Quarterly Holdings Report
for
Fidelity® Select Portfolios®
Biotechnology Portfolio
May 31, 2024
BIO-NPRT1-0724
1.802156.120
Common Stocks - 99.1% | |||
Shares | Value ($) | ||
Biotechnology - 91.7% | |||
Biotechnology - 91.7% | |||
4D Molecular Therapeutics, Inc. (a) | 31,000 | 743,070 | |
AbbVie, Inc. | 3,334,399 | 537,638,498 | |
Absci Corp. (a)(b) | 223,200 | 939,672 | |
AC Immune SA (a)(b) | 27,202 | 126,489 | |
Acelyrin, Inc. | 154,662 | 637,207 | |
Adverum Biotechnologies, Inc. (a) | 647,887 | 5,131,265 | |
Aerovate Therapeutics, Inc. (a) | 209,976 | 3,664,081 | |
Alector, Inc. (a)(b) | 3,535,753 | 17,395,905 | |
Allena Pharmaceuticals, Inc. (a)(c) | 93,683 | 1 | |
Allogene Therapeutics, Inc. (a)(b) | 2,875,777 | 7,189,443 | |
Alnylam Pharmaceuticals, Inc. (a) | 692,370 | 102,768,479 | |
ALX Oncology Holdings, Inc. (a) | 939,049 | 9,982,091 | |
Amgen, Inc. | 1,272,550 | 389,209,418 | |
Amicus Therapeutics, Inc. (a) | 405,629 | 3,975,164 | |
AnaptysBio, Inc. (a) | 195,378 | 4,677,349 | |
Annexon, Inc. (a) | 308,844 | 1,491,717 | |
Apellis Pharmaceuticals, Inc. (a) | 1,283,379 | 50,372,626 | |
Apogee Therapeutics, Inc. | 392,132 | 17,896,904 | |
Arcellx, Inc. (a) | 1,269,090 | 65,992,680 | |
Arcturus Therapeutics Holdings, Inc. (a)(b) | 589,430 | 22,875,778 | |
Arcus Biosciences, Inc. (a)(b) | 2,394,962 | 36,092,077 | |
Argenx SE ADR (a) | 113,406 | 42,075,894 | |
ArriVent Biopharma, Inc. (b)(d) | 1,798,400 | 34,906,944 | |
Arrowhead Pharmaceuticals, Inc. (a) | 713,170 | 16,367,252 | |
Ars Pharmaceuticals, Inc. (a)(b) | 1,082,956 | 9,616,649 | |
Ascendis Pharma A/S sponsored ADR (a) | 659,409 | 89,086,156 | |
Astria Therapeutics, Inc. (a) | 413,156 | 3,912,587 | |
Astria Therapeutics, Inc. warrants (a) | 115,136 | 551,327 | |
aTyr Pharma, Inc. (a) | 2,258,063 | 3,906,449 | |
Aura Biosciences, Inc. (a)(b) | 229,592 | 1,687,501 | |
Autolus Therapeutics PLC ADR (a) | 454,133 | 1,902,817 | |
Avidity Biosciences, Inc. (a) | 833,702 | 22,393,236 | |
AVROBIO, Inc. (c)(e)(f) | 403,256 | 5,000,003 | |
Axcella Health, Inc. (a)(c) | 66,454 | 1 | |
Beam Therapeutics, Inc. (a)(b) | 528,150 | 12,580,533 | |
BeiGene Ltd. ADR (a) | 9,198 | 1,369,122 | |
BeyondSpring, Inc. (a)(b) | 464,467 | 1,221,548 | |
BioCryst Pharmaceuticals, Inc. (a)(b) | 1,787,181 | 11,545,189 | |
Biogen, Inc. (a) | 122,311 | 27,512,636 | |
Biohaven Ltd. (a)(b) | 1,812,012 | 63,601,621 | |
Biomea Fusion, Inc. (a)(b) | 392,129 | 4,125,197 | |
BioXcel Therapeutics, Inc. (a)(b) | 8,945 | 16,190 | |
Blueprint Medicines Corp. (a) | 639,952 | 67,553,333 | |
Boundless Bio, Inc. (b) | 23,700 | 216,144 | |
BridgeBio Pharma, Inc. (f) | 733,408 | 20,542,758 | |
BridgeBio Pharma, Inc. (a) | 688,696 | 19,290,375 | |
Cargo Therapeutics, Inc. | 236,900 | 4,501,100 | |
Cartesian Therapeutics, Inc. (b) | 509,159 | 17,678,000 | |
Cartesian Therapeutics, Inc. rights (a)(c) | 5,385,728 | 754,002 | |
Celldex Therapeutics, Inc. (a) | 829,064 | 27,607,831 | |
Centessa Pharmaceuticals PLC ADR (a)(b) | 2,787,194 | 24,053,484 | |
Chinook Therapeutics, Inc. rights (a)(c) | 115,821 | 1 | |
Codiak Biosciences, Inc. (a)(b)(c) | 448,539 | 4 | |
Codiak Biosciences, Inc. warrants 9/15/27 (a)(c) | 46,000 | 0 | |
Cogent Biosciences, Inc. (a) | 1,126,094 | 9,020,013 | |
Crinetics Pharmaceuticals, Inc. (a) | 1,115,050 | 49,519,371 | |
CRISPR Therapeutics AG (a)(b) | 202,007 | 10,855,856 | |
Cyclerion Therapeutics, Inc. (a) | 41,864 | 111,777 | |
Cyclerion Therapeutics, Inc. (a)(f) | 4,740 | 12,656 | |
Cytokinetics, Inc. (a) | 381,052 | 18,484,833 | |
Day One Biopharmaceuticals, Inc. (a) | 909,332 | 12,066,836 | |
Denali Therapeutics, Inc. (a) | 200,069 | 3,713,281 | |
Dianthus Therapeutics, Inc. (a) | 236,393 | 5,108,453 | |
Disc Medicine, Inc. (a)(b) | 403,920 | 13,713,084 | |
Disc Medicine, Inc. rights (a)(c) | 1,555,907 | 16 | |
Dyne Therapeutics, Inc. (a) | 599,750 | 19,120,030 | |
Entrada Therapeutics, Inc. (a)(b) | 150,853 | 2,333,696 | |
Exelixis, Inc. (a) | 179,454 | 3,892,357 | |
Foghorn Therapeutics, Inc. (a)(b) | 907,441 | 5,290,381 | |
Geron Corp. (a) | 5,175,382 | 18,372,606 | |
Geron Corp. warrants 12/31/25 (a) | 2,100,000 | 2,226,000 | |
Gilead Sciences, Inc. | 1,393,204 | 89,541,221 | |
Gossamer Bio, Inc. (a)(b) | 7,914,394 | 4,669,492 | |
Gritstone Bio, Inc. (a)(b) | 1,285,109 | 994,289 | |
Gritstone Bio, Inc. warrants (a)(c) | 1,333,333 | 13 | |
Ideaya Biosciences, Inc. (a) | 1,050,257 | 38,386,893 | |
Idorsia Ltd. (a)(b) | 3,039,242 | 8,657,786 | |
IGM Biosciences, Inc. (a)(b) | 859,982 | 7,163,650 | |
Immunocore Holdings PLC ADR (a)(b) | 207,718 | 10,174,028 | |
Immunome, Inc. (a)(b) | 483,882 | 7,229,197 | |
Immunovant, Inc. (a) | 789,121 | 20,035,782 | |
Inozyme Pharma, Inc. (a)(b) | 2,471,087 | 11,910,639 | |
Insmed, Inc. (a) | 1,015,219 | 55,887,806 | |
Intellia Therapeutics, Inc. (a)(b) | 823,501 | 17,606,451 | |
IO Biotech, Inc. (a) | 314,600 | 374,374 | |
Ionis Pharmaceuticals, Inc. (a) | 830,577 | 31,204,778 | |
Janux Therapeutics, Inc. (a) | 366,399 | 19,602,347 | |
Keros Therapeutics, Inc. (a) | 388,529 | 18,210,354 | |
Korro Bio, Inc. (f) | 32,866 | 1,686,026 | |
Korro Bio, Inc. (a)(b) | 92,276 | 4,733,759 | |
Krystal Biotech, Inc. (a)(d) | 1,912,422 | 306,083,141 | |
Kymera Therapeutics, Inc. (a)(b) | 456,141 | 14,646,688 | |
Legend Biotech Corp. ADR (a) | 600,210 | 24,014,402 | |
Lexicon Pharmaceuticals, Inc. (f) | 4,608,300 | 7,834,110 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 167,910 | 285,447 | |
Madrigal Pharmaceuticals, Inc. (a)(b) | 91,124 | 21,519,844 | |
MannKind Corp. (a)(b) | 4,406,401 | 20,577,893 | |
Merus BV (a)(b) | 1,194,770 | 63,609,555 | |
Moderna, Inc. (a) | 759,751 | 108,302,505 | |
Monte Rosa Therapeutics, Inc. (a) | 1,082,720 | 4,460,806 | |
Moonlake Immunotherapeutics Class A (a)(b) | 179,741 | 7,308,269 | |
Morphic Holding, Inc. (a)(b) | 1,019,499 | 30,962,185 | |
Natera, Inc. (a) | 357,132 | 38,045,272 | |
Nurix Therapeutics, Inc. (a) | 13,046 | 205,475 | |
Nuvalent, Inc. Class A (a) | 234,474 | 15,386,184 | |
Omega Therapeutics, Inc. (a)(b) | 245,003 | 485,106 | |
ORIC Pharmaceuticals, Inc. (a) | 117,400 | 1,055,426 | |
PepGen, Inc. (a) | 387,728 | 6,331,598 | |
Poseida Therapeutics, Inc. (a) | 223,383 | 667,915 | |
Praxis Precision Medicines, Inc. (a) | 343,977 | 16,325,148 | |
Protagonist Therapeutics, Inc. (a) | 423,913 | 11,933,151 | |
Prothena Corp. PLC (a)(b) | 738,117 | 15,360,215 | |
PTC Therapeutics, Inc. (a) | 670,611 | 24,383,416 | |
Rallybio Corp. (a)(b) | 581,092 | 970,424 | |
RAPT Therapeutics, Inc. (a) | 802,700 | 3,218,827 | |
Recursion Pharmaceuticals, Inc. Class A (a)(b) | 149,900 | 1,241,172 | |
Regeneron Pharmaceuticals, Inc. (a) | 219,383 | 215,030,441 | |
Regulus Therapeutics, Inc. (a)(b) | 2,922,600 | 6,692,754 | |
Replimune Group, Inc. (a)(b) | 420,215 | 2,214,533 | |
Revolution Medicines, Inc. (a) | 618,698 | 23,714,694 | |
Rhythm Pharmaceuticals, Inc. (a)(b) | 15,603 | 556,715 | |
Rocket Pharmaceuticals, Inc. (a) | 532,936 | 11,362,196 | |
Roivant Sciences Ltd. (a)(b) | 3,422,619 | 35,458,333 | |
Sage Therapeutics, Inc. (a) | 1,259,552 | 13,993,623 | |
Sana Biotechnology, Inc. (a)(b) | 466,094 | 3,495,705 | |
Sarepta Therapeutics, Inc. (a) | 390,299 | 50,684,228 | |
Scholar Rock Holding Corp. (a)(b) | 1,632,599 | 15,330,105 | |
Scholar Rock Holding Corp. warrants 12/31/25 (a)(f) | 17,850 | 63,166 | |
Sensorion SA (a)(d) | 20,279,025 | 16,895,994 | |
Seres Therapeutics, Inc. (a)(b) | 854,347 | 854,347 | |
Shattuck Labs, Inc. (a) | 481,542 | 3,553,780 | |
SpringWorks Therapeutics, Inc. (a) | 492,509 | 20,419,423 | |
Spyre Therapeutics, Inc. (a) | 261,553 | 9,141,277 | |
Stoke Therapeutics, Inc. (a)(b) | 392,470 | 5,737,911 | |
Summit Therapeutics, Inc. (a)(b) | 4,488,329 | 38,981,137 | |
Tango Therapeutics, Inc. (f) | 466,637 | 3,229,128 | |
Tango Therapeutics, Inc. (a) | 310,288 | 2,147,193 | |
Taysha Gene Therapies, Inc. (a) | 7,692,583 | 26,385,560 | |
Tenaya Therapeutics, Inc. (a)(b) | 1,655,313 | 6,968,868 | |
TG Therapeutics, Inc. (a)(b) | 1,197,220 | 19,514,686 | |
Twist Bioscience Corp. (a)(b) | 166,525 | 6,977,398 | |
Tyra Biosciences, Inc. (a) | 76,100 | 1,234,342 | |
Tyra Biosciences, Inc. (f) | 115,296 | 1,870,101 | |
Ultragenyx Pharmaceutical, Inc. (a) | 726,130 | 29,146,858 | |
United Therapeutics Corp. (a) | 163,393 | 44,954,316 | |
Vaxcyte, Inc. (a) | 900,480 | 63,276,730 | |
Vera Therapeutics, Inc. (a) | 441,778 | 16,783,146 | |
Vertex Pharmaceuticals, Inc. (a) | 387,709 | 176,539,416 | |
Viking Therapeutics, Inc. (a) | 439,952 | 27,391,412 | |
Viridian Therapeutics, Inc. (a) | 1,005,738 | 12,018,569 | |
Vor Biopharma, Inc. (a)(b) | 955,917 | 1,290,488 | |
Xenon Pharmaceuticals, Inc. (a) | 539,634 | 20,543,866 | |
Zealand Pharma A/S (a) | 743,030 | 69,706,090 | |
Zentalis Pharmaceuticals, Inc. (a)(b) | 562,933 | 6,687,644 | |
4,092,346,276 | |||
Consumer Staples Distribution & Retail - 0.0% | |||
Drug Retail - 0.0% | |||
MedAvail Holdings, Inc. (a) | 55 | 0 | |
Financial Services - 0.9% | |||
Diversified Financial Services - 0.9% | |||
Bio AB Holdings LLC (c)(f) | 1,954,526 | 36,881,906 | |
Health Care Equipment & Supplies - 0.0% | |||
Health Care Equipment - 0.0% | |||
Aradigm Corp. (a)(c) | 148,009 | 1 | |
Aradigm Corp. (a)(c) | 11,945 | 0 | |
Glaukos Corp. (a) | 5,700 | 642,504 | |
Novocure Ltd. (a) | 11,113 | 244,597 | |
887,102 | |||
Health Care Technology - 0.2% | |||
Health Care Technology - 0.2% | |||
Schrodinger, Inc. (a)(b) | 398,001 | 8,564,982 | |
Life Sciences Tools & Services - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
10X Genomics, Inc. (a) | 172,200 | 3,860,724 | |
Pharmaceuticals - 6.2% | |||
Pharmaceuticals - 6.2% | |||
Adimab LLC (a)(c)(f)(g) | 1,954,526 | 10,554,440 | |
Afferent Pharmaceuticals, Inc. rights 12/31/24 (a)(c) | 8,274,568 | 1,654,914 | |
Alto Neuroscience, Inc. (b) | 168,700 | 2,017,652 | |
Arvinas Holding Co. LLC (a) | 296,816 | 9,836,482 | |
Atea Pharmaceuticals, Inc. (a) | 958,300 | 3,516,961 | |
Axsome Therapeutics, Inc. (a)(b) | 137,403 | 10,089,502 | |
Contineum Therapeutics, Inc. Class A | 58,800 | 900,816 | |
Corcept Therapeutics, Inc. (a)(b) | 822,199 | 24,805,744 | |
Edgewise Therapeutics, Inc. (a) | 474,685 | 8,131,354 | |
Enliven Therapeutics, Inc. (a) | 500,038 | 11,285,858 | |
Fulcrum Therapeutics, Inc. (a) | 1,255,055 | 9,852,182 | |
Galderma Group AG | 82,220 | 6,709,570 | |
GH Research PLC (a)(b) | 255,924 | 3,605,969 | |
Harmony Biosciences Holdings, Inc. (a) | 91,925 | 2,702,595 | |
Indivior PLC (a) | 71,500 | 1,323,943 | |
Intra-Cellular Therapies, Inc. (a) | 133,799 | 8,996,645 | |
Longboard Pharmaceuticals, Inc. (a)(b)(d) | 1,778,489 | 33,560,087 | |
Novo Nordisk A/S Series B sponsored ADR | 51,700 | 6,993,976 | |
Nuvation Bio, Inc. Class A (a)(b) | 3,123,214 | 9,681,963 | |
OptiNose, Inc. (a) | 449,131 | 485,061 | |
OptiNose, Inc. warrants (a) | 91,712 | 15,870 | |
Pharvaris BV (a) | 112,407 | 2,131,237 | |
Pliant Therapeutics, Inc. (a) | 37,431 | 454,038 | |
Structure Therapeutics, Inc. ADR (a) | 227,004 | 7,763,537 | |
UCB SA | 546,274 | 76,626,273 | |
Ventyx Biosciences, Inc. (a) | 295,300 | 1,411,534 | |
Verona Pharma PLC ADR (a) | 719,601 | 8,685,584 | |
Verrica Pharmaceuticals, Inc. (a)(b) | 1,108,069 | 9,429,667 | |
WAVE Life Sciences (a) | 660,911 | 4,084,430 | |
277,307,884 | |||
TOTAL COMMON STOCKS (Cost $2,997,780,405) | 4,419,848,874 | ||
Convertible Preferred Stocks - 0.9% | |||
Shares | Value ($) | ||
Biotechnology - 0.8% | |||
Biotechnology - 0.8% | |||
ElevateBio LLC Series C (a)(c)(f) | 216,600 | 662,796 | |
National Resilience, Inc. Series B (a)(c)(f) | 732,064 | 28,279,632 | |
SalioGen Therapeutics, Inc. Series B (a)(c)(f) | 94,461 | 6,315,662 | |
35,258,090 | |||
Health Care Providers & Services - 0.1% | |||
Health Care Services - 0.1% | |||
Scorpion Therapeutics, Inc. Series B (a)(c)(f) | 3,099,905 | 7,191,780 | |
Pharmaceuticals - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Afferent Pharmaceuticals, Inc. Series C (a)(c)(f) | 8,274,568 | 83 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $28,408,650) | 42,449,953 | ||
Money Market Funds - 5.8% | |||
Shares | Value ($) | ||
Fidelity Cash Central Fund 5.39% (h) | 12,561,804 | 12,564,317 | |
Fidelity Securities Lending Cash Central Fund 5.39% (h)(i) | 246,906,088 | 246,930,778 | |
TOTAL MONEY MARKET FUNDS (Cost $259,474,244) | 259,495,095 | ||
TOTAL INVESTMENT IN SECURITIES - 105.8% (Cost $3,285,663,299) | 4,721,793,922 |
NET OTHER ASSETS (LIABILITIES) - (5.8)% | (259,947,309) |
NET ASSETS - 100.0% | 4,461,846,613 |
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 company |
(e) | Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(f) | 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 $130,124,247 or 2.9% of net assets. |
(g) | Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes. |
(h) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(i) | Investment made with cash collateral received from securities on loan. |
Additional information on each restricted holding is as follows: | ||
Security | Acquisition Date | Acquisition Cost ($) |
Adimab LLC | 9/17/14 - 6/05/15 | 7,898,551 |
Afferent Pharmaceuticals, Inc. Series C | 7/01/15 | 0 |
AVROBIO, Inc. | 1/30/24 | 5,000,003 |
Bio AB Holdings LLC | 9/17/14 - 6/05/15 | 23,546,759 |
BridgeBio Pharma, Inc. | 9/25/23 | 20,000,036 |
Cyclerion Therapeutics, Inc. | 4/02/19 | 1,404,026 |
ElevateBio LLC Series C | 3/09/21 | 908,637 |
Korro Bio, Inc. | 7/14/23 | 1,854,573 |
Lexicon Pharmaceuticals, Inc. | 3/11/24 | 10,000,011 |
National Resilience, Inc. Series B | 12/01/20 | 9,999,994 |
SalioGen Therapeutics, Inc. Series B | 12/10/21 | 10,000,019 |
Scholar Rock Holding Corp. warrants 12/31/25 | 6/17/22 | 0 |
Scorpion Therapeutics, Inc. Series B | 1/08/21 | 7,500,000 |
Tango Therapeutics, Inc. | 8/09/23 | 2,403,181 |
Tyra Biosciences, Inc. | 2/02/24 | 1,500,001 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
Fidelity Cash Central Fund 5.39% | 17,016,519 | 195,135,179 | 199,587,199 | 102,515 | (182) | - | 12,564,317 | 0.0% |
Fidelity Securities Lending Cash Central Fund 5.39% | 286,197,060 | 398,007,584 | 437,273,866 | 1,704,340 | 5,760 | (5,760) | 246,930,778 | 1.0% |
Total | 303,213,579 | 593,142,763 | 636,861,065 | 1,806,855 | 5,578 | (5,760) | 259,495,095 | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are presented in the table below. Certain corporate actions, such as mergers, are excluded from the amounts in this table if applicable. A dash in the Value end of period ($) column means either the issuer is no longer held at period end, or the issuer is held at period end but is no longer an affiliate.
Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) |
ArriVent Biopharma, Inc. | 38,737,536 | - | - | - | - | (3,830,592) | 34,906,944 |
Cartesian Therapeutics, Inc. | 8,198,668 | 2,823,722 | - | - | - | 6,655,610 | - |
Cartesian Therapeutics, Inc. rights | 700,145 | - | - | - | - | 53,857 | - |
Krystal Biotech, Inc. | 316,567,405 | - | 12,316,047 | - | 6,863,547 | (5,031,764) | 306,083,141 |
Longboard Pharmaceuticals, Inc. | 39,446,886 | - | - | - | - | (5,886,799) | 33,560,087 |
Regulus Therapeutics, Inc. | 4,296,222 | - | - | - | - | 2,396,532 | - |
Sensorion SA | 5,544,514 | 10,014,758 | - | - | - | 1,336,722 | 16,895,994 |
Taysha Gene Therapies, Inc. | 34,737,254 | - | 8,539,593 | - | 5,569,396 | (5,381,498) | - |
Total | 448,228,630 | 12,838,480 | 20,855,640 | - | 12,432,943 | (9,687,932) | 391,446,166 |
Investment Valuation
Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Securities transactions are accounted for as of trade date. The Board of Trustees (the Board) has designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The inputs to valuation techniques used to value investments are categorized into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - Unadjusted 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 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 service 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 any 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.
Investments in any open-end mutual 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.
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.
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