |
Net realized and unrealized gain (loss) | 3.25 | 7.37 | 2.39 | (.35) | 3.24 | 3.40 |
Total from investment operations | 3.26 | 7.44 | 2.48 | (.25) | 3.29 | 3.50 |
Distributions from net investment income | – | (.08) | (.10) | (.06) | (.12) | (.07) |
Distributions from net realized gain | (.71) | (1.24) | (.33) | (2.05) | (1.52) | (.30) |
Total distributions | (.71) | (1.32) | (.42)D | (2.11) | (1.64) | (.37) |
Redemption fees added to paid in capitalC | – | – | – | – | –E | –E |
Net asset value, end of period | $20.14 | $17.59 | $11.47 | $9.41 | $11.77 | $10.12 |
Total ReturnF,G | 19.00% | 70.47% | 26.01% | .19% | 34.20% | 51.79% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .68%J | .70% | .72% | .73% | .75% | .77% |
Expenses net of fee waivers, if any | .68%J | .70% | .72% | .73% | .75% | .77% |
Expenses net of all reductions | .68%J | .69% | .71% | .72% | .74% | .75% |
Net investment income (loss) | .06%J | .53% | .85% | .92% | .47% | 1.19% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $7,183,282 | $5,717,786 | $3,778,557 | $3,052,506 | $3,652,565 | $3,012,372 |
Portfolio turnover rateK | 36%J | 87% | 114% | 130% | 110% | 110% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
C Calculated based on average shares outstanding during the period.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Software and IT Services Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Microsoft Corp. | 24.8 |
Adobe, Inc. | 6.9 |
Visa, Inc. Class A | 6.0 |
Salesforce.com, Inc. | 5.6 |
PayPal Holdings, Inc. | 4.9 |
MasterCard, Inc. Class A | 4.7 |
Alphabet, Inc. Class A | 2.8 |
Autodesk, Inc. | 2.3 |
Cognizant Technology Solutions Corp. Class A | 1.9 |
Oracle Corp. | 1.8 |
61.7 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Software | 57.6% | |
IT Services | 29.9% | |
Interactive Media & Services | 4.7% | |
Entertainment | 1.3% | |
Internet & Direct Marketing Retail | 0.4% | |
All Others* | 6.1% |
* Includes short-term investments and net other assets (liabilities).
Software and IT Services Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.5% | |||
Shares | Value | ||
Diversified Consumer Services - 0.0% | |||
Education Services - 0.0% | |||
Duolingo, Inc. (a) | 6,900 | $893,964 | |
Entertainment - 1.3% | |||
Interactive Home Entertainment - 1.3% | |||
Activision Blizzard, Inc. | 814,900 | 67,123,313 | |
Electronic Arts, Inc. | 762,400 | 110,708,104 | |
177,831,417 | |||
Interactive Media & Services - 4.7% | |||
Interactive Media & Services - 4.7% | |||
Alphabet, Inc. Class A (a) | 130,100 | 376,502,895 | |
Facebook, Inc. Class A (a) | 420,300 | 159,453,414 | |
Twitter, Inc. (a) | 1,605,642 | 103,563,909 | |
639,520,218 | |||
Internet & Direct Marketing Retail - 0.4% | |||
Internet & Direct Marketing Retail - 0.4% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 352,800 | 58,914,072 | |
IT Services - 29.9% | |||
Data Processing & Outsourced Services - 18.5% | |||
Automatic Data Processing, Inc. | 66,200 | 13,838,448 | |
ExlService Holdings, Inc. (a) | 426,000 | 52,457,640 | |
Fidelity National Information Services, Inc. | 313,400 | 40,043,118 | |
Fiserv, Inc. (a) | 272,400 | 32,085,996 | |
FleetCor Technologies, Inc. (a) | 153,200 | 40,334,496 | |
Global Payments, Inc. | 1,084,870 | 176,443,257 | |
MasterCard, Inc. Class A | 1,860,600 | 644,195,538 | |
PayPal Holdings, Inc. (a) | 2,312,300 | 667,468,518 | |
StoneCo Ltd. Class A (a) | 319,600 | 14,874,184 | |
Visa, Inc. Class A (b) | 3,547,320 | 812,691,012 | |
WEX, Inc. (a) | 114,700 | 21,055,479 | |
2,515,487,686 | |||
Internet Services & Infrastructure - 4.0% | |||
Akamai Technologies, Inc. (a) | 1,122,900 | 127,168,425 | |
GoDaddy, Inc. (a) | 1,471,200 | 107,853,672 | |
MongoDB, Inc. Class A (a) | 365,900 | 143,370,597 | |
Snowflake Computing, Inc. | 125,700 | 38,256,795 | |
Twilio, Inc. Class A (a) | 314,700 | 112,335,312 | |
Wix.com Ltd. (a) | 91,700 | 20,364,736 | |
549,349,537 | |||
IT Consulting & Other Services - 7.4% | |||
Accenture PLC Class A | 655,900 | 220,749,704 | |
Capgemini SA | 720,500 | 161,766,381 | |
Cognizant Technology Solutions Corp. Class A | 3,475,800 | 265,238,298 | |
DXC Technology Co. (a) | 707,800 | 25,990,416 | |
Gartner, Inc. (a) | 399,500 | 123,341,630 | |
IBM Corp. | 1,429,600 | 200,630,064 | |
Liveramp Holdings, Inc. (a) | 265,300 | 12,999,700 | |
1,010,716,193 | |||
TOTAL IT SERVICES | 4,075,553,416 | ||
Media - 0.2% | |||
Publishing - 0.2% | |||
The New York Times Co. Class A | 520,700 | 26,441,146 | |
Professional Services - 0.2% | |||
Research & Consulting Services - 0.2% | |||
CACI International, Inc. Class A (a) | 88,700 | 22,843,798 | |
Road & Rail - 0.2% | |||
Trucking - 0.2% | |||
Uber Technologies, Inc. (a) | 725,900 | 28,411,726 | |
Software - 57.6% | |||
Application Software - 26.6% | |||
Adobe, Inc. (a) | 1,415,000 | 939,135,500 | |
Alteryx, Inc. Class A (a) | 412,500 | 30,512,625 | |
Anaplan, Inc. (a) | 2,236,800 | 134,163,264 | |
Aspen Technology, Inc. (a) | 486,100 | 62,949,950 | |
Autodesk, Inc. (a) | 997,400 | 309,283,766 | |
Blackbaud, Inc. (a) | 646,300 | 45,040,647 | |
Ceridian HCM Holding, Inc. (a) | 981,542 | 110,276,244 | |
Citrix Systems, Inc. | 459,107 | 47,228,337 | |
Constellation Software, Inc. | 25,200 | 42,707,873 | |
Coupa Software, Inc. (a) | 255,900 | 62,646,879 | |
Dropbox, Inc. Class A (a) | 213,000 | 6,754,230 | |
Elastic NV (a) | 735,700 | 117,380,935 | |
HubSpot, Inc. (a) | 177,200 | 121,288,084 | |
Intuit, Inc. | 263,800 | 149,339,818 | |
Micro Focus International PLC | 1,263,938 | 7,730,104 | |
Mimecast Ltd. (a) | 789,400 | 55,108,014 | |
Momentive Global, Inc. (a) | 850,700 | 16,682,227 | |
New Relic, Inc. (a) | 515,500 | 41,224,535 | |
PTC, Inc. (a) | 934,400 | 123,023,104 | |
Salesforce.com, Inc. (a) | 2,898,284 | 768,827,797 | |
SAP SE | 73,900 | 11,100,521 | |
Smartsheet, Inc. (a) | 313,700 | 24,961,109 | |
Workday, Inc. Class A (a) | 761,300 | 207,956,708 | |
Workiva, Inc. (a) | 363,300 | 50,960,091 | |
Zendesk, Inc. (a) | 1,114,300 | 137,727,480 | |
3,624,009,842 | |||
Systems Software - 31.0% | |||
FireEye, Inc. (a) | 3,422,300 | 62,251,637 | |
Microsoft Corp. | 11,200,100 | 3,381,086,188 | |
NortonLifeLock, Inc. | 4,479,100 | 118,964,896 | |
Oracle Corp. | 2,778,338 | 247,633,266 | |
Palo Alto Networks, Inc. (a) | 492,300 | 226,969,992 | |
Proofpoint, Inc. (a) | 523,800 | 92,188,800 | |
Tenable Holdings, Inc. (a) | 1,617,600 | 71,772,912 | |
Zuora, Inc. (a) | 1,207,700 | 20,506,746 | |
4,221,374,437 | |||
TOTAL SOFTWARE | 7,845,384,279 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,028,916,086) | 12,875,794,036 | ||
Money Market Funds - 6.3% | |||
Fidelity Cash Central Fund 0.06% (c) | 744,215,936 | 744,364,780 | |
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | 118,008,873 | 118,020,673 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $862,381,608) | 862,385,453 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $5,891,297,694) | 13,738,179,489 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (104,336,258) | ||
NET ASSETS - 100% | $13,633,843,231 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $285,645,129 | $970,929,478 | $512,209,827 | $96,586 | $-- | $-- | $744,364,780 | 1.2% |
Fidelity Securities Lending Cash Central Fund 0.06% | 328,019,373 | 583,183,975 | 793,182,675 | 91,741 | -- | -- | 118,020,673 | 0.4% |
Total | $613,664,502 | $1,554,113,453 | $1,305,392,502 | $188,327 | $-- | $-- | $862,385,453 |
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 August 31, 2021, 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 | $12,875,794,036 | $12,856,963,411 | $18,830,625 | $-- |
Money Market Funds | 862,385,453 | 862,385,453 | -- | -- |
Total Investments in Securities: | $13,738,179,489 | $13,719,348,864 | $18,830,625 | $-- |
See accompanying notes which are an integral part of the financial statements.
Software and IT Services Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $114,550,000) — See accompanying schedule: Unaffiliated issuers (cost $5,028,916,086) | $12,875,794,036 | |
Fidelity Central Funds (cost $862,381,608) | 862,385,453 | |
Total Investment in Securities (cost $5,891,297,694) | $13,738,179,489 | |
Receivable for investments sold | 13,702,970 | |
Receivable for fund shares sold | 7,100,949 | |
Dividends receivable | 10,973,343 | |
Distributions receivable from Fidelity Central Funds | 35,775 | |
Prepaid expenses | 44,490 | |
Other receivables | 534,449 | |
Total assets | 13,770,571,465 | |
Liabilities | ||
Payable for investments purchased | $3,440,929 | |
Payable for fund shares redeemed | 7,395,925 | |
Accrued management fee | 5,847,476 | |
Other affiliated payables | 1,586,154 | |
Other payables and accrued expenses | 457,750 | |
Collateral on securities loaned | 118,000,000 | |
Total liabilities | 136,728,234 | |
Net Assets | $13,633,843,231 | |
Net Assets consist of: | ||
Paid in capital | $5,207,011,201 | |
Total accumulated earnings (loss) | 8,426,832,030 | |
Net Assets | $13,633,843,231 | |
Net Asset Value, offering price and redemption price per share ($13,633,843,231 ÷ 426,855,364 shares) | $31.94 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $33,388,251 | |
Income from Fidelity Central Funds (including $91,741 from security lending) | 188,327 | |
Total income | 33,576,578 | |
Expenses | ||
Management fee | $33,070,445 | |
Transfer agent fees | 8,703,112 | |
Accounting fees | 696,071 | |
Custodian fees and expenses | 44,423 | |
Independent trustees' fees and expenses | 23,188 | |
Registration fees | 90,069 | |
Audit | 25,004 | |
Legal | 4,911 | |
Miscellaneous | 34,019 | |
Total expenses before reductions | 42,691,242 | |
Expense reductions | (111,348) | |
Total expenses after reductions | 42,579,894 | |
Net investment income (loss) | (9,003,316) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 593,656,836 | |
Foreign currency transactions | 31,311 | |
Total net realized gain (loss) | 593,688,147 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,588,517,963 | |
Assets and liabilities in foreign currencies | 837 | |
Total change in net unrealized appreciation (depreciation) | 1,588,518,800 | |
Net gain (loss) | 2,182,206,947 | |
Net increase (decrease) in net assets resulting from operations | $2,173,203,631 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(9,003,316) | $(11,246,033) |
Net realized gain (loss) | 593,688,147 | 607,832,908 |
Change in net unrealized appreciation (depreciation) | 1,588,518,800 | 3,210,428,137 |
Net increase (decrease) in net assets resulting from operations | 2,173,203,631 | 3,807,015,012 |
Distributions to shareholders | (189,871,547) | (582,570,452) |
Share transactions | ||
Proceeds from sales of shares | 660,797,555 | 3,371,109,496 |
Reinvestment of distributions | 179,495,290 | 551,671,834 |
Cost of shares redeemed | (1,084,325,456) | (3,284,592,962) |
Net increase (decrease) in net assets resulting from share transactions | (244,032,611) | 638,188,368 |
Total increase (decrease) in net assets | 1,739,299,473 | 3,862,632,928 |
Net Assets | ||
Beginning of period | 11,894,543,758 | 8,031,910,830 |
End of period | $13,633,843,231 | $11,894,543,758 |
Other Information | ||
Shares | ||
Sold | 22,531,666 | 150,289,904 |
Issued in reinvestment of distributions | 6,256,371 | 24,317,272 |
Redeemed | (37,543,134) | (142,668,627) |
Net increase (decrease) | (8,755,097) | 31,938,549 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Software and IT Services Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.31 | $19.90 | $18.71 | $17.89 | $14.09 | $11.11 |
Income from Investment Operations | ||||||
Net investment income (loss)C | (.02) | (.03) | .19D | .02 | (.02) | (.01) |
Net realized and unrealized gain (loss) | 5.09 | 8.82 | 3.52 | 1.81 | 5.01 | 3.50 |
Total from investment operations | 5.07 | 8.79 | 3.71 | 1.83 | 4.99 | 3.49 |
Distributions from net investment income | – | (.15) | (.05) | (.01) | – | (.01) |
Distributions from net realized gain | (.44) | (1.23) | (2.47) | (1.00) | (1.19) | (.50) |
Total distributions | (.44) | (1.38) | (2.52) | (1.01) | (1.19) | (.51) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –E |
Net asset value, end of period | $31.94 | $27.31 | $19.90 | $18.71 | $17.89 | $14.09 |
Total ReturnF,G | 18.76% | 45.80% | 21.33% | 10.90% | 36.76% | 31.83% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .68%J | .70% | .70% | .72% | .73% | .76% |
Expenses net of fee waivers, if any | .68%J | .70% | .70% | .72% | .73% | .76% |
Expenses net of all reductions | .68%J | .69% | .70% | .71% | .73% | .75% |
Net investment income (loss) | (.14)%J | (.11)% | .98%D | .10% | (.09)% | (.11)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $13,633,843 | $11,894,544 | $8,031,911 | $6,540,896 | $5,539,357 | $4,155,435 |
Portfolio turnover rateK | 5%J | 22% | 23% | 48% | 31% | 44% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
C Calculated based on average shares outstanding during the period.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.15 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .22%.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Technology Portfolio
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Microsoft Corp. | 20.7 |
Apple, Inc. | 15.5 |
NVIDIA Corp. | 4.8 |
Salesforce.com, Inc. | 3.3 |
MasterCard, Inc. Class A | 3.3 |
Visa, Inc. Class A | 3.0 |
PayPal Holdings, Inc. | 2.7 |
Sunrun, Inc. | 2.2 |
Jabil, Inc. | 2.2 |
Autodesk, Inc. | 2.1 |
59.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Software | 40.2% | |
Technology Hardware, Storage & Peripherals | 15.7% | |
IT Services | 12.8% | |
Semiconductors & Semiconductor Equipment | 12.7% | |
Interactive Media & Services | 4.8% | |
All Others* | 13.8% |
* Includes short-term investments and net other assets (liabilities).
Technology Portfolio
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value | ||
Airlines - 0.1% | |||
Airlines - 0.1% | |||
Joby Aviation, Inc. (a) | 787,571 | $9,509,526 | |
Automobiles - 0.1% | |||
Automobile Manufacturers - 0.1% | |||
Lucid Motors, Inc. (a) | 534,050 | 10,659,638 | |
Communications Equipment - 0.1% | |||
Communications Equipment - 0.1% | |||
Lumentum Holdings, Inc. (b) | 69,400 | 6,012,816 | |
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Ant International Co. Ltd. Class C (a)(b)(c) | 4,366,389 | 10,915,973 | |
Specialized Finance - 0.0% | |||
Cazoo Group Ltd. (a) | 144,100 | 1,103,662 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 12,019,635 | ||
Electrical Equipment - 2.9% | |||
Electrical Components & Equipment - 2.9% | |||
Array Technologies, Inc. (d) | 2,675,330 | 51,018,543 | |
FTC Solar, Inc. (b)(d) | 1,141,800 | 12,388,530 | |
Plug Power, Inc. (b)(d) | 662,200 | 17,256,932 | |
Shoals Technologies Group, Inc. (d) | 348,000 | 11,334,360 | |
Sunrun, Inc. (b)(d) | 6,423,444 | 284,237,397 | |
376,235,762 | |||
Heavy Electrical Equipment - 0.0% | |||
NEL ASA (b)(d) | 824,900 | 1,355,344 | |
TOTAL ELECTRICAL EQUIPMENT | 377,591,106 | ||
Electronic Equipment & Components - 4.4% | |||
Electronic Components - 0.1% | |||
II-VI, Inc. (b) | 150,125 | 9,454,873 | |
Electronic Manufacturing Services - 4.3% | |||
Flex Ltd. (b) | 13,207,687 | 245,398,824 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 7,519,000 | 30,178,225 | |
Jabil, Inc. | 4,560,260 | 281,732,863 | |
557,309,912 | |||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 566,764,785 | ||
Entertainment - 0.0% | |||
Movies & Entertainment - 0.0% | |||
Marcus Corp. (b)(d) | 262,692 | 4,097,995 | |
Food & Staples Retailing - 0.1% | |||
Drug Retail - 0.1% | |||
Zur Rose Group AG (b) | 35,450 | 15,252,307 | |
Health Care Equipment & Supplies - 0.2% | |||
Health Care Equipment - 0.2% | |||
JEOL Ltd. | 266,600 | 19,701,477 | |
Hotels, Restaurants & Leisure - 0.5% | |||
Hotels, Resorts & Cruise Lines - 0.5% | |||
Airbnb, Inc. Class A | 248,400 | 38,499,516 | |
MakeMyTrip Ltd. (b) | 871,629 | 22,505,461 | |
61,004,977 | |||
Household Durables - 0.2% | |||
Consumer Electronics - 0.2% | |||
GoPro, Inc. Class A (b)(d) | 2,573,800 | 25,660,786 | |
Independent Power and Renewable Electricity Producers - 0.1% | |||
Independent Power Producers & Energy Traders - 0.1% | |||
FREYR Battery SA (b) | 798,747 | 7,092,873 | |
Industrial Conglomerates - 0.8% | |||
Industrial Conglomerates - 0.8% | |||
Hitachi Ltd. | 1,965,694 | 108,723,792 | |
Interactive Media & Services - 4.8% | |||
Interactive Media & Services - 4.8% | |||
Alphabet, Inc.: | |||
Class A (b) | 39,500 | 114,311,025 | |
Class C (b) | 20,200 | 58,766,648 | |
Facebook, Inc. Class A (b) | 665,600 | 252,515,328 | |
Snap, Inc. Class A (b) | 1,210,100 | 92,100,711 | |
Tencent Holdings Ltd. | 320,500 | 19,794,977 | |
Tongdao Liepin Group (b) | 15,101,695 | 26,757,016 | |
Twitter, Inc. (b) | 147,000 | 9,481,500 | |
Vimeo, Inc. (b)(d) | 203,500 | 7,757,420 | |
Zoominfo Technologies, Inc. (b) | 495,600 | 32,308,164 | |
613,792,789 | |||
Internet & Direct Marketing Retail - 0.8% | |||
Internet & Direct Marketing Retail - 0.8% | |||
Deliveroo PLC | 8,208,200 | 37,351,238 | |
Kogan.Com Ltd. (d) | 513,052 | 4,274,931 | |
Porch Group, Inc. Class A (b) | 2,624,884 | 52,497,680 | |
Shop Apotheke Europe NV (b)(e) | 60,600 | 10,797,416 | |
104,921,265 | |||
IT Services - 12.5% | |||
Data Processing & Outsourced Services - 10.8% | |||
Dlocal Ltd. | 134,400 | 8,601,600 | |
Fidelity National Information Services, Inc. | 218,327 | 27,895,641 | |
Fiserv, Inc. (b) | 130,385 | 15,358,049 | |
Flywire Corp. (b) | 23,100 | 1,014,321 | |
Genpact Ltd. | 65,900 | 3,418,892 | |
Global Payments, Inc. | 246,630 | 40,111,903 | |
MasterCard, Inc. Class A | 1,214,436 | 420,474,176 | |
Paymentus Holdings, Inc. (b) | 21,800 | 559,170 | |
PayPal Holdings, Inc. (b) | 1,204,600 | 347,719,836 | |
Sabre Corp. (b)(d) | 361,800 | 4,063,014 | |
Square, Inc. (b) | 464,000 | 124,384,480 | |
Visa, Inc. Class A (d) | 1,695,500 | 388,439,050 | |
1,382,040,132 | |||
Internet Services & Infrastructure - 1.6% | |||
GoDaddy, Inc. (b) | 530,700 | 38,905,617 | |
MongoDB, Inc. Class A (b) | 218,100 | 85,458,123 | |
Okta, Inc. (b) | 48,900 | 12,890,040 | |
Twilio, Inc. Class A (b) | 164,900 | 58,862,704 | |
Wix.com Ltd. (b) | 55,700 | 12,369,856 | |
208,486,340 | |||
IT Consulting & Other Services - 0.1% | |||
Digital Hearts Holdings Co. Ltd. | 14,000 | 250,820 | |
DXC Technology Co. (b) | 285,600 | 10,487,232 | |
Liveramp Holdings, Inc. (b) | 71,300 | 3,493,700 | |
14,231,752 | |||
TOTAL IT SERVICES | 1,604,758,224 | ||
Life Sciences Tools & Services - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
JHL Biotech, Inc. (b)(c) | 1,015,442 | 0 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Oil & Gas Refining & Marketing - 1.7% | |||
Reliance Industries Ltd. | 6,692,978 | 207,176,711 | |
Reliance Industries Ltd. | 206,153 | 4,570,345 | |
Reliance Industries Ltd. sponsored GDR (e) | 79,100 | 4,892,335 | |
216,639,391 | |||
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Chime Biologics Ltd. (b)(c) | 1,015,442 | 528,873 | |
Professional Services - 0.0% | |||
Human Resource & Employment Services - 0.0% | |||
Renrui Human Resources Technology Holdings Ltd. | 313,557 | 375,747 | |
Road & Rail - 1.3% | |||
Trucking - 1.3% | |||
Lyft, Inc. (b) | 666,038 | 31,710,069 | |
Uber Technologies, Inc. (b) | 3,585,096 | 140,320,657 | |
172,030,726 | |||
Semiconductors & Semiconductor Equipment - 12.7% | |||
Semiconductor Equipment - 1.0% | |||
Applied Materials, Inc. | 732,300 | 98,955,699 | |
Lam Research Corp. | 53,000 | 32,055,460 | |
Teradyne, Inc. | 32,065 | 3,893,974 | |
134,905,133 | |||
Semiconductors - 11.7% | |||
Advanced Micro Devices, Inc. (b) | 198,200 | 21,944,704 | |
Cirrus Logic, Inc. (b) | 123,195 | 10,307,726 | |
indie Semiconductor, Inc. (b)(d) | 157,600 | 1,591,760 | |
Marvell Technology, Inc. | 3,121,854 | 191,026,246 | |
Microchip Technology, Inc. | 413,000 | 64,989,680 | |
Micron Technology, Inc. | 625,800 | 46,121,460 | |
NVIDIA Corp. | 2,735,800 | 612,408,830 | |
NXP Semiconductors NV | 1,125,005 | 242,022,326 | |
ON Semiconductor Corp. (b) | 5,010,600 | 222,270,216 | |
Renesas Electronics Corp. (b) | 949,300 | 10,165,011 | |
Semtech Corp. (b) | 269,200 | 18,822,464 | |
SiTime Corp. (b) | 9,000 | 1,915,560 | |
Universal Display Corp. | 88,800 | 18,522,792 | |
Xilinx, Inc. | 230,300 | 35,832,377 | |
1,497,941,152 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 1,632,846,285 | ||
Software - 39.8% | |||
Application Software - 17.5% | |||
Adobe, Inc. (b) | 302,200 | 200,570,140 | |
Anaplan, Inc. (b) | 1,164,700 | 69,858,706 | |
Autodesk, Inc. (b) | 852,400 | 264,320,716 | |
Avalara, Inc. (b) | 265,400 | 47,692,380 | |
Blend Labs, Inc. | 74,000 | 1,198,060 | |
CCC Intelligent Solutions Holdings, Inc. (a) | 102,045 | 1,124,536 | |
Ceridian HCM Holding, Inc. (b) | 187,900 | 21,110,565 | |
Cognyte Software Ltd. (b) | 3,017,578 | 82,923,043 | |
Confluent, Inc. (d) | 110,730 | 6,190,914 | |
Coupa Software, Inc. (b) | 106,400 | 26,047,784 | |
Digital Turbine, Inc. (b) | 98,800 | 5,774,860 | |
Elastic NV (b) | 206,700 | 32,978,985 | |
Epic Games, Inc. (a)(b)(c) | 17,917 | 15,856,545 | |
Everbridge, Inc. (b)(d) | 246,700 | 38,724,499 | |
Five9, Inc. (b) | 33,100 | 5,237,413 | |
HubSpot, Inc. (b) | 59,800 | 40,931,306 | |
Intuit, Inc. | 247,500 | 140,112,225 | |
Lightspeed Commerce, Inc. (d) | 302,800 | 33,665,304 | |
LivePerson, Inc. (b) | 1,073,977 | 68,841,926 | |
Momentive Global, Inc. (b)(f) | 9,190,277 | 180,221,332 | |
Nutanix, Inc. Class B (b)(e) | 72,872 | 2,689,706 | |
Otonomo Technologies Ltd. (a) | 1,048,000 | 7,218,100 | |
Qualtrics International, Inc. | 703,400 | 31,849,952 | |
RingCentral, Inc. (b) | 107,300 | 27,067,498 | |
Salesforce.com, Inc. (b) | 1,600,388 | 424,534,925 | |
Splunk, Inc. (b) | 132,700 | 20,285,849 | |
Stripe, Inc. Class B (a)(b)(c) | 38,600 | 1,548,825 | |
Verint Systems, Inc. (b)(d) | 376,400 | 16,802,496 | |
Workday, Inc. Class A (b) | 609,260 | 166,425,462 | |
Workiva, Inc. (b) | 79,400 | 11,137,438 | |
Yext, Inc. (b)(d)(f) | 6,674,100 | 90,233,832 | |
Zendesk, Inc. (b) | 811,400 | 100,289,040 | |
Zoom Video Communications, Inc. Class A (b) | 248,300 | 71,882,850 | |
2,255,347,212 | |||
Systems Software - 22.3% | |||
Cloudflare, Inc. (b) | 312,800 | 37,767,472 | |
Crowdstrike Holdings, Inc. (b) | 8,900 | 2,500,900 | |
FireEye, Inc. (b) | 730,500 | 13,287,795 | |
Microsoft Corp. | 8,800,540 | 2,656,707,014 | |
Palo Alto Networks, Inc. (b) | 50,300 | 23,190,312 | |
Rapid7, Inc. (b) | 48,700 | 5,918,024 | |
ServiceNow, Inc. (b) | 157,900 | 101,630,756 | |
Telos Corp. | 49,700 | 1,640,100 | |
UiPath, Inc. | 99,900 | 5,997,996 | |
VMware, Inc. Class A (b)(d) | 90,800 | 13,517,396 | |
2,862,157,765 | |||
TOTAL SOFTWARE | 5,117,504,977 | ||
Specialty Retail - 0.2% | |||
Automotive Retail - 0.2% | |||
Auto1 Group SE (e) | 489,200 | 21,285,404 | |
Technology Hardware, Storage & Peripherals - 15.7% | |||
Technology Hardware, Storage & Peripherals - 15.7% | |||
Apple, Inc. | 13,160,588 | 1,998,172,076 | |
Western Digital Corp. (b) | 386,500 | 24,426,800 | |
2,022,598,876 | |||
TOTAL COMMON STOCKS | |||
(Cost $7,965,879,189) | 12,731,374,270 | ||
Preferred Stocks - 1.0% | |||
Convertible Preferred Stocks - 0.9% | |||
Aerospace & Defense - 0.0% | |||
Aerospace & Defense - 0.0% | |||
ABL Space Systems Series B (a)(c) | 98,000 | 4,413,489 | |
Communications Equipment - 0.1% | |||
Communications Equipment - 0.1% | |||
Astranis Space Technologies Corp. Series C (a)(c) | 605,440 | 13,271,808 | |
Xsight Labs Ltd. Series D (a)(c) | 281,500 | 2,250,874 | |
15,522,682 | |||
Construction & Engineering - 0.1% | |||
Construction & Engineering - 0.1% | |||
Beta Technologies, Inc. Series A (a)(c) | 72,591 | 5,318,743 | |
Internet & Direct Marketing Retail - 0.1% | |||
Internet & Direct Marketing Retail - 0.1% | |||
Reddit, Inc.: | |||
Series D (a)(b)(c) | 250,861 | 15,501,805 | |
Series E (a)(c) | 14,400 | 889,839 | |
16,391,644 | |||
IT Services - 0.2% | |||
Data Processing & Outsourced Services - 0.1% | |||
Checkr, Inc. Series E (a)(c) | 237,000 | 12,798,000 | |
Internet Services & Infrastructure - 0.1% | |||
ByteDance Ltd. Series E1 (a)(c) | 70,707 | 7,335,144 | |
TOTAL IT SERVICES | 20,133,144 | ||
Road & Rail - 0.0% | |||
Trucking - 0.0% | |||
Convoy, Inc. Series D (a)(b)(c) | 203,844 | 3,481,656 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
Semiconductor Equipment - 0.0% | |||
Astera Labs, Inc. Series C (a)(c) | 344,200 | 1,157,132 | |
Software - 0.4% | |||
Application Software - 0.3% | |||
Databricks, Inc.: | |||
Series G (a)(c) | 15,004 | 3,307,662 | |
Series H (a)(c) | 58,006 | 12,787,562 | |
Stripe, Inc. Series H (a)(c) | 17,100 | 686,138 | |
ThoughtWorks, Inc.: | |||
Series A (a) | 25,916 | 21,346,232 | |
Series B (a) | 4,600 | 3,788,882 | |
41,916,476 | |||
Systems Software - 0.1% | |||
Amplitude, Inc. Series F (a)(c) | 145,500 | 4,658,895 | |
TOTAL SOFTWARE | 46,575,371 | ||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Textiles - 0.0% | |||
Algolia SAS Series D (a)(c) | 109,867 | 3,213,066 | |
Transportation Infrastructure - 0.0% | |||
Highways & Railtracks - 0.0% | |||
Delhivery Pvt Ltd. Series H (a)(c) | 5,790 | 2,829,878 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 119,036,805 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
IT Services - 0.1% | |||
Internet Services & Infrastructure - 0.1% | |||
Gupshup, Inc. (a)(c) | 257,284 | 5,882,850 | |
TOTAL PREFERRED STOCKS | |||
(Cost $107,394,412) | 124,919,655 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund 0.06% (g) | 11,183,383 | 11,185,620 | |
Fidelity Securities Lending Cash Central Fund 0.06% (g)(h) | 367,945,299 | 367,982,094 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $379,167,714) | 379,167,714 | ||
TOTAL INVESTMENT IN SECURITIES - 103.0% | |||
(Cost $8,452,441,315) | 13,235,461,639 | ||
NET OTHER ASSETS (LIABILITIES) - (3.0)% | (389,982,894) | ||
NET ASSETS - 100% | $12,845,478,745 |
Legend
(a) 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 $182,856,460 or 1.4% of net assets.
(b) Non-income producing
(c) Level 3 security
(d) Security or a portion of the security is on loan at period end.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $39,664,861 or 0.3% of net assets.
(f) Affiliated company
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
ABL Space Systems Series B | 3/24/21 | $4,413,489 |
Algolia SAS Series D | 7/23/21 | $3,213,066 |
Amplitude, Inc. Series F | 8/9/21 | $4,658,895 |
Ant International Co. Ltd. Class C | 5/16/18 | $24,495,442 |
Astera Labs, Inc. Series C | 8/24/21 | $1,157,132 |
Astranis Space Technologies Corp. Series C | 3/19/21 | $13,271,808 |
Beta Technologies, Inc. Series A | 4/9/21 | $5,318,743 |
ByteDance Ltd. Series E1 | 11/18/20 | $7,747,662 |
Cazoo Group Ltd. | 3/28/21 | $1,441,000 |
CCC Intelligent Solutions Holdings, Inc. | 2/2/21 | $1,020,450 |
Checkr, Inc. Series E | 8/24/21 | $12,798,000 |
Convoy, Inc. Series D | 10/30/19 | $2,760,048 |
Databricks, Inc. Series G | 2/1/21 | $2,661,228 |
Databricks, Inc. Series H | 8/31/21 | $12,787,562 |
Delhivery Pvt Ltd. Series H | 5/20/21 | $2,826,237 |
Epic Games, Inc. | 3/29/21 | $15,856,545 |
Gupshup, Inc. | 6/8/21 | $5,882,850 |
Joby Aviation, Inc. | 2/23/21 | $7,875,710 |
Lucid Motors, Inc. | 2/22/21 | $8,010,750 |
Otonomo Technologies Ltd. | 1/31/21 | $10,480,000 |
Reddit, Inc. Series D | 2/4/19 | $5,440,247 |
Reddit, Inc. Series E | 5/18/21 | $611,628 |
Stripe, Inc. Class B | 5/18/21 | $1,548,955 |
Stripe, Inc. Series H | 3/15/21 | $686,138 |
ThoughtWorks, Inc. Series A | 1/13/21 | $15,864,479 |
ThoughtWorks, Inc. Series B | 6/25/21 | $3,044,326 |
Xsight Labs Ltd. Series D | 2/16/21 | $2,250,874 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $238,396 | $450,865,741 | $439,918,517 | $2,547 | $-- | $-- | $11,185,620 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 92,023,760 | 1,392,882,323 | 1,116,923,989 | 223,395 | -- | -- | 367,982,094 | 1.1% |
Total | $92,262,156 | $1,843,748,064 | $1,556,842,506 | $225,942 | $-- | $-- | $379,167,714 |
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 |
Momentive Global, Inc. | $169,018,078 | $2,220,723 | $-- | $-- | $-- | $8,982,531 | $180,221,332 |
Yext, Inc. | 127,999,800 | -- | 11,264,648 | -- | (5,487,450) | (21,013,870) | 90,233,832 |
Total | $297,017,878 | $2,220,723 | $11,264,648 | $-- | $(5,487,450) | $(12,031,339) | $270,455,164 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 | $12,731,374,270 | $12,610,259,008 | $92,265,046 | $28,850,216 |
Preferred Stocks | 124,919,655 | -- | 25,135,114 | 99,784,541 |
Money Market Funds | 379,167,714 | 379,167,714 | -- | -- |
Total Investments in Securities: | $13,235,461,639 | $12,989,426,722 | $117,400,160 | $128,634,757 |
Net unrealized depreciation on unfunded commitments | $(4,145,522) | $-- | $(4,145,522) | $-- |
See accompanying notes which are an integral part of the financial statements.
Technology Portfolio
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $357,859,001) — See accompanying schedule: Unaffiliated issuers (cost $7,743,206,948) | $12,585,838,761 | |
Fidelity Central Funds (cost $379,167,714) | 379,167,714 | |
Other affiliated issuers (cost $330,066,653) | 270,455,164 | |
Total Investment in Securities (cost $8,452,441,315) | $13,235,461,639 | |
Foreign currency held at value (cost $5,556,377) | 5,568,278 | |
Receivable for investments sold | 42,034,422 | |
Receivable for fund shares sold | 14,180,576 | |
Dividends receivable | 6,341,253 | |
Distributions receivable from Fidelity Central Funds | 53,352 | |
Prepaid expenses | 51,256 | |
Other receivables | 961,869 | |
Total assets | 13,304,652,645 | |
Liabilities | ||
Payable to custodian bank | $389,373 | |
Payable for investments purchased | 59,276,367 | |
Unrealized depreciation on unfunded commitments | 4,145,522 | |
Payable for fund shares redeemed | 11,803,295 | |
Accrued management fee | 5,520,223 | |
Other affiliated payables | 1,469,925 | |
Other payables and accrued expenses | 8,602,293 | |
Collateral on securities loaned | 367,966,902 | |
Total liabilities | 459,173,900 | |
Net Assets | $12,845,478,745 | |
Net Assets consist of: | ||
Paid in capital | $7,309,288,294 | |
Total accumulated earnings (loss) | 5,536,190,451 | |
Net Assets | $12,845,478,745 | |
Net Asset Value, offering price and redemption price per share ($12,845,478,745 ÷ 434,291,508 shares) | $29.58 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $29,572,243 | |
Income from Fidelity Central Funds (including $223,395 from security lending) | 225,942 | |
Total income | 29,798,185 | |
Expenses | ||
Management fee | $31,690,886 | |
Transfer agent fees | 8,109,226 | |
Accounting fees | 685,302 | |
Custodian fees and expenses | 147,495 | |
Independent trustees' fees and expenses | 22,530 | |
Registration fees | 139,341 | |
Audit | 20,222 | |
Legal | 10,176 | |
Interest | 32,326 | |
Miscellaneous | 33,681 | |
Total expenses before reductions | 40,891,185 | |
Expense reductions | (773,767) | |
Total expenses after reductions | 40,117,418 | |
Net investment income (loss) | (10,319,233) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 819,113,585 | |
Affiliated issuers | (5,487,450) | |
Foreign currency transactions | (753,781) | |
Total net realized gain (loss) | 812,872,354 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $392,598) | 770,655,546 | |
Affiliated issuers | (12,031,339) | |
Unfunded commitments | (11,511,794) | |
Assets and liabilities in foreign currencies | 313 | |
Total change in net unrealized appreciation (depreciation) | 747,112,726 | |
Net gain (loss) | 1,559,985,080 | |
Net increase (decrease) in net assets resulting from operations | $1,549,665,847 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(10,319,233) | $(12,445,183) |
Net realized gain (loss) | 812,872,354 | 2,513,889,332 |
Change in net unrealized appreciation (depreciation) | 747,112,726 | 2,247,949,257 |
Net increase (decrease) in net assets resulting from operations | 1,549,665,847 | 4,749,393,406 |
Distributions to shareholders | (678,828,393) | (1,867,597,939) |
Share transactions | ||
Proceeds from sales of shares | 1,071,781,830 | 4,191,878,143 |
Reinvestment of distributions | 646,431,438 | 1,777,095,512 |
Cost of shares redeemed | (1,729,914,094) | (3,423,005,308) |
Net increase (decrease) in net assets resulting from share transactions | (11,700,826) | 2,545,968,347 |
Total increase (decrease) in net assets | 859,136,628 | 5,427,763,814 |
Net Assets | ||
Beginning of period | 11,986,342,117 | 6,558,578,303 |
End of period | $12,845,478,745 | $11,986,342,117 |
Other Information | ||
Shares | ||
Sold | 38,793,920 | 172,897,974 |
Issued in reinvestment of distributions | 23,730,963 | 71,641,712 |
Redeemed | (63,649,741) | (142,814,110) |
Net increase (decrease) | (1,124,858) | 101,725,576 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Technology Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 B | 2018 B | 2017 B | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.53 | $19.65 | $15.45 | $19.36 | $14.70 | $10.78 |
Income from Investment Operations | ||||||
Net investment income (loss)C | (.02) | (.03) | .05 | .06 | – | .01 |
Net realized and unrealized gain (loss) | 3.66 | 12.98 | 4.52 | (.78) | 6.15 | 4.11 |
Total from investment operations | 3.64 | 12.95 | 4.57 | (.72) | 6.15 | 4.12 |
Distributions from net investment income | – | (.03) | (.05) | (.02) | – | (.01) |
Distributions from net realized gain | (1.59) | (5.04) | (.32) | (3.17) | (1.49) | (.19) |
Total distributions | (1.59) | (5.07) | (.37) | (3.19) | (1.49) | (.20) |
Redemption fees added to paid in capitalC | – | – | – | – | – | –D |
Net asset value, end of period | $29.58 | $27.53 | $19.65 | $15.45 | $19.36 | $14.70 |
Total ReturnE,F | 13.70% | 69.87% | 29.57% | (3.03)% | 43.71% | 38.52% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .68%I | .69% | .71% | .72% | .75% | .77% |
Expenses net of fee waivers, if any | .68%I | .69% | .71% | .72% | .75% | .77% |
Expenses net of all reductions | .66%I | .68% | .71% | .71% | .74% | .76% |
Net investment income (loss) | (.17)%I | (.13)% | .30% | .34% | .01% | .11% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $12,845,479 | $11,986,342 | $6,558,578 | $5,124,121 | $7,242,300 | $4,119,489 |
Portfolio turnover rateJ | 76%I | 107% | 32%K | 126%K | 71% | 82% |
A For the year ended February 29.
B Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
C Calculated based on average shares outstanding during the period.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended August 31, 2021
1. Organization.
Communications Equipment Portfolio, Computers Portfolio, IT Services Portfolio, Semiconductors Portfolio, Software and IT Services Portfolio, and Technology Portfolio (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. Effective June 7, 2021 Communications Equipment Portfolio is closed to new accounts with certain exceptions. Certain Funds' investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
In May 2021, the Board of Trustees approved a change in the name of Computers Portfolio to Tech Hardware Portfolio effective November 13, 2021.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 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 and preferred securities 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.
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 August 31, 2021 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. 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.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Computers Portfolio | $64,910 |
Semiconductors Portfolio | 241,837 |
Software and IT Services Portfolio | 400,668 |
Technology Portfolio | 382,732 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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 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, certain foreign taxes, passive foreign investment companies (PFIC), deferred Trustees compensation, net operating losses and 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) | |
Communications Equipment Portfolio | $121,138,399 | $70,781,745 | $(2,460,586) | $68,321,159 |
Computers Portfolio | 459,563,823 | 354,301,915 | (5,169,552) | 349,132,363 |
IT Services Portfolio | 1,912,027,977 | 2,551,230,052 | (10,080,507) | 2,541,149,545 |
Semiconductors Portfolio | 3,712,706,645 | 3,484,140,593 | (35,710,035) | 3,448,430,558 |
Software and IT Services Portfolio | 5,894,749,840 | 7,902,100,565 | (58,670,916) | 7,843,429,649 |
Technology Portfolio | 8,464,405,968 | 5,006,495,106 | (235,439,435) | 4,771,055,671 |
Certain of the Funds elected to defer to the next fiscal year ordinary losses recognized during the period January 1, 2021 to February 28, 2021. Loss deferrals were as follows:
Ordinary losses |
Semiconductors Portfolio | $1,007,339 |
Restricted Securities (including Private Placements). 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At period end, Semiconductors Portfolio and Technology Portfolio had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and in the Statement of Operations as Change in unrealized appreciation (depreciation) on unfunded commitments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Communications Equipment Portfolio | 35,068,043 | 41,850,733 |
Computers Portfolio | 237,082,657 | 264,947,444 |
IT Services Portfolio | 637,732,547 | 925,688,316 |
Semiconductors Portfolio | 1,402,805,457 | 1,118,838,579 |
Software and IT Services Portfolio | 319,575,247 | 922,508,393 |
Technology Portfolio | 4,632,525,764 | 5,356,184,582 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Communications Equipment Portfolio | .30% | .23% | .53% |
Computers Portfolio | .30% | .23% | .53% |
IT Services Portfolio | .30% | .23% | .53% |
Semiconductors Portfolio | .30% | .23% | .53% |
Software and IT Services Portfolio | .30% | .23% | .53% |
Technology Portfolio | .30% | .23% | .52% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Communications Equipment Portfolio | .19% |
Computers Portfolio | .14% |
IT Services Portfolio | .15% |
Semiconductors Portfolio | .13% |
Software and IT Services Portfolio | .14% |
Technology Portfolio | .13% |
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 annualized rates:
% of Average Net Assets | |
Communications Equipment Portfolio | .04 |
Computers Portfolio | .03 |
IT Services Portfolio | .02 |
Semiconductors Portfolio | .02 |
Software and IT Services Portfolio | .01 |
Technology Portfolio | .01 |
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 | |
Communications Equipment Portfolio | $2,174 |
Computers Portfolio | 5,596 |
IT Services Portfolio | 13,999 |
Semiconductors Portfolio | 25,353 |
Software and IT Services Portfolio | 4,802 |
Technology Portfolio | 71,691 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Computers Portfolio | Borrower | $5,490,067 | .29% | $662 |
IT Services Portfolio | Borrower | $7,761,955 | .29% | $2,788 |
Technology Portfolio | Borrower | $17,956,779 | .29% | $26,400 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Communications Equipment Portfolio | 783,176 | 929,749 |
Computers Portfolio | 2,497,336 | 4,668,335 |
IT Services Portfolio | 16,109,861 | 40,870,093 |
Semiconductors Portfolio | 92,243,309 | 43,955,123 |
Software and IT Services Portfolio | 23,749,019 | 49,172,525 |
Technology Portfolio | 250,979,583 | 185,412,592 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Communications Equipment Portfolio | $161 |
Computers Portfolio | 717 |
IT Services Portfolio | 3,837 |
Semiconductors Portfolio | 5,316 |
Software and IT Services Portfolio | 11,164 |
Technology Portfolio | 10,987 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Communications Equipment Portfolio | $392 | $– | $– |
Computers Portfolio | 1,867 | – | – |
IT Services Portfolio | 12,128 | – | – |
Semiconductors Portfolio | 381 | – | – |
Software and IT Services Portfolio | 9,479 | – | – |
Technology Portfolio | 23,553 | – | – |
8. Bank Borrowings.
Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
IT Services Portfolio | $5,247,000 | .57% | $166 |
Technology Portfolio | 13,466,821 | .57% | 5,926 |
9. Expense Reductions.
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 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 expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | Custodian credits | |
Communications Equipment Portfolio | $6,277 | $– |
Computers Portfolio | 75,282 | – |
IT Services Portfolio | 95,713 | – |
Semiconductors Portfolio | 81,180 | – |
Software and IT Services Portfolio | 17,937 | 1 |
Technology Portfolio | 685,706 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Communications Equipment Portfolio | $1,343 |
Computers Portfolio | 5,767 |
IT Services Portfolio | 31,749 |
Semiconductors Portfolio | 45,646 |
Software and IT Services Portfolio | 93,410 |
Technology Portfolio | 88,061 |
10. Other.
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 Funds' performance.
12. Proposed Reorganization.
The Board of Trustees of Communications Equipment Portfolio and Computers Portfolio approved an Agreement and Plan of Reorganization (the Agreement) between Communications Equipment Portfolio and Computers Portfolio. The Agreement provides for the transfer of all the assets and the assumption of all the liabilities of Communications Equipment Portfolio in exchange for shares of Computers Portfolio equal in value to the net assets of Communications Equipment Portfolio on the day the reorganization is effective. The reorganization provides shareholders of Communications Equipment Portfolio access to a larger portfolio with a similar investment objective. The reorganization is expected to qualify as a tax-free transaction for federal income tax purposes with no gain or loss recognized by the funds or their shareholders.
A meeting of shareholders of Communications Equipment Portfolio is expected to be held during the fourth quarter of 2021 to vote on the reorganization. If approved by shareholders, the reorganization is expected to become effective on or about November 12, 2021.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Communications Equipment Portfolio | .81% | |||
Actual | $1,000.00 | $1,159.50 | $4.41 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Computers Portfolio | .72% | |||
Actual | $1,000.00 | $1,080.60 | $3.78 | |
Hypothetical-C | $1,000.00 | $1,021.58 | $3.67 | |
IT Services Portfolio | .70% | |||
Actual | $1,000.00 | $1,110.10 | $3.72 | |
Hypothetical-C | $1,000.00 | $1,021.68 | $3.57 | |
Semiconductors Portfolio | .68% | |||
Actual | $1,000.00 | $1,190.00 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 | |
Software and IT Services Portfolio | .68% | |||
Actual | $1,000.00 | $1,187.60 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 | |
Technology Portfolio | .68% | |||
Actual | $1,000.00 | $1,137.00 | $3.66 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Communications Equipment Portfolio
Computers Portfolio
IT Services Portfolio
Semiconductors Portfolio
Software and IT Services Portfolio
Technology Portfolio
Communications Equipment Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206790.jpg)
Computers Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733206976.jpg)
IT Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207156.jpg)
Semiconductors Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207333.jpg)
Software and IT Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207456.jpg)
Technology Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733207758.jpg)
Communications Equipment Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733209962.jpg)
Computers Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733210372.jpg)
IT Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733211768.jpg)
Semiconductors Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733211941.jpg)
Software and IT Services Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733212049.jpg)
Technology Portfolio
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733212139.jpg)
SELTEC-SANN-1021
1.813673.116
Fidelity® Select Portfolios®
Consumer Staples Sector
Consumer Staples Portfolio
Semi-Annual Report
August 31, 2021
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fid_sun.jpg)
![Fidelity Investments](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/fipro_logo.jpg)
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2021 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Procter & Gamble Co. | 16.8 |
The Coca-Cola Co. | 14.7 |
Mondelez International, Inc. | 6.8 |
Altria Group, Inc. | 6.6 |
PepsiCo, Inc. | 4.7 |
Kimberly-Clark Corp. | 4.8 |
Walmart, Inc. | 4.7 |
Monster Beverage Corp. | 4.6 |
Philip Morris International, Inc. | 4.5 |
Keurig Dr. Pepper, Inc. | 2.8 |
71.0 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Beverages | 29.7% | |
Household Products | 26.8% | |
Food Products | 17.5% | |
Tobacco | 11.5% | |
Food & Staples Retailing | 9.6% | |
All Others* | 4.9% |
* Includes short-term investments and net other assets (liabilities).
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Beverages - 29.7% | |||
Brewers - 0.3% | |||
Molson Coors Beverage Co. Class B | 84,600 | $4,021,038 | |
Distillers & Vintners - 2.6% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 112,000 | 23,647,680 | |
Diageo PLC | 329,466 | 15,838,313 | |
39,485,993 | |||
Soft Drinks - 26.8% | |||
Coca-Cola Bottling Co. Consolidated | 1,800 | 731,088 | |
Keurig Dr. Pepper, Inc. | 1,167,700 | 41,651,859 | |
Monster Beverage Corp. (a) | 714,202 | 69,684,689 | |
PepsiCo, Inc. | 457,200 | 71,501,508 | |
The Coca-Cola Co. | 3,923,018 | 220,905,144 | |
404,474,288 | |||
TOTAL BEVERAGES | 447,981,319 | ||
Food & Staples Retailing - 9.6% | |||
Drug Retail - 0.1% | |||
Walgreens Boots Alliance, Inc. | 46,900 | 2,380,175 | |
Food Distributors - 2.5% | |||
Performance Food Group Co. (a) | 53,400 | 2,681,748 | |
Sysco Corp. | 104,800 | 8,347,320 | |
U.S. Foods Holding Corp. (a) | 779,216 | 26,493,344 | |
37,522,412 | |||
Food Retail - 0.3% | |||
Grocery Outlet Holding Corp. (a) | 160,900 | 4,188,227 | |
Hypermarkets & Super Centers - 6.7% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 257,600 | 14,595,616 | |
Costco Wholesale Corp. | 33,100 | 15,076,719 | |
Walmart, Inc. | 480,800 | 71,206,480 | |
100,878,815 | |||
TOTAL FOOD & STAPLES RETAILING | 144,969,629 | ||
Food Products - 17.5% | |||
Agricultural Products - 1.6% | |||
Bunge Ltd. | 168,100 | 12,726,851 | |
Darling Ingredients, Inc. (a) | 148,500 | 11,063,250 | |
23,790,101 | |||
Packaged Foods & Meats - 15.9% | |||
Conagra Brands, Inc. | 439,700 | 14,562,864 | |
JDE Peet's BV | 164,200 | 5,641,883 | |
Laird Superfood, Inc. (b) | 116,282 | 2,317,500 | |
Lamb Weston Holdings, Inc. | 624,580 | 40,691,387 | |
McCormick & Co., Inc. (non-vtg.) | 124,100 | 10,708,589 | |
Mondelez International, Inc. | 1,646,758 | 102,214,269 | |
Post Holdings, Inc. (a) | 92,000 | 10,295,720 | |
Sanderson Farms, Inc. | 8,200 | 1,611,300 | |
TreeHouse Foods, Inc. (a) | 974,500 | 36,514,515 | |
Tyson Foods, Inc. Class A | 187,800 | 14,746,056 | |
239,304,083 | |||
TOTAL FOOD PRODUCTS | 263,094,184 | ||
Hotels, Restaurants & Leisure - 0.9% | |||
Restaurants - 0.9% | |||
Compass Group PLC (a) | 656,900 | 13,571,524 | |
Household Durables - 0.1% | |||
Housewares & Specialties - 0.1% | |||
Tupperware Brands Corp. (a) | 54,000 | 1,288,980 | |
Household Products - 26.8% | |||
Household Products - 26.8% | |||
Energizer Holdings, Inc. (b) | 559,400 | 22,006,796 | |
Kimberly-Clark Corp. | 518,400 | 71,440,704 | |
Procter & Gamble Co. | 1,780,250 | 253,489,797 | |
Reckitt Benckiser Group PLC | 85,900 | 6,557,711 | |
Reynolds Consumer Products, Inc. | 1,010,627 | 28,580,532 | |
The Clorox Co. | 124,800 | 20,972,640 | |
403,048,180 | |||
Media - 0.3% | |||
Advertising - 0.3% | |||
Advantage Solutions, Inc. Class A (a) | 480,700 | 4,186,897 | |
Personal Products - 2.9% | |||
Personal Products - 2.9% | |||
Herbalife Nutrition Ltd. (a) | 693,500 | 35,604,290 | |
Shiseido Co. Ltd. | 54,500 | 3,612,857 | |
The Honest Co., Inc. | 424,470 | 4,105,049 | |
43,322,196 | |||
Tobacco - 11.5% | |||
Tobacco - 11.5% | |||
Altria Group, Inc. | 1,981,225 | 99,516,932 | |
Philip Morris International, Inc. | 662,191 | 68,205,673 | |
RLX Technology, Inc. ADR(b) | 1,190,000 | 6,116,600 | |
173,839,205 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,129,311,602) | 1,495,302,114 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
Food & Staples Retailing - 0.0% | |||
Food Retail - 0.0% | |||
The Real Good Food Co. LLC 1% (Cost $563,200)(c)(d)(e) | 563,200 | 563,200 | |
Shares | Value | ||
Money Market Funds - 1.4% | |||
Fidelity Securities Lending Cash Central Fund 0.06% (f)(g) | |||
(Cost $21,048,929) | 21,046,824 | 21,048,929 | |
TOTAL INVESTMENT IN SECURITIES - 100.7% | |||
(Cost $1,150,923,731) | 1,516,914,243 | ||
NET OTHER ASSETS (LIABILITIES) - (0.7)% | (10,324,368) | ||
NET ASSETS - 100% | $1,506,589,875 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security is perpetual in nature with no stated maturity date.
(d) 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 $563,200 or 0.0% of net assets.
(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 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 |
The Real Good Food Co. LLC 1% | 5/7/21 | $563,200 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $-- | $108,484,467 | $108,484,467 | $372 | $-- | $-- | $-- | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 33,838,939 | 68,942,002 | 81,732,012 | 22,159 | -- | -- | 21,048,929 | 0.1% |
Total | $33,838,939 | $177,426,469 | $190,216,479 | $22,531 | $-- | $-- | $21,048,929 |
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 August 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $1,495,302,114 | $1,455,229,517 | $40,072,597 | $-- |
Convertible Bonds | 563,200 | -- | -- | 563,200 |
Money Market Funds | 21,048,929 | 21,048,929 | -- | -- |
Total Investments in Securities: | $1,516,914,243 | $1,476,278,446 | $40,072,597 | $563,200 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $20,586,863) — See accompanying schedule: Unaffiliated issuers (cost $1,129,874,802) | $1,495,865,314 | |
Fidelity Central Funds (cost $21,048,929) | 21,048,929 | |
Total Investment in Securities (cost $1,150,923,731) | $1,516,914,243 | |
Receivable for investments sold | 27,138,680 | |
Receivable for fund shares sold | 1,146,792 | |
Dividends receivable | 1,942,302 | |
Interest receivable | 1,783 | |
Distributions receivable from Fidelity Central Funds | 5,809 | |
Prepaid expenses | 11,872 | |
Other receivables | 375,600 | |
Total assets | 1,547,537,081 | |
Liabilities | ||
Payable to custodian bank | $1,144,979 | |
Payable for investments purchased | 15,072,035 | |
Payable for fund shares redeemed | 2,265,717 | |
Accrued management fee | 658,819 | |
Distribution and service plan fees payable | 164,855 | |
Other affiliated payables | 245,942 | |
Other payables and accrued expenses | 346,159 | |
Collateral on securities loaned | 21,048,700 | |
Total liabilities | 40,947,206 | |
Net Assets | $1,506,589,875 | |
Net Assets consist of: | ||
Paid in capital | $1,069,136,029 | |
Total accumulated earnings (loss) | 437,453,846 | |
Net Assets | $1,506,589,875 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($283,618,505 ÷ 2,898,923 shares)(a) | $97.84 | |
Maximum offering price per share (100/94.25 of $97.84) | $103.81 | |
Class M: | ||
Net Asset Value and redemption price per share ($62,492,098 ÷ 646,652 shares)(a) | $96.64 | |
Maximum offering price per share (100/96.50 of $96.64) | $100.15 | |
Class C: | ||
Net Asset Value and offering price per share ($95,444,789 ÷ 1,009,442 shares)(a) | $94.55 | |
Consumer Staples: | ||
Net Asset Value, offering price and redemption price per share ($854,056,050 ÷ 8,620,885 shares) | $99.07 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($145,067,684 ÷ 1,468,118 shares) | $98.81 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($65,910,749 ÷ 667,512 shares) | $98.74 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $18,355,293 | |
Interest | 1,783 | |
Income from Fidelity Central Funds (including $22,159 from security lending) | 22,531 | |
Total income | 18,379,607 | |
Expenses | ||
Management fee | $3,885,199 | |
Transfer agent fees | 1,244,523 | |
Distribution and service plan fees | 1,020,313 | |
Accounting fees | 231,852 | |
Custodian fees and expenses | 10,927 | |
Independent trustees' fees and expenses | 2,754 | |
Registration fees | 63,217 | |
Audit | 28,525 | |
Legal | 1,184 | |
Interest | 217 | |
Miscellaneous | 5,386 | |
Total expenses before reductions | 6,494,097 | |
Expense reductions | (103,802) | |
Total expenses after reductions | 6,390,295 | |
Net investment income (loss) | 11,989,312 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 79,429,376 | |
Foreign currency transactions | 17,036 | |
Total net realized gain (loss) | 79,446,412 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 99,641,225 | |
Assets and liabilities in foreign currencies | (11,761) | |
Total change in net unrealized appreciation (depreciation) | 99,629,464 | |
Net gain (loss) | 179,075,876 | |
Net increase (decrease) in net assets resulting from operations | $191,065,188 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,989,312 | $23,747,237 |
Net realized gain (loss) | 79,446,412 | 57,686,836 |
Change in net unrealized appreciation (depreciation) | 99,629,464 | 128,330,786 |
Net increase (decrease) in net assets resulting from operations | 191,065,188 | 209,764,859 |
Distributions to shareholders | (60,830,941) | (46,152,171) |
Share transactions - net increase (decrease) | 19,369,963 | (183,556,146) |
Total increase (decrease) in net assets | 149,604,210 | (19,943,458) |
Net Assets | ||
Beginning of period | 1,356,985,665 | 1,376,929,123 |
End of period | $1,506,589,875 | $1,356,985,665 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Consumer Staples Portfolio Class A
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $89.40 | $79.57 | $76.88 | $87.07 | $96.18 | $89.78 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .71 | 1.34 | 1.40 | 2.08C | 1.54 | 1.28 |
Net realized and unrealized gain (loss) | 11.79 | 11.24 | 3.54 | (2.64) | (2.80) | 9.12 |
Total from investment operations | 12.50 | 12.58 | 4.94 | (.56) | (1.26) | 10.40 |
Distributions from net investment income | (.06) | (1.42) | (1.35) | (2.11) | (1.55) | (1.37) |
Distributions from net realized gain | (4.00) | (1.33) | (.90) | (7.53) | (6.30) | (2.64) |
Total distributions | (4.06) | (2.75) | (2.25) | (9.63)D | (7.85) | (4.00)D |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $97.84 | $89.40 | $79.57 | $76.88 | $87.07 | $96.18 |
Total ReturnF,G,H | 14.16% | 16.00% | 6.17% | (.32)% | (1.68)% | 11.91% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.02%K | 1.04% | 1.04% | 1.05% | 1.05% | 1.04% |
Expenses net of fee waivers, if any | 1.02%K | 1.04% | 1.04% | 1.05% | 1.05% | 1.04% |
Expenses net of all reductions | 1.00%K | 1.03% | 1.04% | 1.04% | 1.04% | 1.03% |
Net investment income (loss) | 1.48%K | 1.57% | 1.67% | 2.65%C | 1.60% | 1.37% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $283,619 | $248,234 | $239,067 | $232,020 | $317,366 | $522,014 |
Portfolio turnover rateL | 61%K | 51% | 40% | 41%M | 76% | 56%M |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.69 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.78%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I Fees and expenses of any underlying 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Consumer Staples Portfolio Class M
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $88.43 | $78.74 | $76.13 | $86.30 | $95.42 | $89.10 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .58 | 1.10 | 1.16 | 1.85C | 1.27 | 1.01 |
Net realized and unrealized gain (loss) | 11.65 | 11.11 | 3.50 | (2.61) | (2.78) | 9.07 |
Total from investment operations | 12.23 | 12.21 | 4.66 | (.76) | (1.51) | 10.08 |
Distributions from net investment income | (.02) | (1.19) | (1.15) | (1.88) | (1.31) | (1.12) |
Distributions from net realized gain | (4.00) | (1.33) | (.90) | (7.53) | (6.30) | (2.64) |
Total distributions | (4.02) | (2.52) | (2.05) | (9.41) | (7.61) | (3.76) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –D |
Net asset value, end of period | $96.64 | $88.43 | $78.74 | $76.13 | $86.30 | $95.42 |
Total ReturnE,F,G | 14.00% | 15.69% | 5.88% | (.59)% | (1.94)% | 11.61% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | 1.29%J | 1.31% | 1.31% | 1.33% | 1.32% | 1.32% |
Expenses net of fee waivers, if any | 1.28%J | 1.31% | 1.31% | 1.32% | 1.32% | 1.32% |
Expenses net of all reductions | 1.27%J | 1.30% | 1.31% | 1.31% | 1.31% | 1.31% |
Net investment income (loss) | 1.21%J | 1.30% | 1.40% | 2.37%C | 1.33% | 1.09% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $62,492 | $56,664 | $55,954 | $60,069 | $76,572 | $89,925 |
Portfolio turnover rateK | 61%J | 51% | 40% | 41%L | 76% | 56%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.68 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.50%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Consumer Staples Portfolio Class C
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $86.73 | $77.27 | $74.79 | $84.85 | $93.89 | $87.77 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .34 | .68 | .75 | 1.46C | .81 | .56 |
Net realized and unrealized gain (loss) | 11.42 | 10.87 | 3.44 | (2.57) | (2.73) | 8.92 |
Total from investment operations | 11.76 | 11.55 | 4.19 | (1.11) | (1.92) | 9.48 |
Distributions from net investment income | – | (.80) | (.81) | (1.43) | (.82) | (.73) |
Distributions from net realized gain | (3.94) | (1.30) | (.90) | (7.53) | (6.30) | (2.64) |
Total distributions | (3.94) | (2.09)D | (1.71) | (8.95)D | (7.12) | (3.36)D |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $94.55 | $86.73 | $77.27 | $74.79 | $84.85 | $93.89 |
Total ReturnF,G,H | 13.71% | 15.14% | 5.39% | (1.05)% | (2.41)% | 11.07% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | 1.77%K | 1.79% | 1.79% | 1.79% | 1.79% | 1.80% |
Expenses net of fee waivers, if any | 1.77%K | 1.79% | 1.79% | 1.79% | 1.79% | 1.79% |
Expenses net of all reductions | 1.76%K | 1.78% | 1.79% | 1.78% | 1.78% | 1.79% |
Net investment income (loss) | .73%K | .83% | .92% | 1.91%C | .86% | .61% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $95,445 | $104,955 | $117,328 | $150,822 | $228,874 | $308,350 |
Portfolio turnover rateL | 61%K | 51% | 40% | 41%M | 76% | 56%M |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.67 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.04%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the contingent deferred sales charge.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Consumer Staples Portfolio
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $90.40 | $80.42 | $77.63 | $87.85 | $97.01 | $90.48 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .86 | 1.60 | 1.66 | 2.34C | 1.82 | 1.56 |
Net realized and unrealized gain (loss) | 11.92 | 11.39 | 3.59 | (2.67) | (2.82) | 9.20 |
Total from investment operations | 12.78 | 12.99 | 5.25 | (.33) | (1.00) | 10.76 |
Distributions from net investment income | (.11) | (1.68) | (1.55) | (2.36) | (1.86) | (1.60) |
Distributions from net realized gain | (4.00) | (1.33) | (.90) | (7.53) | (6.30) | (2.64) |
Total distributions | (4.11) | (3.01) | (2.46)D | (9.89) | (8.16) | (4.23)D |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $99.07 | $90.40 | $80.42 | $77.63 | $87.85 | $97.01 |
Total ReturnF,G | 14.31% | 16.34% | 6.48% | (.03)% | (1.40)% | 12.24% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .73%J | .75% | .75% | .77% | .76% | .76% |
Expenses net of fee waivers, if any | .73%J | .75% | .75% | .76% | .76% | .76% |
Expenses net of all reductions | .72%J | .74% | .75% | .75% | .76% | .76% |
Net investment income (loss) | 1.77%J | 1.86% | 1.96% | 2.94%C | 1.89% | 1.64% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $854,056 | $770,644 | $773,437 | $814,350 | $1,328,696 | $1,665,604 |
Portfolio turnover rateK | 61%J | 51% | 40% | 41%L | 76% | 56%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.69 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 2.07%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Consumer Staples Portfolio Class I
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $90.17 | $80.23 | $77.45 | $87.68 | $96.82 | $90.34 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .85 | 1.60 | 1.65 | 2.33C | 1.81 | 1.54 |
Net realized and unrealized gain (loss) | 11.90 | 11.34 | 3.58 | (2.68) | (2.82) | 9.19 |
Total from investment operations | 12.75 | 12.94 | 5.23 | (.35) | (1.01) | 10.73 |
Distributions from net investment income | (.10) | (1.67) | (1.55) | (2.36) | (1.83) | (1.61) |
Distributions from net realized gain | (4.00) | (1.33) | (.90) | (7.53) | (6.30) | (2.64) |
Total distributions | (4.11)D | (3.00) | (2.45) | (9.88)D | (8.13) | (4.25) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –E |
Net asset value, end of period | $98.81 | $90.17 | $80.23 | $77.45 | $87.68 | $96.82 |
Total ReturnF,G | 14.31% | 16.32% | 6.48% | (.04)% | (1.41)% | 12.22% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .74%J | .76% | .76% | .77% | .78% | .78% |
Expenses net of fee waivers, if any | .74%J | .75% | .76% | .77% | .78% | .78% |
Expenses net of all reductions | .73%J | .75% | .76% | .76% | .77% | .77% |
Net investment income (loss) | 1.76%J | 1.86% | 1.95% | 2.93%C | 1.88% | 1.63% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $145,068 | $132,898 | $149,514 | $159,614 | $240,605 | $275,616 |
Portfolio turnover rateK | 61%J | 51% | 40% | 41%L | 76% | 56%L |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.69 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 2.06%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Consumer Staples Portfolio Class Z
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||
2021 | 2021 | 2020 A | 2019 B | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $90.08 | $80.14 | $77.36 | $81.61 |
Income from Investment Operations | ||||
Net investment income (loss)C | .91 | 1.71 | 1.78 | .05D |
Net realized and unrealized gain (loss) | 11.88 | 11.35 | 3.56 | .33 |
Total from investment operations | 12.79 | 13.06 | 5.34 | .38 |
Distributions from net investment income | (.13) | (1.79) | (1.66) | (2.23) |
Distributions from net realized gain | (4.00) | (1.33) | (.90) | (2.40) |
Total distributions | (4.13) | (3.12) | (2.56) | (4.63) |
Net asset value, end of period | $98.74 | $90.08 | $80.14 | $77.36 |
Total ReturnE,F | 14.37% | 16.49% | 6.61% | .79% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | .61%I | .62% | .63% | .63%I |
Expenses net of fee waivers, if any | .61%I | .62% | .63% | .62%I |
Expenses net of all reductions | .60%I | .62% | .62% | .61%I |
Net investment income (loss) | 1.89%I | 1.99% | 2.08% | .16%D,I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $65,911 | $43,591 | $41,629 | $8,052 |
Portfolio turnover rateJ | 61%I | 51% | 40% | 41%K |
A For the year ended February 29.
B For the period October 2, 2018 (commencement of sale of shares) to February 28, 2019.
C Calculated based on average shares outstanding during the period.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.26 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.69) %.
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, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended August 31, 2021
1. Organization.
Consumer Staples Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (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 invests primarily in securities of companies whose principal business activities fall within specific industries. The Fund offers Class A, Class M, Class C, Consumer Staples, 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. Effective June 21, 2021, Class C shares will automatically convert to Class A shares after a holding period of eight years from the initial date of purchase, with certain exceptions. Prior to June 21, 2021, Class C shares automatically converted to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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, 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 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.
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.
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 August 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain 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 Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Consumer Staples Portfolio | $317,153 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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, 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 | $382,696,291 |
Gross unrealized depreciation | (20,668,323) |
Net unrealized appreciation (depreciation) | $362,027,968 |
Tax cost | $1,154,886,275 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Consumer Staples Portfolio | 444,821,546 | 478,065,695 |
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 annualized 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% | $341,406 | $901 |
Class M | .25% | .25% | 153,672 | – |
Class C | .75% | .25% | 525,235 | 26,052 |
$1,020,313 | $26,953 |
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 | $40,059 |
Class M | 5,467 |
Class C(a) | 502 |
$46,028 |
(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.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $267,158 | .20 |
Class M | 65,502 | .21 |
Class C | 104,721 | .20 |
Consumer Staples | 675,110 | .16 |
Class I | 120,671 | .17 |
Class Z | 11,361 | .04 |
$1,244,523 |
(a) Annualized
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 annualized rates:
% of Average Net Assets | |
Consumer Staples Portfolio | .03 |
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 | |
Consumer Staples Portfolio | $9,565 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | |
Consumer Staples Portfolio | Borrower | $3,374,125 | .29% | $217 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Consumer Staples Portfolio | 17,161,047 | 34,807,897 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Consumer Staples Portfolio | $1,321 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Consumer Staples Portfolio | $2,283 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $92,663 for the period.
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 $11,139.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Consumer Staples Portfolio | ||
Distributions to shareholders | ||
Class A | $11,114,885 | $7,785,064 |
Class M | 2,543,526 | 1,694,592 |
Class C | 4,598,422 | 2,915,694 |
Consumer Staples | 34,746,038 | 26,940,406 |
Class I | 5,809,159 | 5,222,248 |
Class Z | 2,018,911 | 1,594,167 |
Total | $60,830,941 | $46,152,171 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended August 31, 2021 | Year ended February 28, 2021 | Six months ended August 31, 2021 | Year ended February 28, 2021 | |
Consumer Staples Portfolio | ||||
Class A | ||||
Shares sold | 279,715 | 521,136 | $26,843,899 | $43,136,035 |
Reinvestment of distributions | 113,441 | 88,396 | 10,698,575 | 7,517,633 |
Shares redeemed | (270,763) | (837,400) | (25,946,499) | (70,049,187) |
Net increase (decrease) | 122,393 | (227,868) | $11,595,975 | $(19,395,519) |
Class M | ||||
Shares sold | 27,437 | 73,432 | $2,613,206 | $5,865,389 |
Reinvestment of distributions | 27,127 | 20,110 | 2,529,616 | 1,683,104 |
Shares redeemed | (48,675) | (163,378) | (4,610,299) | (13,583,465) |
Net increase (decrease) | 5,889 | (69,836) | $532,523 | $(6,034,972) |
Class C | ||||
Shares sold | 36,069 | 141,597 | $3,361,463 | $11,209,401 |
Reinvestment of distributions | 49,684 | 35,029 | 4,541,660 | 2,841,148 |
Shares redeemed | (286,457) | (484,920) | (26,566,922) | (39,991,422) |
Net increase (decrease) | (200,704) | (308,294) | $(18,663,799) | $(25,940,873) |
Consumer Staples | ||||
Shares sold | 566,967 | 1,518,738 | $55,039,875 | $126,493,736 |
Reinvestment of distributions | 333,965 | 285,485 | 31,856,921 | 24,629,835 |
Shares redeemed | (804,959) | (2,896,609) | (78,269,921) | (243,910,123) |
Net increase (decrease) | 95,973 | (1,092,386) | $8,626,875 | $(92,786,552) |
Class I | ||||
Shares sold | 168,782 | 850,081 | $16,363,585 | $68,795,704 |
Reinvestment of distributions | 56,387 | 55,882 | 5,365,186 | 4,825,829 |
Shares redeemed | (230,845) | (1,295,813) | (22,335,447) | (108,862,991) |
Net increase (decrease) | (5,676) | (389,850) | $(606,676) | $(35,241,458) |
Class Z | ||||
Shares sold | 236,013 | 271,537 | $23,003,121 | $22,735,232 |
Reinvestment of distributions | 20,102 | 17,543 | 1,910,309 | 1,510,349 |
Shares redeemed | (72,521) | (324,611) | (7,028,365) | (28,402,353) |
Net increase (decrease) | 183,594 | (35,531) | $17,885,065 | $(4,156,772) |
11. Other.
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.
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 Fund's performance.
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 (March 1, 2021 to August 31, 2021).
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 March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Consumer Staples Portfolio | ||||
Class A | 1.02% | |||
Actual | $1,000.00 | $1,141.60 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,020.06 | $5.19 | |
Class M | 1.28% | |||
Actual | $1,000.00 | $1,140.00 | $6.90 | |
Hypothetical-C | $1,000.00 | $1,018.75 | $6.51 | |
Class C | 1.77% | |||
Actual | $1,000.00 | $1,137.10 | $9.53 | |
Hypothetical-C | $1,000.00 | $1,016.28 | $9.00 | |
Consumer Staples | .73% | |||
Actual | $1,000.00 | $1,143.10 | $3.94 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 | |
Class I | .74% | |||
Actual | $1,000.00 | $1,143.10 | $4.00 | |
Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 | |
Class Z | .61% | |||
Actual | $1,000.00 | $1,143.70 | $3.30 | |
Hypothetical-C | $1,000.00 | $1,022.13 | $3.11 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Consumer Staples Portfolio
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its May 2021 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that, in the past, it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in July 2020. The Board will continue to monitor closely the fund's performance, taking into account the portfolio management change.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index). In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods ended September 30, 2020, as shown below.Consumer Staples Portfolio
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Consumer Staples Portfolio
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SELCS-SANN-1021
1.846045.114
Fidelity® Environment and Alternative Energy Fund (formerly Environment and Alternative Energy Portfolio)
Fidelity® Natural Resources Fund (formerly Natural Resources Portfolio)
Semi-Annual Report
August 31, 2021
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Contents
Fidelity® Environment and Alternative Energy Fund | |
Fidelity® Natural Resources Fund | |
Board Approval of Investment Advisory Contracts and Management Fees |
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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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem 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.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Fidelity® Environment and Alternative Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Microsoft Corp. | 13.9 |
Tesla, Inc. | 9.3 |
Danaher Corp. | 7.5 |
NextEra Energy, Inc. | 5.2 |
Linde PLC | 3.9 |
Prologis (REIT), Inc. | 3.5 |
Eaton Corp. PLC | 3.5 |
Analog Devices, Inc. | 2.9 |
Deere & Co. | 2.6 |
Johnson Controls International PLC | 2.5 |
54.8 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Software | 13.9% | |
Electrical Equipment | 11.1% | |
Automobiles | 9.6% | |
Building Products | 9.2% | |
Chemicals | 9.1% | |
All Others* | 47.1% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Environment and Alternative Energy Fund
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Automobiles - 9.6% | |||
Automobile Manufacturers - 9.6% | |||
Tesla, Inc. (a) | 70,020 | $51,515,114 | |
XPeng, Inc. ADR (a) | 33,400 | 1,419,500 | |
52,934,614 | |||
Building Products - 9.2% | |||
Building Products - 9.2% | |||
A.O. Smith Corp. | 18,621 | 1,354,119 | |
Carlisle Companies, Inc. | 43,710 | 9,211,445 | |
Johnson Controls International PLC | 184,430 | 13,795,364 | |
Kingspan Group PLC (Ireland) | 24,100 | 2,753,979 | |
Nibe Industrier AB (B Shares) | 315,400 | 4,396,876 | |
Owens Corning | 58,029 | 5,544,671 | |
Trane Technologies PLC | 69,310 | 13,758,035 | |
50,814,489 | |||
Capital Markets - 2.0% | |||
Asset Management & Custody Banks - 1.3% | |||
BlackRock, Inc. Class A | 7,310 | 6,895,450 | |
Financial Exchanges & Data - 0.7% | |||
Intercontinental Exchange, Inc. | 34,540 | 4,128,566 | |
TOTAL CAPITAL MARKETS | 11,024,016 | ||
Chemicals - 9.1% | |||
Commodity Chemicals - 0.1% | |||
Zymergen, Inc. (a) | 42,100 | 552,352 | |
Diversified Chemicals - 0.2% | |||
The Chemours Co. LLC | 33,100 | 1,109,181 | |
Industrial Gases - 3.9% | |||
Linde PLC | 67,520 | 21,241,117 | |
Specialty Chemicals - 4.9% | |||
Albemarle Corp. U.S. | 8,298 | 1,964,469 | |
Corbion NV | 2,740 | 147,269 | |
Danimer Scientific, Inc. (a) | 39,542 | 772,651 | |
Innospec, Inc. | 81,424 | 7,621,286 | |
Koninklijke DSM NV | 51,630 | 10,988,423 | |
Minerals Technologies, Inc. | 72,080 | 5,668,371 | |
27,162,469 | |||
TOTAL CHEMICALS | 50,065,119 | ||
Commercial Services & Supplies - 1.1% | |||
Environmental & Facility Services - 0.8% | |||
Montrose Environmental Group, Inc. (a) | 33,900 | 1,695,000 | |
Tetra Tech, Inc. | 17,691 | 2,544,673 | |
4,239,673 | |||
Office Services & Supplies - 0.3% | |||
Steelcase, Inc. Class A | 116,871 | 1,646,712 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 5,886,385 | ||
Communications Equipment - 1.1% | |||
Communications Equipment - 1.1% | |||
Cisco Systems, Inc. | 100,000 | 5,902,000 | |
Construction & Engineering - 0.5% | |||
Construction & Engineering - 0.5% | |||
EMCOR Group, Inc. | 16,385 | 1,990,778 | |
Quanta Services, Inc. | 7,906 | 807,203 | |
2,797,981 | |||
Containers & Packaging - 0.5% | |||
Metal & Glass Containers - 0.5% | |||
Ball Corp. | 29,085 | 2,790,997 | |
Electric Utilities - 7.6% | |||
Electric Utilities - 7.6% | |||
NextEra Energy, Inc. | 342,730 | 28,785,893 | |
ORSTED A/S (b) | 56,970 | 9,054,487 | |
Verbund AG | 37,800 | 4,139,650 | |
41,980,030 | |||
Electrical Equipment - 11.1% | |||
Electrical Components & Equipment - 8.6% | |||
Acuity Brands, Inc. | 48,780 | 9,001,373 | |
Ceres Power Holdings PLC (a) | 101,470 | 1,644,776 | |
Eaton Corp. PLC | 114,180 | 19,223,345 | |
Hubbell, Inc. Class B | 38,927 | 8,023,244 | |
Regal Beloit Corp. | 45,391 | 6,782,323 | |
Sunrun, Inc. (a) | 62,200 | 2,752,350 | |
47,427,411 | |||
Heavy Electrical Equipment - 2.5% | |||
Vestas Wind Systems A/S | 339,950 | 13,726,030 | |
TOTAL ELECTRICAL EQUIPMENT | 61,153,441 | ||
Electronic Equipment & Components - 1.3% | |||
Electronic Equipment & Instruments - 1.3% | |||
Badger Meter, Inc. | 5,666 | 606,772 | |
Trimble, Inc. (a) | 67,750 | 6,383,405 | |
6,990,177 | |||
Energy Equipment & Services - 0.4% | |||
Oil & Gas Equipment & Services - 0.4% | |||
Aspen Aerogels, Inc. (a) | 51,010 | 2,231,688 | |
Equity Real Estate Investment Trusts (REITs) - 3.5% | |||
Industrial REITs - 3.5% | |||
Prologis (REIT), Inc. | 144,940 | 19,517,620 | |
Health Care Equipment & Supplies - 7.5% | |||
Health Care Equipment - 7.5% | |||
Danaher Corp. | 127,430 | 41,307,709 | |
Independent Power and Renewable Electricity Producers - 2.0% | |||
Renewable Electricity - 2.0% | |||
EDP Renovaveis SA | 370,350 | 9,847,788 | |
Meridian Energy Ltd. | 269,930 | 998,582 | |
10,846,370 | |||
Industrial Conglomerates - 1.2% | |||
Industrial Conglomerates - 1.2% | |||
Honeywell International, Inc. | 27,861 | 6,461,245 | |
Internet & Direct Marketing Retail - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
thredUP, Inc. (a) | 3,900 | 74,763 | |
Life Sciences Tools & Services - 0.8% | |||
Life Sciences Tools & Services - 0.8% | |||
Agilent Technologies, Inc. | 23,380 | 4,102,489 | |
Codexis, Inc. (a) | 21,521 | 581,497 | |
4,683,986 | |||
Machinery - 6.3% | |||
Agricultural & Farm Machinery - 2.6% | |||
Deere & Co. | 37,290 | 14,096,739 | |
Construction Machinery & Heavy Trucks - 2.0% | |||
Cummins, Inc. | 46,512 | 10,975,902 | |
Industrial Machinery - 1.7% | |||
Chart Industries, Inc. (a) | 7,340 | 1,382,709 | |
Crane Co. | 41,284 | 4,201,473 | |
Kornit Digital Ltd. (a) | 8,260 | 1,076,856 | |
Xylem, Inc. | 22,074 | 3,008,907 | |
9,669,945 | |||
TOTAL MACHINERY | 34,742,586 | ||
Metals & Mining - 0.9% | |||
Diversified Metals & Mining - 0.4% | |||
Lynas Rare Earths Ltd. (a) | 425,860 | 2,143,381 | |
Steel - 0.5% | |||
Reliance Steel & Aluminum Co. | 17,228 | 2,584,889 | |
TOTAL METALS & MINING | 4,728,270 | ||
Mortgage Real Estate Investment Trusts - 0.5% | |||
Mortgage REITs - 0.5% | |||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 44,517 | 2,687,491 | |
Oil, Gas & Consumable Fuels - 0.5% | |||
Oil & Gas Exploration & Production - 0.5% | |||
Denbury, Inc. (a) | 39,750 | 2,795,618 | |
Professional Services - 0.4% | |||
Human Resource & Employment Services - 0.4% | |||
Robert Half International, Inc. | 22,955 | 2,373,547 | |
Semiconductors & Semiconductor Equipment - 4.8% | |||
Semiconductor Equipment - 1.7% | |||
Enphase Energy, Inc. (a) | 33,753 | 5,863,909 | |
SolarEdge Technologies, Inc. (a) | 12,953 | 3,753,520 | |
9,617,429 | |||
Semiconductors - 3.1% | |||
Allegro MicroSystems LLC (a) | 13,527 | 406,486 | |
Analog Devices, Inc. | 98,050 | 15,977,248 | |
Power Integrations, Inc. | 5,468 | 594,044 | |
16,977,778 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 26,595,207 | ||
Software - 13.9% | |||
Systems Software - 13.9% | |||
Microsoft Corp. | 254,510 | 76,831,477 | |
TOTAL COMMON STOCKS | |||
(Cost $429,078,817) | 528,216,826 | ||
Money Market Funds - 2.8% | |||
Fidelity Cash Central Fund 0.06% (c) | |||
(Cost $15,605,403) | 15,602,283 | 15,605,403 | |
TOTAL INVESTMENT IN SECURITIES - 98.6% | |||
(Cost $444,684,220) | 543,822,229 | ||
NET OTHER ASSETS (LIABILITIES) - 1.4% | 7,927,103 | ||
NET ASSETS - 100% | $551,749,332 |
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 $9,054,487 or 1.6% 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 are available on the SEC's website or upon request.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $8,161,296 | $141,916,902 | $134,472,795 | $1,909 | $-- | $-- | $15,605,403 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | -- | 1,045,802 | 1,045,802 | 4 | -- | -- | -- | 0.0% |
Total | $8,161,296 | $142,962,704 | $135,518,597 | $1,913 | $-- | $-- | $15,605,403 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 | $528,216,826 | $528,216,826 | $-- | $-- |
Money Market Funds | 15,605,403 | 15,605,403 | -- | -- |
Total Investments in Securities: | $543,822,229 | $543,822,229 | $-- | $-- |
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 | 76.2% |
Ireland | 12.9% |
Denmark | 4.1% |
Netherlands | 2.0% |
Spain | 1.8% |
Others (Individually Less Than 1%) | 3.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Environment and Alternative Energy Fund
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $429,078,817) | $528,216,826 | |
Fidelity Central Funds (cost $15,605,403) | 15,605,403 | |
Total Investment in Securities (cost $444,684,220) | $543,822,229 | |
Receivable for investments sold | 183,987,744 | |
Receivable for fund shares sold | 2,505,279 | |
Dividends receivable | 971,894 | |
Distributions receivable from Fidelity Central Funds | 616 | |
Prepaid expenses | 1,716 | |
Other receivables | 6,231 | |
Total assets | 731,295,709 | |
Liabilities | ||
Payable for investments purchased | $178,620,637 | |
Payable for fund shares redeemed | 564,881 | |
Accrued management fee | 232,337 | |
Other affiliated payables | 101,894 | |
Other payables and accrued expenses | 26,628 | |
Total liabilities | 179,546,377 | |
Net Assets | $551,749,332 | |
Net Assets consist of: | ||
Paid in capital | $403,997,712 | |
Total accumulated earnings (loss) | 147,751,620 | |
Net Assets | $551,749,332 | |
Net Asset Value, offering price and redemption price per share ($551,749,332 ÷ 15,318,113 shares) | $36.02 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,514,866 | |
Income from Fidelity Central Funds (including $4 from security lending) | 1,913 | |
Total income | 3,516,779 | |
Expenses | ||
Management fee | $1,249,906 | |
Transfer agent fees | 495,935 | |
Accounting fees | 92,248 | |
Custodian fees and expenses | 12,198 | |
Independent trustees' fees and expenses | 798 | |
Registration fees | 43,407 | |
Audit | 27,067 | |
Legal | 1,347 | |
Interest | 233 | |
Miscellaneous | 715 | |
Total expenses before reductions | 1,923,854 | |
Expense reductions | (11,630) | |
Total expenses after reductions | 1,912,224 | |
Net investment income (loss) | 1,604,555 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 50,227,040 | |
Foreign currency transactions | 161,600 | |
Total net realized gain (loss) | 50,388,640 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 27,655,281 | |
Assets and liabilities in foreign currencies | 7,361 | |
Total change in net unrealized appreciation (depreciation) | 27,662,642 | |
Net gain (loss) | 78,051,282 | |
Net increase (decrease) in net assets resulting from operations | $79,655,837 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,604,555 | $1,985,372 |
Net realized gain (loss) | 50,388,640 | (3,213,521) |
Change in net unrealized appreciation (depreciation) | 27,662,642 | 68,284,486 |
Net increase (decrease) in net assets resulting from operations | 79,655,837 | 67,056,337 |
Distributions to shareholders | (251,745) | (13,727,960) |
Share transactions | ||
Proceeds from sales of shares | 186,943,872 | 204,311,751 |
Reinvestment of distributions | 237,440 | 13,015,832 |
Cost of shares redeemed | (88,817,576) | (78,130,888) |
Net increase (decrease) in net assets resulting from share transactions | 98,363,736 | 139,196,695 |
Total increase (decrease) in net assets | 177,767,828 | 192,525,072 |
Net Assets | ||
Beginning of period | 373,981,504 | 181,456,432 |
End of period | $551,749,332 | $373,981,504 |
Other Information | ||
Shares | ||
Sold | 5,589,085 | 7,351,508 |
Issued in reinvestment of distributions | 7,228 | 653,424 |
Redeemed | (2,680,005) | (3,226,046) |
Net increase (decrease) | 2,916,308 | 4,778,886 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Environment and Alternative Energy Fund
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.16 | $23.80 | $24.92 | $26.31 | $23.89 | $18.20 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .11 | .24 | .27 | .24 | .27 | .20 |
Net realized and unrealized gain (loss) | 5.77 | 8.02 | (.81) | (.25) | 3.83 | 5.78 |
Total from investment operations | 5.88 | 8.26 | (.54) | (.01) | 4.10 | 5.98 |
Distributions from net investment income | (.02) | (.26) | (.23) | (.22) | (.22) | (.16) |
Distributions from net realized gain | – | (1.64) | (.35) | (1.16) | (1.46) | (.13) |
Total distributions | (.02) | (1.90) | (.58) | (1.38) | (1.68) | (.29) |
Redemption fees added to paid in capitalB | – | – | – | – | –C | –C |
Net asset value, end of period | $36.02 | $30.16 | $23.80 | $24.92 | $26.31 | $23.89 |
Total ReturnD,E | 19.50% | 38.97% | (2.35)% | .39% | 17.73% | 33.02% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .81%H | .85% | .85% | .87% | .87% | .94% |
Expenses net of fee waivers, if any | .81%H | .85% | .85% | .87% | .87% | .94% |
Expenses net of all reductions | .80%H | .85% | .85% | .87% | .86% | .94% |
Net investment income (loss) | .68%H | .95% | 1.08% | .96% | 1.07% | .94% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $551,749 | $373,982 | $181,456 | $160,960 | $188,383 | $137,674 |
Portfolio turnover rateI | 156%H | 28% | 49% | 62% | 47% | 82% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Natural Resources Fund
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Exxon Mobil Corp. | 17.6 |
Canadian Natural Resources Ltd. | 9.7 |
Hess Corp. | 8.2 |
Freeport-McMoRan, Inc. | 6.3 |
Franco-Nevada Corp. | 3.9 |
Cheniere Energy, Inc. | 3.6 |
Phillips 66 Co. | 3.3 |
Avery Dennison Corp. | 3.2 |
Tourmaline Oil Corp. | 2.5 |
Murphy Oil Corp. | 2.4 |
60.7 |
Top Industries (% of fund's net assets)
As of August 31, 2021 | ||
Oil, Gas & Consumable Fuels | 61.3% | |
Metals & Mining | 21.8% | |
Containers & Packaging | 9.1% | |
Energy Equipment & Services | 4.3% | |
Construction Materials | 2.3% | |
All Others* | 1.2% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Natural Resources Fund
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
Construction Materials - 2.3% | |||
Construction Materials - 2.3% | |||
Eagle Materials, Inc. | 28,700 | $4,501,308 | |
Summit Materials, Inc. (a) | 111,700 | 3,760,939 | |
8,262,247 | |||
Containers & Packaging - 9.1% | |||
Metal & Glass Containers - 3.7% | |||
Aptargroup, Inc. | 17,600 | 2,372,480 | |
Berry Global Group, Inc. (a) | 37,700 | 2,532,309 | |
Crown Holdings, Inc. | 71,500 | 7,849,985 | |
12,754,774 | |||
Paper Packaging - 5.4% | |||
Avery Dennison Corp. | 49,700 | 11,201,883 | |
Graphic Packaging Holding Co. | 116,500 | 2,390,580 | |
Packaging Corp. of America | 35,100 | 5,324,670 | |
18,917,133 | |||
TOTAL CONTAINERS & PACKAGING | 31,671,907 | ||
Energy Equipment & Services - 4.3% | |||
Oil & Gas Equipment & Services - 4.3% | |||
Baker Hughes Co. Class A | 246,600 | 5,617,548 | |
Halliburton Co. | 406,600 | 8,123,868 | |
Oceaneering International, Inc. (a) | 109,900 | 1,351,770 | |
15,093,186 | |||
Metals & Mining - 21.8% | |||
Copper - 8.5% | |||
First Quantum Minerals Ltd. | 371,800 | 7,744,544 | |
Freeport-McMoRan, Inc. | 602,600 | 21,928,614 | |
29,673,158 | |||
Diversified Metals & Mining - 2.9% | |||
Anglo American PLC (United Kingdom) | 46,300 | 1,955,504 | |
Foran Mining Corp. (a) | 1,132,400 | 1,902,816 | |
Glencore Xstrata PLC | 1,085,200 | 4,891,794 | |
Western Copper & Gold Corp. | 142,500 | 216,520 | |
Western Copper & Gold Corp. (TSX) (a) | 760,800 | 1,284,432 | |
10,251,066 | |||
Gold - 8.8% | |||
Agnico Eagle Mines Ltd. (Canada) | 53,800 | 3,095,851 | |
Barrick Gold Corp. | 370,532 | 7,436,577 | |
Franco-Nevada Corp. | 94,300 | 13,756,521 | |
Kinross Gold Corp. | 1,000 | 6,020 | |
Novagold Resources, Inc. (a) | 206,500 | 1,491,075 | |
Pretium Resources, Inc. (a) | 120,400 | 1,220,557 | |
Solgold PLC (a)(b) | 5,265,700 | 2,135,667 | |
Victoria Gold Corp. (a) | 133,200 | 1,588,919 | |
30,731,187 | |||
Silver - 0.5% | |||
Pan American Silver Corp. | 65,300 | 1,693,882 | |
Steel - 1.1% | |||
ArcelorMittal SA (Netherlands) | 53,200 | 1,783,657 | |
Vale SA sponsored ADR | 99,100 | 1,889,837 | |
3,673,494 | |||
TOTAL METALS & MINING | 76,022,787 | ||
Oil, Gas & Consumable Fuels - 61.3% | |||
Coal & Consumable Fuels - 3.0% | |||
New Hope Corp. Ltd. (b) | 974,211 | 1,468,129 | |
Thungela Resources Ltd. (a)(b) | 1,054,500 | 4,400,080 | |
Whitehaven Coal Ltd. (a) | 2,435,334 | 4,507,369 | |
10,375,578 | |||
Integrated Oil & Gas - 21.0% | |||
Cenovus Energy, Inc. | 802,300 | 6,643,044 | |
Exxon Mobil Corp. | 1,125,600 | 61,367,715 | |
Imperial Oil Ltd. | 198,800 | 5,261,310 | |
73,272,069 | |||
Oil & Gas Exploration & Production - 27.9% | |||
Africa Oil Corp. (a)(b) | 4,725,700 | 6,367,606 | |
Canadian Natural Resources Ltd. | 1,028,600 | 34,015,802 | |
Denbury, Inc. (a) | 15,100 | 1,061,983 | |
Harbour Energy PLC (a)(b) | 836,860 | 4,102,886 | |
Hess Corp. | 416,600 | 28,641,250 | |
MEG Energy Corp. (a) | 800,603 | 5,101,929 | |
Murphy Oil Corp. | 391,900 | 8,331,794 | |
Range Resources Corp. (a) | 64,200 | 938,604 | |
Tourmaline Oil Corp. | 324,700 | 8,683,373 | |
97,245,227 | |||
Oil & Gas Refining & Marketing - 4.7% | |||
Phillips 66 Co. | 162,416 | 11,546,153 | |
Valero Energy Corp. | 76,300 | 5,059,453 | |
16,605,606 | |||
Oil & Gas Storage & Transport - 4.7% | |||
Cheniere Energy, Inc. | 143,400 | 12,541,764 | |
Targa Resources Corp. | 85,700 | 3,763,944 | |
16,305,708 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 213,804,188 | ||
Paper & Forest Products - 0.9% | |||
Forest Products - 0.9% | |||
Western Forest Products, Inc. | 1,899,600 | 3,237,142 | |
TOTAL COMMON STOCKS | |||
(Cost $288,162,586) | 348,091,457 | ||
Money Market Funds - 1.8% | |||
Fidelity Securities Lending Cash Central Fund 0.06% (c)(d) | |||
(Cost $6,223,585) | 6,222,963 | 6,223,585 | |
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $294,386,171) | 354,315,042 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (5,355,558) | ||
NET ASSETS - 100% | $348,959,484 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | 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 0.06% | $1,866,336 | $34,990,175 | $36,856,511 | $150 | $-- | $-- | $-- | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 868,201 | 101,268,408 | 95,913,024 | 23,524 | -- | -- | 6,223,585 | 0.0% |
Total | $2,734,537 | $136,258,583 | $132,769,535 | $23,674 | $-- | $-- | $6,223,585 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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 | $348,091,457 | $341,027,639 | $7,063,818 | $-- |
Money Market Funds | 6,223,585 | 6,223,585 | -- | -- |
Total Investments in Securities: | $354,315,042 | $347,251,224 | $7,063,818 | $-- |
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 | 60.5% |
Canada | 31.7% |
United Kingdom | 2.3% |
Australia | 1.7% |
Bailiwick of Jersey | 1.4% |
South Africa | 1.3% |
Others (Individually Less Than 1%) | 1.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Natural Resources Fund
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $5,781,200) — See accompanying schedule: Unaffiliated issuers (cost $288,162,586) | $348,091,457 | |
Fidelity Central Funds (cost $6,223,585) | 6,223,585 | |
Total Investment in Securities (cost $294,386,171) | $354,315,042 | |
Foreign currency held at value (cost $35,809) | 35,816 | |
Receivable for investments sold | 4,201,676 | |
Receivable for fund shares sold | 185,924 | |
Dividends receivable | 1,657,812 | |
Distributions receivable from Fidelity Central Funds | 12,434 | |
Prepaid expenses | 4,645 | |
Other receivables | 162,490 | |
Total assets | 360,575,839 | |
Liabilities | ||
Payable to custodian bank | $2,071,277 | |
Payable for investments purchased | 1,983,436 | |
Payable for fund shares redeemed | 978,641 | |
Accrued management fee | 153,325 | |
Other affiliated payables | 79,212 | |
Other payables and accrued expenses | 127,373 | |
Collateral on securities loaned | 6,223,091 | |
Total liabilities | 11,616,355 | |
Net Assets | $348,959,484 | |
Net Assets consist of: | ||
Paid in capital | $590,425,692 | |
Total accumulated earnings (loss) | (241,466,208) | |
Net Assets | $348,959,484 | |
Net Asset Value, offering price and redemption price per share ($348,959,484 ÷ 13,653,716 shares) | $25.56 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $4,874,285 | |
Income from Fidelity Central Funds (including $23,524 from security lending) | 23,674 | |
Total income | 4,897,959 | |
Expenses | ||
Management fee | $939,076 | |
Transfer agent fees | 402,791 | |
Accounting fees | 69,528 | |
Custodian fees and expenses | 17,925 | |
Independent trustees' fees and expenses | 625 | |
Registration fees | 31,479 | |
Audit | 28,431 | |
Legal | 125 | |
Miscellaneous | 1,246 | |
Total expenses before reductions | 1,491,226 | |
Expense reductions | (103,786) | |
Total expenses after reductions | 1,387,440 | |
Net investment income (loss) | 3,510,519 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,871,072 | |
Foreign currency transactions | (1,821) | |
Total net realized gain (loss) | 4,869,251 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,241,646 | |
Assets and liabilities in foreign currencies | 604 | |
Total change in net unrealized appreciation (depreciation) | 17,242,250 | |
Net gain (loss) | 22,111,501 | |
Net increase (decrease) in net assets resulting from operations | $25,622,020 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,510,519 | $4,107,234 |
Net realized gain (loss) | 4,869,251 | (86,930,924) |
Change in net unrealized appreciation (depreciation) | 17,242,250 | 112,607,802 |
Net increase (decrease) in net assets resulting from operations | 25,622,020 | 29,784,112 |
Distributions to shareholders | – | (4,520,020) |
Share transactions | ||
Proceeds from sales of shares | 125,938,252 | 119,747,809 |
Reinvestment of distributions | – | 4,308,576 |
Cost of shares redeemed | (95,487,808) | (171,966,676) |
Net increase (decrease) in net assets resulting from share transactions | 30,450,444 | (47,910,291) |
Total increase (decrease) in net assets | 56,072,464 | (22,646,199) |
Net Assets | ||
Beginning of period | 292,887,020 | 315,533,219 |
End of period | $348,959,484 | $292,887,020 |
Other Information | ||
Shares | ||
Sold | 4,743,020 | 6,708,913 |
Issued in reinvestment of distributions | – | 210,950 |
Redeemed | (3,708,502) | (9,621,746) |
Net increase (decrease) | 1,034,518 | (2,701,883) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Natural Resources Fund
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.21 | $20.59 | $25.55 | $27.51 | $29.13 | $21.80 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .26 | .30 | .30 | .29 | .43C | .10 |
Net realized and unrealized gain (loss) | 2.09 | 2.69 | (4.88) | (1.97) | (1.64) | 7.42 |
Total from investment operations | 2.35 | 2.99 | (4.58) | (1.68) | (1.21) | 7.52 |
Distributions from net investment income | – | (.37) | (.30) | (.28) | (.39) | (.11) |
Distributions from net realized gain | – | – | (.08) | –D | (.02) | (.08) |
Total distributions | – | (.37) | (.38) | (.28) | (.41) | (.19) |
Redemption fees added to paid in capitalB | – | – | – | – | –D | –D |
Net asset value, end of period | $25.56 | $23.21 | $20.59 | $25.55 | $27.51 | $29.13 |
Total ReturnE,F | 10.12% | 14.76% | (18.25)% | (6.06)% | (4.16)% | 34.54% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .84%I | .89% | .84% | .81% | .83% | .84% |
Expenses net of fee waivers, if any | .83%I | .89% | .84% | .81% | .83% | .84% |
Expenses net of all reductions | .78%I | .88% | .84% | .80% | .82% | .83% |
Net investment income (loss) | 1.97%I | 1.62% | 1.18% | 1.02% | 1.54%C | .35% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $348,959 | $292,887 | $315,533 | $424,167 | $910,733 | $912,090 |
Portfolio turnover rateJ | 92%I | 90% | 8% | 26% | 78% | 84% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.31 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .41%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Fidelity Environment and Alternative Energy Fund (formerly Environment and Alternative Energy Portfolio) and Fidelity Natural Resources Fund (formerly Natural Resources Portfolio) (the Funds) are non-diversified funds of Fidelity Select Portfolios (the Trust). Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 invest primarily in securities of companies whose principal business activities fall within specific industries. Fidelity Natural Resources Fund may also invest in certain precious metals.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
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% to .01% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each 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 each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. 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 August 31, 2021 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a 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 the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Natural Resources Fund | $97,048 |
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. 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, certain foreign taxes, passive foreign investment companies (PFIC), deferred Trustees compensation, net operating losses, capital loss carryforwards and 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 Environment and Alternative Energy Fund | $445,075,053 | $100,247,319 | $(1,500,143) | $98,747,176 |
Fidelity Natural Resources Fund | 298,862,169 | 67,071,519 | (11,618,646) | 55,452,873 |
Natural Resources Portfolio elected to defer to its next fiscal year $1,258,378 of ordinary losses recognized during the period January 1, 2021 to February 28, 2021.
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 prior fiscal period end and is subject to adjustment.
No expiration | |||
Short-term | Long-term | Total capital loss carryforward | |
Fidelity Environment and Alternative Energy Fund | $(3,214,228) | $– | $(3,214,228) |
Fidelity Natural Resources Fund | (94,745,607) | (207,408,767) | (302,154,374) |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Environment and Alternative Energy Fund | 448,449,577 | 363,559,867 |
Fidelity Natural Resources Fund | 195,899,426 | 160,793,705 |
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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Fidelity Environment and Alternative Energy Fund | .30% | .23% | .53% |
Fidelity Natural Resources Fund | .30% | .23% | .53% |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Fidelity Environment and Alternative Energy Fund | .21% |
Fidelity Natural Resources Fund | .23% |
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 annualized rates:
% of Average Net Assets | |
Fidelity Environment and Alternative Energy Fund | .04 |
Fidelity Natural Resources 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 Environment and Alternative Energy Fund | $3,553 |
Fidelity Natural Resources Fund | 3,808 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Environment and Alternative Energy Fund | Borrower | $5,155,000 | .33% | $233 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Environment and Alternative Energy Fund | 35,436,479 | 10,550,442 |
Fidelity Natural Resources Fund | 9,310,580 | 4,626,739 |
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 listed below. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Environment and Alternative Energy Fund | $378 |
Fidelity Natural Resources Fund | 295 |
7. Security Lending.
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 investment adviser. 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. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
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 Environment and Alternative Energy Fund | $– | $– | $– |
Fidelity Natural Resources Fund | $2,485 | $– | $– |
8. Expense Reductions.
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 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 expenses. All of the applicable expense reductions are noted in the table below.
Brokerage service rebates | Custodian credits | |
Fidelity Environment and Alternative Energy Fund | $8,252 | $3 |
Fidelity Natural Resources Fund | 100,933 | – |
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses as follows:
Amount | |
Fidelity Environment and Alternative Energy Fund | $3,375 |
Fidelity Natural Resources Fund | 2,853 |
9. Other.
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.
10. 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.
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 (March 1, 2021 to August 31, 2021).
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.
Annualized Expense Ratio-A | Beginning Account Value March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Fidelity Environment and Alternative Energy Fund | .81% | |||
Actual | $1,000.00 | $1,195.00 | $4.48 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Fidelity Natural Resources Fund | .83% | |||
Actual | $1,000.00 | $1,101.20 | $4.40 | |
Hypothetical-C | $1,000.00 | $1,021.02 | $4.23 |
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 184/ 365 (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
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Environment and Alternative Energy Fund
Fidelity Natural Resources Fund
Fidelity Environment and Alternative Energy Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733170094.jpg)
Fidelity Natural Resources Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733170418.jpg)
Fidelity Environment and Alternative Energy Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733170976.jpg)
Fidelity Natural Resources Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-21-004369/img733171099.jpg)
EAE-NRF-SANN-1021
1.9901476.100
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: | October 21, 2021 |
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: | October 21, 2021 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | October 21, 2021 |