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 811-1352
Fidelity Devonshire Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | January 31 |
| |
Date of reporting period: | January 31, 2008 |
Item 1. Reports to Stockholders
Fidelity®
Equity-Income
Fund
Annual Report
January 31, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
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 (search for "proxy voting guidelines") 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.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q listing 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 or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks got off to a poor start in 2008, while investment-grade bonds and money markets showed positive returns, once again underscoring the importance of a diversified portfolio. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Past 10
years |
Fidelity® Equity-Income Fund | -5.21% | 12.75% | 6.17% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Equity-Income Fund on January 31, 1998. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Value Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Stephen Petersen, Portfolio Manager of Fidelity® Equity-Income Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months ending January 31, 2008, the fund declined 5.21%. By comparison, the Russell 3000® Value Index was down 6.20%. Underweighting financials - and, in particular, mid-sized banks - versus the Russell had the greatest positive impact on the fund's relative results. In general, the fund's emphasis on larger-cap issues also helped because the index holds more small- and mid-cap stocks, which generally struggled during the past year. Additionally, good stock picks in diversified financials, industrials and, particularly, technology all contributed to results, though overweighting the poor-performing tech sector offset much of the gain. Conversely, our overweighting and poor security selection in consumer discretionary detracted, as did stock selection in health care. Underweighting poor-performing financial giant Citigroup, a casualty of the subprime blowup, helped our results the most relative to the index. Honeywell, a large supplier to the aerospace industry, got a boost from the huge backlog in orders for new planes to be built and delivered over the next several years. Detractors included newspaper company McClatchy, which encountered problems following its 2006 purchase of newspaper publisher Knight Ridder, including a slower-than-expected integration process. Money transfer provider MoneyGram International, an out-of-benchmark holding, also hurt. The company's thriving wire transfer business was offset by losses in its investment loan portfolio, stemming primarily from its subprime mortgage holdings.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2007 to January 31, 2008).
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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Annual Report
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.
|
Beginning
Account Value
August 1, 2007
|
Ending
Account Value
January 31, 2008
| Expenses Paid
During Period*
August 1, 2007 to
January 31, 2008 |
Actual | $ 1,000.00 | $ 920.00 | $ 3.24 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,021.83 | $ 3.41 |
* Expenses are equal to the Fund's annualized expense ratio of .67%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 6.0 | 5.7 |
AT&T, Inc. | 3.6 | 4.1 |
Bank of America Corp. | 3.1 | 3.0 |
JPMorgan Chase & Co. | 2.5 | 2.0 |
American International Group, Inc. | 2.4 | 2.3 |
Pfizer, Inc. | 1.9 | 1.7 |
General Electric Co. | 1.9 | 1.5 |
Citigroup, Inc. | 1.8 | 2.2 |
Chevron Corp. | 1.8 | 1.6 |
Verizon Communications, Inc. | 1.5 | 1.4 |
| 26.5 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.0 | 25.6 |
Energy | 16.9 | 15.2 |
Consumer Discretionary | 12.2 | 10.5 |
Industrials | 10.3 | 10.0 |
Information Technology | 9.4 | 10.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008 * | As of July 31, 2007 ** |
 | Stocks 97.2% | | | Stocks 96.1% | |
 | Bonds 0.1% | | | Bonds 0.1% | |
 | Convertible
Securities 2.2% | | | Convertible
Securities 1.4% | |
 | Short-Term
Investments and
Net Other Assets 0.5% | | | Short-Term
Investments and
Net Other Assets 2.4% | |
* Foreign investments | 8.4% | | ** Foreign investments | 10.3% | |
Annual Report
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value
(000s) |
CONSUMER DISCRETIONARY - 11.6% |
Auto Components - 0.4% |
American Axle & Manufacturing Holdings, Inc. | 1,790,229 | | $ 38,937 |
The Goodyear Tire & Rubber Co. (a) | 2,331,200 | | 58,676 |
TRW Automotive Holdings Corp. (a) | 999,457 | | 22,918 |
| | 120,531 |
Automobiles - 1.2% |
Ford Motor Co. (a) | 8,909,190 | | 59,157 |
General Motors Corp. (d) | 1,301,300 | | 36,840 |
Harley-Davidson, Inc. | 1,172,400 | | 47,576 |
Hyundai Motor Co. | 197,040 | | 15,323 |
Monaco Coach Corp. | 1,321,209 | | 13,437 |
Peugeot Citroen SA | 465,500 | | 34,465 |
Renault SA | 65,121 | | 7,434 |
Toyota Motor Corp. sponsored ADR | 942,600 | | 102,319 |
Winnebago Industries, Inc. | 881,737 | | 18,569 |
| | 335,120 |
Diversified Consumer Services - 0.2% |
H&R Block, Inc. | 3,049,150 | | 58,757 |
Hotels, Restaurants & Leisure - 0.4% |
McDonald's Corp. | 906,100 | | 48,522 |
Starbucks Corp. (a) | 1,625,300 | | 30,734 |
Wyndham Worldwide Corp. | 1,123,260 | | 26,464 |
| | 105,720 |
Household Durables - 1.5% |
Beazer Homes USA, Inc. (d) | 1,655,900 | | 14,439 |
Black & Decker Corp. | 935,400 | | 67,854 |
Centex Corp. | 2,082,900 | | 57,863 |
KB Home | 566,900 | | 15,590 |
Lennar Corp. Class A (d) | 1,913,100 | | 39,410 |
The Stanley Works | 1,196,941 | | 61,475 |
Whirlpool Corp. | 1,833,548 | | 156,053 |
| | 412,684 |
Internet & Catalog Retail - 0.2% |
Liberty Media Corp. - Interactive Series A (a) | 3,683,764 | | 58,609 |
Leisure Equipment & Products - 0.6% |
Brunswick Corp. | 3,531,000 | | 67,054 |
Eastman Kodak Co. (d) | 4,283,600 | | 85,372 |
Polaris Industries, Inc. (d) | 521,500 | | 22,654 |
| | 175,080 |
Common Stocks - continued |
| Shares | | Value
(000s) |
CONSUMER DISCRETIONARY - continued |
Media - 3.5% |
Belo Corp. Series A | 917,600 | | $ 15,241 |
Citadel Broadcasting Corp. | 4,466,355 | | 6,521 |
Clear Channel Communications, Inc. | 4,659,142 | | 143,082 |
Comcast Corp. Class A (a) | 7,797,855 | | 141,609 |
E.W. Scripps Co. Class A | 1,257,033 | | 51,186 |
Gannett Co., Inc. | 1,424,700 | | 52,714 |
News Corp. Class B | 3,667,900 | | 71,304 |
The McClatchy Co. Class A (d) | 3,694,535 | | 39,790 |
The New York Times Co. Class A (d) | 3,000,891 | | 50,235 |
The Walt Disney Co. | 2,631,310 | | 78,755 |
Time Warner Cable, Inc. (a) | 1,817,495 | | 45,728 |
Time Warner, Inc. | 16,769,290 | | 263,949 |
Virgin Media, Inc. | 1,279,250 | | 21,389 |
| | 981,503 |
Multiline Retail - 1.7% |
Family Dollar Stores, Inc. | 1,922,800 | | 40,436 |
JCPenney Co., Inc. | 972,800 | | 46,120 |
Kohl's Corp. (a) | 2,725,347 | | 124,385 |
Macy's, Inc. | 2,916,000 | | 80,598 |
Nordstrom, Inc. | 935,100 | | 36,375 |
Sears Holdings Corp. (a)(d) | 677,700 | | 74,879 |
Target Corp. | 1,296,500 | | 72,059 |
Tuesday Morning Corp. | 1,513,113 | | 9,139 |
| | 483,991 |
Specialty Retail - 1.7% |
Advance Auto Parts, Inc. | 1,034,700 | | 36,918 |
AnnTaylor Stores Corp. (a) | 919,759 | | 23,132 |
Chico's FAS, Inc. (a)(d) | 2,652,900 | | 28,625 |
Foot Locker, Inc. | 1,954,358 | | 26,755 |
Home Depot, Inc. | 5,961,000 | | 182,824 |
OfficeMax, Inc. | 1,415,127 | | 35,053 |
RadioShack Corp. (d) | 1,609,400 | | 27,923 |
Staples, Inc. | 2,688,155 | | 64,354 |
Williams-Sonoma, Inc. | 2,212,200 | | 59,464 |
| | 485,048 |
Textiles, Apparel & Luxury Goods - 0.2% |
Liz Claiborne, Inc. | 2,144,400 | | 46,941 |
TOTAL CONSUMER DISCRETIONARY | | 3,263,984 |
Common Stocks - continued |
| Shares | | Value
(000s) |
CONSUMER STAPLES - 5.3% |
Beverages - 0.2% |
Heineken NV (Bearer) | 1,146,446 | | $ 63,742 |
Food & Staples Retailing - 1.8% |
CVS Caremark Corp. | 2,130,100 | | 83,223 |
Rite Aid Corp. (a) | 7,331,532 | | 21,701 |
Wal-Mart Stores, Inc. | 7,383,000 | | 375,647 |
Winn-Dixie Stores, Inc. (a) | 644,464 | | 11,420 |
| | 491,991 |
Food Products - 0.7% |
Hershey Co. | 2,326,700 | | 84,227 |
Kraft Foods, Inc. Class A | 1,538,140 | | 45,006 |
Lighthouse Caledonia ASA (d) | 308,730 | | 237 |
Marine Harvest ASA (a) | 49,497,600 | | 26,662 |
Tyson Foods, Inc. Class A | 3,053,600 | | 43,514 |
| | 199,646 |
Household Products - 0.7% |
Energizer Holdings, Inc. (a) | 261,400 | | 24,472 |
Kimberly-Clark Corp. | 965,200 | | 63,365 |
Procter & Gamble Co. | 1,808,017 | | 119,239 |
| | 207,076 |
Personal Products - 0.9% |
Avon Products, Inc. | 5,790,200 | | 202,773 |
Estee Lauder Companies, Inc. Class A | 1,104,100 | | 46,593 |
| | 249,366 |
Tobacco - 1.0% |
Altria Group, Inc. | 3,711,295 | | 281,390 |
TOTAL CONSUMER STAPLES | | 1,493,211 |
ENERGY - 16.9% |
Energy Equipment & Services - 3.2% |
Baker Hughes, Inc. | 2,002,400 | | 130,016 |
Expro International Group PLC | 383,300 | | 7,109 |
Halliburton Co. | 3,286,100 | | 109,000 |
Nabors Industries Ltd. (a) | 3,229,551 | | 87,908 |
Noble Corp. | 4,714,844 | | 206,369 |
Pride International, Inc. (a) | 1,100,800 | | 34,906 |
Schlumberger Ltd. (NY Shares) | 4,403,763 | | 332,308 |
| | 907,616 |
Common Stocks - continued |
| Shares | | Value
(000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 13.7% |
Apache Corp. | 1,430,710 | | $ 136,547 |
Boardwalk Pipeline Partners, LP | 649,600 | | 20,190 |
BP PLC sponsored ADR | 547,400 | | 34,897 |
Chevron Corp. | 5,922,882 | | 500,484 |
ConocoPhillips | 5,123,800 | | 411,544 |
CONSOL Energy, Inc. | 649,600 | | 47,421 |
Devon Energy Corp. | 211,300 | | 17,956 |
EOG Resources, Inc. | 1,911,600 | | 167,265 |
Exxon Mobil Corp. | 19,577,817 | | 1,691,522 |
Hess Corp. | 1,950,000 | | 177,119 |
Occidental Petroleum Corp. | 2,767,100 | | 187,803 |
Peabody Energy Corp. | 875,439 | | 47,291 |
Royal Dutch Shell PLC Class A sponsored ADR | 596,000 | | 42,560 |
Spectra Energy Corp. | 1,106,050 | | 25,262 |
Total SA sponsored ADR | 2,366,102 | | 172,205 |
Valero Energy Corp. | 1,903,000 | | 112,639 |
Williams Companies, Inc. | 1,365,500 | | 43,655 |
| | 3,836,360 |
TOTAL ENERGY | | 4,743,976 |
FINANCIALS - 25.3% |
Capital Markets - 3.9% |
Ares Capital Corp. | 1,595,142 | | 22,300 |
Bank of New York Mellon Corp. | 8,332,549 | | 388,547 |
Goldman Sachs Group, Inc. | 618,821 | | 124,241 |
KKR Private Equity Investors, LP | 947,000 | | 15,862 |
KKR Private Equity Investors, LP Restricted Depositary Units (f) | 1,714,600 | | 28,720 |
Legg Mason, Inc. | 963,550 | | 69,376 |
Lehman Brothers Holdings, Inc. | 1,135,343 | | 72,855 |
Merrill Lynch & Co., Inc. | 2,518,300 | | 142,032 |
Morgan Stanley | 3,864,760 | | 191,035 |
State Street Corp. | 607,397 | | 49,879 |
| | 1,104,847 |
Commercial Banks - 5.3% |
Associated Banc-Corp. | 3,328,222 | | 93,789 |
Barclays PLC Sponsored ADR | 1,695,300 | | 63,964 |
HSBC Holdings PLC sponsored ADR | 1,796,761 | | 135,080 |
KeyCorp | 1,723,800 | | 45,077 |
Lloyds TSB Group PLC | 6,659,701 | | 58,163 |
Common Stocks - continued |
| Shares | | Value
(000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Marshall & Ilsley Corp. | 1,385,898 | | $ 38,667 |
PNC Financial Services Group, Inc. | 3,036,300 | | 199,242 |
Royal Bank of Scotland Group PLC | 4,356,927 | | 33,591 |
Societe Generale Series A | 228,000 | | 28,644 |
Sterling Financial Corp., Washington | 1,774,124 | | 31,562 |
U.S. Bancorp, Delaware | 3,674,302 | | 124,743 |
Wachovia Corp. | 7,163,618 | | 278,880 |
Wells Fargo & Co. | 10,863,436 | | 369,465 |
| | 1,500,867 |
Consumer Finance - 0.7% |
American Express Co. | 1,261,200 | | 62,202 |
Capital One Financial Corp. | 130,000 | | 7,125 |
Discover Financial Services | 6,330,232 | | 110,779 |
SLM Corp. | 195,400 | | 4,250 |
| | 184,356 |
Diversified Financial Services - 7.4% |
Bank of America Corp. | 20,067,245 | | 889,982 |
Citigroup, Inc. | 18,108,885 | | 511,033 |
JPMorgan Chase & Co. | 14,580,849 | | 693,319 |
| | 2,094,334 |
Insurance - 5.6% |
ACE Ltd. | 3,680,901 | | 214,744 |
Allstate Corp. | 887,600 | | 43,732 |
American International Group, Inc. | 12,184,157 | | 672,078 |
Hartford Financial Services Group, Inc. | 2,057,600 | | 166,192 |
MetLife, Inc. unit | 2,020,300 | | 58,851 |
Montpelier Re Holdings Ltd. | 3,835,478 | | 65,740 |
Paris RE Holdings Ltd. | 293,599 | | 6,244 |
PartnerRe Ltd. | 1,199,126 | | 95,067 |
The Travelers Companies, Inc. | 4,471,640 | | 215,086 |
XL Capital Ltd. Class A | 545,651 | | 24,554 |
| | 1,562,288 |
Real Estate Investment Trusts - 0.6% |
Annaly Capital Management, Inc. | 1,500,239 | | 29,585 |
Developers Diversified Realty Corp. | 934,400 | | 38,451 |
HCP, Inc. | 1,961,300 | | 59,643 |
Senior Housing Properties Trust (SBI) | 1,341,468 | | 30,035 |
| | 157,714 |
Common Stocks - continued |
| Shares | | Value
(000s) |
FINANCIALS - continued |
Real Estate Management & Development - 0.3% |
CB Richard Ellis Group, Inc. Class A (a) | 4,167,751 | | $ 80,896 |
Thrifts & Mortgage Finance - 1.5% |
Countrywide Financial Corp. (d) | 1,988,700 | | 13,841 |
Fannie Mae | 6,590,500 | | 223,154 |
Freddie Mac | 2,986,300 | | 90,754 |
MGIC Investment Corp. | 1,537,100 | | 28,436 |
New York Community Bancorp, Inc. | 2,730,782 | | 50,656 |
People's United Financial, Inc. | 625,000 | | 10,556 |
| | 417,397 |
TOTAL FINANCIALS | | 7,102,699 |
HEALTH CARE - 6.6% |
Biotechnology - 0.3% |
Amgen, Inc. (a) | 2,078,778 | | 96,850 |
Health Care Equipment & Supplies - 0.6% |
Covidien Ltd. | 2,765,190 | | 123,410 |
Medtronic, Inc. | 921,300 | | 42,905 |
| | 166,315 |
Health Care Providers & Services - 0.2% |
UnitedHealth Group, Inc. | 1,075,466 | | 54,677 |
Pharmaceuticals - 5.5% |
Bristol-Myers Squibb Co. | 4,530,800 | | 105,069 |
Johnson & Johnson | 4,547,700 | | 287,688 |
Merck & Co., Inc. | 4,941,200 | | 228,679 |
Pfizer, Inc. | 23,034,900 | | 538,786 |
Schering-Plough Corp. | 9,030,740 | | 176,732 |
Wyeth | 5,474,900 | | 217,901 |
| | 1,554,855 |
TOTAL HEALTH CARE | | 1,872,697 |
INDUSTRIALS - 10.2% |
Aerospace & Defense - 3.0% |
General Dynamics Corp. | 756,000 | | 63,852 |
Honeywell International, Inc. | 5,506,950 | | 325,296 |
Lockheed Martin Corp. | 1,303,600 | | 140,685 |
Northrop Grumman Corp. | 521,200 | | 41,362 |
Common Stocks - continued |
| Shares | | Value
(000s) |
INDUSTRIALS - continued |
Aerospace & Defense - continued |
The Boeing Co. | 814,100 | | $ 67,717 |
United Technologies Corp. | 2,778,460 | | 203,967 |
| | 842,879 |
Airlines - 0.2% |
AMR Corp. (a) | 1,601,500 | | 22,325 |
Delta Air Lines, Inc. (a) | 981,900 | | 16,525 |
US Airways Group, Inc. (a) | 309,300 | | 4,271 |
| | 43,121 |
Building Products - 0.3% |
Masco Corp. | 3,455,947 | | 79,245 |
Commercial Services & Supplies - 0.4% |
Cintas Corp. | 817,200 | | 26,821 |
Equifax, Inc. | 931,619 | | 34,554 |
Waste Management, Inc. | 1,658,500 | | 53,802 |
| | 115,177 |
Electrical Equipment - 0.2% |
Emerson Electric Co. | 1,202,702 | | 61,145 |
Industrial Conglomerates - 2.9% |
3M Co. | 2,445,470 | | 194,782 |
General Electric Co. | 14,980,850 | | 530,472 |
Tyco International Ltd. | 2,563,490 | | 100,899 |
| | 826,153 |
Machinery - 2.1% |
Briggs & Stratton Corp. (e) | 2,945,485 | | 61,413 |
Caterpillar, Inc. | 813,100 | | 57,844 |
Dover Corp. | 2,531,334 | | 102,165 |
Eaton Corp. | 599,400 | | 49,606 |
Illinois Tool Works, Inc. | 853,100 | | 42,996 |
Ingersoll-Rand Co. Ltd. Class A | 2,051,792 | | 81,087 |
SPX Corp. | 1,873,985 | | 188,523 |
| | 583,634 |
Marine - 0.1% |
Alexander & Baldwin, Inc. | 551,486 | | 25,170 |
Road & Rail - 1.0% |
Burlington Northern Santa Fe Corp. | 1,708,900 | | 147,854 |
Common Stocks - continued |
| Shares | | Value
(000s) |
INDUSTRIALS - continued |
Road & Rail - continued |
Ryder System, Inc. | 1,306,600 | | $ 68,022 |
Union Pacific Corp. | 599,500 | | 74,955 |
| | 290,831 |
TOTAL INDUSTRIALS | | 2,867,355 |
INFORMATION TECHNOLOGY - 9.3% |
Communications Equipment - 1.2% |
Alcatel-Lucent SA sponsored ADR | 7,162,299 | | 45,337 |
Cisco Systems, Inc. (a) | 5,391,900 | | 132,102 |
Harris Corp. | 1,464,600 | | 80,099 |
Motorola, Inc. | 7,393,470 | | 85,247 |
| | 342,785 |
Computers & Peripherals - 2.7% |
EMC Corp. (a) | 6,091,100 | | 96,666 |
Hewlett-Packard Co. | 6,818,461 | | 298,308 |
International Business Machines Corp. | 3,058,300 | | 328,278 |
Sun Microsystems, Inc. (a) | 1,980,150 | | 34,653 |
| | 757,905 |
Electronic Equipment & Instruments - 1.0% |
Agilent Technologies, Inc. (a) | 2,051,900 | | 69,580 |
Arrow Electronics, Inc. (a) | 1,876,900 | | 64,228 |
Avnet, Inc. (a) | 1,895,215 | | 67,489 |
Tyco Electronics Ltd. | 2,765,190 | | 93,491 |
| | 294,788 |
Internet Software & Services - 0.2% |
Google, Inc. Class A (sub. vtg.) (a) | 89,420 | | 50,460 |
IT Services - 0.6% |
Electronic Data Systems Corp. | 2,052,600 | | 41,257 |
Metavante Holding Co. (a) | 461,966 | | 10,233 |
MoneyGram International, Inc. | 2,437,904 | | 13,018 |
The Western Union Co. | 3,056,800 | | 68,472 |
Unisys Corp. (a) | 5,456,100 | | 22,697 |
| | 155,677 |
Office Electronics - 0.3% |
Xerox Corp. | 5,237,398 | | 80,656 |
Semiconductors & Semiconductor Equipment - 2.5% |
Analog Devices, Inc. | 3,045,200 | | 86,362 |
Applied Materials, Inc. | 6,382,900 | | 114,382 |
Common Stocks - continued |
| Shares | | Value
(000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Atmel Corp. (a) | 2,613,756 | | $ 8,259 |
Intel Corp. | 12,248,560 | | 259,669 |
Micron Technology, Inc. (a)(d) | 2,748,200 | | 19,320 |
National Semiconductor Corp. | 5,507,364 | | 101,501 |
Novellus Systems, Inc. (a) | 1,306,800 | | 31,050 |
Teradyne, Inc. (a) | 5,676,700 | | 62,273 |
Varian Semiconductor Equipment Associates, Inc. (a) | 911,800 | | 29,369 |
| | 712,185 |
Software - 0.8% |
Microsoft Corp. | 4,747,687 | | 154,775 |
Symantec Corp. (a) | 3,608,900 | | 64,708 |
| | 219,483 |
TOTAL INFORMATION TECHNOLOGY | | 2,613,939 |
MATERIALS - 2.6% |
Chemicals - 1.5% |
Arkema sponsored ADR (a) | 582,570 | | 32,944 |
Celanese Corp. Class A | 1,646,500 | | 61,217 |
Chemtura Corp. | 7,174,364 | | 48,068 |
Dow Chemical Co. | 1,748,000 | | 67,578 |
E.I. du Pont de Nemours & Co. | 1,040,800 | | 47,023 |
Georgia Gulf Corp. (d)(e) | 2,149,060 | | 16,763 |
H.B. Fuller Co. | 1,053,558 | | 21,872 |
Hercules, Inc. | 1,637,959 | | 28,713 |
Linde AG | 503,879 | | 65,759 |
PolyOne Corp. (a) | 2,892,376 | | 17,817 |
| | 407,754 |
Containers & Packaging - 0.2% |
Smurfit-Stone Container Corp. (a) | 7,180,121 | | 68,139 |
Metals & Mining - 0.7% |
Alcoa, Inc. | 4,681,121 | | 154,945 |
Century Aluminum Co. (a) | 437,000 | | 22,720 |
Nucor Corp. | 390,800 | | 22,588 |
| | 200,253 |
Common Stocks - continued |
| Shares | | Value
(000s) |
MATERIALS - continued |
Paper & Forest Products - 0.2% |
Glatfelter | 993,529 | | $ 14,366 |
Weyerhaeuser Co. | 502,300 | | 34,016 |
| | 48,382 |
TOTAL MATERIALS | | 724,528 |
TELECOMMUNICATION SERVICES - 6.3% |
Diversified Telecommunication Services - 5.6% |
AT&T, Inc. | 26,272,950 | | 1,011,246 |
Qwest Communications International, Inc. | 16,770,500 | | 98,611 |
Telkom SA Ltd. sponsored ADR | 737,959 | | 56,631 |
Verizon Communications, Inc. | 10,728,949 | | 416,712 |
| | 1,583,200 |
Wireless Telecommunication Services - 0.7% |
Sprint Nextel Corp. | 9,275,300 | | 97,669 |
Vodafone Group PLC sponsored ADR | 3,098,925 | | 107,843 |
| | 205,512 |
TOTAL TELECOMMUNICATION SERVICES | | 1,788,712 |
UTILITIES - 3.1% |
Electric Utilities - 1.5% |
Allegheny Energy, Inc. | 1,361,807 | | 74,613 |
Entergy Corp. | 1,590,600 | | 172,071 |
Exelon Corp. | 1,700,700 | | 129,576 |
PPL Corp. | 1,224,100 | | 59,883 |
| | 436,143 |
Independent Power Producers & Energy Traders - 0.4% |
AES Corp. (a) | 5,213,721 | | 99,478 |
Multi-Utilities - 1.2% |
Public Service Enterprise Group, Inc. | 2,310,200 | | 221,779 |
Wisconsin Energy Corp. | 2,323,900 | | 105,807 |
| | 327,586 |
TOTAL UTILITIES | | 863,207 |
TOTAL COMMON STOCKS (Cost $21,989,460) | 27,334,308 |
Convertible Preferred Stocks - 1.4% |
| Shares | | Value
(000s) |
CONSUMER DISCRETIONARY - 0.2% |
Automobiles - 0.1% |
General Motors Corp.: | | | |
Series B, 5.25% | 1,122,600 | | $ 22,295 |
Series C, 6.25% | 781,200 | | 16,194 |
| | 38,489 |
Hotels, Restaurants & Leisure - 0.1% |
Six Flags, Inc. 7.25% PIERS | 1,101,300 | | 14,317 |
TOTAL CONSUMER DISCRETIONARY | | 52,806 |
FINANCIALS - 0.7% |
Diversified Financial Services - 0.5% |
Bank of America Corp. Series L, 7.25% | 48,800 | | 54,283 |
CIT Group, Inc. 7.75% | 1,105,800 | | 22,868 |
Citigroup, Inc. Series T, 6.50% | 1,181,898 | | 63,929 |
| | 141,080 |
Thrifts & Mortgage Finance - 0.2% |
Washington Mutual, Inc. Series R, 7.75% | 32,600 | | 37,971 |
TOTAL FINANCIALS | | 179,051 |
HEALTH CARE - 0.2% |
Pharmaceuticals - 0.2% |
Schering-Plough Corp. 6.00% | 260,400 | | 49,486 |
MATERIALS - 0.3% |
Chemicals - 0.0% |
Celanese Corp. 4.25% | 157,200 | | 7,579 |
Metals & Mining - 0.3% |
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 651,000 | | 85,887 |
TOTAL MATERIALS | | 93,466 |
TELECOMMUNICATION SERVICES - 0.0% |
Diversified Telecommunication Services - 0.0% |
Cincinnati Bell, Inc. Series B, 6.75% | 15,600 | | 652 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $381,161) | 375,461 |
Corporate Bonds - 0.9% |
| Principal Amount
(000s) | | Value
(000s) |
Convertible Bonds - 0.8% |
CONSUMER DISCRETIONARY - 0.4% |
Automobiles - 0.1% |
Ford Motor Co. 4.25% 12/15/36 | | $ 28,010 | | $ 27,724 |
Hotels, Restaurants & Leisure - 0.0% |
Six Flags, Inc. 4.5% 5/15/15 | | 9,950 | | 6,269 |
Media - 0.3% |
Liberty Media Corp.: | | | | |
3.5% 1/15/31 | | 7,175 | | 6,247 |
4% 11/15/29 (f) | | 8,890 | | 5,725 |
3.5% 1/15/31 (f) | | 20,342 | | 17,711 |
News America, Inc. liquid yield option note: | | | | |
0% 2/28/21 (f) | | 57,550 | | 34,170 |
0% 2/28/21 | | 7,600 | | 4,513 |
| | 68,366 |
TOTAL CONSUMER DISCRETIONARY | | 102,359 |
INDUSTRIALS - 0.1% |
Airlines - 0.1% |
UAL Corp.: | | | | |
4.5% 6/30/21 (f) | | 20,550 | | 27,110 |
4.5% 6/30/21 | | 3,320 | | 4,380 |
| | 31,490 |
INFORMATION TECHNOLOGY - 0.1% |
Semiconductors & Semiconductor Equipment - 0.1% |
Advanced Micro Devices, Inc.: | | | | |
6% 5/1/15 (f) | | 39,060 | | 28,221 |
6% 5/1/15 | | 13,020 | | 9,407 |
| | 37,628 |
TELECOMMUNICATION SERVICES - 0.2% |
Diversified Telecommunication Services - 0.2% |
Level 3 Communications, Inc.: | | | | |
3.5% 6/15/12 | | 17,200 | | 15,599 |
5.25% 12/15/11 (f) | | 28,080 | | 29,523 |
5.25% 12/15/11 | | 15,880 | | 16,696 |
| | 61,818 |
TOTAL CONVERTIBLE BONDS | | 233,295 |
Corporate Bonds - continued |
| Principal Amount
(000s) | | Value
(000s) |
Nonconvertible Bonds - 0.1% |
MATERIALS - 0.1% |
Chemicals - 0.1% |
Hercules, Inc. 6.5% 6/30/29 unit | | $ 31,600 | | $ 26,706 |
TOTAL CORPORATE BONDS (Cost $282,581) | 260,001 |
Money Market Funds - 1.1% |
| Shares | | |
Fidelity Cash Central Fund, 3.79% (b) | 116,488,509 | | 116,489 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 188,505,785 | | 188,506 |
TOTAL MONEY MARKET FUNDS (Cost $304,995) | | 304,995 |
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $22,958,197) | | 28,274,765 |
NET OTHER ASSETS - (0.6)% | | (159,978) |
NET ASSETS - 100% | | $ 28,114,787 |
Security Type Abbreviations |
PIERS - | Preferred Income Equity Redeemable Securities |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $171,180,000 or 0.6% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 32,962 |
Fidelity Securities Lending Cash Central Fund | 4,263 |
Total | $ 37,225 |
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: |
Affiliates
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Briggs & Stratton Corp. | $ 71,205 | $ 15,116 | $ - | $ 2,305 | $ 61,413 |
Georgia Gulf Corp. | 39,180 | 3,877 | - | 623 | 16,763 |
Total | $ 110,385 | $ 18,993 | $ - | $ 2,928 | $ 78,176 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | January 31, 2008 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $192,248) - See accompanying schedule: Unaffiliated issuers (cost $22,493,820) | $ 27,891,594 | |
Fidelity Central Funds (cost $304,995) | 304,995 | |
Other affiliated issuers (cost $159,382) | 78,176 | |
Total Investments (cost $22,958,197) | | $ 28,274,765 |
Foreign currency held at value (cost $202) | | 202 |
Receivable for investments sold | | 108,926 |
Receivable for fund shares sold | | 29,659 |
Dividends receivable | | 41,815 |
Interest receivable | | 1,753 |
Distributions receivable from Fidelity Central Funds | | 596 |
Prepaid expenses | | 94 |
Other receivables | | 664 |
Total assets | | 28,458,474 |
| | |
Liabilities | | |
Payable for investments purchased | $ 110,800 | |
Payable for fund shares redeemed | 27,450 | |
Accrued management fee | 10,541 | |
Other affiliated payables | 5,162 | |
Other payables and accrued expenses | 1,228 | |
Collateral on securities loaned, at value | 188,506 | |
Total liabilities | | 343,687 |
| | |
Net Assets | | $ 28,114,787 |
Net Assets consist of: | | |
Paid in capital | | $ 22,165,178 |
Undistributed net investment income | | 31,169 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 601,855 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 5,316,585 |
Net Assets, for 538,038 shares outstanding | | $ 28,114,787 |
Net Asset Value, offering price and redemption price per share ($28,114,787 ÷ 538,038 shares) | | $ 52.25 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends (including $2,928 earned from other
affiliated issuers) | | $ 691,077 |
Interest | | 12,327 |
Income from Fidelity Central Funds | | 37,225 |
Total income | | 740,629 |
| | |
Expenses | | |
Management fee | $ 145,120 | |
Transfer agent fees | 61,274 | |
Accounting and security lending fees | 2,063 | |
Custodian fees and expenses | 489 | |
Independent trustees' compensation | 115 | |
Registration fees | 60 | |
Audit | 282 | |
Legal | 169 | |
Interest | 36 | |
Miscellaneous | 987 | |
Total expenses before reductions | 210,595 | |
Expense reductions | (2,625) | 207,970 |
Net investment income (loss) | | 532,659 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,809,320 | |
Foreign currency transactions | 112 | |
Total net realized gain (loss) | | 1,809,432 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (3,847,126) | |
Assets and liabilities in foreign currencies | 90 | |
Total change in net unrealized appreciation (depreciation) | | (3,847,036) |
Net gain (loss) | | (2,037,604) |
Net increase (decrease) in net assets resulting from operations | | $ (1,504,945) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 532,659 | $ 469,920 |
Net realized gain (loss) | 1,809,432 | 1,948,593 |
Change in net unrealized appreciation (depreciation) | (3,847,036) | 2,155,906 |
Net increase (decrease) in net assets resulting
from operations | (1,504,945) | 4,574,419 |
Distributions to shareholders from net investment income | (540,755) | (456,678) |
Distributions to shareholders from net realized gain | (1,682,275) | (1,722,300) |
Total distributions | (2,223,030) | (2,178,978) |
Share transactions
Proceeds from sales of shares | 6,781,847 | 5,873,092 |
Reinvestment of distributions | 2,173,858 | 2,127,167 |
Cost of shares redeemed | (8,335,462) | (5,215,678) |
Net increase (decrease) in net assets resulting from share transactions | 620,243 | 2,784,581 |
Total increase (decrease) in net assets | (3,107,732) | 5,180,022 |
| | |
Net Assets | | |
Beginning of period | 31,222,519 | 26,042,497 |
End of period (including undistributed net investment income of $31,169 and undistributed net investment income of $36,873, respectively) | $ 28,114,787 | $ 31,222,519 |
Other Information Shares | | |
Sold | 115,779 | 103,776 |
Issued in reinvestment of distributions | 38,488 | 37,508 |
Redeemed | (142,454) | (92,804) |
Net increase (decrease) | 11,813 | 48,480 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
| | | | | |
Years ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 59.33 | $ 54.51 | $ 51.52 | $ 50.27 | $ 38.32 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | 1.00 | .96 | .82 | .79 | .71 |
Net realized and unrealized gain (loss) | (3.86) | 8.30 | 5.14 | 2.93 | 12.88 |
Total from investment operations | (2.86) | 9.26 | 5.96 | 3.72 | 13.59 |
Distributions from net investment income | (1.02) | (.94) | (.84) | (.81) | (.71) |
Distributions from net realized gain | (3.20) | (3.50) | (2.13) | (1.66) | (.93) |
Total distributions | (4.22) | (4.44) | (2.97) | (2.47) | (1.64) |
Net asset value, end of period | $ 52.25 | $ 59.33 | $ 54.51 | $ 51.52 | $ 50.27 |
Total Return A | (5.21)% | 17.55% | 11.87% | 7.51% | 35.95% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions | .66% | .68% | .69% | .70% | .71% |
Expenses net of fee waivers, if any | .66% | .68% | .69% | .70% | .71% |
Expenses net of all reductions | .66% | .67% | .67% | .69% | .70% |
Net investment income (loss) | 1.68% | 1.71% | 1.57% | 1.56% | 1.63% |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 28,115 | $ 31,223 | $ 26,042 | $ 25,730 | $ 23,693 |
Portfolio turnover rate D | 23% | 24% | 19% | 19% | 25% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2008
(Amounts in thousands except ratios)
1. Organization.
Fidelity Equity-Income Fund (the Fund) is a fund of Fidelity Devonshire Trust (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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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 for processing shareholder transactions 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 may include proceeds received
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. Certain adjustments have been made to the accounts relating to prior periods. Collectively, these adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 7,746,582 | |
Unrealized depreciation | (2,455,619) | |
Net unrealized appreciation (depreciation) | 5,290,963 | |
Undistributed ordinary income | 30,508 | |
Undistributed long-term capital gain | 453,907 | |
| | |
Cost for federal income tax purposes | $ 22,983,802 | |
The tax character of distributions paid was as follows:
| January 31, 2008 | January 31, 2007 |
Ordinary Income | $ 546,038 | $ 509,068 |
Long-term Capital Gains | 1,676,992 | 1,669,910 |
Total | $ 2,223,030 | $ 2,178,978 |
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which
Annual Report
4. Operating Policies - continued
are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $7,104,567 and $7,282,962, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .20% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, 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 annual rate of .19% of average net assets. Prior to January 1, 2008, Fidelity Service Company, Inc. (FSC), also an affiliate of FMR was the Fund's transfer agent.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees - continued
Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $33 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 42,426 | 4.38% | $ 36 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $61 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of
Annual Report
8. Security Lending - continued
certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $4,263.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $157 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $30 and $2,431, respectively.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds. FMR also reimbursed the related legal expenses, which are recorded in the accompanying Statement of Operations as an expense reduction.
Subsequent to period end, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $935.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Devonshire Trust and the Shareholders of Fidelity Equity-Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Equity-Income Fund (a fund of Fidelity Devonshire Trust) at January 31, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Equity-Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 24, 2008
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 374 funds advised by FMR or an affiliate. Mr. Curvey oversees 369 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (77) |
| Year of Election or Appointment: 1985 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related. |
James C. Curvey (72) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (59) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (71) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (67) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (61) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (63) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (68) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007). |
Advisory Board Members and Executive Officers**:
Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Annual Report
Trustees and Officers - continued
Name, Age; Principal Occupation |
Arthur E. Johnson (61) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related. |
Alan J. Lacy (54) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History. |
Peter S. Lynch (64) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Joseph Mauriello (63) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
David M. Thomas (58) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (57) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005). |
Kimberley H. Monasterio (44) |
| Year of Election or Appointment: 2007 President and Treasurer of Equity-Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Name, Age; Principal Occupation |
Walter C. Donovan (45) |
| Year of Election or Appointment: 2007 Vice President of Equity-Income. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005). |
Bruce T. Herring (42) |
| Year of Election or Appointment: 2006 Vice President of Equity-Income. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Eric D. Roiter (59) |
| Year of Election or Appointment: 1998 Secretary of Equity-Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
John B. McGinty, Jr. (45) |
| Year of Election or Appointment: 2008 Assistant Secretary of Equity-Income. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Equity-Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Equity-Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (60) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Equity-Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Equity-Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (38) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Equity-Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Equity-Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (54) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Equity-Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Paul M. Murphy (60) |
| Year of Election or Appointment: 2007 Assistant Treasurer of Equity-Income. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007). |
Gary W. Ryan (49) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Equity-Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions
The Board of Trustees of Fidelity Equity-Income Fund voted to pay on March 10, 2008, to shareholders of record at the opening of business on March 7, 2008, a distribution of $.85 per share derived from capital gains realized from sales of portfolio securities.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended January 31, 2008, $1,706,050,156, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.18% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2009 of amounts for use in preparing 2008 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
EQU-UANN-0308
1.789253.106
Fidelity® Large Cap Value
Fidelity Mid Cap Value
Fidelity Large Cap Growth
Fidelity Mid Cap Growth
Funds
Annual Report
January 31, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") 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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(Photograph of Edward C. Johnson 3d.)
Dear Shareholder:
Stocks got off to a poor start in 2008, while investment-grade bonds and money markets showed positive returns, once again underscoring the importance of a diversified portfolio. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (August 1, 2007 to January 31, 2008).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Fidelity Large Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 946.40 | $ 6.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | | | |
Actual | $ 1,000.00 | $ 944.70 | $ 7.35 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | | | |
Actual | $ 1,000.00 | $ 943.10 | $ 9.80 |
HypotheticalA | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | | | |
Actual | $ 1,000.00 | $ 943.20 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Large Cap Value | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.27 |
HypotheticalA | $ 1,000.00 | $ 1,020.82 | $ 4.43 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.22 |
HypotheticalA | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
Fidelity Mid Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 912.50 | $ 5.54 |
HypotheticalA | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Class T | | | |
Actual | $ 1,000.00 | $ 911.80 | $ 6.79 |
HypotheticalA | $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.09 |
HypotheticalA | $ 1,000.00 | $ 1,015.68 | $ 9.60 |
Class C | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.24 |
HypotheticalA | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Mid Cap Value | | | |
Actual | $ 1,000.00 | $ 913.40 | $ 4.05 |
HypotheticalA | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 913.70 | $ 4.34 |
HypotheticalA | $ 1,000.00 | $ 1,020.67 | $ 4.58 |
Fidelity Large Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 955.40 | $ 5.91 |
HypotheticalA | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | | | |
Actual | $ 1,000.00 | $ 955.60 | $ 7.30 |
HypotheticalA | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | | | |
Actual | $ 1,000.00 | $ 952.20 | $ 9.74 |
HypotheticalA | $ 1,000.00 | $ 1,015.22 | $ 10.06 |
Class C | | | |
Actual | $ 1,000.00 | $ 953.00 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Large Cap Growth | | | |
Actual | $ 1,000.00 | $ 956.60 | $ 4.78 |
HypotheticalA | $ 1,000.00 | $ 1,020.32 | $ 4.94 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 958.20 | $ 4.10 |
HypotheticalA | $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Fidelity Mid Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 909.40 | $ 5.29 |
HypotheticalA | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class T | | | |
Actual | $ 1,000.00 | $ 905.80 | $ 6.58 |
HypotheticalA | $ 1,000.00 | $ 1,018.30 | $ 6.97 |
Class B | | | |
Actual | $ 1,000.00 | $ 904.90 | $ 8.79 |
HypotheticalA | $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Class C | | | |
Actual | $ 1,000.00 | $ 904.20 | $ 8.88 |
HypotheticalA | $ 1,000.00 | $ 1,015.88 | $ 9.40 |
Mid Cap Growth | | | |
Actual | $ 1,000.00 | $ 909.50 | $ 3.75 |
HypotheticalA | $ 1,000.00 | $ 1,021.27 | $ 3.97 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 909.60 | $ 3.32 |
HypotheticalA | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period).
Annual Report
| Annualized
Expense Ratio |
Fidelity Large Cap Value Fund | |
Class A | 1.25% |
Class T | 1.50% |
Class B | 2.00% |
Class C | 1.97% |
Large Cap Value | .87% |
Institutional Class | .86% |
Fidelity Mid Cap Value Fund | |
Class A | 1.15% |
Class T | 1.41% |
Class B | 1.89% |
Class C | 1.92% |
Mid Cap Value | .84% |
Institutional Class | .90% |
Fidelity Large Cap Growth Fund | |
Class A | 1.20% |
Class T | 1.48% |
Class B | 1.98% |
Class C | 1.96% |
Large Cap Growth | .97% |
Institutional Class | .83% |
Fidelity Mid Cap Growth Fund | |
Class A | 1.10% |
Class T | 1.37% |
Class B | 1.83% |
Class C | 1.85% |
Mid Cap Growth | .78% |
Institutional Class | .69% |
Annual Report
Fidelity Large Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Large Cap Value | -4.39% | 14.11% | 7.82% |
A From November 15, 2001.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Large Cap Value, a class of the fund, on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Value Index performed over the same period.
Annual Report
Fidelity Large Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity® Large Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Large Cap Value returned -4.39%, which, while disappointing in absolute terms, was ahead of the -5.38% return of the Russell 1000® Value Index. During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among banks and real estate investment trusts (REITs). Favorable industry weightings within the weak financials and consumer discretionary sectors also added value, as did good stock picking in health care and pockets of information technology. Underweighting diversified financials giant Citigroup and domestic banking firm Wachovia added to relative performance, as both stocks fared poorly within an environment of deteriorating business fundamentals for financials. Among other strong contributors were Cummins, a diesel engine manufacturer, and CF Industries, an out-of-index company that produces fertilizer products. On the flip side, relative results were held back by unfavorable stock picks in consumer staples - especially among food retailers - energy and the transportation industry. Among the biggest detractors were Tyson Foods, a large processor of poultry and meat products, and YRC Worldwide, a transportation company. Underweighting such strong-performing energy stocks as Occidental Petroleum also hurt. Tyson, YRC and Occidental were no longer in the portfolio at period end.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 4.3 | 4.5 |
AT&T, Inc. | 3.8 | 3.8 |
General Electric Co. | 3.4 | 3.0 |
ConocoPhillips | 3.1 | 0.0 |
JPMorgan Chase & Co. | 3.0 | 3.0 |
American International Group, Inc. | 2.7 | 2.3 |
Chevron Corp. | 2.7 | 2.5 |
Bank of America Corp. | 2.4 | 2.4 |
Altria Group, Inc. | 2.3 | 1.8 |
Verizon Communications, Inc. | 2.2 | 2.3 |
| 29.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.7 | 31.7 |
Energy | 15.6 | 14.0 |
Industrials | 10.6 | 10.7 |
Consumer Staples | 8.5 | 7.3 |
Health Care | 7.6 | 7.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
 | Stocks 99.7% | | | Stocks 99.7% | |
 | Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
* Foreign investments | 5.3% | | **Foreign investments | 2.0% | |
Annual Report
Fidelity Large Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.3% |
Automobiles - 0.5% |
General Motors Corp. (d) | 283,401 | | $ 8,023,082 |
Hotels, Restaurants & Leisure - 2.0% |
McDonald's Corp. | 557,500 | | 29,854,125 |
Household Durables - 0.3% |
Whirlpool Corp. | 56,000 | | 4,766,160 |
Internet & Catalog Retail - 0.3% |
Expedia, Inc. (a) | 198,600 | | 4,571,772 |
Leisure Equipment & Products - 0.4% |
Eastman Kodak Co. | 261,400 | | 5,209,702 |
Media - 1.2% |
Liberty Media Corp. - Capital
Series A (a) | 64,300 | | 6,919,966 |
Viacom, Inc. Class B (non-vtg.) (a) | 296,500 | | 11,492,340 |
| | 18,412,306 |
Multiline Retail - 0.7% |
Macy's, Inc. | 387,800 | | 10,718,792 |
Specialty Retail - 0.8% |
Home Depot, Inc. | 414,300 | | 12,706,581 |
Textiles, Apparel & Luxury Goods - 1.1% |
NIKE, Inc. Class B (d) | 255,700 | | 15,792,032 |
TOTAL CONSUMER DISCRETIONARY | | 110,054,552 |
CONSUMER STAPLES - 8.5% |
Beverages - 1.1% |
Molson Coors Brewing Co. Class B | 392,400 | | 17,528,508 |
Food & Staples Retailing - 2.9% |
BJ's Wholesale Club, Inc. (a) | 147,100 | | 4,771,924 |
Kroger Co. | 621,500 | | 15,817,175 |
Safeway, Inc. | 267,700 | | 8,296,023 |
SUPERVALU, Inc. | 484,600 | | 14,567,076 |
| | 43,452,198 |
Food Products - 0.3% |
Del Monte Foods Co. | 459,500 | | 4,121,715 |
Household Products - 1.9% |
Procter & Gamble Co. | 433,300 | | 28,576,135 |
Tobacco - 2.3% |
Altria Group, Inc. | 450,000 | | 34,119,000 |
TOTAL CONSUMER STAPLES | | 127,797,556 |
ENERGY - 15.6% |
Energy Equipment & Services - 1.9% |
National Oilwell Varco, Inc. (a) | 232,500 | | 14,003,475 |
Transocean, Inc. (a) | 112,200 | | 13,755,720 |
| | 27,759,195 |
Oil, Gas & Consumable Fuels - 13.7% |
Chevron Corp. | 482,300 | | 40,754,350 |
ConocoPhillips | 574,900 | | 46,175,968 |
|
| Shares | | Value |
Exxon Mobil Corp. | 744,700 | | $ 64,342,081 |
Hess Corp. | 265,100 | | 24,079,033 |
Marathon Oil Corp. | 308,900 | | 14,471,965 |
Valero Energy Corp. | 274,801 | | 16,265,471 |
| | 206,088,868 |
TOTAL ENERGY | | 233,848,063 |
FINANCIALS - 30.7% |
Capital Markets - 6.5% |
GLG Partners, Inc. (a)(d) | 1,247,500 | | 14,708,025 |
Goldman Sachs Group, Inc. | 143,200 | | 28,750,264 |
Janus Capital Group, Inc. (d) | 575,300 | | 15,538,853 |
Lehman Brothers Holdings, Inc. (d) | 459,300 | | 29,473,281 |
State Street Corp. | 120,500 | | 9,895,460 |
| | 98,365,883 |
Commercial Banks - 3.8% |
Associated Banc-Corp. | 181,900 | | 5,125,942 |
PNC Financial Services Group, Inc. | 113,200 | | 7,428,184 |
Regions Financial Corp. (d) | 222,500 | | 5,615,900 |
Wachovia Corp. | 507,800 | | 19,768,654 |
Wells Fargo & Co. | 359,100 | | 12,212,991 |
Zions Bancorp | 132,200 | | 7,236,628 |
| | 57,388,299 |
Consumer Finance - 0.9% |
Capital One Financial Corp. (d) | 252,700 | | 13,850,487 |
Diversified Financial Services - 6.7% |
Bank of America Corp. | 813,700 | | 36,087,595 |
Citigroup, Inc. | 546,460 | | 15,421,101 |
JPMorgan Chase & Co. | 947,400 | | 45,048,870 |
MSCI, Inc. Class A | 115,197 | | 3,798,045 |
| | 100,355,611 |
Insurance - 10.5% |
ACE Ltd. | 281,000 | | 16,393,540 |
American International Group, Inc. | 742,300 | | 40,945,268 |
Assurant, Inc. | 142,600 | | 9,253,314 |
Axis Capital Holdings Ltd. | 226,400 | | 9,065,056 |
Endurance Specialty Holdings Ltd. | 252,800 | | 10,243,456 |
Loews Corp. | 357,400 | | 16,687,006 |
PartnerRe Ltd. | 157,400 | | 12,478,672 |
Prudential Financial, Inc. | 255,600 | | 21,564,972 |
RenaissanceRe Holdings Ltd. | 215,900 | | 12,304,141 |
W.R. Berkley Corp. | 284,000 | | 8,593,840 |
| | 157,529,265 |
Real Estate Investment Trusts - 2.0% |
Annaly Capital Management, Inc. | 716,400 | | 14,127,408 |
Boston Properties, Inc. | 77,000 | | 7,077,840 |
ProLogis Trust | 91,600 | | 5,436,460 |
Public Storage | 46,700 | | 3,654,275 |
| | 30,295,983 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.3% |
Astoria Financial Corp. | 167,400 | | $ 4,549,932 |
TOTAL FINANCIALS | | 462,335,460 |
HEALTH CARE - 7.6% |
Biotechnology - 1.0% |
Biogen Idec, Inc. (a) | 239,600 | | 14,603,620 |
Health Care Equipment & Supplies - 0.5% |
Baxter International, Inc. | 118,200 | | 7,179,468 |
Health Care Providers & Services - 1.8% |
Humana, Inc. (a) | 169,900 | | 13,642,970 |
Medco Health Solutions, Inc. (a) | 275,400 | | 13,792,032 |
| | 27,435,002 |
Life Sciences Tools & Services - 1.4% |
Charles River Laboratories International, Inc. (a) | 160,000 | | 9,936,000 |
Invitrogen Corp. (a) | 127,800 | | 10,948,626 |
| | 20,884,626 |
Pharmaceuticals - 2.9% |
Johnson & Johnson | 349,000 | | 22,077,740 |
Pfizer, Inc. | 960,700 | | 22,470,773 |
| | 44,548,513 |
TOTAL HEALTH CARE | | 114,651,229 |
INDUSTRIALS - 10.6% |
Aerospace & Defense - 3.2% |
Honeywell International, Inc. | 94,300 | | 5,570,301 |
Northrop Grumman Corp. | 165,400 | | 13,126,144 |
Raytheon Co. | 170,600 | | 11,112,884 |
The Boeing Co. | 212,800 | | 17,700,704 |
| | 47,510,033 |
Airlines - 0.5% |
Northwest Airlines Corp. (a) | 193,200 | | 3,614,772 |
UAL Corp. | 121,400 | | 4,607,130 |
| | 8,221,902 |
Commercial Services & Supplies - 0.6% |
Allied Waste Industries, Inc. (a) | 920,000 | | 9,062,000 |
Construction & Engineering - 1.4% |
KBR, Inc. (a) | 488,600 | | 15,434,874 |
URS Corp. (a) | 133,200 | | 5,847,480 |
| | 21,282,354 |
Industrial Conglomerates - 3.4% |
General Electric Co. | 1,424,000 | | 50,423,840 |
Machinery - 1.2% |
AGCO Corp. (a) | 127,000 | | 7,647,940 |
Cummins, Inc. | 220,900 | | 10,665,052 |
| | 18,312,992 |
|
| Shares | | Value |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 266,933 | | $ 3,982,640 |
TOTAL INDUSTRIALS | | 158,795,761 |
INFORMATION TECHNOLOGY - 3.1% |
Computers & Peripherals - 1.6% |
Hewlett-Packard Co. | 147,600 | | 6,457,500 |
International Business Machines Corp. | 124,200 | | 13,331,628 |
Western Digital Corp. (a) | 176,300 | | 4,663,135 |
| | 24,452,263 |
Electronic Equipment & Instruments - 0.8% |
Tyco Electronics Ltd. | 337,100 | | 11,397,351 |
IT Services - 0.5% |
Accenture Ltd. Class A | 215,500 | | 7,460,610 |
Software - 0.2% |
Oracle Corp. (a) | 172,000 | | 3,534,600 |
TOTAL INFORMATION TECHNOLOGY | | 46,844,824 |
MATERIALS - 4.1% |
Chemicals - 2.2% |
Celanese Corp. Class A | 164,400 | | 6,112,392 |
CF Industries Holdings, Inc. | 76,500 | | 8,180,145 |
Chemtura Corp. | 1,255,300 | | 8,410,510 |
The Mosaic Co. (a) | 108,600 | | 9,883,686 |
| | 32,586,733 |
Containers & Packaging - 0.6% |
Ball Corp. | 91,600 | | 4,203,524 |
Owens-Illinois, Inc. (a) | 94,300 | | 4,752,720 |
| | 8,956,244 |
Metals & Mining - 1.3% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 104,800 | | 9,330,344 |
United States Steel Corp. | 99,300 | | 10,139,523 |
| | 19,469,867 |
TOTAL MATERIALS | | 61,012,844 |
TELECOMMUNICATION SERVICES - 6.0% |
Diversified Telecommunication Services - 6.0% |
AT&T, Inc. | 1,480,362 | | 56,979,133 |
Verizon Communications, Inc. | 842,100 | | 32,707,164 |
| | 89,686,297 |
UTILITIES - 6.2% |
Electric Utilities - 1.7% |
Entergy Corp. | 112,000 | | 12,116,160 |
PPL Corp. | 179,000 | | 8,756,680 |
Reliant Energy, Inc. (a) | 255,100 | | 5,425,977 |
| | 26,298,817 |
Gas Utilities - 1.0% |
Energen Corp. | 244,700 | | 15,391,630 |
Common Stocks - continued |
| Shares | | Value |
UTILITIES - continued |
Independent Power Producers & Energy Traders - 2.4% |
Constellation Energy Group, Inc. | 92,200 | | $ 8,663,112 |
Mirant Corp. (a) | 324,700 | | 11,961,948 |
NRG Energy, Inc. (a) | 382,800 | | 14,772,252 |
| | 35,397,312 |
Multi-Utilities - 1.1% |
Public Service Enterprise Group, Inc. | 170,100 | | 16,329,600 |
TOTAL UTILITIES | | 93,417,359 |
TOTAL COMMON STOCKS (Cost $1,476,386,384) | 1,498,443,945 |
Money Market Funds - 5.2% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 9,464,505 | | 9,464,505 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 69,571,507 | | 69,571,507 |
TOTAL MONEY MARKET FUNDS (Cost $79,036,012) | 79,036,012 |
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,555,422,396) | | 1,577,479,957 |
NET OTHER ASSETS - (4.9)% | | (74,027,771) |
NET ASSETS - 100% | $ 1,503,452,186 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 625,964 |
Fidelity Securities Lending Cash Central Fund | 89,576 |
Total | $ 715,540 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $42,711,239 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $69,644,477) - See accompanying schedule: Unaffiliated issuers (cost $1,476,386,384) | $ 1,498,443,945 | |
Fidelity Central Funds (cost $79,036,012) | 79,036,012 | |
Total Investments (cost $1,555,422,396) | | $ 1,577,479,957 |
Receivable for investments sold | | 23,766,119 |
Receivable for fund shares sold | | 2,565,058 |
Dividends receivable | | 1,696,869 |
Distributions receivable from Fidelity Central Funds | | 33,811 |
Prepaid expenses | | 4,921 |
Total assets | | 1,605,546,735 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,494,925 | |
Payable for fund shares redeemed | 7,847,405 | |
Accrued management fee | 720,873 | |
Distribution fees payable | 6,898 | |
Other affiliated payables | 363,497 | |
Other payables and accrued expenses | 89,444 | |
Collateral on securities loaned, at value | 69,571,507 | |
Total liabilities | | 102,094,549 |
| | |
Net Assets | | $ 1,503,452,186 |
Net Assets consist of: | | |
Paid in capital | | $ 1,523,198,617 |
Undistributed net investment income | | 4,864,259 |
Accumulated undistributed net realized gain (loss) on investments | | (46,668,251) |
Net unrealized appreciation (depreciation) on investments | | 22,057,561 |
Net Assets | | $ 1,503,452,186 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering
Price Class A:
Net Asset Value and redemption price per share ($9,774,232 ÷ 721,934 shares) | | $ 13.54 |
| | |
Maximum offering price per share (100/94.25 of $13.54) | | $ 14.37 |
Class T:
Net Asset Value and redemption price per share ($5,975,654 ÷ 441,693 shares) | | $ 13.53 |
| | |
Maximum offering price per share (100/96.50 of $13.53) | | $ 14.02 |
Class B:
Net Asset Value and offering price per share ($1,859,809 ÷ 137,404 shares)A | | $ 13.54 |
| | |
Class C:
Net Asset Value and offering price per share ($1,208,181 ÷ 89,368 shares)A | | $ 13.52 |
| | |
Large Cap Value:
Net Asset Value, offering price and redemption price per share ($1,483,574,281 ÷ 109,324,284 shares) | | $ 13.57 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,060,029 ÷ 78,261 shares) | | $ 13.54 |
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.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 32,039,820 |
Interest | | 4,832 |
Income from Fidelity Central Funds (including $89,576 from security lending) | | 715,540 |
Total income | | 32,760,192 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,024,987 | |
Performance adjustment | 288,595 | |
Transfer agent fees | 3,768,695 | |
Distribution fees | 73,728 | |
Accounting and security lending fees | 507,630 | |
Custodian fees and expenses | 37,007 | |
Independent trustees' compensation | 5,753 | |
Registration fees | 122,860 | |
Audit | 60,620 | |
Legal | 7,461 | |
Interest | 5,226 | |
Miscellaneous | 53,563 | |
Total expenses before reductions | 13,956,125 | |
Expense reductions | (136,896) | 13,819,229 |
Net investment income (loss) | | 18,940,963 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 18,026,031 |
Change in net unrealized appreciation (depreciation) on investment securities | | (121,407,791) |
Net gain (loss) | | (103,381,760) |
Net increase (decrease) in net assets resulting from operations | | $ (84,440,797) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 18,940,963 | $ 9,973,926 |
Net realized gain (loss) | 18,026,031 | 34,353,479 |
Change in net unrealized appreciation (depreciation) | (121,407,791) | 98,674,962 |
Net increase (decrease) in net assets resulting from operations | (84,440,797) | 143,002,367 |
Distributions to shareholders from net investment income | (14,286,599) | (10,401,399) |
Distributions to shareholders from net realized gain | (90,733,678) | (14,021,724) |
Total distributions | (105,020,277) | (24,423,123) |
Share transactions - net increase (decrease) | 320,162,513 | 685,040,997 |
Redemption fees | - | 21,396 |
Total increase (decrease) in net assets | 130,701,439 | 803,641,637 |
| | |
Net Assets | | |
Beginning of period | 1,372,750,747 | 569,109,110 |
End of period (including undistributed net investment income of $4,864,259 and undistributed net investment income
of $274,346, respectively) | $ 1,503,452,186 | $ 1,372,750,747 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .12 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.88) |
Distributions from net investment income | (.12) |
Distributions from net realized gain | (.87) |
Total distributions | (.99) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.04)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.22% A |
Expenses net of fee waivers, if any | 1.22% A |
Expenses net of all reductions | 1.22% A |
Net investment income (loss) | .81% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 9,774 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .08 |
Net realized and unrealized gain (loss) | (1.01) |
Total from investment operations | (.93) |
Distributions from net investment income | (.08) |
Distributions from net realized gain | (.87) |
Total distributions | (.95) |
Net asset value, end of period | $ 13.53 |
Total Return B,C | (6.34)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | .56% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 5,976 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.99) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.87) |
Total distributions | (.88) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | .04% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,860 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (.98) |
Total from investment operations | (.97) |
Distributions from net investment income | (.05) |
Distributions from net realized gain | (.87) |
Total distributions | (.92) |
Net asset value, end of period | $ 13.52 |
Total Return B,C | (6.61)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.94% A |
Expenses net of fee waivers, if any | 1.94% A |
Expenses net of all reductions | 1.94% A |
Net investment income (loss) | .09% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,208 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Value
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 | $ 8.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .18 | .16 | .17 | .09 E | .09 |
Net realized and unrealized gain (loss) | (.80) | 1.80 | 1.87 | 1.47 | 2.47 |
Total from investment operations | (.62) | 1.96 | 2.04 | 1.56 | 2.56 |
Distributions from net investment income | (.13) | (.13) | (.11) | (.05) | (.09) |
Distributions from net realized gain | (.87) | (.26) | (.35) | (.11) | - |
Total distributions | (1.00) | (.39) | (.46) | (.16) | (.09) |
Redemption fees added to paid in capital B | - | - G,H | - G | - G | - G |
Net asset value, end of period | $ 13.57 | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 |
Total Return A | (4.39)% | 14.63% | 17.09% | 14.68% | 31.44% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .86% | .89% | .89% | 1.07% | 1.45% |
Expenses net of fee waivers, if any | .85% | .89% | .89% | 1.07% | 1.20% |
Expenses net of all reductions | .85% | .89% | .84% | 1.05% | 1.18% |
Net investment income (loss) | 1.18% | 1.10% | 1.32% | .79% E | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,483,574 | $ 1,372,751 | $ 569,109 | $ 177,004 | $ 25,168 |
Portfolio turnover rate D | 204% | 164% | 175% | 170% | 72% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H The redemption fee was eliminated during the year January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .17 |
Net realized and unrealized gain (loss) | (1.02) |
Total from investment operations | (.85) |
Distributions from net investment income | (.15) |
Distributions from net realized gain | (.87) |
Total distributions | (1.02) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (5.82)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .85% A |
Expenses net of fee waivers, if any | .85% A |
Expenses net of all reductions | .84% A |
Net investment income (loss) | 1.19% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,060 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Mid Cap Value | -7.67% | 15.63% | 10.38% |
A From November 15, 2001.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Mid Cap Value, a class of the fund, on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period.
Annual Report
Fidelity Mid Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity® Mid Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Mid Cap Value returned -7.67%, which, while disappointing in absolute terms, was better than the -8.73% return of the Russell Midcap® Value Index. During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among bank and asset management companies. Favorable industry weightings within the weak financials and consumer discretionary sectors also added value. Good stock picking in materials, energy and the equipment/services group of health care also helped. Among the fund's strongest contributors for the period were CF Industries, an out-of-index company that produces fertilizer products; Cummins, a diesel engine manufacturer; Annaly Capital Management, a real estate investment trust that owned AAA-rated mortgages; and National Oilwell Varco, an energy services contractor. Conversely, relative results were held back by some unfavorable stock selection decisions in the utilities, consumer staples and consumer discretionary sectors. The fund's poorest performers included transportation firm YRC Worldwide; original equipment manufacturer TRW Automotive; and photographic imaging company Eastman Kodak. YRC and TRW were no longer held at period end.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Mid Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Hess Corp. | 2.5 | 2.3 |
Edison International | 2.1 | 1.5 |
Everest Re Group Ltd. | 1.8 | 0.0 |
Annaly Capital Management, Inc. | 1.7 | 0.8 |
Boston Properties, Inc. | 1.7 | 0.0 |
Questar Corp. | 1.7 | 0.0 |
Axis Capital Holdings Ltd. | 1.6 | 0.8 |
Assurant, Inc. | 1.6 | 1.2 |
PartnerRe Ltd. | 1.6 | 1.2 |
Energen Corp. | 1.6 | 1.8 |
| 17.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.0 | 29.5 |
Utilities | 14.0 | 12.5 |
Consumer Discretionary | 13.1 | 13.1 |
Industrials | 10.4 | 10.7 |
Energy | 8.1 | 7.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.7% | | | Stocks 99.4% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.6% | |
* Foreign investments | 13.1% | | **Foreign investments | 4.2% | |
Annual Report
Fidelity Mid Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 13.1% |
Diversified Consumer Services - 0.5% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 50,800 | | $ 4,050,792 |
Hotels, Restaurants & Leisure - 1.1% |
Burger King Holdings, Inc. | 303,600 | | 7,999,860 |
Household Durables - 2.3% |
Leggett & Platt, Inc. (d) | 296,500 | | 5,639,430 |
Whirlpool Corp. (d) | 133,500 | | 11,362,185 |
| | 17,001,615 |
Internet & Catalog Retail - 1.2% |
Expedia, Inc. (a) | 242,600 | | 5,584,652 |
Liberty Media Corp. - Interactive
Series A (a) | 239,500 | | 3,810,445 |
| | 9,395,097 |
Leisure Equipment & Products - 1.4% |
Eastman Kodak Co. (d) | 534,300 | | 10,648,599 |
Media - 2.1% |
E.W. Scripps Co. Class A | 181,100 | | 7,374,392 |
Liberty Media Corp. - Capital
Series A (a) | 74,900 | | 8,060,738 |
| | 15,435,130 |
Specialty Retail - 2.6% |
Abercrombie & Fitch Co. Class A | 96,200 | | 7,666,178 |
AutoZone, Inc. (a) | 48,200 | | 5,826,416 |
RadioShack Corp. | 136,800 | | 2,373,480 |
TJX Companies, Inc. | 125,600 | | 3,963,936 |
| | 19,830,010 |
Textiles, Apparel & Luxury Goods - 1.9% |
Crocs, Inc. (a)(d) | 219,600 | | 7,639,884 |
Jones Apparel Group, Inc. (d) | 399,000 | | 6,703,200 |
| | 14,343,084 |
TOTAL CONSUMER DISCRETIONARY | | 98,704,187 |
CONSUMER STAPLES - 7.1% |
Beverages - 1.9% |
Coca-Cola Enterprises, Inc. | 311,600 | | 7,188,612 |
Molson Coors Brewing Co. Class B | 168,900 | | 7,544,763 |
| | 14,733,375 |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a)(d) | 170,600 | | 5,534,264 |
Safeway, Inc. | 259,000 | | 8,026,410 |
SUPERVALU, Inc. | 239,600 | | 7,202,376 |
| | 20,763,050 |
Food Products - 2.2% |
Corn Products International, Inc. | 136,600 | | 4,617,080 |
Dean Foods Co. | 158,400 | | 4,435,200 |
Del Monte Foods Co. | 316,300 | | 2,837,211 |
Tyson Foods, Inc. Class A | 308,000 | | 4,389,000 |
| | 16,278,491 |
|
| Shares | | Value |
Personal Products - 0.2% |
Estee Lauder Companies, Inc. Class A | 44,100 | | $ 1,861,020 |
TOTAL CONSUMER STAPLES | | 53,635,936 |
ENERGY - 8.1% |
Energy Equipment & Services - 4.8% |
Helmerich & Payne, Inc. | 206,500 | | 8,098,930 |
Nabors Industries Ltd. (a) | 152,100 | | 4,140,162 |
National Oilwell Varco, Inc. (a) | 121,000 | | 7,287,830 |
Patterson-UTI Energy, Inc. (d) | 450,800 | | 8,826,664 |
Superior Energy Services, Inc. (a) | 74,400 | | 2,982,696 |
Tidewater, Inc. | 81,800 | | 4,332,128 |
| | 35,668,410 |
Oil, Gas & Consumable Fuels - 3.3% |
Frontline Ltd. (NY Shares) | 137,300 | | 5,844,861 |
Hess Corp. (d) | 211,800 | | 19,237,794 |
| | 25,082,655 |
TOTAL ENERGY | | 60,751,065 |
FINANCIALS - 30.0% |
Capital Markets - 3.0% |
GLG Partners, Inc. (a)(d) | 756,200 | | 8,915,598 |
Janus Capital Group, Inc. (d) | 352,500 | | 9,521,025 |
MF Global Ltd. | 151,200 | | 4,543,560 |
| | 22,980,183 |
Commercial Banks - 3.5% |
Associated Banc-Corp. | 277,700 | | 7,825,586 |
BOK Financial Corp. | 71,195 | | 3,878,704 |
East West Bancorp, Inc. (d) | 188,900 | | 4,544,934 |
Synovus Financial Corp. | 219,900 | | 2,904,879 |
Zions Bancorp | 125,800 | | 6,886,292 |
| | 26,040,395 |
Diversified Financial Services - 0.6% |
MSCI, Inc. Class A | 136,800 | | 4,510,296 |
Insurance - 13.9% |
ACE Ltd. | 158,000 | | 9,217,720 |
Allied World Assurance Co. Holdings Ltd. | 147,800 | | 7,039,714 |
Assurant, Inc. | 187,200 | | 12,147,408 |
Axis Capital Holdings Ltd. | 308,900 | | 12,368,356 |
CNA Financial Corp. | 189,800 | | 6,451,302 |
Endurance Specialty Holdings Ltd. | 286,800 | | 11,621,136 |
Everest Re Group Ltd. | 133,100 | | 13,534,939 |
PartnerRe Ltd. | 152,100 | | 12,058,488 |
RenaissanceRe Holdings Ltd. | 197,800 | | 11,272,622 |
W.R. Berkley Corp. | 303,200 | | 9,174,832 |
| | 104,886,517 |
Real Estate Investment Trusts - 7.0% |
Annaly Capital Management, Inc. | 658,200 | | 12,979,704 |
Boston Properties, Inc. | 138,600 | | 12,740,112 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Colonial Properties Trust (SBI) | 97,800 | | $ 2,409,792 |
Kimco Realty Corp. | 198,300 | | 7,101,123 |
ProLogis Trust | 155,700 | | 9,240,795 |
Public Storage | 73,700 | | 5,767,025 |
Taubman Centers, Inc. | 47,400 | | 2,377,110 |
| | 52,615,661 |
Thrifts & Mortgage Finance - 2.0% |
Astoria Financial Corp. | 262,500 | | 7,134,750 |
Washington Federal, Inc. | 323,700 | | 7,904,754 |
| | 15,039,504 |
TOTAL FINANCIALS | | 226,072,556 |
HEALTH CARE - 2.3% |
Health Care Equipment & Supplies - 0.3% |
Kinetic Concepts, Inc. (a)(d) | 41,100 | | 2,045,958 |
Health Care Providers & Services - 0.5% |
Humana, Inc. (a) | 42,500 | | 3,412,750 |
Life Sciences Tools & Services - 1.2% |
Charles River Laboratories International, Inc. (a) | 74,200 | | 4,607,820 |
Invitrogen Corp. (a) | 54,600 | | 4,677,582 |
| | 9,285,402 |
Pharmaceuticals - 0.3% |
Watson Pharmaceuticals, Inc. (a) | 85,000 | | 2,219,350 |
TOTAL HEALTH CARE | | 16,963,460 |
INDUSTRIALS - 10.4% |
Aerospace & Defense - 1.7% |
DRS Technologies, Inc. | 88,400 | | 4,744,428 |
L-3 Communications Holdings, Inc. | 72,500 | | 8,035,175 |
| | 12,779,603 |
Airlines - 0.8% |
Northwest Airlines Corp. (a) | 152,600 | | 2,855,146 |
UAL Corp. | 75,800 | | 2,876,610 |
| | 5,731,756 |
Building Products - 0.6% |
Lennox International, Inc. | 126,800 | | 4,711,888 |
Commercial Services & Supplies - 2.2% |
Allied Waste Industries, Inc. (a) | 700,300 | | 6,897,955 |
R.R. Donnelley & Sons Co. | 267,200 | | 9,322,608 |
| | 16,220,563 |
Construction & Engineering - 1.7% |
KBR, Inc. (a) | 309,000 | | 9,761,310 |
URS Corp. (a) | 69,800 | | 3,064,220 |
| | 12,825,530 |
|
| Shares | | Value |
Industrial Conglomerates - 0.6% |
McDermott International, Inc. (a) | 94,500 | | $ 4,458,510 |
Machinery - 2.5% |
AGCO Corp. (a) | 106,000 | | 6,383,320 |
Cummins, Inc. | 117,300 | | 5,663,244 |
Ingersoll-Rand Co. Ltd. Class A | 168,400 | | 6,655,168 |
| | 18,701,732 |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 160,200 | | 2,390,184 |
TOTAL INDUSTRIALS | | 77,819,766 |
INFORMATION TECHNOLOGY - 6.4% |
Communications Equipment - 0.7% |
Juniper Networks, Inc. (a) | 195,900 | | 5,318,685 |
Computers & Peripherals - 2.2% |
NCR Corp. (a) | 422,600 | | 9,077,448 |
Western Digital Corp. (a) | 278,300 | | 7,361,035 |
| | 16,438,483 |
Electronic Equipment & Instruments - 1.4% |
Avnet, Inc. (a) | 152,500 | | 5,430,525 |
Ingram Micro, Inc. Class A (a) | 173,400 | | 3,083,052 |
Jabil Circuit, Inc. | 174,200 | | 2,308,150 |
| | 10,821,727 |
Semiconductors & Semiconductor Equipment - 1.6% |
Atmel Corp. (a) | 1,316,800 | | 4,161,088 |
MEMC Electronic Materials, Inc. (a) | 25,000 | | 1,786,500 |
Novellus Systems, Inc. (a) | 111,700 | | 2,653,992 |
Varian Semiconductor Equipment Associates, Inc. (a) | 109,100 | | 3,514,111 |
| | 12,115,691 |
Software - 0.5% |
Compuware Corp. (a) | 405,900 | | 3,450,150 |
TOTAL INFORMATION TECHNOLOGY | | 48,144,736 |
MATERIALS - 6.8% |
Chemicals - 3.1% |
Celanese Corp. Class A | 146,800 | | 5,458,024 |
CF Industries Holdings, Inc. | 57,100 | | 6,105,703 |
Chemtura Corp. (d) | 867,400 | | 5,811,580 |
The Mosaic Co. (a) | 71,200 | | 6,479,912 |
| | 23,855,219 |
Containers & Packaging - 1.9% |
Ball Corp. | 85,100 | | 3,905,239 |
Owens-Illinois, Inc. (a) | 91,500 | | 4,611,600 |
Smurfit-Stone Container Corp. (a)(d) | 603,500 | | 5,727,215 |
| | 14,244,054 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Metals & Mining - 1.8% |
Cleveland-Cliffs, Inc. (d) | 42,700 | | $ 4,348,568 |
United States Steel Corp. | 88,000 | | 8,985,680 |
| | 13,334,248 |
TOTAL MATERIALS | | 51,433,521 |
TELECOMMUNICATION SERVICES - 1.5% |
Diversified Telecommunication Services - 1.5% |
Embarq Corp. | 116,500 | | 5,277,450 |
Qwest Communications International, Inc. | 1,043,800 | | 6,137,544 |
| | 11,414,994 |
UTILITIES - 14.0% |
Electric Utilities - 4.6% |
Allegheny Energy, Inc. | 123,300 | | 6,755,607 |
Edison International | 305,600 | | 15,940,096 |
Reliant Energy, Inc. (a) | 558,600 | | 11,881,422 |
| | 34,577,125 |
Gas Utilities - 3.3% |
Energen Corp. | 191,700 | | 12,057,930 |
Questar Corp. | 247,300 | | 12,590,043 |
| | 24,647,973 |
Independent Power Producers & Energy Traders - 4.2% |
Constellation Energy Group, Inc. | 103,700 | | 9,743,652 |
Mirant Corp. (a) | 315,100 | | 11,608,284 |
NRG Energy, Inc. (a) | 268,200 | | 10,349,838 |
| | 31,701,774 |
Multi-Utilities - 1.9% |
CMS Energy Corp. | 583,000 | | 9,135,610 |
OGE Energy Corp. | 162,500 | | 5,318,625 |
| | 14,454,235 |
TOTAL UTILITIES | | 105,381,107 |
TOTAL COMMON STOCKS (Cost $760,656,463) | 750,321,328 |
Money Market Funds - 10.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 3.79% (b) | 5,496,422 | | $ 5,496,422 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 74,160,825 | | 74,160,825 |
TOTAL MONEY MARKET FUNDS (Cost $79,657,247) | 79,657,247 |
TOTAL INVESTMENT PORTFOLIO - 110.3% (Cost $840,313,710) | | 829,978,575 |
NET OTHER ASSETS - (10.3)% | | (77,171,615) |
NET ASSETS - 100% | $ 752,806,960 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 394,997 |
Fidelity Securities Lending Cash Central Fund | 169,409 |
Total | $ 564,406 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 86.9% |
Bermuda | 11.3% |
Cayman Islands | 1.2% |
Others (individually less than 1%) | 0.6% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $31,051,104 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $73,863,006) - See accompanying schedule: Unaffiliated issuers (cost $760,656,463) | $ 750,321,328 | |
Fidelity Central Funds (cost $79,657,247) | 79,657,247 | |
Total Investments (cost $840,313,710) | | $ 829,978,575 |
Receivable for investments sold | | 20,806,082 |
Receivable for fund shares sold | | 2,652,227 |
Dividends receivable | | 223,102 |
Distributions receivable from Fidelity Central Funds | | 36,747 |
Prepaid expenses | | 2,661 |
Other receivables | | 46 |
Total assets | | 853,699,440 |
| | |
Liabilities | | |
Payable for investments purchased | $ 20,180,467 | |
Payable for fund shares redeemed | 5,956,855 | |
Accrued management fee | 312,903 | |
Distribution fees payable | 5,417 | |
Other affiliated payables | 203,019 | |
Other payables and accrued expenses | 72,994 | |
Collateral on securities loaned, at value | 74,160,825 | |
Total liabilities | | 100,892,480 |
| | |
Net Assets | | $ 752,806,960 |
Net Assets consist of: | | |
Paid in capital | | $ 788,210,259 |
Undistributed net investment income | | 1,465,714 |
Accumulated undistributed net realized gain (loss) on investments | | (26,533,878) |
Net unrealized appreciation (depreciation) on investments | | (10,335,135) |
Net Assets | | $ 752,806,960 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($7,444,673 ÷ 494,661 shares) | | $ 15.05 |
| | |
Maximum offering price per share (100/94.25 of $15.05) | | $ 15.97 |
Class T:
Net Asset Value and redemption price per share ($3,714,323 ÷ 247,029 shares) | | $ 15.04 |
| | |
Maximum offering price per share (100/96.50 of $15.04) | | $ 15.59 |
Class B:
Net Asset Value and offering price per share ($1,304,436 ÷ 87,007 shares)A | | $ 14.99 |
| | |
Class C:
Net Asset Value and offering price per share ($1,657,889 ÷ 110,680 shares)A | | $ 14.98 |
| | |
Mid Cap Value:
Net Asset Value, offering price and redemption price per share ($737,234,029 ÷ 48,847,921 shares) | | $ 15.09 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,451,610 ÷ 96,411 shares) | | $ 15.06 |
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.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 11,189,048 |
Interest | | 8,457 |
Income from Fidelity Central Funds (including $169,409 from security lending) | | 564,406 |
Total income | | 11,761,911 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,084,079 | |
Performance adjustment | (317,451) | |
Transfer agent fees | 2,236,010 | |
Distribution fees | 53,691 | |
Accounting and security lending fees | 315,091 | |
Custodian fees and expenses | 28,074 | |
Independent trustees' compensation | 3,227 | |
Registration fees | 145,678 | |
Audit | 58,698 | |
Legal | 4,195 | |
Interest | 4,946 | |
Miscellaneous | 29,800 | |
Total expenses before reductions | 7,646,038 | |
Expense reductions | (105,134) | 7,540,904 |
Net investment income (loss) | | 4,221,007 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | (3,216,421) |
Change in net unrealized appreciation (depreciation) on investment securities | | (85,150,820) |
Net gain (loss) | | (88,367,241) |
Net increase (decrease) in net assets resulting from operations | | $ (84,146,234) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,221,007 | $ 2,688,685 |
Net realized gain (loss) | (3,216,421) | 24,851,516 |
Change in net unrealized appreciation (depreciation) | (85,150,820) | 43,131,851 |
Net increase (decrease) in net assets resulting from operations | (84,146,234) | 70,672,052 |
Distributions to shareholders from net investment income | (3,037,015) | (2,949,768) |
Distributions to shareholders from net realized gain | (37,140,454) | (13,997,322) |
Total distributions | (40,177,469) | (16,947,090) |
Share transactions - net increase (decrease) | 198,288,449 | 259,218,977 |
Redemption fees | 47,852 | 33,264 |
Total increase (decrease) in net assets | 74,012,598 | 312,977,203 |
| | |
Net Assets | | |
Beginning of period | 678,794,362 | 365,817,159 |
End of period (including undistributed net investment income of $1,465,714 and undistributed net investment income
of $375,291, respectively) | $ 752,806,960 | $ 678,794,362 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | .03 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.75) |
Distributions from net investment income | (.06) |
Distributions from net realized gain | (.77) |
Total distributions | (.83) |
Net asset value, end of period | $ 15.05 |
Total Return B,C,D | (10.28)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.14% A |
Expenses net of fee waivers, if any | 1.14% A |
Expenses net of all reductions | 1.13% A |
Net investment income (loss) | .16% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 7,445 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.02) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.78) |
Distributions from net investment income | (.04) |
Distributions from net realized gain | (.77) |
Total distributions | (.81) |
Net asset value, end of period | $ 15.04 |
Total Return B,C,D | (10.46)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.39% A |
Expenses net of fee waivers, if any | 1.39% A |
Expenses net of all reductions | 1.39% A |
Net investment income (loss) | (.10)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,714 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.86) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.99 |
Total Return B,C,D | (10.88)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.89% A |
Expenses net of fee waivers, if any | 1.89% A |
Expenses net of all reductions | 1.89% A |
Net investment income (loss) | (.59)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,304 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.77) |
Total from investment operations | (1.87) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.98 |
Total Return B,C,D | (10.94)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.90% A |
Expenses net of fee waivers, if any | 1.90% A |
Expenses net of all reductions | 1.90% A |
Net investment income (loss) | (.60)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,658 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Value
Years ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 | $ 8.85 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .08 | .09 | .16 E | .08 | .06 |
Net realized and unrealized gain (loss) | (1.34) | 1.98 | 2.59 | 2.10 | 3.45 |
Total from investment operations | (1.26) | 2.07 | 2.75 | 2.18 | 3.51 |
Distributions from net investment income | (.06) | (.09) | (.10) | (.04) | (.04) |
Distributions from net realized gain | (.77) | (.45) | (1.15) | (.32) | - |
Total distributions | (.83) | (.54) | (1.24) H | (.36) | (.04) |
Redemption fees added to paid in capital B,G | - | - | - | - | - |
Net asset value, end of period | $ 15.09 | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 |
Total Return A | (7.67)% | 13.48% | 19.97% | 17.75% | 39.69% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .83% | .84% | .86% | .91% | 1.07% |
Expenses net of fee waivers, if any | .82% | .84% | .86% | .91% | 1.07% |
Expenses net of all reductions | .82% | .84% | .81% | .90% | 1.05% |
Net investment income (loss) | .47% | .56% | 1.08% E | .59% | .55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 737,234 | $ 678,794 | $ 365,817 | $ 153,231 | $ 95,797 |
Portfolio turnover rate D | 264% | 187% | 207% | 196% | 97% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H Total distributions of $1.24 per share is comprised of distributions from net investment income of $0.95 and distributions from net realized gain of $1.145 per share.
Financial Highlights - Institutional Class
Years ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) D | .07 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.71) |
Distributions from net investment income | (.09) |
Distributions from net realized gain | (.77) |
Total distributions | (.86) |
Net asset value, end of period | $ 15.06 |
Total Return B,C | (10.06)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .89% A |
Expenses net of fee waivers, if any | .89% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .41% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,452 |
Portfolio turnover rate F | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Large Cap Growth | -7.26% | 10.76% | 2.35% |
A From November 15, 2001.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Large Cap Growth, a class of the fund, on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
Annual Report
Fidelity Large Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Edward Best, Portfolio Manager of Fidelity® Large Cap Growth Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months ending January 31, 2008, Large Cap Growth fell 7.26%, trailing the 0.51% return of the Russell 1000® Growth Index. Poor security selection in consumer discretionary, information technology and industrials accounted for the majority of the fund's underperformance compared with the index. Within consumer discretionary, the fund was hurt most by unproductive picks within the retailing and homebuilding segments. Consumer electronics retailer RadioShack and discount retailer Big Lots fell on investors' concerns about the companies' ability to weather recessionary concerns and a weak U.S. consumer. Pharmaceuticals company Sepracor suffered due to a change in Medicare reimbursement for one of its top-selling patented drugs. Airlines US Airways and AMR Corp. - parent company of American Airlines - underperformed due to increased pressure from rising energy prices. The fund's positions in homebuilders KB Home, Ryland Group, D.R. Horton and Lennar, all of which I sold when I took over the fund in June, also held back performance. While our overall stock picking within industrials detracted, stock selection within the sector's capital goods segment actually helped the fund. Specifically, Manitowoc, a major supplier of lifting equipment to the global construction industry, aided performance. Also within capital goods, defense contractor Lockheed Martin benefited from an increase in U.S. defense spending. Stock selection among health care names was positive as well. Pharmaceutical company Biogen Idec gained on news of the re-launch of its multiple sclerosis drug, Tysabri. While stock selection in technology hurt overall, there were some contributors. Apple advanced as the stock did well on the success of its iPod, iPhone and iMac products. Software developer Microsoft also aided performance. By the end of the period, I sold US Airways, AMR Corp., RadioShack, Big Lots, Sepracor, and Apple to take advantage of other opportunities in the market.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Microsoft Corp. | 5.0 | 5.0 |
Exxon Mobil Corp. | 4.4 | 1.6 |
Oracle Corp. | 4.1 | 0.0 |
The Boeing Co. | 3.9 | 0.0 |
Cisco Systems, Inc. | 3.8 | 2.4 |
Bristol-Myers Squibb Co. | 3.6 | 0.0 |
Accenture Ltd. Class A | 3.3 | 3.3 |
NIKE, Inc. Class B | 3.3 | 0.0 |
NYMEX Holdings, Inc. | 3.1 | 0.0 |
Kroger Co. | 3.0 | 3.1 |
| 37.5 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.0 | 26.9 |
Health Care | 16.8 | 16.2 |
Industrials | 14.2 | 14.2 |
Consumer Discretionary | 11.9 | 13.5 |
Consumer Staples | 10.9 | 9.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.4% | | | Stocks 99.8% | |
| Short-Term
Investments and
Net Other Assets 0.6% | | | Short-Term
Investments and
Net Other Assets 0.2% | |
* Foreign investments | 4.4% | | **Foreign
investments | 5.5% | |
Annual Report
Fidelity Large Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.9% |
Auto Components - 1.6% |
The Goodyear Tire & Rubber Co. (a) | 99,300 | | $ 2,499,381 |
Diversified Consumer Services - 1.2% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 22,600 | | 1,802,124 |
Hotels, Restaurants & Leisure - 2.6% |
McDonald's Corp. | 74,200 | | 3,973,410 |
Media - 2.3% |
Regal Entertainment Group Class A (d) | 189,300 | | 3,509,622 |
Specialty Retail - 0.9% |
Gamestop Corp. Class A (a) | 27,400 | | 1,417,402 |
Textiles, Apparel & Luxury Goods - 3.3% |
NIKE, Inc. Class B | 79,900 | | 4,934,624 |
TOTAL CONSUMER DISCRETIONARY | | 18,136,563 |
CONSUMER STAPLES - 10.9% |
Beverages - 5.0% |
Pepsi Bottling Group, Inc. | 114,200 | | 3,979,870 |
PepsiCo, Inc. | 52,500 | | 3,579,975 |
| | 7,559,845 |
Food & Staples Retailing - 3.0% |
Kroger Co. | 181,400 | | 4,616,630 |
Food Products - 2.4% |
Kellogg Co. | 77,200 | | 3,697,880 |
Household Products - 0.5% |
Energizer Holdings, Inc. (a) | 8,300 | | 777,046 |
TOTAL CONSUMER STAPLES | | 16,651,401 |
ENERGY - 7.9% |
Energy Equipment & Services - 0.9% |
Baker Hughes, Inc. | 5,700 | | 370,101 |
Nabors Industries Ltd. (a) | 24,400 | | 664,168 |
Schlumberger Ltd. (NY Shares) | 5,000 | | 377,300 |
| | 1,411,569 |
Oil, Gas & Consumable Fuels - 7.0% |
Exxon Mobil Corp. | 78,000 | | 6,739,200 |
Sunoco, Inc. | 13,000 | | 808,600 |
Valero Energy Corp. | 53,000 | | 3,137,070 |
| | 10,684,870 |
TOTAL ENERGY | | 12,096,439 |
FINANCIALS - 7.5% |
Capital Markets - 4.4% |
Charles Schwab Corp. | 198,200 | | 4,419,860 |
Northern Trust Corp. | 30,900 | | 2,266,824 |
| | 6,686,684 |
|
| Shares | | Value |
Diversified Financial Services - 3.1% |
NYMEX Holdings, Inc. (d) | 41,700 | | $ 4,795,500 |
TOTAL FINANCIALS | | 11,482,184 |
HEALTH CARE - 16.8% |
Biotechnology - 1.2% |
Biogen Idec, Inc. (a) | 29,300 | | 1,785,835 |
Health Care Equipment & Supplies - 2.8% |
Baxter International, Inc. | 69,700 | | 4,233,578 |
Health Care Providers & Services - 9.2% |
Aetna, Inc. | 86,000 | | 4,580,360 |
Express Scripts, Inc. (a) | 11,400 | | 769,386 |
Medco Health Solutions, Inc. (a) | 35,200 | | 1,762,816 |
UnitedHealth Group, Inc. | 47,700 | | 2,425,068 |
WellPoint, Inc. (a) | 57,800 | | 4,519,960 |
| | 14,057,590 |
Pharmaceuticals - 3.6% |
Bristol-Myers Squibb Co. | 234,400 | | 5,435,736 |
TOTAL HEALTH CARE | | 25,512,739 |
INDUSTRIALS - 14.2% |
Aerospace & Defense - 5.6% |
Lockheed Martin Corp. | 5,900 | | 636,728 |
Precision Castparts Corp. | 16,900 | | 1,923,220 |
The Boeing Co. | 71,500 | | 5,947,370 |
| | 8,507,318 |
Commercial Services & Supplies - 3.9% |
Allied Waste Industries, Inc. (a) | 460,200 | | 4,532,970 |
HNI Corp. (d) | 15,400 | | 518,364 |
Manpower, Inc. | 15,300 | | 860,778 |
| | 5,912,112 |
Construction & Engineering - 2.7% |
Fluor Corp. | 7,500 | | 912,525 |
Shaw Group, Inc. (a) | 13,800 | | 779,700 |
URS Corp. (a) | 54,700 | | 2,401,330 |
| | 4,093,555 |
Industrial Conglomerates - 0.8% |
McDermott International, Inc. (a) | 24,500 | | 1,155,910 |
Machinery - 1.2% |
AGCO Corp. (a) | 8,700 | | 523,914 |
Cummins, Inc. | 16,500 | | 796,620 |
Manitowoc Co., Inc. | 15,400 | | 587,048 |
| | 1,907,582 |
TOTAL INDUSTRIALS | | 21,576,477 |
INFORMATION TECHNOLOGY - 26.0% |
Communications Equipment - 3.8% |
Cisco Systems, Inc. (a) | 236,300 | | 5,789,350 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 0.5% |
Lexmark International, Inc. Class A (a) | 1,400 | | $ 50,694 |
Western Digital Corp. (a) | 29,000 | | 767,050 |
| | 817,744 |
Electronic Equipment & Instruments - 0.5% |
National Instruments Corp. | 27,400 | | 735,964 |
IT Services - 6.2% |
Accenture Ltd. Class A | 143,600 | | 4,971,432 |
Mastercard, Inc. Class A (d) | 7,000 | | 1,449,000 |
The Western Union Co. | 135,200 | | 3,028,480 |
| | 9,448,912 |
Semiconductors & Semiconductor Equipment - 2.2% |
MEMC Electronic Materials, Inc. (a) | 12,500 | | 893,250 |
NVIDIA Corp. (a) | 82,500 | | 2,028,675 |
Texas Instruments, Inc. | 12,000 | | 371,160 |
| | 3,293,085 |
Software - 12.8% |
Autodesk, Inc. (a) | 76,100 | | 3,131,515 |
BMC Software, Inc. (a) | 74,200 | | 2,377,368 |
Microsoft Corp. | 233,200 | | 7,602,320 |
Oracle Corp. (a) | 306,900 | | 6,306,795 |
| | 19,417,998 |
TOTAL INFORMATION TECHNOLOGY | | 39,503,053 |
MATERIALS - 3.0% |
Chemicals - 2.0% |
Air Products & Chemicals, Inc. | 4,200 | | 378,084 |
E.I. du Pont de Nemours & Co. | 10,100 | | 456,318 |
Monsanto Co. | 12,800 | | 1,439,232 |
Praxair, Inc. | 4,700 | | 380,277 |
The Mosaic Co. (a) | 4,000 | | 364,040 |
| | 3,017,951 |
Metals & Mining - 1.0% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 8,400 | | 747,852 |
Newmont Mining Corp. | 7,100 | | 385,814 |
Southern Copper Corp. | 4,400 | | 412,896 |
| | 1,546,562 |
TOTAL MATERIALS | | 4,564,513 |
|
| Shares | | Value |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
Crown Castle International Corp. (a) | 10,700 | | $ 387,233 |
UTILITIES - 0.9% |
Electric Utilities - 0.9% |
Exelon Corp. | 18,300 | | 1,394,277 |
TOTAL COMMON STOCKS (Cost $156,064,347) | 151,304,879 |
Money Market Funds - 6.4% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 1,837,290 | | 1,837,290 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 7,887,500 | | 7,887,500 |
TOTAL MONEY MARKET FUNDS (Cost $9,724,790) | 9,724,790 |
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $165,789,137) | | 161,029,669 |
NET OTHER ASSETS - (5.8)% | | (8,892,495) |
NET ASSETS - 100% | $ 152,137,174 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 60,857 |
Fidelity Securities Lending Cash Central Fund | 56,422 |
Total | $ 117,279 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $7,837,041 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $7,883,516) - See accompanying schedule: Unaffiliated issuers (cost $156,064,347) | $ 151,304,879 | |
Fidelity Central Funds (cost $9,724,790) | 9,724,790 | |
Total Investments (cost $165,789,137) | | $ 161,029,669 |
Receivable for investments sold | | 18,559,475 |
Receivable for fund shares sold | | 222,238 |
Dividends receivable | | 82,079 |
Distributions receivable from Fidelity Central Funds | | 4,743 |
Prepaid expenses | | 514 |
Receivable from investment adviser for expense reductions | | 25,900 |
Total assets | | 179,924,618 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,486,946 | |
Payable for fund shares redeemed | 257,786 | |
Accrued management fee | 52,051 | |
Distribution fees payable | 1,918 | |
Other affiliated payables | 48,536 | |
Other payables and accrued expenses | 52,707 | |
Collateral on securities loaned, at value | 7,887,500 | |
Total liabilities | | 27,787,444 |
| | |
Net Assets | | $ 152,137,174 |
Net Assets consist of: | | |
Paid in capital | | $ 162,808,253 |
Accumulated undistributed net realized gain (loss) on investments | | (5,911,611) |
Net unrealized appreciation (depreciation) on investments | | (4,759,468) |
Net Assets | | $ 152,137,174 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,302,425 ÷ 132,172 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/94.25 of $9.85) | | $ 10.45 |
Class T:
Net Asset Value and redemption price per share ($1,097,491 ÷ 111,448 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/96.50 of $9.85) | | $ 10.21 |
Class B:
Net Asset Value and offering price per share ($543,149 ÷ 55,237 shares)A | | $ 9.83 |
| | |
Class C:
Net Asset Value and offering price per share ($944,595 ÷ 96,233 shares)A | | $ 9.82 |
| | |
Large Cap Growth:
Net Asset Value, offering price and redemption price per share ($147,863,609 ÷ 14,947,307 shares) | | $ 9.89 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($385,905 ÷ 39,068 shares) | | $ 9.88 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 1,475,584 |
Interest | | 922 |
Income from Fidelity Central Funds (including $56,422 from security lending) | | 117,279 |
Total income | | 1,593,785 |
| | |
Expenses | | |
Management fee
Basic fee | $ 979,536 | |
Performance adjustment | 37,062 | |
Transfer agent fees | 534,768 | |
Distribution fees | 10,735 | |
Accounting and security lending fees | 70,624 | |
Custodian fees and expenses | 18,147 | |
Independent trustees' compensation | 638 | |
Registration fees | 103,527 | |
Audit | 55,247 | |
Legal | 928 | |
Miscellaneous | 11,842 | |
Total expenses before reductions | 1,823,054 | |
Expense reductions | (97,947) | 1,725,107 |
Net investment income (loss) | | (131,322) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 10,237,592 |
Change in net unrealized appreciation (depreciation) on investment securities | | (21,747,840) |
Net gain (loss) | | (11,510,248) |
Net increase (decrease) in net assets resulting from operations | | $ (11,641,570) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (131,322) | $ 26,323 |
Net realized gain (loss) | 10,237,592 | 4,571,573 |
Change in net unrealized appreciation (depreciation) | (21,747,840) | (297,654) |
Net increase (decrease) in net assets resulting from operations | (11,641,570) | 4,300,242 |
Distributions to shareholders from net investment income | - | (137,207) |
Distributions to shareholders from net realized gain | (18,572,404) | (3,644,497) |
Total distributions | (18,572,404) | (3,781,704) |
Share transactions - net increase (decrease) | (1,164,336) | 25,478,221 |
Redemption fees | - | 5,257 |
Total increase (decrease) in net assets | (31,378,310) | 26,002,016 |
| | |
Net Assets | | |
Beginning of period | 183,515,484 | 157,513,468 |
End of period | $ 152,137,174 | $ 183,515,484 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.03) |
Net realized and unrealized gain (loss) | (.72) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (6.99)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.20% A |
Expenses net of fee waivers, if any | 1.20% A |
Expenses net of all reductions | 1.20% A |
Net investment income (loss) | (.29)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,302 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.06) |
Net realized and unrealized gain (loss) | (.69) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (7.05)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | (.56)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,097 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.12) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.82) |
Distributions from net realized gain | (1.20) |
Net asset value, end of period | $ 9.83 |
Total Return B,C,D | (7.62)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | (1.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 543 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.11) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.81) |
Distributions from net realized gain | (1.22) |
Net asset value, end of period | $ 9.82 |
Total Return B,C,D | (7.54)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.96% A |
Expenses net of fee waivers, if any | 1.96% A |
Expenses net of all reductions | 1.96% A |
Net investment income (loss) | (1.05)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 945 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 | $ 6.93 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.01) | - H | .02 E | (.01) F | (.01) |
Net realized and unrealized gain (loss) | (.77) | .37 | 1.87 | .97 | 2.29 |
Total from investment operations | (.78) | .37 | 1.89 | .96 | 2.28 |
Distributions from net investment income | - | (.01) | - | - | - |
Distributions from net realized gain | (1.25) | (.26) | (.24) | - | - |
Total distributions | (1.25) | (.27) | (.24) | - | - |
Redemption fees added to paid in capital B | - | - H,I | - H | - H | - H |
Net asset value, end of period | $ 9.89 | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 |
Total Return A | (7.26)% | 3.20% | 18.66% | 10.42% | 32.90% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | 1.03% | 1.10% | 1.12% | 1.30% | 1.53% |
Expenses net of fee waivers, if any | .99% | 1.00% | 1.00% | 1.20% | 1.20% |
Expenses net of all reductions | .98% | .99% | .94% | 1.13% | 1.18% |
Net investment income (loss) | (.07)% | .02% | .15% E | (.07)% F | (.15)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 147,864 | $ 183,515 | $ 157,513 | $ 49,453 | $ 23,079 |
Portfolio turnover rate D | 428% | 189% | 268% | 274% | 81% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
F Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.32)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The redemption fee was eliminated during the year ended January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) | (.70) |
Distributions from net realized gain | (1.27) |
Net asset value, end of period | $ 9.88 |
Total Return B,C | (6.64)% |
Ratios to Average Net Assets D,E | |
Expenses before reductions | .88% A |
Expenses net of fee waivers, if any | .88% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .03% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 386 |
Portfolio turnover rate F | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Mid Cap Growth | -9.68% | 13.19% | 5.08% |
A From November 15, 2001.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Mid Cap Growth, a class of the fund, on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Annual Report
Fidelity Mid Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Patrick Venanzi, who became Portfolio Manager of Fidelity® Mid Cap Growth Fund on January 4, 2008
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months ending January 31, 2008, the fund fell 9.68%, compared with a return of -1.03% for the Russell Midcap® Growth Index. Poor stock selection in consumer discretionary, industrials, materials and consumer staples hurt the most. While the fund struggled to keep pace with the index for most of the period, stock selection in energy and health care helped limit some of the downside. Within industrials, the fund's overweighting in transportation stocks, specifically in the airlines, detracted from performance. Our holdings in US Airways and AMR Corp., the parent company of American Airlines, suffered from rising energy costs. Overweighted holdings in the consumer durables and apparel segment - primarily the homebuilders - also took a bite out of fund performance. D.R. Horton, Ryland Group, KB Home and Lennar were particularly hard hit as the U.S. residential real estate market continued to slow down. I sold D.R. Horton, Ryland Group and Lennar. On the positive side, energy services company National Oilwell Varco was the fund's biggest contributor. Another contributor was the fund's out-of-index position in consumer electronics giant Apple, which continued to gain from strong sales of its iPod, iPhone and iMac product lines. I sold the fund's position in Apple to lock in profits. Heavy-lifting equipment and crane manufacturer Manitowoc advanced due to the continuing worldwide build-out of commercial and industrial infrastructure. I sold this position by the end of the period. BE Aerospace, which makes products for aircraft cabin interiors, also contributed, as investors expressed confidence in the company's new contracts to supply airline carriers that are upgrading their fleets. Lastly, MEMC Electronic Materials, which produces silicon wafers, helped as well.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Mid Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PPL Corp. | 1.4 | 0.7 |
Southwestern Energy Co. | 1.4 | 0.3 |
Constellation Energy Group, Inc. | 1.3 | 1.0 |
National Oilwell Varco, Inc. | 1.3 | 3.9 |
Align Technology, Inc. | 1.1 | 0.0 |
Centex Corp. | 1.1 | 0.0 |
TranS1, Inc. | 1.0 | 0.0 |
Polycom, Inc. | 0.9 | 0.0 |
Intuitive Surgical, Inc. | 0.9 | 0.0 |
Northwest Airlines Corp. | 0.9 | 0.0 |
| 11.3 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 19.8 | 19.0 |
Industrials | 17.1 | 16.1 |
Health Care | 16.6 | 12.9 |
Consumer Discretionary | 14.1 | 17.6 |
Energy | 11.6 | 10.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 100.2% | | | Stocks 97.8% | |
 | Short-Term
Investments and
Net Other Assets(dagger) (0.2)% | | | Short-Term
Investments and
Net Other Assets 2.2% | |
* Foreign
investments | 11.7% | | **Foreign investments | 2.1% | |
(dagger) Short-Term Investments
and Net Other Assets
are not included in the pie chart. | | | | |
Annual Report
Fidelity Mid Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 100.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 14.1% |
Automobiles - 0.3% |
Renault SA | 7,300 | | $ 833,337 |
Diversified Consumer Services - 1.1% |
American Public Education, Inc. | 7,200 | | 283,752 |
Apollo Group, Inc. Class A (non-vtg.) (a) | 8,200 | | 653,868 |
DeVry, Inc. | 19,000 | | 1,048,610 |
Regis Corp. | 56,400 | | 1,428,612 |
| | 3,414,842 |
Hotels, Restaurants & Leisure - 2.1% |
Bally Technologies, Inc. (a) | 20,200 | | 962,328 |
Boyd Gaming Corp. | 66,400 | | 1,774,872 |
Buffalo Wild Wings, Inc. (a) | 8,400 | | 211,428 |
Burger King Holdings, Inc. | 54,789 | | 1,443,690 |
Gaylord Entertainment Co. (a) | 29,700 | | 866,943 |
Papa John's International, Inc. (a) | 26,100 | | 660,069 |
Peet's Coffee & Tea, Inc. (a) | 7,000 | | 153,580 |
Starwood Hotels & Resorts Worldwide, Inc. | 5,400 | | 244,350 |
| | 6,317,260 |
Household Durables - 2.1% |
Centex Corp. (d) | 116,700 | | 3,241,926 |
KB Home | 100 | | 2,750 |
Newell Rubbermaid, Inc. | 15,100 | | 364,212 |
Pulte Homes, Inc. | 33,500 | | 547,390 |
Whirlpool Corp. | 25,700 | | 2,187,327 |
| | 6,343,605 |
Internet & Catalog Retail - 1.2% |
Blue Nile, Inc. (a) | 17,400 | | 961,350 |
Expedia, Inc. (a) | 10,600 | | 244,012 |
Priceline.com, Inc. (a) | 21,099 | | 2,289,663 |
| | 3,495,025 |
Leisure Equipment & Products - 0.7% |
Hasbro, Inc. | 12,400 | | 322,028 |
Leapfrog Enterprises, Inc. Class A (a) | 36,300 | | 236,313 |
Mattel, Inc. | 53,533 | | 1,124,728 |
Nikon Corp. | 14,000 | | 381,830 |
| | 2,064,899 |
Media - 2.7% |
Cablevision Systems Corp. - NY Group Class A (a) | 30,300 | | 711,444 |
DISH Network Corp. Class A (a) | 13,057 | | 368,730 |
E.W. Scripps Co. Class A | 35,800 | | 1,457,776 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 94,000 | | 2,095,260 |
Regal Entertainment Group Class A | 87,100 | | 1,614,834 |
SR Teleperformance SA | 44,300 | | 1,386,369 |
The Walt Disney Co. | 11,700 | | 350,181 |
Time Warner, Inc. | 21,600 | | 339,984 |
| | 8,324,578 |
|
| Shares | | Value |
Multiline Retail - 0.1% |
Dollar Tree Stores, Inc. (a) | 14,300 | | $ 400,543 |
Specialty Retail - 3.2% |
Abercrombie & Fitch Co. Class A | 5,100 | | 406,419 |
Advance Auto Parts, Inc. | 30,500 | | 1,088,240 |
Asbury Automotive Group, Inc. | 13,100 | | 185,758 |
AutoZone, Inc. (a) | 8,800 | | 1,063,744 |
Gamestop Corp. Class A (a) | 5,400 | | 279,342 |
Group 1 Automotive, Inc. | 8,700 | | 230,028 |
Home Depot, Inc. | 19,700 | | 604,199 |
Lumber Liquidators, Inc. | 3,400 | | 30,260 |
OfficeMax, Inc. | 49,800 | | 1,233,546 |
Ross Stores, Inc. | 36,300 | | 1,058,145 |
Tween Brands, Inc. (a)(d) | 44,700 | | 1,431,741 |
Urban Outfitters, Inc. (a) | 28,800 | | 835,200 |
Williams-Sonoma, Inc. | 49,500 | | 1,330,560 |
Zumiez, Inc. (a) | 3,500 | | 67,305 |
| | 9,844,487 |
Textiles, Apparel & Luxury Goods - 0.6% |
Coach, Inc. (a) | 13,000 | | 416,650 |
Deckers Outdoor Corp. (a) | 2,800 | | 339,472 |
Lululemon Athletica, Inc. | 15,700 | | 532,073 |
Under Armour, Inc. Class A (sub. vtg.) (a) | 16,000 | | 644,000 |
| | 1,932,195 |
TOTAL CONSUMER DISCRETIONARY | | 42,970,771 |
CONSUMER STAPLES - 3.4% |
Beverages - 0.1% |
Coca-Cola Femsa SA de CV sponsored ADR | 7,200 | | 338,040 |
Food & Staples Retailing - 1.3% |
CVS Caremark Corp. | 14,600 | | 570,422 |
Performance Food Group Co. (a) | 48,000 | | 1,518,240 |
Safeway, Inc. | 25,200 | | 780,948 |
Sysco Corp. | 42,100 | | 1,223,005 |
| | 4,092,615 |
Food Products - 1.5% |
Campbell Soup Co. | 17,300 | | 546,853 |
Marine Harvest ASA (a) | 2,600,000 | | 1,400,493 |
McCormick & Co., Inc. (non-vtg.) | 55,300 | | 1,864,716 |
Seaboard Corp. | 370 | | 475,543 |
Wm. Wrigley Jr. Co. | 3,000 | | 172,290 |
| | 4,459,895 |
Household Products - 0.4% |
Energizer Holdings, Inc. (a) | 13,300 | | 1,245,146 |
Personal Products - 0.1% |
Estee Lauder Companies, Inc. Class A | 8,900 | | 375,580 |
TOTAL CONSUMER STAPLES | | 10,511,276 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - 11.6% |
Energy Equipment & Services - 5.0% |
Atwood Oceanics, Inc. (a) | 21,000 | | $ 1,744,890 |
Cameron International Corp. (a) | 31,700 | | 1,276,242 |
Diamond Offshore Drilling, Inc. | 16,700 | | 1,885,931 |
Grey Wolf, Inc. (a) | 297,600 | | 1,773,696 |
Nabors Industries Ltd. (a) | 35,000 | | 952,700 |
National Oilwell Varco, Inc. (a) | 65,120 | | 3,922,178 |
North American Energy Partners, Inc. (a) | 14,200 | | 170,116 |
Ocean RIG ASA (a)(d) | 114,500 | | 787,337 |
Smith International, Inc. | 23,900 | | 1,295,619 |
Transocean, Inc. (a) | 10,961 | | 1,343,819 |
| | 15,152,528 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 21,500 | | 719,390 |
Arch Coal, Inc. | 15,700 | | 690,800 |
Boardwalk Pipeline Partners, LP | 5,700 | | 177,156 |
Canadian Natural Resources Ltd. | 10,100 | | 646,227 |
Chesapeake Energy Corp. | 46,600 | | 1,734,918 |
CONSOL Energy, Inc. | 35,300 | | 2,576,900 |
Copano Energy LLC | 4,900 | | 173,166 |
Denbury Resources, Inc. (a) | 65,700 | | 1,662,210 |
Energy Transfer Equity LP | 5,200 | | 171,652 |
Foundation Coal Holdings, Inc. | 7,000 | | 366,100 |
Frontier Oil Corp. | 38,100 | | 1,343,787 |
Holly Corp. | 28,601 | | 1,384,860 |
OPTI Canada, Inc. (a) | 80,400 | | 1,325,913 |
Petrobank Energy & Resources Ltd. (a) | 7,000 | | 351,761 |
Southwestern Energy Co. (a) | 76,100 | | 4,254,751 |
Tesoro Corp. | 22,400 | | 874,720 |
Valero Energy Corp. | 100 | | 5,919 |
Western Refining, Inc. | 44,460 | | 949,221 |
Williams Companies, Inc. | 27,100 | | 866,387 |
| | 20,275,838 |
TOTAL ENERGY | | 35,428,366 |
FINANCIALS - 9.2% |
Capital Markets - 2.6% |
Franklin Resources, Inc. | 23,600 | | 2,459,828 |
KBW, Inc. (a) | 6,300 | | 187,173 |
Legg Mason, Inc. | 14,500 | | 1,044,000 |
MF Global Ltd. | 73,200 | | 2,199,660 |
SEI Investments Co. | 67,400 | | 1,866,980 |
T. Rowe Price Group, Inc. | 3,300 | | 166,947 |
| | 7,924,588 |
Commercial Banks - 1.5% |
Bank of Yokohama Ltd. | 84,000 | | 544,305 |
Chiba Bank Ltd. | 52,000 | | 384,877 |
Chuo Mitsui Trust Holdings, Inc. | 55,000 | | 377,598 |
Mitsubishi UFJ Financial Group, Inc. | 70,000 | | 691,600 |
Shinsei Bank Ltd. | 117,000 | | 534,769 |
|
| Shares | | Value |
Shizuoka Bank Ltd. | 40,000 | | $ 439,763 |
Sumitomo Mitsui Financial Group, Inc. | 100 | | 788,113 |
Tokyo Tomin Bank Ltd. | 20,600 | | 572,491 |
UMB Financial Corp. | 7,600 | | 320,188 |
| | 4,653,704 |
Consumer Finance - 0.4% |
Cash America International, Inc. | 37,100 | | 1,206,121 |
Diversified Financial Services - 1.5% |
CME Group, Inc. | 800 | | 495,120 |
IntercontinentalExchange, Inc. (a) | 9,400 | | 1,315,624 |
MSCI, Inc. Class A | 11,800 | | 389,046 |
NYMEX Holdings, Inc. | 18,400 | | 2,116,000 |
Osaka Securities Exchange Co. Ltd. | 64 | | 346,092 |
| | 4,661,882 |
Insurance - 0.9% |
Assurant, Inc. | 19,400 | | 1,258,866 |
CNA Financial Corp. | 11,480 | | 390,205 |
CNinsure, Inc. ADR | 44,000 | | 472,560 |
LandAmerica Financial Group, Inc. | 4,900 | | 255,584 |
Philadelphia Consolidated Holdings Corp. (a) | 9,600 | | 343,680 |
Stewart Information Services Corp. | 1,100 | | 37,653 |
| | 2,758,548 |
Real Estate Investment Trusts - 1.5% |
Annaly Capital Management, Inc. | 124,000 | | 2,445,280 |
MFA Mortgage Investments, Inc. | 189,300 | | 1,930,860 |
| | 4,376,140 |
Thrifts & Mortgage Finance - 0.8% |
People's United Financial, Inc. | 58,700 | | 991,443 |
Washington Federal, Inc. | 55,900 | | 1,365,078 |
| | 2,356,521 |
TOTAL FINANCIALS | | 27,937,504 |
HEALTH CARE - 16.6% |
Biotechnology - 3.5% |
Alexion Pharmaceuticals, Inc. (a) | 18,500 | | 1,208,420 |
Amylin Pharmaceuticals, Inc. (a) | 74,607 | | 2,212,098 |
Biogen Idec, Inc. (a) | 26,400 | | 1,609,080 |
Cephalon, Inc. (a) | 11,300 | | 741,619 |
Genentech, Inc. (a) | 8,000 | | 561,520 |
Gilead Sciences, Inc. (a) | 41,362 | | 1,889,830 |
Theravance, Inc. (a)(d) | 127,038 | | 2,506,460 |
| | 10,729,027 |
Health Care Equipment & Supplies - 5.8% |
Abiomed, Inc. (a) | 25,000 | | 377,500 |
Align Technology, Inc. (a)(d) | 283,984 | | 3,345,332 |
American Medical Systems Holdings, Inc. (a) | 90,000 | | 1,286,100 |
Conceptus, Inc. (a) | 158,500 | | 2,580,380 |
Hillenbrand Industries, Inc. | 13,300 | | 687,876 |
Hologic, Inc. (a) | 14,000 | | 901,040 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - continued |
Intuitive Surgical, Inc. (a) | 11,000 | | $ 2,794,000 |
Inverness Medical Innovations, Inc. (a) | 3,000 | | 135,150 |
Mindray Medical International Ltd. sponsored ADR | 10,000 | | 341,000 |
NxStage Medical, Inc. (a) | 14,100 | | 171,174 |
Regeneration Technologies, Inc. (a) | 215,000 | | 1,720,000 |
TranS1, Inc. (d) | 213,000 | | 3,107,670 |
Varian Medical Systems, Inc. (a) | 5,300 | | 275,547 |
| | 17,722,769 |
Health Care Providers & Services - 2.4% |
athenahealth, Inc. (d) | 49,400 | | 1,551,160 |
Brookdale Senior Living, Inc. (d) | 11,000 | | 245,520 |
Coventry Health Care, Inc. (a) | 5,500 | | 311,190 |
Express Scripts, Inc. (a) | 28,600 | | 1,930,214 |
Health Net, Inc. (a) | 10,300 | | 478,847 |
Henry Schein, Inc. (a) | 5,473 | | 318,145 |
MWI Veterinary Supply, Inc. (a) | 8,000 | | 305,840 |
Pediatrix Medical Group, Inc. (a) | 24,587 | | 1,674,129 |
Psychiatric Solutions, Inc. (a) | 5,900 | | 178,003 |
VCA Antech, Inc. (a) | 10,200 | | 394,332 |
| | 7,387,380 |
Health Care Technology - 1.0% |
Cerner Corp. (a) | 43,200 | | 2,263,680 |
MedAssets, Inc. | 7,900 | | 159,185 |
TriZetto Group, Inc. (a) | 38,900 | | 759,328 |
| | 3,182,193 |
Life Sciences Tools & Services - 2.0% |
Affymetrix, Inc. (a)(d) | 60,600 | | 1,215,636 |
Applera Corp. - Applied Biosystems Group | 30,000 | | 945,900 |
Charles River Laboratories International, Inc. (a) | 19,700 | | 1,223,370 |
Covance, Inc. (a) | 1,800 | | 149,688 |
PAREXEL International Corp. (a) | 10,000 | | 544,100 |
Pharmaceutical Product Development, Inc. | 30,200 | | 1,309,472 |
Thermo Fisher Scientific, Inc. (a) | 12,770 | | 657,527 |
| | 6,045,693 |
Pharmaceuticals - 1.9% |
Allergan, Inc. | 20,400 | | 1,370,676 |
BioForm Medical, Inc. (d) | 186,481 | | 1,305,367 |
Perrigo Co. | 15,700 | | 484,188 |
Renovo Group PLC (a) | 342,000 | | 920,384 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 22,300 | | 1,026,692 |
XenoPort, Inc. (a) | 8,600 | | 527,696 |
| | 5,635,003 |
TOTAL HEALTH CARE | | 50,702,065 |
|
| Shares | | Value |
INDUSTRIALS - 17.1% |
Aerospace & Defense - 1.0% |
BE Aerospace, Inc. (a) | 21,444 | | $ 827,953 |
Goodrich Corp. | 19,900 | | 1,244,745 |
Spirit AeroSystems Holdings, Inc.
Class A (a) | 31,700 | | 875,554 |
| | 2,948,252 |
Air Freight & Logistics - 0.2% |
United Parcel Service, Inc. Class B | 6,400 | | 468,224 |
Airlines - 2.3% |
AMR Corp. (a) | 103,000 | | 1,435,820 |
Continental Airlines, Inc. Class B (a) | 63,900 | | 1,738,719 |
Northwest Airlines Corp. (a) | 146,700 | | 2,744,757 |
US Airways Group, Inc. (a) | 89,200 | | 1,231,852 |
| | 7,151,148 |
Building Products - 0.3% |
Ameron International Corp. | 8,000 | | 718,800 |
Universal Forest Products, Inc. | 6,000 | | 217,200 |
| | 936,000 |
Commercial Services & Supplies - 5.1% |
Advisory Board Co. (a) | 2,600 | | 165,672 |
American Reprographics Co. (a) | 46,200 | | 726,726 |
Copart, Inc. (a) | 33,984 | | 1,389,266 |
Corporate Executive Board Co. | 9,400 | | 540,970 |
Corrections Corp. of America (a) | 94,182 | | 2,499,590 |
Fuel Tech, Inc. (a) | 35,600 | | 677,824 |
GeoEye, Inc. (a) | 15,000 | | 524,400 |
IHS, Inc. Class A (a) | 11,500 | | 712,310 |
InnerWorkings, Inc. (a) | 12,000 | | 166,200 |
Manpower, Inc. | 45,400 | | 2,554,204 |
Republic Services, Inc. | 56,600 | | 1,698,000 |
The Geo Group, Inc. (a) | 54,600 | | 1,306,032 |
Waste Connections, Inc. (a) | 45,600 | | 1,329,696 |
Waste Management, Inc. | 34,400 | | 1,115,936 |
| | 15,406,826 |
Construction & Engineering - 0.7% |
Chicago Bridge & Iron Co. NV
(NY Shares) | 4,900 | | 218,001 |
Fluor Corp. | 7,500 | | 912,525 |
Grupo Acciona SA | 2,000 | | 509,808 |
Quanta Services, Inc. (a) | 20,000 | | 438,400 |
| | 2,078,734 |
Electrical Equipment - 3.9% |
Belden, Inc. | 7,000 | | 296,100 |
Energy Conversion Devices, Inc. (a)(d) | 57,020 | | 1,316,022 |
Evergreen Solar, Inc. (a) | 154,800 | | 1,887,012 |
First Solar, Inc. (a) | 10,300 | | 1,872,231 |
JA Solar Holdings Co. Ltd. ADR | 16,000 | | 813,280 |
Nexans SA | 19,800 | | 2,188,427 |
Q-Cells AG (a) | 6,000 | | 564,589 |
Sunpower Corp. Class A (a)(d) | 35,400 | | 2,445,786 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Electrical Equipment - continued |
Superior Essex, Inc. (a) | 13,100 | | $ 315,055 |
Vestas Wind Systems AS (a) | 2,800 | | 271,999 |
| | 11,970,501 |
Machinery - 1.3% |
AGCO Corp. (a) | 20,600 | | 1,240,532 |
GEA Group AG (a) | 32,000 | | 988,991 |
Ingersoll-Rand Co. Ltd. Class A | 18,000 | | 711,360 |
Terex Corp. (a) | 17,100 | | 1,004,796 |
| | 3,945,679 |
Marine - 0.4% |
Ultrapetrol (Bahamas) Ltd. (a) | 70,100 | | 1,125,105 |
Road & Rail - 1.7% |
J.B. Hunt Transport Services, Inc. (d) | 56,100 | | 1,744,710 |
Knight Transportation, Inc. | 102,900 | | 1,765,764 |
Landstar System, Inc. | 36,500 | | 1,826,095 |
| | 5,336,569 |
Trading Companies & Distributors - 0.2% |
Genesis Lease Ltd. ADR | 31,600 | | 635,160 |
TOTAL INDUSTRIALS | | 52,002,198 |
INFORMATION TECHNOLOGY - 19.8% |
Communications Equipment - 2.0% |
Ciena Corp. (a) | 15,000 | | 406,950 |
CommScope, Inc. (a) | 11,700 | | 518,895 |
Corning, Inc. | 22,000 | | 529,540 |
Juniper Networks, Inc. (a) | 64,700 | | 1,756,605 |
Polycom, Inc. (a) | 111,000 | | 2,802,750 |
| | 6,014,740 |
Computers & Peripherals - 1.7% |
Brocade Communications Systems, Inc. (a) | 226,602 | | 1,561,288 |
Diebold, Inc. | 28,644 | | 741,307 |
NCR Corp. (a) | 61,600 | | 1,323,168 |
Western Digital Corp. (a) | 54,600 | | 1,444,170 |
| | 5,069,933 |
Electronic Equipment & Instruments - 1.6% |
Agilent Technologies, Inc. (a) | 8,700 | | 295,017 |
Avnet, Inc. (a) | 17,300 | | 616,053 |
Bell Microproducts, Inc. (a) | 29,818 | | 156,843 |
Comverge, Inc. | 6,100 | | 113,704 |
Flextronics International Ltd. (a) | 51,100 | | 597,870 |
Ingram Micro, Inc. Class A (a) | 30,700 | | 545,846 |
Itron, Inc. (a) | 24,000 | | 1,977,600 |
Jabil Circuit, Inc. | 47,300 | | 626,725 |
| | 4,929,658 |
Internet Software & Services - 2.8% |
Akamai Technologies, Inc. (a) | 16,800 | | 507,360 |
DealerTrack Holdings, Inc. (a) | 23,600 | | 636,256 |
|
| Shares | | Value |
Dice Holdings, Inc. | 258,600 | | $ 1,649,868 |
DivX, Inc. (a) | 50,000 | | 712,500 |
Internet Brands, Inc. Class A | 30,979 | | 239,158 |
Omniture, Inc. (a) | 85,700 | | 2,118,504 |
Online Resources Corp. (a) | 89,800 | | 916,858 |
The Knot, Inc. (a) | 49,700 | | 727,608 |
ValueClick, Inc. (a) | 44,100 | | 962,703 |
| | 8,470,815 |
IT Services - 1.1% |
Cognizant Technology Solutions Corp. Class A (a) | 72,700 | | 2,028,330 |
CyberSource Corp. (a) | 38,000 | | 636,500 |
Mastercard, Inc. Class A | 3,800 | | 786,600 |
| | 3,451,430 |
Semiconductors & Semiconductor Equipment - 7.4% |
Altera Corp. | 93,000 | | 1,570,770 |
Applied Materials, Inc. | 125,400 | | 2,247,168 |
ARM Holdings PLC sponsored ADR | 23,600 | | 167,088 |
ASML Holding NV (NY Shares) (a) | 20,000 | | 531,800 |
Broadcom Corp. Class A (a) | 66,500 | | 1,468,320 |
Cypress Semiconductor Corp. (a) | 62,200 | | 1,321,750 |
FormFactor, Inc. (a) | 21,063 | | 510,146 |
Himax Technologies, Inc. sponsored ADR | 285,100 | | 1,405,543 |
Hittite Microwave Corp. (a) | 12,400 | | 493,768 |
Intersil Corp. Class A | 31,400 | | 723,142 |
Lam Research Corp. (a) | 46,500 | | 1,785,135 |
LDK Solar Co. Ltd. Sponsored ADR (d) | 19,800 | | 697,950 |
Marvell Technology Group Ltd. (a) | 122,180 | | 1,450,277 |
MEMC Electronic Materials, Inc. (a) | 18,500 | | 1,322,010 |
Microchip Technology, Inc. | 35,500 | | 1,132,805 |
Miraial Co. Ltd. | 15,900 | | 386,547 |
National Semiconductor Corp. | 53,000 | | 976,790 |
Skyworks Solutions, Inc. (a)(d) | 124,700 | | 1,003,835 |
Teradyne, Inc. (a) | 5,400 | | 59,238 |
Varian Semiconductor Equipment Associates, Inc. (a) | 63,800 | | 2,054,998 |
Xilinx, Inc. | 61,200 | | 1,338,444 |
| | 22,647,524 |
Software - 3.2% |
Activision, Inc. (a) | 25,100 | | 649,337 |
Citrix Systems, Inc. (a) | 12,000 | | 415,440 |
CompuGROUP Holding AG (a) | 33,000 | | 622,352 |
Concur Technologies, Inc. (a) | 53,300 | | 1,868,698 |
FactSet Research Systems, Inc. | 6,000 | | 335,580 |
Jack Henry & Associates, Inc. | 53,300 | | 1,310,114 |
Microsoft Corp. | 20,800 | | 678,080 |
Nintendo Co. Ltd. | 400 | | 197,600 |
Nuance Communications, Inc. (a) | 87,000 | | 1,382,430 |
Shanda Interactive Entertainment Ltd. sponsored ADR (a) | 17,900 | | 492,071 |
SPSS, Inc. (a) | 9,000 | | 297,450 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Take-Two Interactive Software, Inc. (a)(d) | 61,650 | | $ 1,013,526 |
THQ, Inc. (a) | 33,800 | | 608,738 |
| | 9,871,416 |
TOTAL INFORMATION TECHNOLOGY | | 60,455,516 |
MATERIALS - 3.1% |
Chemicals - 0.2% |
FMC Corp. | 11,300 | | 600,708 |
Construction Materials - 0.5% |
Martin Marietta Materials, Inc. (d) | 13,800 | | 1,693,536 |
Containers & Packaging - 0.4% |
Smurfit-Stone Container Corp. (a) | 39,600 | | 375,804 |
Temple-Inland, Inc. | 39,600 | | 742,500 |
| | 1,118,304 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 19,542 | | 1,375,757 |
Barrick Gold Corp. | 6,900 | | 356,224 |
Century Aluminum Co. (a) | 14,000 | | 727,860 |
Newmont Mining Corp. | 10,000 | | 543,400 |
Nucor Corp. | 22,200 | | 1,283,160 |
Randgold Resources Ltd. sponsored ADR | 5,800 | | 276,718 |
RTI International Metals, Inc. (a) | 23,140 | | 1,278,485 |
| | 5,841,604 |
Paper & Forest Products - 0.1% |
Glatfelter | 12,400 | | 179,304 |
TOTAL MATERIALS | | 9,433,456 |
TELECOMMUNICATION SERVICES - 1.3% |
Wireless Telecommunication Services - 1.3% |
American Tower Corp. Class A (a) | 52,705 | | 1,978,019 |
NII Holdings, Inc. (a) | 48,691 | | 2,077,158 |
| | 4,055,177 |
UTILITIES - 4.0% |
Electric Utilities - 2.1% |
Allegheny Energy, Inc. | 17,600 | | 964,304 |
Enernoc, Inc. | 14,300 | | 504,075 |
|
| Shares | | Value |
Entergy Corp. | 4,500 | | $ 486,810 |
PPL Corp. | 89,800 | | 4,393,015 |
| | 6,348,204 |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 79,400 | | 1,514,952 |
Clipper Windpower PLC (a) | 2,400 | | 28,693 |
Constellation Energy Group, Inc. | 42,800 | | 4,021,488 |
Ormat Technologies, Inc. | 3,800 | | 165,186 |
| | 5,730,319 |
TOTAL UTILITIES | | 12,078,523 |
TOTAL COMMON STOCKS (Cost $305,398,397) | 305,574,852 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 2,288,816 | | 2,288,816 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 10,764,675 | | 10,764,675 |
TOTAL MONEY MARKET FUNDS (Cost $13,053,491) | 13,053,491 |
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $318,451,888) | | 318,628,343 |
NET OTHER ASSETS - (4.5)% | | (13,583,264) |
NET ASSETS - 100% | $ 305,045,079 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 442,525 |
Fidelity Securities Lending Cash Central Fund | 313,679 |
Total | $ 756,204 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 88.3% |
Japan | 1.8% |
Bermuda | 1.7% |
France | 1.5% |
Cayman Islands | 1.3% |
Others (individually less than 1%) | 5.4% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $18,706,577 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $10,830,743) - See accompanying schedule: Unaffiliated issuers (cost $305,398,397) | $ 305,574,852 | |
Fidelity Central Funds (cost $13,053,491) | 13,053,491 | |
Total Investments (cost $318,451,888) | | $ 318,628,343 |
Cash | | 944,763 |
Receivable for investments sold | | 60,992,695 |
Receivable for fund shares sold | | 386,427 |
Dividends receivable | | 50,720 |
Distributions receivable from Fidelity Central Funds | | 53,069 |
Prepaid expenses | | 1,182 |
Other receivables | | 2,063 |
Total assets | | 381,059,262 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,187,980 | |
Payable for fund shares redeemed | 41,783,947 | |
Accrued management fee | 108,332 | |
Distribution fees payable | 1,571 | |
Other affiliated payables | 110,841 | |
Other payables and accrued expenses | 56,837 | |
Collateral on securities loaned, at value | 10,764,675 | |
Total liabilities | | 76,014,183 |
| | |
Net Assets | | $ 305,045,079 |
Net Assets consist of: | | |
Paid in capital | | $ 319,016,951 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,150,236) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 178,364 |
Net Assets | | $ 305,045,079 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,936,249 ÷ 158,895 shares) | | $ 12.19 |
| | |
Maximum offering price per share (100/94.25 of $12.19) | | $ 12.93 |
Class T:
Net Asset Value and redemption price per share ($591,188 ÷ 48,688 shares) | | $ 12.14 |
| | |
Maximum offering price per share (100/96.50 of $12.14) | | $ 12.58 |
Class B:
Net Asset Value and offering price per share ($413,537 ÷ 34,216 shares)A | | $ 12.09 |
| | |
Class C:
Net Asset Value and offering price per share ($697,298 ÷ 57,672 shares)A | | $ 12.09 |
| | |
Mid Cap Growth:
Net Asset Value, offering price and redemption price per share ($301,224,741 ÷ 24,671,114 shares) | | $ 12.21 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($182,066 ÷ 14,896 shares) | | $ 12.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 2,094,532 |
Interest | | 386 |
Income from Fidelity Central Funds (including $313,679 from security lending) | | 756,204 |
Total income | | 2,851,122 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,332,314 | |
Performance adjustment | (430,070) | |
Transfer agent fees | 1,202,314 | |
Distribution fees | 10,363 | |
Accounting and security lending fees | 170,995 | |
Custodian fees and expenses | 18,214 | |
Independent trustees' compensation | 1,531 | |
Registration fees | 100,229 | |
Audit | 56,662 | |
Legal | 2,290 | |
Miscellaneous | 25,324 | |
Total expenses before reductions | 3,490,166 | |
Expense reductions | (113,488) | 3,376,678 |
Net investment income (loss) | | (525,556) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 13,581,162 | |
Foreign currency transactions | 16,150 | |
Total net realized gain (loss) | | 13,597,312 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (50,635,596) | |
Assets and liabilities in foreign currencies | 1,909 | |
Total change in net unrealized appreciation (depreciation) | | (50,633,687) |
Net gain (loss) | | (37,036,375) |
Net increase (decrease) in net assets resulting from operations | | $ (37,561,931) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (525,556) | $ (1,458,396) |
Net realized gain (loss) | 13,597,312 | (4,757,238) |
Change in net unrealized appreciation (depreciation) | (50,633,687) | 5,161,873 |
Net increase (decrease) in net assets resulting from operations | (37,561,931) | (1,053,761) |
Distributions to shareholders from net realized gain | (21,909,497) | (5,089,264) |
Share transactions - net increase (decrease) | (76,821,412) | 97,426,141 |
Redemption fees | 26,012 | 46,437 |
Total increase (decrease) in net assets | (136,266,828) | 91,329,553 |
| | |
Net Assets | | |
Beginning of period | 441,311,907 | 349,982,354 |
End of period | $ 305,045,079 | $ 441,311,907 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.35) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.19 |
Total Return B,C,D | (9.95)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.10% A |
Expenses net of fee waivers, if any | 1.10% A |
Expenses net of all reductions | 1.10% A |
Net investment income (loss) | (.41)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,936 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.09) |
Net realized and unrealized gain (loss) | (1.31) |
Total from investment operations | (1.40) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.14 |
Total Return B,C,D | (10.30)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.36% A |
Expenses net of fee waivers, if any | 1.36% A |
Expenses net of all reductions | 1.36% A |
Net investment income (loss) | (.68)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 591 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.16) |
Net realized and unrealized gain (loss) | (1.29) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 414 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.15) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 697 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 | $ 7.32 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.02) | (.04) | .01 E | (.03) F | (.07) |
Net realized and unrealized gain (loss) | (1.29) | .15 | 3.09 | 1.15 | 3.38 |
Total from investment operations | (1.31) | .11 | 3.10 | 1.12 | 3.31 |
Distributions from net realized gain | (.79) | (.18) | (.30) | (.17) | - |
Redemption fees added to paid in capital B,H | - | - | - | - | - |
Net asset value, end of period | $ 12.21 | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 |
Total Return A | (9.68)% | .80% | 27.15% | 10.55% | 45.22% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | .83% | 1.02% | 1.04% | 1.02% | 1.25% |
Expenses net of fee waivers, if any | .81% | 1.00% | 1.00% | 1.02% | 1.20% |
Expenses net of all reductions | .81% | .99% | .95% | .99% | 1.16% |
Net investment income (loss) | (.12)% | (.33)% | .07% E | (.31)% F | (.77)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 301,225 | $ 441,312 | $ 349,982 | $ 77,658 | $ 60,660 |
Portfolio turnover rate D | 245% | 178% | 173% | 220% | 94% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
F Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.44)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) D | (1.32) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.22 |
Total Return B,C | (9.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .72% A |
Expenses net of fee waivers, if any | .72% A |
Expenses net of all reductions | .72% A |
Net investment income (loss) | (.03)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 182 |
Portfolio turnover rate F | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2008
1. Organization.
Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund(the Funds) are funds of Fidelity Devonshire Trust(the trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended(the 1940 Act), as an open-end management company organized as a Massachusetts business trust. The Funds offer Class A, Class T, Class B, Class C, Institutional Class and Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth shares, respectively, 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. The Funds commenced sale of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class of each Fund was designated Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth, respectively, on February 13, 2007. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. Certain Funds investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company(FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR.
A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued and net asset value(NAV) per share is calculated(NAV calculation) as of the close of business of the New York Stock Exchange(NYSE), normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because each Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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 for processing shareholder transactions 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes(FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. 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 recorded on the ex-dividend date. Income dividends 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 generally accepted accounting principles. In addition, certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax
Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Large Cap Value Fund | $ 1,571,171,429 | $ 98,475,075 | $ (92,166,547) | $ 6,308,528 |
Fidelity Mid Cap Value Fund | 844,773,929 | 42,574,804 | (57,370,158) | (14,795,354) |
Fidelity Large Cap Growth Fund | 166,610,940 | 4,786,892 | (10,368,163) | (5,581,271) |
Fidelity Mid Cap Growth Fund | 319,883,846 | 21,520,033 | (22,775,536) | (1,255,503) |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
January 31, 2008 | | | |
| Ordinary
Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 37,304,898 | $ 67,715,379 | $ 105,020,277 |
Fidelity Mid Cap Value Fund | 10,958,373 | 29,219,096 | 40,177,469 |
Fidelity Large Cap Growth Fund | 6,193,151 | 12,379,253 | 18,572,404 |
Fidelity Mid Cap Growth Fund | - | 21,909,497 | 21,909,497 |
January 31, 2007 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 17,006,124 | $ 7,416,999 | $ 24,423,123 |
Fidelity Mid Cap Value Fund | 7,722,049 | 9,225,041 | 16,947,090 |
Fidelity Large Cap Growth Fund | 1,920,898 | 1,860,806 | 3,781,704 |
Fidelity Mid Cap Growth Fund | 2,544,632 | 2,544,632 | 5,089,264 |
Short-Term Trading (Redemption) Fees. Shares held in the Fidelity Mid Cap Value Fund and Fidelity Mid Cap Growth Fund less than 30 days are subject to a redemption fee equal to 0.75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Funds and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission(the SEC) which permits certain Funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. Certain Funds may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Each applicable Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement(including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases($) | Sales($) |
Fidelity Large Cap Value Fund | 3,485,833,978 | 3,246,788,832 |
Fidelity Mid Cap Value Fund | 2,520,812,788 | 2,356,094,981 |
Fidelity Large Cap Growth Fund | 745,952,270 | 764,990,241 |
Fidelity Mid Cap Growth Fund | 995,464,036 | 1,090,139,044 |
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee for the funds is subject to a performance adjustment(up to a maximum ± .20% of each applicable Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on each applicable Fund's relative investment performance of the asset-weighted return of all
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
classes as compared to an appropriate benchmark index. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets, including the performance adjustment, if applicable was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Large Cap Value Fund | .30% | .26% | .58% |
Fidelity Mid Cap Value Fund | .30% | .26% | .52% |
Fidelity Large Cap Growth Fund | .30% | .26% | .58% |
Fidelity Mid Cap Growth Fund | .30% | .26% | .46% |
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation(FDC), an affiliate of FMR, 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 and the total amounts paid to and retained by FDC were as follows:
Fidelity Large Cap Value Fund | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 14,716 | $ 3,419 |
Class T | .25% | .25% | 29,520 | 209 |
Class B | .75% | .25% | 20,952 | 15,912 |
Class C | .75% | .25% | 8,540 | 4,769 |
| | | $ 73,728 | $ 24,309 |
Fidelity Mid Cap Value Fund | | | | |
Class A | 0% | .25% | $ 9,176 | $ 3,141 |
Class T | .25% | .25% | 10,994 | 355 |
Class B | .75% | .25% | 17,435 | 13,285 |
Class C | .75% | .25% | 16,086 | 12,118 |
| | | $ 53,691 | $ 28,899 |
Fidelity Large Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,502 | $ 246 |
Class T | .25% | .25% | 2,248 | 460 |
Class B | .75% | .25% | 2,797 | 2,331 |
Class C | .75% | .25% | 4,188 | 3,019 |
| | | $ 10,735 | $ 6,056 |
Fidelity Mid Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,756 | $ 245 |
Class T | .25% | .25% | 1,796 | 463 |
Class B | .75% | .25% | 2,959 | 2,452 |
Class C | .75% | .25% | 3,852 | 3,025 |
| | | $ 10,363 | $ 6,185 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Large Cap Value Fund | Retained
by FDC |
Class A | $ 18,265 |
Class T | 4,391 |
Class B * | 1,096 |
Class C * | 11 |
| $ 22,763 |
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows: - continued
Fidelity Mid Cap Value Fund | Retained
by FDC |
Class A | $ 22,621 |
Class T | 5,951 |
Class B* | 2,448 |
Class C* | 137 |
| $ 31,157 |
Fidelity Large Cap Growth Fund | |
Class A | $ 4,515 |
Class T | 1,123 |
Class B* | 509 |
Class C* | 62 |
| $ 6,209 |
Fidelity Mid Cap Growth Fund | |
Class A | $ 6,603 |
Class T | 1,049 |
Class B* | 962 |
Class C* | 165 |
| $ 8,779 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc.(FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Prior to January 1, 2008, Fidelity Service Company, Inc. (FSC), also an affiliate of FMR, was the Fund's transfer agent. For the period, the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
Fidelity Large Cap Value Fund | Amount | % of
Average
Net Assets* |
Class A | $ 20,036 | .34 |
Class T | 20,697 | .35 |
Class B | 7,804 | .37 |
Class C | 2,694 | .31 |
Large Cap Value | 3,716,520 | .23 |
Institutional Class | 944 | .23 |
| $ 3,768,695 | |
Fidelity Mid Cap Value Fund | | |
Class A | $ 10,910 | .30 |
Class T | 6,730 | .31 |
Class B | 5,278 | .30 |
Class C | 5,017 | .31 |
Mid Cap Value | 2,206,272 | .24 |
Institutional Class | 1,803 | .30 |
| $ 2,236,010 | |
Fidelity Large Cap Growth Fund | | |
Class A | $ 1,787 | .30 |
Class T | 1,353 | .31 |
Class B | 833 | .30 |
Class C | 1,224 | .29 |
Large Cap Growth | 529,155 | .31 |
Institutional Class | 416 | .20 |
| $ 534,768 | |
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Mid Cap Growth Fund | Amount | % of
Average
Net Assets* |
Class A | $ 2,094 | .30 |
Class T | 1,136 | .32 |
Class B | 899 | .30 |
Class C | 1,151 | .30 |
Mid Cap Growth | 1,196,809 | .29 |
Institutional Class | 225 | .17 |
| $ 1,202,314 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were as follows:
| Amount |
Fidelity Large Cap Value Fund | $ 18,780 |
Fidelity Mid Cap Value Fund | 12,752 |
Fidelity Large Cap Growth Fund | 13,318 |
Fidelity Mid Cap Growth Fund | 10,529 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily Loan Balance | Weighted
Average Interest Rate | Interest
Expense |
Fidelity Large Cap Value Fund | Borrower | $ 6,183,857 | 4.35% | $ 5,226 |
Fidelity Mid Cap Value Fund | Borrower | $ 5,637,000 | 5.27% | $ 4,946 |
7. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $4.2 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 is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Large Cap Value Fund | $ 3,040 |
Fidelity Mid Cap Value Fund | 1,696 |
Fidelity Large Cap Growth Fund | 343 |
Fidelity Mid Cap Growth Fund | 824 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, each applicable Fund receives collateral(in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Annual Report
8. Security Lending - continued
Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Large Cap Growth Fund | | |
Large Cap Growth | 1.00% | $ 58,552 |
In addition, FMR voluntarily agreed to reimburse a portion of certain fund's existing class' operating expenses. During the period, this reimbursement reduced certain fund's existing class' expenses by the following amounts:
| Reimbursement
from adviser |
Fidelity Large Cap Value Fund | |
Large Cap Value | $ 85,974 |
Fidelity Mid Cap Value Fund | |
Mid Cap Value | $ 85,078 |
Fidelity Large Cap Growth Fund | |
Large Cap Growth | $ 25,900 |
Fidelity Mid Cap Growth Fund | |
Mid Cap Growth | $ 84,552 |
In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service Arrangements | Transfer
Agent
expense
reduction |
Fidelity Large Cap Value Fund | $ - | $ - |
Large Cap Value | - | 50,587 |
Institutional Class | - | 50 |
Fidelity Mid Cap Value Fund | - | - |
Class A | - | 31 |
Class B | - | 9 |
Mid Cap Value | - | 19,810 |
Institutional Class | - | 70 |
Fidelity Large Cap Growth Fund | - | - |
Large Cap Growth | - | 13,456 |
Fidelity Mid Cap Growth Fund | 1,543 | - |
Mid Cap Growth | - | 27,293 |
10. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Notes to Financial Statements - continued
10. Other - continued
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds. FMR also reimbursed the related legal expenses, which are recorded in the accompanying Statement of Operations as an expense reduction.
Subsequent to period end, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid each fund the following amounts:
Fidelity Large Cap Value Fund | $ 12,127 |
Fidelity Mid Cap Value Fund | $ 23,107 |
Fidelity Large Cap Growth Fund | $ 14,058 |
Fidelity Mid Cap Growth Fund | $ 16,394 |
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | |
From net investment income | | |
Class A | $ 75,483 | $ - |
Class T | 44,031 | - |
Class B | 824 | - |
Class C | 4,115 | - |
Large Cap Value | 14,152,017 | 10,401,399 |
Institutional Class | 10,129 | - |
Total | $ 14,286,599 | $ 10,401,399 |
From net realized gain | | |
Class A | $ 372,920 | $ - |
Class T | 317,190 | - |
Class B | 97,442 | - |
Class C | 51,607 | - |
Large Cap Value | 89,854,195 | 14,021,724 |
Institutional Class | 40,324 | - |
Total | $ 90,733,678 | $ 14,021,724 |
Fidelity Mid Cap Value Fund | | |
From net investment income | | |
Class A | $ 18,691 | $ - |
Class T | 5,836 | - |
Class B | 259 | - |
Class C | 66 | - |
Mid Cap Value | 3,005,000 | 2,949,768 |
Institutional Class | 7,163 | - |
Total | $ 3,037,015 | $ 2,949,768 |
From net realized gain | | |
Class A | $ 176,774 | $ - |
Class T | 106,263 | - |
Class B | 46,244 | - |
Class C | 67,330 | - |
Mid Cap Value | 36,700,729 | 13,997,322 |
Institutional Class | 43,114 | - |
Total | $ 37,140,454 | $ 13,997,322 |
Annual Report
11. Distributions to Shareholders - continued
Distributions to shareholders of each class were as follows: - continued
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Growth Fund | | |
From net investment income | | |
Large Cap Growth | $ - | $ 137,207 |
From net realized gain | | |
Class A | $ 123,133 | $ - |
Class T | 101,048 | - |
Class B | 40,430 | - |
Class C | 75,734 | - |
Large Cap Growth | 18,196,705 | 3,644,497 |
Institutional Class | 35,354 | - |
Total | $ 18,572,404 | $ 3,644,497 |
Fidelity Mid Cap Growth Fund | | |
From net realized gain | | |
Class A | $ 100,774 | $ - |
Class T | 34,957 | - |
Class B | 25,358 | - |
Class C | 40,118 | - |
Mid Cap Growth | 21,697,261 | 5,089,264 |
Institutional Class | 11,029 | - |
Total | $ 21,909,497 | $ 5,089,264 |
A Distributions for Class A,T,B,C and Institutional are for the period February 13, 2007(commencement of sale of shares) to January 31, 2008.
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 1,045,290 | - | $ 16,232,942 | $ - |
Reinvestment of distributions | 29,393 | - | 423,574 | - |
Shares redeemed | (352,749) | - | (5,365,826) | - |
Net increase (decrease) | 721,934 | - | $ 11,290,690 | $ - |
Class T | | | | |
Shares sold | 935,752 | - | $ 14,740,653 | $ - |
Reinvestment of distributions | 24,935 | - | 359,076 | - |
Shares redeemed | (518,994) | - | (7,932,251) | - |
Net increase (decrease) | 441,693 | - | $ 7,167,478 | $ - |
Class B | | | | |
Shares sold | 315,386 | - | $ 4,951,665 | $ - |
Reinvestment of distributions | 6,739 | - | 97,191 | - |
Shares redeemed | (184,721) | - | (2,835,906) | - |
Net increase (decrease) | 137,404 | - | $ 2,212,950 | $ - |
Class C | | | | |
Shares sold | 138,185 | - | $ 2,136,503 | $ - |
Reinvestment of distributions | 3,506 | - | 50,496 | - |
Shares redeemed | (52,323) | - | (788,391) | - |
Net increase (decrease) | 89,368 | - | $ 1,398,608 | $ - |
Annual Report
Notes to Financial Statements - continued
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund - continued | | | | |
Large Cap Value | | | | |
Shares sold | 52,779,386 | 72,550,724 | $ 813,954,360 | $ 1,029,577,278 |
Reinvestment of distributions | 7,056,478 | 1,672,345 | 102,030,422 | 23,955,243 |
Shares redeemed | (40,898,915) | (25,616,795) | (619,081,485) | (368,491,524) |
Net increase (decrease) | 18,936,949 | 48,606,274 | $ 296,903,297 | $ 685,040,997 |
Institutional Class | | | | |
Shares sold | 92,735 | - | $ 1,397,015 | $ - |
Reinvestment of distributions | 3,477 | - | 50,127 | - |
Shares redeemed | (17,951) | - | (257,652) | - |
Net increase (decrease) | 78,261 | - | $ 1,189,490 | $ - |
Fidelity Mid Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 615,995 | - | $ 10,540,942 | $ - |
Reinvestment of distributions | 11,024 | - | 178,558 | - |
Shares redeemed | (132,358) | - | (2,195,988) | - |
Net increase (decrease) | 494,661 | - | $ 8,523,512 | $ - |
Class T | | | | |
Shares sold | 325,063 | - | $ 5,643,056 | $ - |
Reinvestment of distributions | 6,694 | - | 108,412 | - |
Shares redeemed | (84,728) | - | (1,422,111) | - |
Net increase (decrease) | 247,029 | - | $ 4,329,357 | $ - |
Class B | | | | |
Shares sold | 204,574 | - | $ 3,623,364 | $ - |
Reinvestment of distributions | 2,791 | - | 45,364 | - |
Shares redeemed | (120,358) | - | (2,068,797) | - |
Net increase (decrease) | 87,007 | - | $ 1,599,931 | $ - |
Class C | | | | |
Shares sold | 168,571 | - | $ 2,987,730 | $ - |
Reinvestment of distributions | 3,136 | - | 50,659 | - |
Shares redeemed | (61,027) | - | (991,710) | - |
Net increase (decrease) | 110,680 | - | $ 2,046,679 | $ - |
Mid Cap Value | | | | |
Shares sold | 34,123,012 | 26,022,900 | $ 603,742,926 | $ 415,931,492 |
Reinvestment of distributions | 2,338,406 | 1,003,867 | 38,409,538 | 16,337,499 |
Shares redeemed | (27,133,004) | (10,884,934) | (462,055,715) | (173,050,014) |
Net increase (decrease) | 9,328,414 | 16,141,833 | $ 180,096,749 | $ 259,218,977 |
Institutional Class | | | | |
Shares sold | 102,472 | - | $ 1,790,525 | $ - |
Reinvestment of distributions | 3,101 | - | 50,277 | - |
Shares redeemed | (9,162) | - | (148,581) | - |
Net increase (decrease) | 96,411 | - | $ 1,692,221 | $ - |
Fidelity Large Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,474 | - | $ 1,900,337 | $ - |
Reinvestment of distributions | 10,979 | - | 116,895 | - |
Shares redeemed | (44,281) | - | (486,246) | - |
Net increase (decrease) | 132,172 | - | $ 1,530,986 | $ - |
Class T | | | | |
Shares sold | 167,227 | - | $ 1,920,600 | $ - |
Reinvestment of distributions | 9,490 | - | 101,048 | - |
Shares redeemed | (65,269) | - | (790,917) | - |
Net increase (decrease) | 111,448 | - | $ 1,230,731 | $ - |
Annual Report
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Class B | | | | |
Shares sold | 55,847 | - | $ 636,287 | $ - |
Reinvestment of distributions | 3,795 | - | 40,430 | - |
Shares redeemed | (4,405) | - | (49,003) | - |
Net increase (decrease) | 55,237 | - | $ 627,714 | $ - |
Class C | | | | |
Shares sold | 106,310 | - | $ 1,230,146 | $ - |
Reinvestment of distributions | 6,439 | - | 68,402 | - |
Shares redeemed | (16,516) | - | (191,737) | - |
Net increase (decrease) | 96,233 | - | $ 1,106,811 | $ - |
Large Cap Growth | | | | |
Shares sold | 5,794,783 | 10,973,541 | $ 66,845,422 | $ 124,315,764 |
Reinvestment of distributions | 1,665,396 | 318,299 | 17,914,862 | 3,701,456 |
Shares redeemed | (7,903,937) | (9,222,108) | (90,877,571) | (102,538,999) |
Net increase (decrease) | (443,758) | 2,069,732 | $ (6,117,287) | $ 25,478,221 |
Institutional Class | | | | |
Shares sold | 38,550 | - | $ 453,557 | $ - |
Reinvestment of distributions | 3,006 | - | 32,121 | - |
Shares redeemed | (2,488) | - | (28,969) | - |
Net increase (decrease) | 39,068 | - | $ 456,709 | $ - |
Fidelity Mid Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,234 | - | $ 2,326,735 | $ - |
Reinvestment of distributions | 7,218 | - | 97,305 | - |
Shares redeemed | (13,557) | - | (186,849) | - |
Net increase (decrease) | 158,895 | - | $ 2,237,191 | $ - |
Class T | | | | |
Shares sold | 54,813 | - | $ 796,065 | $ - |
Reinvestment of distributions | 2,601 | - | 34,957 | - |
Shares redeemed | (8,726) | - | (121,838) | - |
Net increase (decrease) | 48,688 | - | $ 709,184 | $ - |
Class B | | | | |
Shares sold | 35,917 | - | $ 516,488 | $ - |
Reinvestment of distributions | 1,882 | - | 25,182 | - |
Shares redeemed | (3,583) | - | (47,283) | - |
Net increase (decrease) | 34,216 | - | $ 494,387 | $ - |
Class C | | | | |
Shares sold | 59,795 | - | $ 849,458 | $ - |
Reinvestment of distributions | 2,811 | - | 37,643 | - |
Shares redeemed | (4,934) | - | (66,440) | - |
Net increase (decrease) | 57,672 | - | $ 820,661 | $ - |
Mid Cap Growth | | | | |
Shares sold | 7,994,956 | 24,363,804 | $ 114,388,509 | $ 336,430,868 |
Reinvestment of distributions | 1,580,341 | 357,726 | 21,334,599 | 4,986,704 |
Shares redeemed | (15,751,578) | (18,209,467) | (217,016,915) | (243,991,431) |
Net increase (decrease) | (6,176,281) | 6,512,063 | $ (81,293,807) | $ 97,426,141 |
Institutional Class | | | | |
Shares sold | 14,080 | - | $ 199,943 | $ - |
Reinvestment of distributions | 816 | - | 11,029 | - |
Net increase (decrease) | 14,896 | - | $ 210,972 | $ - |
A Share transactions for class A,T,B,C and Institutional are for the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Devonshire Trust and the Shareholders of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund (funds of Fidelity Devonshire Trust) at January 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Devonshire Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 24, 2008
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 374 funds advised by FMR or an affiliate. Mr. Curvey oversees 369 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (77) |
| Year of Election or Appointment: 1985 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related. |
James C. Curvey (72) |
| Year of Election or Appointment: 2007 Trustee of Fidelity Devonshire Trust. Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (59) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (71) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (67) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (61) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (63) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (68) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007). |
Advisory Board Members and Executive Officers**:
Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Arthur E. Johnson (61) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related. |
Alan J. Lacy (54) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History. |
Peter S. Lynch (64) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Joseph Mauriello (63) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
David M. Thomas (58) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (57) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005). |
Kimberley H. Monasterio (44) |
| Year of Election or Appointment: 2007 President and Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Walter C. Donovan (45) |
| Year of Election or Appointment: 2007 Vice President of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005). |
Bruce T. Herring (42) |
| Year of Election or Appointment: 2006 Vice President of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Brian B. Hogan (43) |
| Year of Election or Appointment: 2007 Vice President of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager. |
Eric D. Roiter (59) |
| Year of Election or Appointment: 2001 Secretary of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
John B. McGinty, Jr. (45) |
| Year of Election or Appointment: 2008 Assistant Secretary of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (60) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (38) |
| Year of Election or Appointment:2005 Deputy Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (54) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Paul M. Murphy (60) |
| Year of Election or Appointment: 2007 Assistant Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007). |
Name, Age; Principal Occupation |
Gary W. Ryan (49) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Large Cap Growth, Large Cap Value, Mid Cap Growth, and Mid Cap Value. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended January 31, 2008, or, if subsequently determined to be different, the net capital gain of such year.
| |
Fidelity Large Cap Value Fund | $53,592,103 |
Fidelity Mid Cap Value Fund | $30,917,128 |
Fidelity Large Cap Growth Fund | $9,534,777 |
Fidelity Mid Cap Growth Fund | $25,157,607 |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| March,
2007 | December, 2007 |
Fidelity Large Cap Value Fund | 45% | 100% |
Fidelity Mid Cap Value Fund | 26% | 100% |
Fidelity Large Cap Growth Fund | 91% | 18% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| March,
2007 | December, 2007 |
Fidelity Large Cap Value Fund | 45% | 100% |
Fidelity Mid Cap Value Fund | 26% | 100% |
Fidelity Large Cap Growth Fund | 92% | 20% |
The fund will notify shareholders in January 2009 of amounts for use in preparing 2008 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations
Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
LMC-UANN-0308
1.789259.105
Fidelity Advisor Large Cap Value
Class A, Class T, Class B, and Class C
Fidelity Advisor Mid Cap Value
Class A, Class T, Class B, and Class C
Fidelity Advisor Large Cap Growth
Class A, Class T, Class B, and Class C
Fidelity Advisor Mid Cap Growth
Class A, Class T, Class B, and Class C
Funds
Annual Report
January 31, 2008
(2_fidelity_logos) (Registered_Trademark)
Each Class A, Class T, Class B, and Class C
are classes of
Fidelity® Large Cap Value,
Fidelity Mid Cap Value,
Fidelity Large Cap Growth, and
Fidelity Mid Cap Growth
Funds
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") 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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(Photograph of Edward C. Johnson 3d.)
Dear Shareholder:
Stocks got off to a poor start in 2008, while investment-grade bonds and money markets showed positive returns, once again underscoring the importance of a diversified portfolio. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (August 1, 2007 to January 31, 2008).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Fidelity Large Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 946.40 | $ 6.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | | | |
Actual | $ 1,000.00 | $ 944.70 | $ 7.35 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | | | |
Actual | $ 1,000.00 | $ 943.10 | $ 9.80 |
HypotheticalA | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | | | |
Actual | $ 1,000.00 | $ 943.20 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Large Cap Value | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.27 |
HypotheticalA | $ 1,000.00 | $ 1,020.82 | $ 4.43 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.22 |
HypotheticalA | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
Fidelity Mid Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 912.50 | $ 5.54 |
HypotheticalA | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Class T | | | |
Actual | $ 1,000.00 | $ 911.80 | $ 6.79 |
HypotheticalA | $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.09 |
HypotheticalA | $ 1,000.00 | $ 1,015.68 | $ 9.60 |
Class C | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.24 |
HypotheticalA | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Mid Cap Value | | | |
Actual | $ 1,000.00 | $ 913.40 | $ 4.05 |
HypotheticalA | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 913.70 | $ 4.34 |
HypotheticalA | $ 1,000.00 | $ 1,020.67 | $ 4.58 |
Fidelity Large Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 955.40 | $ 5.91 |
HypotheticalA | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | | | |
Actual | $ 1,000.00 | $ 955.60 | $ 7.30 |
HypotheticalA | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | | | |
Actual | $ 1,000.00 | $ 952.20 | $ 9.74 |
HypotheticalA | $ 1,000.00 | $ 1,015.22 | $ 10.06 |
Class C | | | |
Actual | $ 1,000.00 | $ 953.00 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Large Cap Growth | | | |
Actual | $ 1,000.00 | $ 956.60 | $ 4.78 |
HypotheticalA | $ 1,000.00 | $ 1,020.32 | $ 4.94 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 958.20 | $ 4.10 |
HypotheticalA | $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Fidelity Mid Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 909.40 | $ 5.29 |
HypotheticalA | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class T | | | |
Actual | $ 1,000.00 | $ 905.80 | $ 6.58 |
HypotheticalA | $ 1,000.00 | $ 1,018.30 | $ 6.97 |
Class B | | | |
Actual | $ 1,000.00 | $ 904.90 | $ 8.79 |
HypotheticalA | $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Class C | | | |
Actual | $ 1,000.00 | $ 904.20 | $ 8.88 |
HypotheticalA | $ 1,000.00 | $ 1,015.88 | $ 9.40 |
Mid Cap Growth | | | |
Actual | $ 1,000.00 | $ 909.50 | $ 3.75 |
HypotheticalA | $ 1,000.00 | $ 1,021.27 | $ 3.97 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 909.60 | $ 3.32 |
HypotheticalA | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period).
Annual Report
| Annualized
Expense Ratio |
Fidelity Large Cap Value Fund | |
Class A | 1.25% |
Class T | 1.50% |
Class B | 2.00% |
Class C | 1.97% |
Large Cap Value | .87% |
Institutional Class | .86% |
Fidelity Mid Cap Value Fund | |
Class A | 1.15% |
Class T | 1.41% |
Class B | 1.89% |
Class C | 1.92% |
Mid Cap Value | .84% |
Institutional Class | .90% |
Fidelity Large Cap Growth Fund | |
Class A | 1.20% |
Class T | 1.48% |
Class B | 1.98% |
Class C | 1.96% |
Large Cap Growth | .97% |
Institutional Class | .83% |
Fidelity Mid Cap Growth Fund | |
Class A | 1.10% |
Class T | 1.37% |
Class B | 1.83% |
Class C | 1.85% |
Mid Cap Growth | .78% |
Institutional Class | .69% |
Annual Report
Fidelity Advisor Large Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) B | -10.16% | 12.69% | 6.75% |
Class T (incl. 3.50% sales charge) C | -8.31% | 13.16% | 7.10% |
Class B (incl. contingent deferred sales charge) D | -9.85% | 13.63% | 7.64% |
Class C (incl. contingent deferred sales charge) E | -6.15% | 13.90% | 7.66% |
A From November 15, 2001.
B Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
C Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
D Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
E Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Large Cap Value Fund - Class A on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Value Index performed over the same period. The initial offering of Class A took place on February 13, 2007. See above for additional information regarding the performance of Class A.
Annual Report
Fidelity Advisor Large Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity Advisor Large Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Advisor Large Cap Value's Class A, Class T, Class B and Class C shares (excluding sales charges) all finished about even with or slightly ahead of the Russell 1000® Value Index, which was off 5.38%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among banks and real estate investment trusts (REITs). Favorable industry weightings within the weak financials and consumer discretionary sectors also added value, as did good stock picking in health care and pockets of information technology. Underweighting diversified financials giant Citigroup and domestic banking firm Wachovia added to relative performance, as both stocks fared poorly within an environment of deteriorating business fundamentals for financials. Among other strong contributors were Cummins, a diesel engine manufacturer, and CF Industries, an out-of-index company that produces fertilizer products. On the flip side, relative results were held back by unfavorable stock picks in consumer staples - especially among food retailers - energy and the transportation industry. Among the biggest detractors were Tyson Foods, a large processor of poultry and meat products, and YRC Worldwide, a transportation company. Underweighting such strong-performing energy stocks as Occidental Petroleum also hurt. Tyson, YRC and Occidental were no longer in the portfolio at period end.
For the year, Advisor Large Cap Value's Institutional Class shares finished ahead of the Russell 1000® Value Index, which was off 5.38%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among banks and real estate investment trusts (REITs). Favorable industry weightings within the weak financials and consumer discretionary sectors also added value, as did good stock picking in health care and pockets of information technology. Underweighting diversified financials giant Citigroup and domestic banking firm Wachovia added to relative performance, as both stocks fared poorly within an environment of deteriorating business fundamentals for financials. Among other strong contributors were Cummins, a diesel engine manufacturer, and CF Industries, an out-of-index company that produces fertilizer products. On the flip side, relative results were held back by unfavorable stock picks in consumer staples - especially among food retailers - energy and the transportation industry. Among the biggest detractors were Tyson Foods, a large processor of poultry and meat products, and YRC Worldwide, a transportation company. Underweighting such strong-performing energy stocks as Occidental Petroleum also hurt. Tyson, YRC and Occidental were no longer in the portfolio at period end.
The views expressed above reflect those of the portfolio manager only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 4.3 | 4.5 |
AT&T, Inc. | 3.8 | 3.8 |
General Electric Co. | 3.4 | 3.0 |
ConocoPhillips | 3.1 | 0.0 |
JPMorgan Chase & Co. | 3.0 | 3.0 |
American International Group, Inc. | 2.7 | 2.3 |
Chevron Corp. | 2.7 | 2.5 |
Bank of America Corp. | 2.4 | 2.4 |
Altria Group, Inc. | 2.3 | 1.8 |
Verizon Communications, Inc. | 2.2 | 2.3 |
| 29.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.7 | 31.7 |
Energy | 15.6 | 14.0 |
Industrials | 10.6 | 10.7 |
Consumer Staples | 8.5 | 7.3 |
Health Care | 7.6 | 7.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.7% | | | Stocks 99.7% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
* Foreign investments | 5.3% | | **Foreign investments | 2.0% | |
Annual Report
Fidelity Large Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.3% |
Automobiles - 0.5% |
General Motors Corp. (d) | 283,401 | | $ 8,023,082 |
Hotels, Restaurants & Leisure - 2.0% |
McDonald's Corp. | 557,500 | | 29,854,125 |
Household Durables - 0.3% |
Whirlpool Corp. | 56,000 | | 4,766,160 |
Internet & Catalog Retail - 0.3% |
Expedia, Inc. (a) | 198,600 | | 4,571,772 |
Leisure Equipment & Products - 0.4% |
Eastman Kodak Co. | 261,400 | | 5,209,702 |
Media - 1.2% |
Liberty Media Corp. - Capital
Series A (a) | 64,300 | | 6,919,966 |
Viacom, Inc. Class B (non-vtg.) (a) | 296,500 | | 11,492,340 |
| | 18,412,306 |
Multiline Retail - 0.7% |
Macy's, Inc. | 387,800 | | 10,718,792 |
Specialty Retail - 0.8% |
Home Depot, Inc. | 414,300 | | 12,706,581 |
Textiles, Apparel & Luxury Goods - 1.1% |
NIKE, Inc. Class B (d) | 255,700 | | 15,792,032 |
TOTAL CONSUMER DISCRETIONARY | | 110,054,552 |
CONSUMER STAPLES - 8.5% |
Beverages - 1.1% |
Molson Coors Brewing Co. Class B | 392,400 | | 17,528,508 |
Food & Staples Retailing - 2.9% |
BJ's Wholesale Club, Inc. (a) | 147,100 | | 4,771,924 |
Kroger Co. | 621,500 | | 15,817,175 |
Safeway, Inc. | 267,700 | | 8,296,023 |
SUPERVALU, Inc. | 484,600 | | 14,567,076 |
| | 43,452,198 |
Food Products - 0.3% |
Del Monte Foods Co. | 459,500 | | 4,121,715 |
Household Products - 1.9% |
Procter & Gamble Co. | 433,300 | | 28,576,135 |
Tobacco - 2.3% |
Altria Group, Inc. | 450,000 | | 34,119,000 |
TOTAL CONSUMER STAPLES | | 127,797,556 |
ENERGY - 15.6% |
Energy Equipment & Services - 1.9% |
National Oilwell Varco, Inc. (a) | 232,500 | | 14,003,475 |
Transocean, Inc. (a) | 112,200 | | 13,755,720 |
| | 27,759,195 |
Oil, Gas & Consumable Fuels - 13.7% |
Chevron Corp. | 482,300 | | 40,754,350 |
ConocoPhillips | 574,900 | | 46,175,968 |
|
| Shares | | Value |
Exxon Mobil Corp. | 744,700 | | $ 64,342,081 |
Hess Corp. | 265,100 | | 24,079,033 |
Marathon Oil Corp. | 308,900 | | 14,471,965 |
Valero Energy Corp. | 274,801 | | 16,265,471 |
| | 206,088,868 |
TOTAL ENERGY | | 233,848,063 |
FINANCIALS - 30.7% |
Capital Markets - 6.5% |
GLG Partners, Inc. (a)(d) | 1,247,500 | | 14,708,025 |
Goldman Sachs Group, Inc. | 143,200 | | 28,750,264 |
Janus Capital Group, Inc. (d) | 575,300 | | 15,538,853 |
Lehman Brothers Holdings, Inc. (d) | 459,300 | | 29,473,281 |
State Street Corp. | 120,500 | | 9,895,460 |
| | 98,365,883 |
Commercial Banks - 3.8% |
Associated Banc-Corp. | 181,900 | | 5,125,942 |
PNC Financial Services Group, Inc. | 113,200 | | 7,428,184 |
Regions Financial Corp. (d) | 222,500 | | 5,615,900 |
Wachovia Corp. | 507,800 | | 19,768,654 |
Wells Fargo & Co. | 359,100 | | 12,212,991 |
Zions Bancorp | 132,200 | | 7,236,628 |
| | 57,388,299 |
Consumer Finance - 0.9% |
Capital One Financial Corp. (d) | 252,700 | | 13,850,487 |
Diversified Financial Services - 6.7% |
Bank of America Corp. | 813,700 | | 36,087,595 |
Citigroup, Inc. | 546,460 | | 15,421,101 |
JPMorgan Chase & Co. | 947,400 | | 45,048,870 |
MSCI, Inc. Class A | 115,197 | | 3,798,045 |
| | 100,355,611 |
Insurance - 10.5% |
ACE Ltd. | 281,000 | | 16,393,540 |
American International Group, Inc. | 742,300 | | 40,945,268 |
Assurant, Inc. | 142,600 | | 9,253,314 |
Axis Capital Holdings Ltd. | 226,400 | | 9,065,056 |
Endurance Specialty Holdings Ltd. | 252,800 | | 10,243,456 |
Loews Corp. | 357,400 | | 16,687,006 |
PartnerRe Ltd. | 157,400 | | 12,478,672 |
Prudential Financial, Inc. | 255,600 | | 21,564,972 |
RenaissanceRe Holdings Ltd. | 215,900 | | 12,304,141 |
W.R. Berkley Corp. | 284,000 | | 8,593,840 |
| | 157,529,265 |
Real Estate Investment Trusts - 2.0% |
Annaly Capital Management, Inc. | 716,400 | | 14,127,408 |
Boston Properties, Inc. | 77,000 | | 7,077,840 |
ProLogis Trust | 91,600 | | 5,436,460 |
Public Storage | 46,700 | | 3,654,275 |
| | 30,295,983 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.3% |
Astoria Financial Corp. | 167,400 | | $ 4,549,932 |
TOTAL FINANCIALS | | 462,335,460 |
HEALTH CARE - 7.6% |
Biotechnology - 1.0% |
Biogen Idec, Inc. (a) | 239,600 | | 14,603,620 |
Health Care Equipment & Supplies - 0.5% |
Baxter International, Inc. | 118,200 | | 7,179,468 |
Health Care Providers & Services - 1.8% |
Humana, Inc. (a) | 169,900 | | 13,642,970 |
Medco Health Solutions, Inc. (a) | 275,400 | | 13,792,032 |
| | 27,435,002 |
Life Sciences Tools & Services - 1.4% |
Charles River Laboratories International, Inc. (a) | 160,000 | | 9,936,000 |
Invitrogen Corp. (a) | 127,800 | | 10,948,626 |
| | 20,884,626 |
Pharmaceuticals - 2.9% |
Johnson & Johnson | 349,000 | | 22,077,740 |
Pfizer, Inc. | 960,700 | | 22,470,773 |
| | 44,548,513 |
TOTAL HEALTH CARE | | 114,651,229 |
INDUSTRIALS - 10.6% |
Aerospace & Defense - 3.2% |
Honeywell International, Inc. | 94,300 | | 5,570,301 |
Northrop Grumman Corp. | 165,400 | | 13,126,144 |
Raytheon Co. | 170,600 | | 11,112,884 |
The Boeing Co. | 212,800 | | 17,700,704 |
| | 47,510,033 |
Airlines - 0.5% |
Northwest Airlines Corp. (a) | 193,200 | | 3,614,772 |
UAL Corp. | 121,400 | | 4,607,130 |
| | 8,221,902 |
Commercial Services & Supplies - 0.6% |
Allied Waste Industries, Inc. (a) | 920,000 | | 9,062,000 |
Construction & Engineering - 1.4% |
KBR, Inc. (a) | 488,600 | | 15,434,874 |
URS Corp. (a) | 133,200 | | 5,847,480 |
| | 21,282,354 |
Industrial Conglomerates - 3.4% |
General Electric Co. | 1,424,000 | | 50,423,840 |
Machinery - 1.2% |
AGCO Corp. (a) | 127,000 | | 7,647,940 |
Cummins, Inc. | 220,900 | | 10,665,052 |
| | 18,312,992 |
|
| Shares | | Value |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 266,933 | | $ 3,982,640 |
TOTAL INDUSTRIALS | | 158,795,761 |
INFORMATION TECHNOLOGY - 3.1% |
Computers & Peripherals - 1.6% |
Hewlett-Packard Co. | 147,600 | | 6,457,500 |
International Business Machines Corp. | 124,200 | | 13,331,628 |
Western Digital Corp. (a) | 176,300 | | 4,663,135 |
| | 24,452,263 |
Electronic Equipment & Instruments - 0.8% |
Tyco Electronics Ltd. | 337,100 | | 11,397,351 |
IT Services - 0.5% |
Accenture Ltd. Class A | 215,500 | | 7,460,610 |
Software - 0.2% |
Oracle Corp. (a) | 172,000 | | 3,534,600 |
TOTAL INFORMATION TECHNOLOGY | | 46,844,824 |
MATERIALS - 4.1% |
Chemicals - 2.2% |
Celanese Corp. Class A | 164,400 | | 6,112,392 |
CF Industries Holdings, Inc. | 76,500 | | 8,180,145 |
Chemtura Corp. | 1,255,300 | | 8,410,510 |
The Mosaic Co. (a) | 108,600 | | 9,883,686 |
| | 32,586,733 |
Containers & Packaging - 0.6% |
Ball Corp. | 91,600 | | 4,203,524 |
Owens-Illinois, Inc. (a) | 94,300 | | 4,752,720 |
| | 8,956,244 |
Metals & Mining - 1.3% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 104,800 | | 9,330,344 |
United States Steel Corp. | 99,300 | | 10,139,523 |
| | 19,469,867 |
TOTAL MATERIALS | | 61,012,844 |
TELECOMMUNICATION SERVICES - 6.0% |
Diversified Telecommunication Services - 6.0% |
AT&T, Inc. | 1,480,362 | | 56,979,133 |
Verizon Communications, Inc. | 842,100 | | 32,707,164 |
| | 89,686,297 |
UTILITIES - 6.2% |
Electric Utilities - 1.7% |
Entergy Corp. | 112,000 | | 12,116,160 |
PPL Corp. | 179,000 | | 8,756,680 |
Reliant Energy, Inc. (a) | 255,100 | | 5,425,977 |
| | 26,298,817 |
Gas Utilities - 1.0% |
Energen Corp. | 244,700 | | 15,391,630 |
Common Stocks - continued |
| Shares | | Value |
UTILITIES - continued |
Independent Power Producers & Energy Traders - 2.4% |
Constellation Energy Group, Inc. | 92,200 | | $ 8,663,112 |
Mirant Corp. (a) | 324,700 | | 11,961,948 |
NRG Energy, Inc. (a) | 382,800 | | 14,772,252 |
| | 35,397,312 |
Multi-Utilities - 1.1% |
Public Service Enterprise Group, Inc. | 170,100 | | 16,329,600 |
TOTAL UTILITIES | | 93,417,359 |
TOTAL COMMON STOCKS (Cost $1,476,386,384) | 1,498,443,945 |
Money Market Funds - 5.2% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 9,464,505 | | 9,464,505 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 69,571,507 | | 69,571,507 |
TOTAL MONEY MARKET FUNDS (Cost $79,036,012) | 79,036,012 |
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,555,422,396) | | 1,577,479,957 |
NET OTHER ASSETS - (4.9)% | | (74,027,771) |
NET ASSETS - 100% | $ 1,503,452,186 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 625,964 |
Fidelity Securities Lending Cash Central Fund | 89,576 |
Total | $ 715,540 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $42,711,239 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $69,644,477) - See accompanying schedule: Unaffiliated issuers (cost $1,476,386,384) | $ 1,498,443,945 | |
Fidelity Central Funds (cost $79,036,012) | 79,036,012 | |
Total Investments (cost $1,555,422,396) | | $ 1,577,479,957 |
Receivable for investments sold | | 23,766,119 |
Receivable for fund shares sold | | 2,565,058 |
Dividends receivable | | 1,696,869 |
Distributions receivable from Fidelity Central Funds | | 33,811 |
Prepaid expenses | | 4,921 |
Total assets | | 1,605,546,735 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,494,925 | |
Payable for fund shares redeemed | 7,847,405 | |
Accrued management fee | 720,873 | |
Distribution fees payable | 6,898 | |
Other affiliated payables | 363,497 | |
Other payables and accrued expenses | 89,444 | |
Collateral on securities loaned, at value | 69,571,507 | |
Total liabilities | | 102,094,549 |
| | |
Net Assets | | $ 1,503,452,186 |
Net Assets consist of: | | |
Paid in capital | | $ 1,523,198,617 |
Undistributed net investment income | | 4,864,259 |
Accumulated undistributed net realized gain (loss) on investments | | (46,668,251) |
Net unrealized appreciation (depreciation) on investments | | 22,057,561 |
Net Assets | | $ 1,503,452,186 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering
Price Class A:
Net Asset Value and redemption price per share ($9,774,232 ÷ 721,934 shares) | | $ 13.54 |
| | |
Maximum offering price per share (100/94.25 of $13.54) | | $ 14.37 |
Class T:
Net Asset Value and redemption price per share ($5,975,654 ÷ 441,693 shares) | | $ 13.53 |
| | |
Maximum offering price per share (100/96.50 of $13.53) | | $ 14.02 |
Class B:
Net Asset Value and offering price per share ($1,859,809 ÷ 137,404 shares)A | | $ 13.54 |
| | |
Class C:
Net Asset Value and offering price per share ($1,208,181 ÷ 89,368 shares)A | | $ 13.52 |
| | |
Large Cap Value:
Net Asset Value, offering price and redemption price per share ($1,483,574,281 ÷ 109,324,284 shares) | | $ 13.57 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,060,029 ÷ 78,261 shares) | | $ 13.54 |
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.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 32,039,820 |
Interest | | 4,832 |
Income from Fidelity Central Funds (including $89,576 from security lending) | | 715,540 |
Total income | | 32,760,192 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,024,987 | |
Performance adjustment | 288,595 | |
Transfer agent fees | 3,768,695 | |
Distribution fees | 73,728 | |
Accounting and security lending fees | 507,630 | |
Custodian fees and expenses | 37,007 | |
Independent trustees' compensation | 5,753 | |
Registration fees | 122,860 | |
Audit | 60,620 | |
Legal | 7,461 | |
Interest | 5,226 | |
Miscellaneous | 53,563 | |
Total expenses before reductions | 13,956,125 | |
Expense reductions | (136,896) | 13,819,229 |
Net investment income (loss) | | 18,940,963 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 18,026,031 |
Change in net unrealized appreciation (depreciation) on investment securities | | (121,407,791) |
Net gain (loss) | | (103,381,760) |
Net increase (decrease) in net assets resulting from operations | | $ (84,440,797) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 18,940,963 | $ 9,973,926 |
Net realized gain (loss) | 18,026,031 | 34,353,479 |
Change in net unrealized appreciation (depreciation) | (121,407,791) | 98,674,962 |
Net increase (decrease) in net assets resulting from operations | (84,440,797) | 143,002,367 |
Distributions to shareholders from net investment income | (14,286,599) | (10,401,399) |
Distributions to shareholders from net realized gain | (90,733,678) | (14,021,724) |
Total distributions | (105,020,277) | (24,423,123) |
Share transactions - net increase (decrease) | 320,162,513 | 685,040,997 |
Redemption fees | - | 21,396 |
Total increase (decrease) in net assets | 130,701,439 | 803,641,637 |
| | |
Net Assets | | |
Beginning of period | 1,372,750,747 | 569,109,110 |
End of period (including undistributed net investment income of $4,864,259 and undistributed net investment income
of $274,346, respectively) | $ 1,503,452,186 | $ 1,372,750,747 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .12 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.88) |
Distributions from net investment income | (.12) |
Distributions from net realized gain | (.87) |
Total distributions | (.99) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.04)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.22% A |
Expenses net of fee waivers, if any | 1.22% A |
Expenses net of all reductions | 1.22% A |
Net investment income (loss) | .81% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 9,774 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .08 |
Net realized and unrealized gain (loss) | (1.01) |
Total from investment operations | (.93) |
Distributions from net investment income | (.08) |
Distributions from net realized gain | (.87) |
Total distributions | (.95) |
Net asset value, end of period | $ 13.53 |
Total Return B,C | (6.34)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | .56% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 5,976 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.99) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.87) |
Total distributions | (.88) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | .04% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,860 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (.98) |
Total from investment operations | (.97) |
Distributions from net investment income | (.05) |
Distributions from net realized gain | (.87) |
Total distributions | (.92) |
Net asset value, end of period | $ 13.52 |
Total Return B,C | (6.61)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.94% A |
Expenses net of fee waivers, if any | 1.94% A |
Expenses net of all reductions | 1.94% A |
Net investment income (loss) | .09% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,208 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Value
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 | $ 8.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .18 | .16 | .17 | .09 E | .09 |
Net realized and unrealized gain (loss) | (.80) | 1.80 | 1.87 | 1.47 | 2.47 |
Total from investment operations | (.62) | 1.96 | 2.04 | 1.56 | 2.56 |
Distributions from net investment income | (.13) | (.13) | (.11) | (.05) | (.09) |
Distributions from net realized gain | (.87) | (.26) | (.35) | (.11) | - |
Total distributions | (1.00) | (.39) | (.46) | (.16) | (.09) |
Redemption fees added to paid in capital B | - | - G,H | - G | - G | - G |
Net asset value, end of period | $ 13.57 | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 |
Total Return A | (4.39)% | 14.63% | 17.09% | 14.68% | 31.44% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .86% | .89% | .89% | 1.07% | 1.45% |
Expenses net of fee waivers, if any | .85% | .89% | .89% | 1.07% | 1.20% |
Expenses net of all reductions | .85% | .89% | .84% | 1.05% | 1.18% |
Net investment income (loss) | 1.18% | 1.10% | 1.32% | .79% E | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,483,574 | $ 1,372,751 | $ 569,109 | $ 177,004 | $ 25,168 |
Portfolio turnover rate D | 204% | 164% | 175% | 170% | 72% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H The redemption fee was eliminated during the year January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .17 |
Net realized and unrealized gain (loss) | (1.02) |
Total from investment operations | (.85) |
Distributions from net investment income | (.15) |
Distributions from net realized gain | (.87) |
Total distributions | (1.02) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (5.82)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .85% A |
Expenses net of fee waivers, if any | .85% A |
Expenses net of all reductions | .84% A |
Net investment income (loss) | 1.19% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,060 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Mid Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) B | -13.22% | 14.21% | 9.28% |
Class T (incl. 3.50% sales charge) C | -11.33% | 14.70% | 9.66% |
Class B (incl. contingent deferred sales charge) D | -12.91% | 15.19% | 10.21% |
Class C (incl. contingent deferred sales charge) E | -9.48% | 15.40% | 10.20% |
A From November 15, 2001.
B Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
C Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
D Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
E Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Value, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Mid Cap Value Fund - Class A on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period. The initial offering of Class A took place on February 13, 2007. See above for additional information regarding performance of Class A.
Annual Report
Fidelity Advisor Mid Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity Advisor Mid Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Advisor Mid Cap Value's Class A, Class T, Class B and Class C shares (excluding sales charges) all finished slightly ahead of the benchmark Russell Midcap® Value Index, which declined 8.73%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among bank and asset management companies. Favorable industry weightings within the weak financials and consumer discretionary sectors also added value. Good stock picking in materials, energy and the equipment/services group of health care also helped. Among the fund's strongest contributors for the period were CF Industries, an out-of-index company that produces fertilizer products; Cummins, a diesel engine manufacturer; Annaly Capital Management, a real estate investment trust that owned AAA-rated mortgages; and National Oilwell Varco, an energy services contractor. Conversely, relative results were held back by some unfavorable stock selection decisions in the utilities, consumer staples and consumer discretionary sectors. The fund's poorest performers included transportation firm YRC Worldwide; original equipment manufacturer TRW Automotive; and photographic imaging company Eastman Kodak. YRC and TRW were no longer held at period end.
For the year, Advisor Mid Cap Value Fund's Institutional Class shares finished slightly ahead of the benchmark Russell Midcap® Value Index, which declined 8.73%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among bank and asset management companies. Favorable industry weightings within the weak financials and consumer discretionary sectors also added value. Good stock picking in materials, energy and the equipment/services group of health care also helped. Among the fund's strongest contributors for the period were CF Industries, an out-of-index company that produces fertilizer products; Cummins, a diesel engine manufacturer; Annaly Capital Management, a real estate investment trust that owned AAA-rated mortgages; and National Oilwell Varco, an energy services contractor. Conversely, relative results were held back by some unfavorable stock selection decisions in the utilities, consumer staples and consumer discretionary sectors. The fund's poorest performers included transportation firm YRC Worldwide; original equipment manufacturer TRW Automotive; and photographic imaging company Eastman Kodak. YRC and TRW were no longer held at period end.
The views expressed above reflect those of the portfolio manager only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Mid Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Hess Corp. | 2.5 | 2.3 |
Edison International | 2.1 | 1.5 |
Everest Re Group Ltd. | 1.8 | 0.0 |
Annaly Capital Management, Inc. | 1.7 | 0.8 |
Boston Properties, Inc. | 1.7 | 0.0 |
Questar Corp. | 1.7 | 0.0 |
Axis Capital Holdings Ltd. | 1.6 | 0.8 |
Assurant, Inc. | 1.6 | 1.2 |
PartnerRe Ltd. | 1.6 | 1.2 |
Energen Corp. | 1.6 | 1.8 |
| 17.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.0 | 29.5 |
Utilities | 14.0 | 12.5 |
Consumer Discretionary | 13.1 | 13.1 |
Industrials | 10.4 | 10.7 |
Energy | 8.1 | 7.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.7% | | | Stocks 99.4% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.6% | |
* Foreign investments | 13.1% | | **Foreign investments | 4.2% | |
Annual Report
Fidelity Mid Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 13.1% |
Diversified Consumer Services - 0.5% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 50,800 | | $ 4,050,792 |
Hotels, Restaurants & Leisure - 1.1% |
Burger King Holdings, Inc. | 303,600 | | 7,999,860 |
Household Durables - 2.3% |
Leggett & Platt, Inc. (d) | 296,500 | | 5,639,430 |
Whirlpool Corp. (d) | 133,500 | | 11,362,185 |
| | 17,001,615 |
Internet & Catalog Retail - 1.2% |
Expedia, Inc. (a) | 242,600 | | 5,584,652 |
Liberty Media Corp. - Interactive
Series A (a) | 239,500 | | 3,810,445 |
| | 9,395,097 |
Leisure Equipment & Products - 1.4% |
Eastman Kodak Co. (d) | 534,300 | | 10,648,599 |
Media - 2.1% |
E.W. Scripps Co. Class A | 181,100 | | 7,374,392 |
Liberty Media Corp. - Capital
Series A (a) | 74,900 | | 8,060,738 |
| | 15,435,130 |
Specialty Retail - 2.6% |
Abercrombie & Fitch Co. Class A | 96,200 | | 7,666,178 |
AutoZone, Inc. (a) | 48,200 | | 5,826,416 |
RadioShack Corp. | 136,800 | | 2,373,480 |
TJX Companies, Inc. | 125,600 | | 3,963,936 |
| | 19,830,010 |
Textiles, Apparel & Luxury Goods - 1.9% |
Crocs, Inc. (a)(d) | 219,600 | | 7,639,884 |
Jones Apparel Group, Inc. (d) | 399,000 | | 6,703,200 |
| | 14,343,084 |
TOTAL CONSUMER DISCRETIONARY | | 98,704,187 |
CONSUMER STAPLES - 7.1% |
Beverages - 1.9% |
Coca-Cola Enterprises, Inc. | 311,600 | | 7,188,612 |
Molson Coors Brewing Co. Class B | 168,900 | | 7,544,763 |
| | 14,733,375 |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a)(d) | 170,600 | | 5,534,264 |
Safeway, Inc. | 259,000 | | 8,026,410 |
SUPERVALU, Inc. | 239,600 | | 7,202,376 |
| | 20,763,050 |
Food Products - 2.2% |
Corn Products International, Inc. | 136,600 | | 4,617,080 |
Dean Foods Co. | 158,400 | | 4,435,200 |
Del Monte Foods Co. | 316,300 | | 2,837,211 |
Tyson Foods, Inc. Class A | 308,000 | | 4,389,000 |
| | 16,278,491 |
|
| Shares | | Value |
Personal Products - 0.2% |
Estee Lauder Companies, Inc. Class A | 44,100 | | $ 1,861,020 |
TOTAL CONSUMER STAPLES | | 53,635,936 |
ENERGY - 8.1% |
Energy Equipment & Services - 4.8% |
Helmerich & Payne, Inc. | 206,500 | | 8,098,930 |
Nabors Industries Ltd. (a) | 152,100 | | 4,140,162 |
National Oilwell Varco, Inc. (a) | 121,000 | | 7,287,830 |
Patterson-UTI Energy, Inc. (d) | 450,800 | | 8,826,664 |
Superior Energy Services, Inc. (a) | 74,400 | | 2,982,696 |
Tidewater, Inc. | 81,800 | | 4,332,128 |
| | 35,668,410 |
Oil, Gas & Consumable Fuels - 3.3% |
Frontline Ltd. (NY Shares) | 137,300 | | 5,844,861 |
Hess Corp. (d) | 211,800 | | 19,237,794 |
| | 25,082,655 |
TOTAL ENERGY | | 60,751,065 |
FINANCIALS - 30.0% |
Capital Markets - 3.0% |
GLG Partners, Inc. (a)(d) | 756,200 | | 8,915,598 |
Janus Capital Group, Inc. (d) | 352,500 | | 9,521,025 |
MF Global Ltd. | 151,200 | | 4,543,560 |
| | 22,980,183 |
Commercial Banks - 3.5% |
Associated Banc-Corp. | 277,700 | | 7,825,586 |
BOK Financial Corp. | 71,195 | | 3,878,704 |
East West Bancorp, Inc. (d) | 188,900 | | 4,544,934 |
Synovus Financial Corp. | 219,900 | | 2,904,879 |
Zions Bancorp | 125,800 | | 6,886,292 |
| | 26,040,395 |
Diversified Financial Services - 0.6% |
MSCI, Inc. Class A | 136,800 | | 4,510,296 |
Insurance - 13.9% |
ACE Ltd. | 158,000 | | 9,217,720 |
Allied World Assurance Co. Holdings Ltd. | 147,800 | | 7,039,714 |
Assurant, Inc. | 187,200 | | 12,147,408 |
Axis Capital Holdings Ltd. | 308,900 | | 12,368,356 |
CNA Financial Corp. | 189,800 | | 6,451,302 |
Endurance Specialty Holdings Ltd. | 286,800 | | 11,621,136 |
Everest Re Group Ltd. | 133,100 | | 13,534,939 |
PartnerRe Ltd. | 152,100 | | 12,058,488 |
RenaissanceRe Holdings Ltd. | 197,800 | | 11,272,622 |
W.R. Berkley Corp. | 303,200 | | 9,174,832 |
| | 104,886,517 |
Real Estate Investment Trusts - 7.0% |
Annaly Capital Management, Inc. | 658,200 | | 12,979,704 |
Boston Properties, Inc. | 138,600 | | 12,740,112 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Colonial Properties Trust (SBI) | 97,800 | | $ 2,409,792 |
Kimco Realty Corp. | 198,300 | | 7,101,123 |
ProLogis Trust | 155,700 | | 9,240,795 |
Public Storage | 73,700 | | 5,767,025 |
Taubman Centers, Inc. | 47,400 | | 2,377,110 |
| | 52,615,661 |
Thrifts & Mortgage Finance - 2.0% |
Astoria Financial Corp. | 262,500 | | 7,134,750 |
Washington Federal, Inc. | 323,700 | | 7,904,754 |
| | 15,039,504 |
TOTAL FINANCIALS | | 226,072,556 |
HEALTH CARE - 2.3% |
Health Care Equipment & Supplies - 0.3% |
Kinetic Concepts, Inc. (a)(d) | 41,100 | | 2,045,958 |
Health Care Providers & Services - 0.5% |
Humana, Inc. (a) | 42,500 | | 3,412,750 |
Life Sciences Tools & Services - 1.2% |
Charles River Laboratories International, Inc. (a) | 74,200 | | 4,607,820 |
Invitrogen Corp. (a) | 54,600 | | 4,677,582 |
| | 9,285,402 |
Pharmaceuticals - 0.3% |
Watson Pharmaceuticals, Inc. (a) | 85,000 | | 2,219,350 |
TOTAL HEALTH CARE | | 16,963,460 |
INDUSTRIALS - 10.4% |
Aerospace & Defense - 1.7% |
DRS Technologies, Inc. | 88,400 | | 4,744,428 |
L-3 Communications Holdings, Inc. | 72,500 | | 8,035,175 |
| | 12,779,603 |
Airlines - 0.8% |
Northwest Airlines Corp. (a) | 152,600 | | 2,855,146 |
UAL Corp. | 75,800 | | 2,876,610 |
| | 5,731,756 |
Building Products - 0.6% |
Lennox International, Inc. | 126,800 | | 4,711,888 |
Commercial Services & Supplies - 2.2% |
Allied Waste Industries, Inc. (a) | 700,300 | | 6,897,955 |
R.R. Donnelley & Sons Co. | 267,200 | | 9,322,608 |
| | 16,220,563 |
Construction & Engineering - 1.7% |
KBR, Inc. (a) | 309,000 | | 9,761,310 |
URS Corp. (a) | 69,800 | | 3,064,220 |
| | 12,825,530 |
|
| Shares | | Value |
Industrial Conglomerates - 0.6% |
McDermott International, Inc. (a) | 94,500 | | $ 4,458,510 |
Machinery - 2.5% |
AGCO Corp. (a) | 106,000 | | 6,383,320 |
Cummins, Inc. | 117,300 | | 5,663,244 |
Ingersoll-Rand Co. Ltd. Class A | 168,400 | | 6,655,168 |
| | 18,701,732 |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 160,200 | | 2,390,184 |
TOTAL INDUSTRIALS | | 77,819,766 |
INFORMATION TECHNOLOGY - 6.4% |
Communications Equipment - 0.7% |
Juniper Networks, Inc. (a) | 195,900 | | 5,318,685 |
Computers & Peripherals - 2.2% |
NCR Corp. (a) | 422,600 | | 9,077,448 |
Western Digital Corp. (a) | 278,300 | | 7,361,035 |
| | 16,438,483 |
Electronic Equipment & Instruments - 1.4% |
Avnet, Inc. (a) | 152,500 | | 5,430,525 |
Ingram Micro, Inc. Class A (a) | 173,400 | | 3,083,052 |
Jabil Circuit, Inc. | 174,200 | | 2,308,150 |
| | 10,821,727 |
Semiconductors & Semiconductor Equipment - 1.6% |
Atmel Corp. (a) | 1,316,800 | | 4,161,088 |
MEMC Electronic Materials, Inc. (a) | 25,000 | | 1,786,500 |
Novellus Systems, Inc. (a) | 111,700 | | 2,653,992 |
Varian Semiconductor Equipment Associates, Inc. (a) | 109,100 | | 3,514,111 |
| | 12,115,691 |
Software - 0.5% |
Compuware Corp. (a) | 405,900 | | 3,450,150 |
TOTAL INFORMATION TECHNOLOGY | | 48,144,736 |
MATERIALS - 6.8% |
Chemicals - 3.1% |
Celanese Corp. Class A | 146,800 | | 5,458,024 |
CF Industries Holdings, Inc. | 57,100 | | 6,105,703 |
Chemtura Corp. (d) | 867,400 | | 5,811,580 |
The Mosaic Co. (a) | 71,200 | | 6,479,912 |
| | 23,855,219 |
Containers & Packaging - 1.9% |
Ball Corp. | 85,100 | | 3,905,239 |
Owens-Illinois, Inc. (a) | 91,500 | | 4,611,600 |
Smurfit-Stone Container Corp. (a)(d) | 603,500 | | 5,727,215 |
| | 14,244,054 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Metals & Mining - 1.8% |
Cleveland-Cliffs, Inc. (d) | 42,700 | | $ 4,348,568 |
United States Steel Corp. | 88,000 | | 8,985,680 |
| | 13,334,248 |
TOTAL MATERIALS | | 51,433,521 |
TELECOMMUNICATION SERVICES - 1.5% |
Diversified Telecommunication Services - 1.5% |
Embarq Corp. | 116,500 | | 5,277,450 |
Qwest Communications International, Inc. | 1,043,800 | | 6,137,544 |
| | 11,414,994 |
UTILITIES - 14.0% |
Electric Utilities - 4.6% |
Allegheny Energy, Inc. | 123,300 | | 6,755,607 |
Edison International | 305,600 | | 15,940,096 |
Reliant Energy, Inc. (a) | 558,600 | | 11,881,422 |
| | 34,577,125 |
Gas Utilities - 3.3% |
Energen Corp. | 191,700 | | 12,057,930 |
Questar Corp. | 247,300 | | 12,590,043 |
| | 24,647,973 |
Independent Power Producers & Energy Traders - 4.2% |
Constellation Energy Group, Inc. | 103,700 | | 9,743,652 |
Mirant Corp. (a) | 315,100 | | 11,608,284 |
NRG Energy, Inc. (a) | 268,200 | | 10,349,838 |
| | 31,701,774 |
Multi-Utilities - 1.9% |
CMS Energy Corp. | 583,000 | | 9,135,610 |
OGE Energy Corp. | 162,500 | | 5,318,625 |
| | 14,454,235 |
TOTAL UTILITIES | | 105,381,107 |
TOTAL COMMON STOCKS (Cost $760,656,463) | 750,321,328 |
Money Market Funds - 10.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 3.79% (b) | 5,496,422 | | $ 5,496,422 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 74,160,825 | | 74,160,825 |
TOTAL MONEY MARKET FUNDS (Cost $79,657,247) | 79,657,247 |
TOTAL INVESTMENT PORTFOLIO - 110.3% (Cost $840,313,710) | | 829,978,575 |
NET OTHER ASSETS - (10.3)% | | (77,171,615) |
NET ASSETS - 100% | $ 752,806,960 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 394,997 |
Fidelity Securities Lending Cash Central Fund | 169,409 |
Total | $ 564,406 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 86.9% |
Bermuda | 11.3% |
Cayman Islands | 1.2% |
Others (individually less than 1%) | 0.6% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $31,051,104 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $73,863,006) - See accompanying schedule: Unaffiliated issuers (cost $760,656,463) | $ 750,321,328 | |
Fidelity Central Funds (cost $79,657,247) | 79,657,247 | |
Total Investments (cost $840,313,710) | | $ 829,978,575 |
Receivable for investments sold | | 20,806,082 |
Receivable for fund shares sold | | 2,652,227 |
Dividends receivable | | 223,102 |
Distributions receivable from Fidelity Central Funds | | 36,747 |
Prepaid expenses | | 2,661 |
Other receivables | | 46 |
Total assets | | 853,699,440 |
| | |
Liabilities | | |
Payable for investments purchased | $ 20,180,467 | |
Payable for fund shares redeemed | 5,956,855 | |
Accrued management fee | 312,903 | |
Distribution fees payable | 5,417 | |
Other affiliated payables | 203,019 | |
Other payables and accrued expenses | 72,994 | |
Collateral on securities loaned, at value | 74,160,825 | |
Total liabilities | | 100,892,480 |
| | |
Net Assets | | $ 752,806,960 |
Net Assets consist of: | | |
Paid in capital | | $ 788,210,259 |
Undistributed net investment income | | 1,465,714 |
Accumulated undistributed net realized gain (loss) on investments | | (26,533,878) |
Net unrealized appreciation (depreciation) on investments | | (10,335,135) |
Net Assets | | $ 752,806,960 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($7,444,673 ÷ 494,661 shares) | | $ 15.05 |
| | |
Maximum offering price per share (100/94.25 of $15.05) | | $ 15.97 |
Class T:
Net Asset Value and redemption price per share ($3,714,323 ÷ 247,029 shares) | | $ 15.04 |
| | |
Maximum offering price per share (100/96.50 of $15.04) | | $ 15.59 |
Class B:
Net Asset Value and offering price per share ($1,304,436 ÷ 87,007 shares)A | | $ 14.99 |
| | |
Class C:
Net Asset Value and offering price per share ($1,657,889 ÷ 110,680 shares)A | | $ 14.98 |
| | |
Mid Cap Value:
Net Asset Value, offering price and redemption price per share ($737,234,029 ÷ 48,847,921 shares) | | $ 15.09 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,451,610 ÷ 96,411 shares) | | $ 15.06 |
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.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 11,189,048 |
Interest | | 8,457 |
Income from Fidelity Central Funds (including $169,409 from security lending) | | 564,406 |
Total income | | 11,761,911 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,084,079 | |
Performance adjustment | (317,451) | |
Transfer agent fees | 2,236,010 | |
Distribution fees | 53,691 | |
Accounting and security lending fees | 315,091 | |
Custodian fees and expenses | 28,074 | |
Independent trustees' compensation | 3,227 | |
Registration fees | 145,678 | |
Audit | 58,698 | |
Legal | 4,195 | |
Interest | 4,946 | |
Miscellaneous | 29,800 | |
Total expenses before reductions | 7,646,038 | |
Expense reductions | (105,134) | 7,540,904 |
Net investment income (loss) | | 4,221,007 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | (3,216,421) |
Change in net unrealized appreciation (depreciation) on investment securities | | (85,150,820) |
Net gain (loss) | | (88,367,241) |
Net increase (decrease) in net assets resulting from operations | | $ (84,146,234) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,221,007 | $ 2,688,685 |
Net realized gain (loss) | (3,216,421) | 24,851,516 |
Change in net unrealized appreciation (depreciation) | (85,150,820) | 43,131,851 |
Net increase (decrease) in net assets resulting from operations | (84,146,234) | 70,672,052 |
Distributions to shareholders from net investment income | (3,037,015) | (2,949,768) |
Distributions to shareholders from net realized gain | (37,140,454) | (13,997,322) |
Total distributions | (40,177,469) | (16,947,090) |
Share transactions - net increase (decrease) | 198,288,449 | 259,218,977 |
Redemption fees | 47,852 | 33,264 |
Total increase (decrease) in net assets | 74,012,598 | 312,977,203 |
| | |
Net Assets | | |
Beginning of period | 678,794,362 | 365,817,159 |
End of period (including undistributed net investment income of $1,465,714 and undistributed net investment income
of $375,291, respectively) | $ 752,806,960 | $ 678,794,362 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | .03 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.75) |
Distributions from net investment income | (.06) |
Distributions from net realized gain | (.77) |
Total distributions | (.83) |
Net asset value, end of period | $ 15.05 |
Total Return B,C,D | (10.28)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.14% A |
Expenses net of fee waivers, if any | 1.14% A |
Expenses net of all reductions | 1.13% A |
Net investment income (loss) | .16% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 7,445 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.02) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.78) |
Distributions from net investment income | (.04) |
Distributions from net realized gain | (.77) |
Total distributions | (.81) |
Net asset value, end of period | $ 15.04 |
Total Return B,C,D | (10.46)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.39% A |
Expenses net of fee waivers, if any | 1.39% A |
Expenses net of all reductions | 1.39% A |
Net investment income (loss) | (.10)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,714 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.86) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.99 |
Total Return B,C,D | (10.88)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.89% A |
Expenses net of fee waivers, if any | 1.89% A |
Expenses net of all reductions | 1.89% A |
Net investment income (loss) | (.59)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,304 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.77) |
Total from investment operations | (1.87) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.98 |
Total Return B,C,D | (10.94)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.90% A |
Expenses net of fee waivers, if any | 1.90% A |
Expenses net of all reductions | 1.90% A |
Net investment income (loss) | (.60)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,658 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Value
Years ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 | $ 8.85 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .08 | .09 | .16 E | .08 | .06 |
Net realized and unrealized gain (loss) | (1.34) | 1.98 | 2.59 | 2.10 | 3.45 |
Total from investment operations | (1.26) | 2.07 | 2.75 | 2.18 | 3.51 |
Distributions from net investment income | (.06) | (.09) | (.10) | (.04) | (.04) |
Distributions from net realized gain | (.77) | (.45) | (1.15) | (.32) | - |
Total distributions | (.83) | (.54) | (1.24) H | (.36) | (.04) |
Redemption fees added to paid in capital B,G | - | - | - | - | - |
Net asset value, end of period | $ 15.09 | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 |
Total Return A | (7.67)% | 13.48% | 19.97% | 17.75% | 39.69% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .83% | .84% | .86% | .91% | 1.07% |
Expenses net of fee waivers, if any | .82% | .84% | .86% | .91% | 1.07% |
Expenses net of all reductions | .82% | .84% | .81% | .90% | 1.05% |
Net investment income (loss) | .47% | .56% | 1.08% E | .59% | .55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 737,234 | $ 678,794 | $ 365,817 | $ 153,231 | $ 95,797 |
Portfolio turnover rate D | 264% | 187% | 207% | 196% | 97% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H Total distributions of $1.24 per share is comprised of distributions from net investment income of $0.95 and distributions from net realized gain of $1.145 per share.
Financial Highlights - Institutional Class
Years ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) D | .07 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.71) |
Distributions from net investment income | (.09) |
Distributions from net realized gain | (.77) |
Total distributions | (.86) |
Net asset value, end of period | $ 15.06 |
Total Return B,C | (10.06)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .89% A |
Expenses net of fee waivers, if any | .89% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .41% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,452 |
Portfolio turnover rate F | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Large Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) B | -12.85% | 9.39% | 1.33% |
Class T (incl. 3.50% sales charge) C | -10.83% | 9.89% | 1.70% |
Class B (incl. contingent deferred sales charge) D | -12.29% | 10.27% | 2.18% |
Class C (incl. contingent deferred sales charge) E | -8.91% | 10.56% | 2.20% |
A From November 15, 2001.
B Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
C Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
D Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
E Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Large Cap Growth Fund - Class A on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period. The initial offering of Class A took place on February 13, 2007. See above for additional information regarding performance of Class A.
Annual Report
Fidelity Advisor Large Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Edward Best, Portfolio Manager of Fidelity Advisor Large Cap Growth Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months ending January 31, 2008, the fund's Class A, Class T, Class B and Class C shares (excluding sales charges) trailed the 0.51% gain of the Russell 1000® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor security selection in consumer discretionary, information technology and industrials accounted for the majority of the fund's underperformance compared with the index. Within consumer discretionary, the fund was hurt most by unproductive picks within the retailing and homebuilding segments. Consumer electronics retailer RadioShack and discount retailer Big Lots fell on investors' concerns about the companies' ability to weather recessionary concerns and a weak U.S. consumer. Pharmaceuticals company Sepracor suffered due to a change in Medicare reimbursement for one of its top-selling patented drugs. Airlines US Airways and AMR Corp. - parent company of American Airlines - underperformed due to increased pressure from rising energy prices. The fund's positions in homebuilders KB Home, Ryland Group, D.R. Horton and Lennar, all of which I sold when I took over the fund in June, also held back performance. While our overall stock picking within industrials detracted, stock selection within the sector's capital goods segment actually helped the fund. Specifically, Manitowoc, a major supplier of lifting equipment to the global construction industry, aided performance. Also within capital goods, defense contractor Lockheed Martin benefited from an increase in U.S. defense spending. Stock selection among health care names was positive as well. Pharmaceutical company Biogen Idec gained on news of the re-launch of its multiple sclerosis drug, Tysabri. While stock selection in technology hurt overall, there were some contributors. Apple advanced as the stock did well on the success of its iPod, iPhone and iMac products. Software developer Microsoft also aided performance. By the end of the period, I sold US Airways, AMR Corp., RadioShack, Big Lots, Sepracor and Apple to take advantage of other opportunities in the market.
For the 12 months ending January 31, 2008, the fund's Institutional Class shares trailed the 0.51% gain of the Russell 1000® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor security selection in consumer discretionary, information technology and industrials accounted for the majority of the fund's underperformance compared with the index. Within consumer discretionary, the fund was hurt most by unproductive picks within the retailing and homebuilding segments. Consumer electronics retailer RadioShack and discount retailer Big Lots fell on investors' concerns about the companies' ability to weather recessionary concerns and a weak U.S. consumer. Pharmaceuticals company Sepracor suffered due to a change in Medicare reimbursement for one of its top-selling patented drugs. Airlines US Airways and AMR Corp. - parent company of American Airlines - underperformed due to increased pressure from rising energy prices. The fund's positions in homebuilders KB Home, Ryland Group, D.R. Horton and Lennar, all of which I sold when I took over the fund in June, also held back performance. While our overall stock picking within industrials detracted, stock selection within the sector's capital goods segment actually helped the fund. Specifically, Manitowoc, a major supplier of lifting equipment to the global construction industry, aided performance. Also within capital goods, defense contractor Lockheed Martin benefited from an increase in U.S. defense spending. Stock selection among health care names also was positive. Pharmaceutical company Biogen Idec gained on news of the re-launch of its multiple sclerosis drug, Tysabri. While stock selection in technology hurt overall, there were some contributors. Apple advanced as the stock did well on the success of its iPod, iPhone and iMac products. Software developer Microsoft also aided performance. By the end of the period, I sold US Airways, AMR Corp., RadioShack, Big Lots, Sepracor, and Apple to take advantage of other opportunities in the market.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Microsoft Corp. | 5.0 | 5.0 |
Exxon Mobil Corp. | 4.4 | 1.6 |
Oracle Corp. | 4.1 | 0.0 |
The Boeing Co. | 3.9 | 0.0 |
Cisco Systems, Inc. | 3.8 | 2.4 |
Bristol-Myers Squibb Co. | 3.6 | 0.0 |
Accenture Ltd. Class A | 3.3 | 3.3 |
NIKE, Inc. Class B | 3.3 | 0.0 |
NYMEX Holdings, Inc. | 3.1 | 0.0 |
Kroger Co. | 3.0 | 3.1 |
| 37.5 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.0 | 26.9 |
Health Care | 16.8 | 16.2 |
Industrials | 14.2 | 14.2 |
Consumer Discretionary | 11.9 | 13.5 |
Consumer Staples | 10.9 | 9.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.4% | | | Stocks 99.8% | |
| Short-Term
Investments and
Net Other Assets 0.6% | | | Short-Term
Investments and
Net Other Assets 0.2% | |
* Foreign investments | 4.4% | | **Foreign
investments | 5.5% | |
Annual Report
Fidelity Large Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.9% |
Auto Components - 1.6% |
The Goodyear Tire & Rubber Co. (a) | 99,300 | | $ 2,499,381 |
Diversified Consumer Services - 1.2% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 22,600 | | 1,802,124 |
Hotels, Restaurants & Leisure - 2.6% |
McDonald's Corp. | 74,200 | | 3,973,410 |
Media - 2.3% |
Regal Entertainment Group Class A (d) | 189,300 | | 3,509,622 |
Specialty Retail - 0.9% |
Gamestop Corp. Class A (a) | 27,400 | | 1,417,402 |
Textiles, Apparel & Luxury Goods - 3.3% |
NIKE, Inc. Class B | 79,900 | | 4,934,624 |
TOTAL CONSUMER DISCRETIONARY | | 18,136,563 |
CONSUMER STAPLES - 10.9% |
Beverages - 5.0% |
Pepsi Bottling Group, Inc. | 114,200 | | 3,979,870 |
PepsiCo, Inc. | 52,500 | | 3,579,975 |
| | 7,559,845 |
Food & Staples Retailing - 3.0% |
Kroger Co. | 181,400 | | 4,616,630 |
Food Products - 2.4% |
Kellogg Co. | 77,200 | | 3,697,880 |
Household Products - 0.5% |
Energizer Holdings, Inc. (a) | 8,300 | | 777,046 |
TOTAL CONSUMER STAPLES | | 16,651,401 |
ENERGY - 7.9% |
Energy Equipment & Services - 0.9% |
Baker Hughes, Inc. | 5,700 | | 370,101 |
Nabors Industries Ltd. (a) | 24,400 | | 664,168 |
Schlumberger Ltd. (NY Shares) | 5,000 | | 377,300 |
| | 1,411,569 |
Oil, Gas & Consumable Fuels - 7.0% |
Exxon Mobil Corp. | 78,000 | | 6,739,200 |
Sunoco, Inc. | 13,000 | | 808,600 |
Valero Energy Corp. | 53,000 | | 3,137,070 |
| | 10,684,870 |
TOTAL ENERGY | | 12,096,439 |
FINANCIALS - 7.5% |
Capital Markets - 4.4% |
Charles Schwab Corp. | 198,200 | | 4,419,860 |
Northern Trust Corp. | 30,900 | | 2,266,824 |
| | 6,686,684 |
|
| Shares | | Value |
Diversified Financial Services - 3.1% |
NYMEX Holdings, Inc. (d) | 41,700 | | $ 4,795,500 |
TOTAL FINANCIALS | | 11,482,184 |
HEALTH CARE - 16.8% |
Biotechnology - 1.2% |
Biogen Idec, Inc. (a) | 29,300 | | 1,785,835 |
Health Care Equipment & Supplies - 2.8% |
Baxter International, Inc. | 69,700 | | 4,233,578 |
Health Care Providers & Services - 9.2% |
Aetna, Inc. | 86,000 | | 4,580,360 |
Express Scripts, Inc. (a) | 11,400 | | 769,386 |
Medco Health Solutions, Inc. (a) | 35,200 | | 1,762,816 |
UnitedHealth Group, Inc. | 47,700 | | 2,425,068 |
WellPoint, Inc. (a) | 57,800 | | 4,519,960 |
| | 14,057,590 |
Pharmaceuticals - 3.6% |
Bristol-Myers Squibb Co. | 234,400 | | 5,435,736 |
TOTAL HEALTH CARE | | 25,512,739 |
INDUSTRIALS - 14.2% |
Aerospace & Defense - 5.6% |
Lockheed Martin Corp. | 5,900 | | 636,728 |
Precision Castparts Corp. | 16,900 | | 1,923,220 |
The Boeing Co. | 71,500 | | 5,947,370 |
| | 8,507,318 |
Commercial Services & Supplies - 3.9% |
Allied Waste Industries, Inc. (a) | 460,200 | | 4,532,970 |
HNI Corp. (d) | 15,400 | | 518,364 |
Manpower, Inc. | 15,300 | | 860,778 |
| | 5,912,112 |
Construction & Engineering - 2.7% |
Fluor Corp. | 7,500 | | 912,525 |
Shaw Group, Inc. (a) | 13,800 | | 779,700 |
URS Corp. (a) | 54,700 | | 2,401,330 |
| | 4,093,555 |
Industrial Conglomerates - 0.8% |
McDermott International, Inc. (a) | 24,500 | | 1,155,910 |
Machinery - 1.2% |
AGCO Corp. (a) | 8,700 | | 523,914 |
Cummins, Inc. | 16,500 | | 796,620 |
Manitowoc Co., Inc. | 15,400 | | 587,048 |
| | 1,907,582 |
TOTAL INDUSTRIALS | | 21,576,477 |
INFORMATION TECHNOLOGY - 26.0% |
Communications Equipment - 3.8% |
Cisco Systems, Inc. (a) | 236,300 | | 5,789,350 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 0.5% |
Lexmark International, Inc. Class A (a) | 1,400 | | $ 50,694 |
Western Digital Corp. (a) | 29,000 | | 767,050 |
| | 817,744 |
Electronic Equipment & Instruments - 0.5% |
National Instruments Corp. | 27,400 | | 735,964 |
IT Services - 6.2% |
Accenture Ltd. Class A | 143,600 | | 4,971,432 |
Mastercard, Inc. Class A (d) | 7,000 | | 1,449,000 |
The Western Union Co. | 135,200 | | 3,028,480 |
| | 9,448,912 |
Semiconductors & Semiconductor Equipment - 2.2% |
MEMC Electronic Materials, Inc. (a) | 12,500 | | 893,250 |
NVIDIA Corp. (a) | 82,500 | | 2,028,675 |
Texas Instruments, Inc. | 12,000 | | 371,160 |
| | 3,293,085 |
Software - 12.8% |
Autodesk, Inc. (a) | 76,100 | | 3,131,515 |
BMC Software, Inc. (a) | 74,200 | | 2,377,368 |
Microsoft Corp. | 233,200 | | 7,602,320 |
Oracle Corp. (a) | 306,900 | | 6,306,795 |
| | 19,417,998 |
TOTAL INFORMATION TECHNOLOGY | | 39,503,053 |
MATERIALS - 3.0% |
Chemicals - 2.0% |
Air Products & Chemicals, Inc. | 4,200 | | 378,084 |
E.I. du Pont de Nemours & Co. | 10,100 | | 456,318 |
Monsanto Co. | 12,800 | | 1,439,232 |
Praxair, Inc. | 4,700 | | 380,277 |
The Mosaic Co. (a) | 4,000 | | 364,040 |
| | 3,017,951 |
Metals & Mining - 1.0% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 8,400 | | 747,852 |
Newmont Mining Corp. | 7,100 | | 385,814 |
Southern Copper Corp. | 4,400 | | 412,896 |
| | 1,546,562 |
TOTAL MATERIALS | | 4,564,513 |
|
| Shares | | Value |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
Crown Castle International Corp. (a) | 10,700 | | $ 387,233 |
UTILITIES - 0.9% |
Electric Utilities - 0.9% |
Exelon Corp. | 18,300 | | 1,394,277 |
TOTAL COMMON STOCKS (Cost $156,064,347) | 151,304,879 |
Money Market Funds - 6.4% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 1,837,290 | | 1,837,290 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 7,887,500 | | 7,887,500 |
TOTAL MONEY MARKET FUNDS (Cost $9,724,790) | 9,724,790 |
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $165,789,137) | | 161,029,669 |
NET OTHER ASSETS - (5.8)% | | (8,892,495) |
NET ASSETS - 100% | $ 152,137,174 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 60,857 |
Fidelity Securities Lending Cash Central Fund | 56,422 |
Total | $ 117,279 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $7,837,041 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $7,883,516) - See accompanying schedule: Unaffiliated issuers (cost $156,064,347) | $ 151,304,879 | |
Fidelity Central Funds (cost $9,724,790) | 9,724,790 | |
Total Investments (cost $165,789,137) | | $ 161,029,669 |
Receivable for investments sold | | 18,559,475 |
Receivable for fund shares sold | | 222,238 |
Dividends receivable | | 82,079 |
Distributions receivable from Fidelity Central Funds | | 4,743 |
Prepaid expenses | | 514 |
Receivable from investment adviser for expense reductions | | 25,900 |
Total assets | | 179,924,618 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,486,946 | |
Payable for fund shares redeemed | 257,786 | |
Accrued management fee | 52,051 | |
Distribution fees payable | 1,918 | |
Other affiliated payables | 48,536 | |
Other payables and accrued expenses | 52,707 | |
Collateral on securities loaned, at value | 7,887,500 | |
Total liabilities | | 27,787,444 |
| | |
Net Assets | | $ 152,137,174 |
Net Assets consist of: | | |
Paid in capital | | $ 162,808,253 |
Accumulated undistributed net realized gain (loss) on investments | | (5,911,611) |
Net unrealized appreciation (depreciation) on investments | | (4,759,468) |
Net Assets | | $ 152,137,174 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,302,425 ÷ 132,172 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/94.25 of $9.85) | | $ 10.45 |
Class T:
Net Asset Value and redemption price per share ($1,097,491 ÷ 111,448 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/96.50 of $9.85) | | $ 10.21 |
Class B:
Net Asset Value and offering price per share ($543,149 ÷ 55,237 shares)A | | $ 9.83 |
| | |
Class C:
Net Asset Value and offering price per share ($944,595 ÷ 96,233 shares)A | | $ 9.82 |
| | |
Large Cap Growth:
Net Asset Value, offering price and redemption price per share ($147,863,609 ÷ 14,947,307 shares) | | $ 9.89 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($385,905 ÷ 39,068 shares) | | $ 9.88 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 1,475,584 |
Interest | | 922 |
Income from Fidelity Central Funds (including $56,422 from security lending) | | 117,279 |
Total income | | 1,593,785 |
| | |
Expenses | | |
Management fee
Basic fee | $ 979,536 | |
Performance adjustment | 37,062 | |
Transfer agent fees | 534,768 | |
Distribution fees | 10,735 | |
Accounting and security lending fees | 70,624 | |
Custodian fees and expenses | 18,147 | |
Independent trustees' compensation | 638 | |
Registration fees | 103,527 | |
Audit | 55,247 | |
Legal | 928 | |
Miscellaneous | 11,842 | |
Total expenses before reductions | 1,823,054 | |
Expense reductions | (97,947) | 1,725,107 |
Net investment income (loss) | | (131,322) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 10,237,592 |
Change in net unrealized appreciation (depreciation) on investment securities | | (21,747,840) |
Net gain (loss) | | (11,510,248) |
Net increase (decrease) in net assets resulting from operations | | $ (11,641,570) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (131,322) | $ 26,323 |
Net realized gain (loss) | 10,237,592 | 4,571,573 |
Change in net unrealized appreciation (depreciation) | (21,747,840) | (297,654) |
Net increase (decrease) in net assets resulting from operations | (11,641,570) | 4,300,242 |
Distributions to shareholders from net investment income | - | (137,207) |
Distributions to shareholders from net realized gain | (18,572,404) | (3,644,497) |
Total distributions | (18,572,404) | (3,781,704) |
Share transactions - net increase (decrease) | (1,164,336) | 25,478,221 |
Redemption fees | - | 5,257 |
Total increase (decrease) in net assets | (31,378,310) | 26,002,016 |
| | |
Net Assets | | |
Beginning of period | 183,515,484 | 157,513,468 |
End of period | $ 152,137,174 | $ 183,515,484 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.03) |
Net realized and unrealized gain (loss) | (.72) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (6.99)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.20% A |
Expenses net of fee waivers, if any | 1.20% A |
Expenses net of all reductions | 1.20% A |
Net investment income (loss) | (.29)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,302 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.06) |
Net realized and unrealized gain (loss) | (.69) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (7.05)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | (.56)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,097 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.12) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.82) |
Distributions from net realized gain | (1.20) |
Net asset value, end of period | $ 9.83 |
Total Return B,C,D | (7.62)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | (1.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 543 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.11) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.81) |
Distributions from net realized gain | (1.22) |
Net asset value, end of period | $ 9.82 |
Total Return B,C,D | (7.54)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.96% A |
Expenses net of fee waivers, if any | 1.96% A |
Expenses net of all reductions | 1.96% A |
Net investment income (loss) | (1.05)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 945 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 | $ 6.93 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.01) | - H | .02 E | (.01) F | (.01) |
Net realized and unrealized gain (loss) | (.77) | .37 | 1.87 | .97 | 2.29 |
Total from investment operations | (.78) | .37 | 1.89 | .96 | 2.28 |
Distributions from net investment income | - | (.01) | - | - | - |
Distributions from net realized gain | (1.25) | (.26) | (.24) | - | - |
Total distributions | (1.25) | (.27) | (.24) | - | - |
Redemption fees added to paid in capital B | - | - H,I | - H | - H | - H |
Net asset value, end of period | $ 9.89 | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 |
Total Return A | (7.26)% | 3.20% | 18.66% | 10.42% | 32.90% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | 1.03% | 1.10% | 1.12% | 1.30% | 1.53% |
Expenses net of fee waivers, if any | .99% | 1.00% | 1.00% | 1.20% | 1.20% |
Expenses net of all reductions | .98% | .99% | .94% | 1.13% | 1.18% |
Net investment income (loss) | (.07)% | .02% | .15% E | (.07)% F | (.15)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 147,864 | $ 183,515 | $ 157,513 | $ 49,453 | $ 23,079 |
Portfolio turnover rate D | 428% | 189% | 268% | 274% | 81% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
F Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.32)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The redemption fee was eliminated during the year ended January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) | (.70) |
Distributions from net realized gain | (1.27) |
Net asset value, end of period | $ 9.88 |
Total Return B,C | (6.64)% |
Ratios to Average Net Assets D,E | |
Expenses before reductions | .88% A |
Expenses net of fee waivers, if any | .88% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .03% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 386 |
Portfolio turnover rate F | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Mid Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) B | -15.01% | 11.83% | 4.05% |
Class T (incl. 3.50% sales charge) C | -13.32% | 12.27% | 4.38% |
Class B (incl. contingent deferred sales charge) D | -14.75% | 12.74% | 4.92% |
Class C (incl. contingent deferred sales charge) E | -11.37% | 12.98% | 4.92% |
A From November 15, 2001.
B Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
C Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower.
D Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class B shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
E Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Growth, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to February 13, 2007 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Mid Cap Growth Fund - Class A on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period. The initial offering of Class A took place on February 13, 2007. See above for additional information regarding performance of Class A.
Annual Report
Fidelity Advisor Mid Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Patrick Venanzi, Portfolio Manager of Fidelity Advisor Mid Cap Growth Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
The fund's Class A, Class T, Class B and Class C shares (excluding sales charges) lagged behind the -1.03% return for the Russell Midcap® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor stock selection in consumer discretionary, industrials, materials and consumer staples hurt the most. While the fund struggled to keep pace with the index for most of the period, stock selection in energy and health care helped limit some of the downside. Within industrials, the fund's overweighting in transportation stocks, specifically in the airlines, detracted from performance. Our holdings in US Airways and AMR Corp., the parent company of American Airlines, suffered from rising energy costs. Overweighted holdings in the consumer durables and apparel segment - primarily the homebuilders - also took a bite out of fund performance. D.R. Horton, Ryland Group, KB Home and Lennar were particularly hard hit as the U.S. residential real estate market continued to slow down. I sold D.R. Horton, Ryland Group and Lennar. On the positive side, energy services company National Oilwell Varco was the fund's biggest contributor. Another contributor was the fund's out-of-index position in consumer electronics giant Apple, which continued to gain from strong sales of its iPod, iPhone and iMac product lines. I sold the fund's position in Apple to lock in profits. Heavy-lifting equipment and crane manufacturer Manitowoc advanced due to the continuing worldwide build-out of commercial and industrial infrastructure. I also sold this position by the end of the period. BE Aerospace, which makes products for aircraft cabin interiors, also contributed, as investors expressed confidence in the company's new contracts to supply airline carriers that are upgrading their fleets. Lastly, MEMC Electronic Materials, which produces silicon wafers, helped as well.
For the year, the fund's Institutional Class shares lagged behind the -1.03% return for the Russell Midcap® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor stock selection in consumer discretionary, industrials, materials and consumer staples hurt the most. While the fund struggled to keep pace with the index for most of the period, stock selection in energy and health care helped limit some of the downside. Within industrials, the fund's overweighting in transportation stocks, specifically in the airlines, detracted from performance. Our holdings in US Airways and AMR Corp., the parent company of American Airlines, suffered from rising energy costs. Overweighted holdings in the consumer durables and apparel segment - primarily the homebuilders - also took a bite out of fund performance. D.R. Horton, Ryland Group, KB Home and Lennar were particularly hard hit as the U.S. residential real estate market continued to slow down. I sold D.R. Horton, Ryland Group and Lennar. On the positive side, energy services company National Oilwell Varco was the fund's biggest contributor. Another contributor was the fund's out-of-index position in consumer electronics giant Apple, which continued to gain from strong sales of its iPod, iPhone and iMac product lines. I sold the fund's position in Apple to lock in profits. Heavy-lifting equipment and crane manufacturer Manitowoc advanced due to the continuing worldwide build-out of commercial and industrial infrastructure. I also sold this position by the end of the period. BE Aerospace, which makes products for aircraft cabin interiors, also contributed, as investors expressed confidence in the company's new contracts to supply airline carriers that are upgrading their fleets. Lastly, MEMC Electronic Materials, which produces silicon wafers, helped as well.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Mid Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PPL Corp. | 1.4 | 0.7 |
Southwestern Energy Co. | 1.4 | 0.3 |
Constellation Energy Group, Inc. | 1.3 | 1.0 |
National Oilwell Varco, Inc. | 1.3 | 3.9 |
Align Technology, Inc. | 1.1 | 0.0 |
Centex Corp. | 1.1 | 0.0 |
TranS1, Inc. | 1.0 | 0.0 |
Polycom, Inc. | 0.9 | 0.0 |
Intuitive Surgical, Inc. | 0.9 | 0.0 |
Northwest Airlines Corp. | 0.9 | 0.0 |
| 11.3 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 19.8 | 19.0 |
Industrials | 17.1 | 16.1 |
Health Care | 16.6 | 12.9 |
Consumer Discretionary | 14.1 | 17.6 |
Energy | 11.6 | 10.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 100.2% | | | Stocks 97.8% | |
| Short-Term
Investments and
Net Other Assets(dagger) (0.2)% | | | Short-Term
Investments and
Net Other Assets 2.2% | |
* Foreign
investments | 11.7% | | **Foreign investments | 2.1% | |
(dagger) Short-Term Investments
and Net Other Assets
are not included in the pie chart. | | | | |
Annual Report
Fidelity Mid Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 100.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 14.1% |
Automobiles - 0.3% |
Renault SA | 7,300 | | $ 833,337 |
Diversified Consumer Services - 1.1% |
American Public Education, Inc. | 7,200 | | 283,752 |
Apollo Group, Inc. Class A (non-vtg.) (a) | 8,200 | | 653,868 |
DeVry, Inc. | 19,000 | | 1,048,610 |
Regis Corp. | 56,400 | | 1,428,612 |
| | 3,414,842 |
Hotels, Restaurants & Leisure - 2.1% |
Bally Technologies, Inc. (a) | 20,200 | | 962,328 |
Boyd Gaming Corp. | 66,400 | | 1,774,872 |
Buffalo Wild Wings, Inc. (a) | 8,400 | | 211,428 |
Burger King Holdings, Inc. | 54,789 | | 1,443,690 |
Gaylord Entertainment Co. (a) | 29,700 | | 866,943 |
Papa John's International, Inc. (a) | 26,100 | | 660,069 |
Peet's Coffee & Tea, Inc. (a) | 7,000 | | 153,580 |
Starwood Hotels & Resorts Worldwide, Inc. | 5,400 | | 244,350 |
| | 6,317,260 |
Household Durables - 2.1% |
Centex Corp. (d) | 116,700 | | 3,241,926 |
KB Home | 100 | | 2,750 |
Newell Rubbermaid, Inc. | 15,100 | | 364,212 |
Pulte Homes, Inc. | 33,500 | | 547,390 |
Whirlpool Corp. | 25,700 | | 2,187,327 |
| | 6,343,605 |
Internet & Catalog Retail - 1.2% |
Blue Nile, Inc. (a) | 17,400 | | 961,350 |
Expedia, Inc. (a) | 10,600 | | 244,012 |
Priceline.com, Inc. (a) | 21,099 | | 2,289,663 |
| | 3,495,025 |
Leisure Equipment & Products - 0.7% |
Hasbro, Inc. | 12,400 | | 322,028 |
Leapfrog Enterprises, Inc. Class A (a) | 36,300 | | 236,313 |
Mattel, Inc. | 53,533 | | 1,124,728 |
Nikon Corp. | 14,000 | | 381,830 |
| | 2,064,899 |
Media - 2.7% |
Cablevision Systems Corp. - NY Group Class A (a) | 30,300 | | 711,444 |
DISH Network Corp. Class A (a) | 13,057 | | 368,730 |
E.W. Scripps Co. Class A | 35,800 | | 1,457,776 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 94,000 | | 2,095,260 |
Regal Entertainment Group Class A | 87,100 | | 1,614,834 |
SR Teleperformance SA | 44,300 | | 1,386,369 |
The Walt Disney Co. | 11,700 | | 350,181 |
Time Warner, Inc. | 21,600 | | 339,984 |
| | 8,324,578 |
|
| Shares | | Value |
Multiline Retail - 0.1% |
Dollar Tree Stores, Inc. (a) | 14,300 | | $ 400,543 |
Specialty Retail - 3.2% |
Abercrombie & Fitch Co. Class A | 5,100 | | 406,419 |
Advance Auto Parts, Inc. | 30,500 | | 1,088,240 |
Asbury Automotive Group, Inc. | 13,100 | | 185,758 |
AutoZone, Inc. (a) | 8,800 | | 1,063,744 |
Gamestop Corp. Class A (a) | 5,400 | | 279,342 |
Group 1 Automotive, Inc. | 8,700 | | 230,028 |
Home Depot, Inc. | 19,700 | | 604,199 |
Lumber Liquidators, Inc. | 3,400 | | 30,260 |
OfficeMax, Inc. | 49,800 | | 1,233,546 |
Ross Stores, Inc. | 36,300 | | 1,058,145 |
Tween Brands, Inc. (a)(d) | 44,700 | | 1,431,741 |
Urban Outfitters, Inc. (a) | 28,800 | | 835,200 |
Williams-Sonoma, Inc. | 49,500 | | 1,330,560 |
Zumiez, Inc. (a) | 3,500 | | 67,305 |
| | 9,844,487 |
Textiles, Apparel & Luxury Goods - 0.6% |
Coach, Inc. (a) | 13,000 | | 416,650 |
Deckers Outdoor Corp. (a) | 2,800 | | 339,472 |
Lululemon Athletica, Inc. | 15,700 | | 532,073 |
Under Armour, Inc. Class A (sub. vtg.) (a) | 16,000 | | 644,000 |
| | 1,932,195 |
TOTAL CONSUMER DISCRETIONARY | | 42,970,771 |
CONSUMER STAPLES - 3.4% |
Beverages - 0.1% |
Coca-Cola Femsa SA de CV sponsored ADR | 7,200 | | 338,040 |
Food & Staples Retailing - 1.3% |
CVS Caremark Corp. | 14,600 | | 570,422 |
Performance Food Group Co. (a) | 48,000 | | 1,518,240 |
Safeway, Inc. | 25,200 | | 780,948 |
Sysco Corp. | 42,100 | | 1,223,005 |
| | 4,092,615 |
Food Products - 1.5% |
Campbell Soup Co. | 17,300 | | 546,853 |
Marine Harvest ASA (a) | 2,600,000 | | 1,400,493 |
McCormick & Co., Inc. (non-vtg.) | 55,300 | | 1,864,716 |
Seaboard Corp. | 370 | | 475,543 |
Wm. Wrigley Jr. Co. | 3,000 | | 172,290 |
| | 4,459,895 |
Household Products - 0.4% |
Energizer Holdings, Inc. (a) | 13,300 | | 1,245,146 |
Personal Products - 0.1% |
Estee Lauder Companies, Inc. Class A | 8,900 | | 375,580 |
TOTAL CONSUMER STAPLES | | 10,511,276 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - 11.6% |
Energy Equipment & Services - 5.0% |
Atwood Oceanics, Inc. (a) | 21,000 | | $ 1,744,890 |
Cameron International Corp. (a) | 31,700 | | 1,276,242 |
Diamond Offshore Drilling, Inc. | 16,700 | | 1,885,931 |
Grey Wolf, Inc. (a) | 297,600 | | 1,773,696 |
Nabors Industries Ltd. (a) | 35,000 | | 952,700 |
National Oilwell Varco, Inc. (a) | 65,120 | | 3,922,178 |
North American Energy Partners, Inc. (a) | 14,200 | | 170,116 |
Ocean RIG ASA (a)(d) | 114,500 | | 787,337 |
Smith International, Inc. | 23,900 | | 1,295,619 |
Transocean, Inc. (a) | 10,961 | | 1,343,819 |
| | 15,152,528 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 21,500 | | 719,390 |
Arch Coal, Inc. | 15,700 | | 690,800 |
Boardwalk Pipeline Partners, LP | 5,700 | | 177,156 |
Canadian Natural Resources Ltd. | 10,100 | | 646,227 |
Chesapeake Energy Corp. | 46,600 | | 1,734,918 |
CONSOL Energy, Inc. | 35,300 | | 2,576,900 |
Copano Energy LLC | 4,900 | | 173,166 |
Denbury Resources, Inc. (a) | 65,700 | | 1,662,210 |
Energy Transfer Equity LP | 5,200 | | 171,652 |
Foundation Coal Holdings, Inc. | 7,000 | | 366,100 |
Frontier Oil Corp. | 38,100 | | 1,343,787 |
Holly Corp. | 28,601 | | 1,384,860 |
OPTI Canada, Inc. (a) | 80,400 | | 1,325,913 |
Petrobank Energy & Resources Ltd. (a) | 7,000 | | 351,761 |
Southwestern Energy Co. (a) | 76,100 | | 4,254,751 |
Tesoro Corp. | 22,400 | | 874,720 |
Valero Energy Corp. | 100 | | 5,919 |
Western Refining, Inc. | 44,460 | | 949,221 |
Williams Companies, Inc. | 27,100 | | 866,387 |
| | 20,275,838 |
TOTAL ENERGY | | 35,428,366 |
FINANCIALS - 9.2% |
Capital Markets - 2.6% |
Franklin Resources, Inc. | 23,600 | | 2,459,828 |
KBW, Inc. (a) | 6,300 | | 187,173 |
Legg Mason, Inc. | 14,500 | | 1,044,000 |
MF Global Ltd. | 73,200 | | 2,199,660 |
SEI Investments Co. | 67,400 | | 1,866,980 |
T. Rowe Price Group, Inc. | 3,300 | | 166,947 |
| | 7,924,588 |
Commercial Banks - 1.5% |
Bank of Yokohama Ltd. | 84,000 | | 544,305 |
Chiba Bank Ltd. | 52,000 | | 384,877 |
Chuo Mitsui Trust Holdings, Inc. | 55,000 | | 377,598 |
Mitsubishi UFJ Financial Group, Inc. | 70,000 | | 691,600 |
Shinsei Bank Ltd. | 117,000 | | 534,769 |
|
| Shares | | Value |
Shizuoka Bank Ltd. | 40,000 | | $ 439,763 |
Sumitomo Mitsui Financial Group, Inc. | 100 | | 788,113 |
Tokyo Tomin Bank Ltd. | 20,600 | | 572,491 |
UMB Financial Corp. | 7,600 | | 320,188 |
| | 4,653,704 |
Consumer Finance - 0.4% |
Cash America International, Inc. | 37,100 | | 1,206,121 |
Diversified Financial Services - 1.5% |
CME Group, Inc. | 800 | | 495,120 |
IntercontinentalExchange, Inc. (a) | 9,400 | | 1,315,624 |
MSCI, Inc. Class A | 11,800 | | 389,046 |
NYMEX Holdings, Inc. | 18,400 | | 2,116,000 |
Osaka Securities Exchange Co. Ltd. | 64 | | 346,092 |
| | 4,661,882 |
Insurance - 0.9% |
Assurant, Inc. | 19,400 | | 1,258,866 |
CNA Financial Corp. | 11,480 | | 390,205 |
CNinsure, Inc. ADR | 44,000 | | 472,560 |
LandAmerica Financial Group, Inc. | 4,900 | | 255,584 |
Philadelphia Consolidated Holdings Corp. (a) | 9,600 | | 343,680 |
Stewart Information Services Corp. | 1,100 | | 37,653 |
| | 2,758,548 |
Real Estate Investment Trusts - 1.5% |
Annaly Capital Management, Inc. | 124,000 | | 2,445,280 |
MFA Mortgage Investments, Inc. | 189,300 | | 1,930,860 |
| | 4,376,140 |
Thrifts & Mortgage Finance - 0.8% |
People's United Financial, Inc. | 58,700 | | 991,443 |
Washington Federal, Inc. | 55,900 | | 1,365,078 |
| | 2,356,521 |
TOTAL FINANCIALS | | 27,937,504 |
HEALTH CARE - 16.6% |
Biotechnology - 3.5% |
Alexion Pharmaceuticals, Inc. (a) | 18,500 | | 1,208,420 |
Amylin Pharmaceuticals, Inc. (a) | 74,607 | | 2,212,098 |
Biogen Idec, Inc. (a) | 26,400 | | 1,609,080 |
Cephalon, Inc. (a) | 11,300 | | 741,619 |
Genentech, Inc. (a) | 8,000 | | 561,520 |
Gilead Sciences, Inc. (a) | 41,362 | | 1,889,830 |
Theravance, Inc. (a)(d) | 127,038 | | 2,506,460 |
| | 10,729,027 |
Health Care Equipment & Supplies - 5.8% |
Abiomed, Inc. (a) | 25,000 | | 377,500 |
Align Technology, Inc. (a)(d) | 283,984 | | 3,345,332 |
American Medical Systems Holdings, Inc. (a) | 90,000 | | 1,286,100 |
Conceptus, Inc. (a) | 158,500 | | 2,580,380 |
Hillenbrand Industries, Inc. | 13,300 | | 687,876 |
Hologic, Inc. (a) | 14,000 | | 901,040 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - continued |
Intuitive Surgical, Inc. (a) | 11,000 | | $ 2,794,000 |
Inverness Medical Innovations, Inc. (a) | 3,000 | | 135,150 |
Mindray Medical International Ltd. sponsored ADR | 10,000 | | 341,000 |
NxStage Medical, Inc. (a) | 14,100 | | 171,174 |
Regeneration Technologies, Inc. (a) | 215,000 | | 1,720,000 |
TranS1, Inc. (d) | 213,000 | | 3,107,670 |
Varian Medical Systems, Inc. (a) | 5,300 | | 275,547 |
| | 17,722,769 |
Health Care Providers & Services - 2.4% |
athenahealth, Inc. (d) | 49,400 | | 1,551,160 |
Brookdale Senior Living, Inc. (d) | 11,000 | | 245,520 |
Coventry Health Care, Inc. (a) | 5,500 | | 311,190 |
Express Scripts, Inc. (a) | 28,600 | | 1,930,214 |
Health Net, Inc. (a) | 10,300 | | 478,847 |
Henry Schein, Inc. (a) | 5,473 | | 318,145 |
MWI Veterinary Supply, Inc. (a) | 8,000 | | 305,840 |
Pediatrix Medical Group, Inc. (a) | 24,587 | | 1,674,129 |
Psychiatric Solutions, Inc. (a) | 5,900 | | 178,003 |
VCA Antech, Inc. (a) | 10,200 | | 394,332 |
| | 7,387,380 |
Health Care Technology - 1.0% |
Cerner Corp. (a) | 43,200 | | 2,263,680 |
MedAssets, Inc. | 7,900 | | 159,185 |
TriZetto Group, Inc. (a) | 38,900 | | 759,328 |
| | 3,182,193 |
Life Sciences Tools & Services - 2.0% |
Affymetrix, Inc. (a)(d) | 60,600 | | 1,215,636 |
Applera Corp. - Applied Biosystems Group | 30,000 | | 945,900 |
Charles River Laboratories International, Inc. (a) | 19,700 | | 1,223,370 |
Covance, Inc. (a) | 1,800 | | 149,688 |
PAREXEL International Corp. (a) | 10,000 | | 544,100 |
Pharmaceutical Product Development, Inc. | 30,200 | | 1,309,472 |
Thermo Fisher Scientific, Inc. (a) | 12,770 | | 657,527 |
| | 6,045,693 |
Pharmaceuticals - 1.9% |
Allergan, Inc. | 20,400 | | 1,370,676 |
BioForm Medical, Inc. (d) | 186,481 | | 1,305,367 |
Perrigo Co. | 15,700 | | 484,188 |
Renovo Group PLC (a) | 342,000 | | 920,384 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 22,300 | | 1,026,692 |
XenoPort, Inc. (a) | 8,600 | | 527,696 |
| | 5,635,003 |
TOTAL HEALTH CARE | | 50,702,065 |
|
| Shares | | Value |
INDUSTRIALS - 17.1% |
Aerospace & Defense - 1.0% |
BE Aerospace, Inc. (a) | 21,444 | | $ 827,953 |
Goodrich Corp. | 19,900 | | 1,244,745 |
Spirit AeroSystems Holdings, Inc.
Class A (a) | 31,700 | | 875,554 |
| | 2,948,252 |
Air Freight & Logistics - 0.2% |
United Parcel Service, Inc. Class B | 6,400 | | 468,224 |
Airlines - 2.3% |
AMR Corp. (a) | 103,000 | | 1,435,820 |
Continental Airlines, Inc. Class B (a) | 63,900 | | 1,738,719 |
Northwest Airlines Corp. (a) | 146,700 | | 2,744,757 |
US Airways Group, Inc. (a) | 89,200 | | 1,231,852 |
| | 7,151,148 |
Building Products - 0.3% |
Ameron International Corp. | 8,000 | | 718,800 |
Universal Forest Products, Inc. | 6,000 | | 217,200 |
| | 936,000 |
Commercial Services & Supplies - 5.1% |
Advisory Board Co. (a) | 2,600 | | 165,672 |
American Reprographics Co. (a) | 46,200 | | 726,726 |
Copart, Inc. (a) | 33,984 | | 1,389,266 |
Corporate Executive Board Co. | 9,400 | | 540,970 |
Corrections Corp. of America (a) | 94,182 | | 2,499,590 |
Fuel Tech, Inc. (a) | 35,600 | | 677,824 |
GeoEye, Inc. (a) | 15,000 | | 524,400 |
IHS, Inc. Class A (a) | 11,500 | | 712,310 |
InnerWorkings, Inc. (a) | 12,000 | | 166,200 |
Manpower, Inc. | 45,400 | | 2,554,204 |
Republic Services, Inc. | 56,600 | | 1,698,000 |
The Geo Group, Inc. (a) | 54,600 | | 1,306,032 |
Waste Connections, Inc. (a) | 45,600 | | 1,329,696 |
Waste Management, Inc. | 34,400 | | 1,115,936 |
| | 15,406,826 |
Construction & Engineering - 0.7% |
Chicago Bridge & Iron Co. NV
(NY Shares) | 4,900 | | 218,001 |
Fluor Corp. | 7,500 | | 912,525 |
Grupo Acciona SA | 2,000 | | 509,808 |
Quanta Services, Inc. (a) | 20,000 | | 438,400 |
| | 2,078,734 |
Electrical Equipment - 3.9% |
Belden, Inc. | 7,000 | | 296,100 |
Energy Conversion Devices, Inc. (a)(d) | 57,020 | | 1,316,022 |
Evergreen Solar, Inc. (a) | 154,800 | | 1,887,012 |
First Solar, Inc. (a) | 10,300 | | 1,872,231 |
JA Solar Holdings Co. Ltd. ADR | 16,000 | | 813,280 |
Nexans SA | 19,800 | | 2,188,427 |
Q-Cells AG (a) | 6,000 | | 564,589 |
Sunpower Corp. Class A (a)(d) | 35,400 | | 2,445,786 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Electrical Equipment - continued |
Superior Essex, Inc. (a) | 13,100 | | $ 315,055 |
Vestas Wind Systems AS (a) | 2,800 | | 271,999 |
| | 11,970,501 |
Machinery - 1.3% |
AGCO Corp. (a) | 20,600 | | 1,240,532 |
GEA Group AG (a) | 32,000 | | 988,991 |
Ingersoll-Rand Co. Ltd. Class A | 18,000 | | 711,360 |
Terex Corp. (a) | 17,100 | | 1,004,796 |
| | 3,945,679 |
Marine - 0.4% |
Ultrapetrol (Bahamas) Ltd. (a) | 70,100 | | 1,125,105 |
Road & Rail - 1.7% |
J.B. Hunt Transport Services, Inc. (d) | 56,100 | | 1,744,710 |
Knight Transportation, Inc. | 102,900 | | 1,765,764 |
Landstar System, Inc. | 36,500 | | 1,826,095 |
| | 5,336,569 |
Trading Companies & Distributors - 0.2% |
Genesis Lease Ltd. ADR | 31,600 | | 635,160 |
TOTAL INDUSTRIALS | | 52,002,198 |
INFORMATION TECHNOLOGY - 19.8% |
Communications Equipment - 2.0% |
Ciena Corp. (a) | 15,000 | | 406,950 |
CommScope, Inc. (a) | 11,700 | | 518,895 |
Corning, Inc. | 22,000 | | 529,540 |
Juniper Networks, Inc. (a) | 64,700 | | 1,756,605 |
Polycom, Inc. (a) | 111,000 | | 2,802,750 |
| | 6,014,740 |
Computers & Peripherals - 1.7% |
Brocade Communications Systems, Inc. (a) | 226,602 | | 1,561,288 |
Diebold, Inc. | 28,644 | | 741,307 |
NCR Corp. (a) | 61,600 | | 1,323,168 |
Western Digital Corp. (a) | 54,600 | | 1,444,170 |
| | 5,069,933 |
Electronic Equipment & Instruments - 1.6% |
Agilent Technologies, Inc. (a) | 8,700 | | 295,017 |
Avnet, Inc. (a) | 17,300 | | 616,053 |
Bell Microproducts, Inc. (a) | 29,818 | | 156,843 |
Comverge, Inc. | 6,100 | | 113,704 |
Flextronics International Ltd. (a) | 51,100 | | 597,870 |
Ingram Micro, Inc. Class A (a) | 30,700 | | 545,846 |
Itron, Inc. (a) | 24,000 | | 1,977,600 |
Jabil Circuit, Inc. | 47,300 | | 626,725 |
| | 4,929,658 |
Internet Software & Services - 2.8% |
Akamai Technologies, Inc. (a) | 16,800 | | 507,360 |
DealerTrack Holdings, Inc. (a) | 23,600 | | 636,256 |
|
| Shares | | Value |
Dice Holdings, Inc. | 258,600 | | $ 1,649,868 |
DivX, Inc. (a) | 50,000 | | 712,500 |
Internet Brands, Inc. Class A | 30,979 | | 239,158 |
Omniture, Inc. (a) | 85,700 | | 2,118,504 |
Online Resources Corp. (a) | 89,800 | | 916,858 |
The Knot, Inc. (a) | 49,700 | | 727,608 |
ValueClick, Inc. (a) | 44,100 | | 962,703 |
| | 8,470,815 |
IT Services - 1.1% |
Cognizant Technology Solutions Corp. Class A (a) | 72,700 | | 2,028,330 |
CyberSource Corp. (a) | 38,000 | | 636,500 |
Mastercard, Inc. Class A | 3,800 | | 786,600 |
| | 3,451,430 |
Semiconductors & Semiconductor Equipment - 7.4% |
Altera Corp. | 93,000 | | 1,570,770 |
Applied Materials, Inc. | 125,400 | | 2,247,168 |
ARM Holdings PLC sponsored ADR | 23,600 | | 167,088 |
ASML Holding NV (NY Shares) (a) | 20,000 | | 531,800 |
Broadcom Corp. Class A (a) | 66,500 | | 1,468,320 |
Cypress Semiconductor Corp. (a) | 62,200 | | 1,321,750 |
FormFactor, Inc. (a) | 21,063 | | 510,146 |
Himax Technologies, Inc. sponsored ADR | 285,100 | | 1,405,543 |
Hittite Microwave Corp. (a) | 12,400 | | 493,768 |
Intersil Corp. Class A | 31,400 | | 723,142 |
Lam Research Corp. (a) | 46,500 | | 1,785,135 |
LDK Solar Co. Ltd. Sponsored ADR (d) | 19,800 | | 697,950 |
Marvell Technology Group Ltd. (a) | 122,180 | | 1,450,277 |
MEMC Electronic Materials, Inc. (a) | 18,500 | | 1,322,010 |
Microchip Technology, Inc. | 35,500 | | 1,132,805 |
Miraial Co. Ltd. | 15,900 | | 386,547 |
National Semiconductor Corp. | 53,000 | | 976,790 |
Skyworks Solutions, Inc. (a)(d) | 124,700 | | 1,003,835 |
Teradyne, Inc. (a) | 5,400 | | 59,238 |
Varian Semiconductor Equipment Associates, Inc. (a) | 63,800 | | 2,054,998 |
Xilinx, Inc. | 61,200 | | 1,338,444 |
| | 22,647,524 |
Software - 3.2% |
Activision, Inc. (a) | 25,100 | | 649,337 |
Citrix Systems, Inc. (a) | 12,000 | | 415,440 |
CompuGROUP Holding AG (a) | 33,000 | | 622,352 |
Concur Technologies, Inc. (a) | 53,300 | | 1,868,698 |
FactSet Research Systems, Inc. | 6,000 | | 335,580 |
Jack Henry & Associates, Inc. | 53,300 | | 1,310,114 |
Microsoft Corp. | 20,800 | | 678,080 |
Nintendo Co. Ltd. | 400 | | 197,600 |
Nuance Communications, Inc. (a) | 87,000 | | 1,382,430 |
Shanda Interactive Entertainment Ltd. sponsored ADR (a) | 17,900 | | 492,071 |
SPSS, Inc. (a) | 9,000 | | 297,450 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Take-Two Interactive Software, Inc. (a)(d) | 61,650 | | $ 1,013,526 |
THQ, Inc. (a) | 33,800 | | 608,738 |
| | 9,871,416 |
TOTAL INFORMATION TECHNOLOGY | | 60,455,516 |
MATERIALS - 3.1% |
Chemicals - 0.2% |
FMC Corp. | 11,300 | | 600,708 |
Construction Materials - 0.5% |
Martin Marietta Materials, Inc. (d) | 13,800 | | 1,693,536 |
Containers & Packaging - 0.4% |
Smurfit-Stone Container Corp. (a) | 39,600 | | 375,804 |
Temple-Inland, Inc. | 39,600 | | 742,500 |
| | 1,118,304 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 19,542 | | 1,375,757 |
Barrick Gold Corp. | 6,900 | | 356,224 |
Century Aluminum Co. (a) | 14,000 | | 727,860 |
Newmont Mining Corp. | 10,000 | | 543,400 |
Nucor Corp. | 22,200 | | 1,283,160 |
Randgold Resources Ltd. sponsored ADR | 5,800 | | 276,718 |
RTI International Metals, Inc. (a) | 23,140 | | 1,278,485 |
| | 5,841,604 |
Paper & Forest Products - 0.1% |
Glatfelter | 12,400 | | 179,304 |
TOTAL MATERIALS | | 9,433,456 |
TELECOMMUNICATION SERVICES - 1.3% |
Wireless Telecommunication Services - 1.3% |
American Tower Corp. Class A (a) | 52,705 | | 1,978,019 |
NII Holdings, Inc. (a) | 48,691 | | 2,077,158 |
| | 4,055,177 |
UTILITIES - 4.0% |
Electric Utilities - 2.1% |
Allegheny Energy, Inc. | 17,600 | | 964,304 |
Enernoc, Inc. | 14,300 | | 504,075 |
|
| Shares | | Value |
Entergy Corp. | 4,500 | | $ 486,810 |
PPL Corp. | 89,800 | | 4,393,015 |
| | 6,348,204 |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 79,400 | | 1,514,952 |
Clipper Windpower PLC (a) | 2,400 | | 28,693 |
Constellation Energy Group, Inc. | 42,800 | | 4,021,488 |
Ormat Technologies, Inc. | 3,800 | | 165,186 |
| | 5,730,319 |
TOTAL UTILITIES | | 12,078,523 |
TOTAL COMMON STOCKS (Cost $305,398,397) | 305,574,852 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 2,288,816 | | 2,288,816 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 10,764,675 | | 10,764,675 |
TOTAL MONEY MARKET FUNDS (Cost $13,053,491) | 13,053,491 |
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $318,451,888) | | 318,628,343 |
NET OTHER ASSETS - (4.5)% | | (13,583,264) |
NET ASSETS - 100% | $ 305,045,079 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 442,525 |
Fidelity Securities Lending Cash Central Fund | 313,679 |
Total | $ 756,204 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 88.3% |
Japan | 1.8% |
Bermuda | 1.7% |
France | 1.5% |
Cayman Islands | 1.3% |
Others (individually less than 1%) | 5.4% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $18,706,577 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $10,830,743) - See accompanying schedule: Unaffiliated issuers (cost $305,398,397) | $ 305,574,852 | |
Fidelity Central Funds (cost $13,053,491) | 13,053,491 | |
Total Investments (cost $318,451,888) | | $ 318,628,343 |
Cash | | 944,763 |
Receivable for investments sold | | 60,992,695 |
Receivable for fund shares sold | | 386,427 |
Dividends receivable | | 50,720 |
Distributions receivable from Fidelity Central Funds | | 53,069 |
Prepaid expenses | | 1,182 |
Other receivables | | 2,063 |
Total assets | | 381,059,262 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,187,980 | |
Payable for fund shares redeemed | 41,783,947 | |
Accrued management fee | 108,332 | |
Distribution fees payable | 1,571 | |
Other affiliated payables | 110,841 | |
Other payables and accrued expenses | 56,837 | |
Collateral on securities loaned, at value | 10,764,675 | |
Total liabilities | | 76,014,183 |
| | |
Net Assets | | $ 305,045,079 |
Net Assets consist of: | | |
Paid in capital | | $ 319,016,951 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,150,236) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 178,364 |
Net Assets | | $ 305,045,079 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,936,249 ÷ 158,895 shares) | | $ 12.19 |
| | |
Maximum offering price per share (100/94.25 of $12.19) | | $ 12.93 |
Class T:
Net Asset Value and redemption price per share ($591,188 ÷ 48,688 shares) | | $ 12.14 |
| | |
Maximum offering price per share (100/96.50 of $12.14) | | $ 12.58 |
Class B:
Net Asset Value and offering price per share ($413,537 ÷ 34,216 shares)A | | $ 12.09 |
| | |
Class C:
Net Asset Value and offering price per share ($697,298 ÷ 57,672 shares)A | | $ 12.09 |
| | |
Mid Cap Growth:
Net Asset Value, offering price and redemption price per share ($301,224,741 ÷ 24,671,114 shares) | | $ 12.21 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($182,066 ÷ 14,896 shares) | | $ 12.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 2,094,532 |
Interest | | 386 |
Income from Fidelity Central Funds (including $313,679 from security lending) | | 756,204 |
Total income | | 2,851,122 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,332,314 | |
Performance adjustment | (430,070) | |
Transfer agent fees | 1,202,314 | |
Distribution fees | 10,363 | |
Accounting and security lending fees | 170,995 | |
Custodian fees and expenses | 18,214 | |
Independent trustees' compensation | 1,531 | |
Registration fees | 100,229 | |
Audit | 56,662 | |
Legal | 2,290 | |
Miscellaneous | 25,324 | |
Total expenses before reductions | 3,490,166 | |
Expense reductions | (113,488) | 3,376,678 |
Net investment income (loss) | | (525,556) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 13,581,162 | |
Foreign currency transactions | 16,150 | |
Total net realized gain (loss) | | 13,597,312 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (50,635,596) | |
Assets and liabilities in foreign currencies | 1,909 | |
Total change in net unrealized appreciation (depreciation) | | (50,633,687) |
Net gain (loss) | | (37,036,375) |
Net increase (decrease) in net assets resulting from operations | | $ (37,561,931) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (525,556) | $ (1,458,396) |
Net realized gain (loss) | 13,597,312 | (4,757,238) |
Change in net unrealized appreciation (depreciation) | (50,633,687) | 5,161,873 |
Net increase (decrease) in net assets resulting from operations | (37,561,931) | (1,053,761) |
Distributions to shareholders from net realized gain | (21,909,497) | (5,089,264) |
Share transactions - net increase (decrease) | (76,821,412) | 97,426,141 |
Redemption fees | 26,012 | 46,437 |
Total increase (decrease) in net assets | (136,266,828) | 91,329,553 |
| | |
Net Assets | | |
Beginning of period | 441,311,907 | 349,982,354 |
End of period | $ 305,045,079 | $ 441,311,907 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.35) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.19 |
Total Return B,C,D | (9.95)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.10% A |
Expenses net of fee waivers, if any | 1.10% A |
Expenses net of all reductions | 1.10% A |
Net investment income (loss) | (.41)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,936 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.09) |
Net realized and unrealized gain (loss) | (1.31) |
Total from investment operations | (1.40) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.14 |
Total Return B,C,D | (10.30)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.36% A |
Expenses net of fee waivers, if any | 1.36% A |
Expenses net of all reductions | 1.36% A |
Net investment income (loss) | (.68)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 591 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.16) |
Net realized and unrealized gain (loss) | (1.29) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 414 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.15) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 697 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 | $ 7.32 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.02) | (.04) | .01 E | (.03) F | (.07) |
Net realized and unrealized gain (loss) | (1.29) | .15 | 3.09 | 1.15 | 3.38 |
Total from investment operations | (1.31) | .11 | 3.10 | 1.12 | 3.31 |
Distributions from net realized gain | (.79) | (.18) | (.30) | (.17) | - |
Redemption fees added to paid in capital B,H | - | - | - | - | - |
Net asset value, end of period | $ 12.21 | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 |
Total Return A | (9.68)% | .80% | 27.15% | 10.55% | 45.22% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | .83% | 1.02% | 1.04% | 1.02% | 1.25% |
Expenses net of fee waivers, if any | .81% | 1.00% | 1.00% | 1.02% | 1.20% |
Expenses net of all reductions | .81% | .99% | .95% | .99% | 1.16% |
Net investment income (loss) | (.12)% | (.33)% | .07% E | (.31)% F | (.77)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 301,225 | $ 441,312 | $ 349,982 | $ 77,658 | $ 60,660 |
Portfolio turnover rate D | 245% | 178% | 173% | 220% | 94% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
F Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.44)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) D | (1.32) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.22 |
Total Return B,C | (9.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .72% A |
Expenses net of fee waivers, if any | .72% A |
Expenses net of all reductions | .72% A |
Net investment income (loss) | (.03)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 182 |
Portfolio turnover rate F | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2008
1. Organization.
Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund(the Funds) are funds of Fidelity Devonshire Trust(the trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended(the 1940 Act), as an open-end management company organized as a Massachusetts business trust. The Funds offer Class A, Class T, Class B, Class C, Institutional Class and Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth shares, respectively, 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. The Funds commenced sale of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class of each Fund was designated Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth, respectively, on February 13, 2007. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. Certain Funds investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company(FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR.
A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued and net asset value(NAV) per share is calculated(NAV calculation) as of the close of business of the New York Stock Exchange(NYSE), normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because each Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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 for processing shareholder transactions 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes(FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. 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 recorded on the ex-dividend date. Income dividends 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 generally accepted accounting principles. In addition, certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax
Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Large Cap Value Fund | $ 1,571,171,429 | $ 98,475,075 | $ (92,166,547) | $ 6,308,528 |
Fidelity Mid Cap Value Fund | 844,773,929 | 42,574,804 | (57,370,158) | (14,795,354) |
Fidelity Large Cap Growth Fund | 166,610,940 | 4,786,892 | (10,368,163) | (5,581,271) |
Fidelity Mid Cap Growth Fund | 319,883,846 | 21,520,033 | (22,775,536) | (1,255,503) |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
January 31, 2008 | | | |
| Ordinary
Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 37,304,898 | $ 67,715,379 | $ 105,020,277 |
Fidelity Mid Cap Value Fund | 10,958,373 | 29,219,096 | 40,177,469 |
Fidelity Large Cap Growth Fund | 6,193,151 | 12,379,253 | 18,572,404 |
Fidelity Mid Cap Growth Fund | - | 21,909,497 | 21,909,497 |
January 31, 2007 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 17,006,124 | $ 7,416,999 | $ 24,423,123 |
Fidelity Mid Cap Value Fund | 7,722,049 | 9,225,041 | 16,947,090 |
Fidelity Large Cap Growth Fund | 1,920,898 | 1,860,806 | 3,781,704 |
Fidelity Mid Cap Growth Fund | 2,544,632 | 2,544,632 | 5,089,264 |
Short-Term Trading (Redemption) Fees. Shares held in the Fidelity Mid Cap Value Fund and Fidelity Mid Cap Growth Fund less than 30 days are subject to a redemption fee equal to 0.75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Funds and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission(the SEC) which permits certain Funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. Certain Funds may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Each applicable Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement(including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases($) | Sales($) |
Fidelity Large Cap Value Fund | 3,485,833,978 | 3,246,788,832 |
Fidelity Mid Cap Value Fund | 2,520,812,788 | 2,356,094,981 |
Fidelity Large Cap Growth Fund | 745,952,270 | 764,990,241 |
Fidelity Mid Cap Growth Fund | 995,464,036 | 1,090,139,044 |
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee for the funds is subject to a performance adjustment(up to a maximum ± .20% of each applicable Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on each applicable Fund's relative investment performance of the asset-weighted return of all
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
classes as compared to an appropriate benchmark index. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets, including the performance adjustment, if applicable was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Large Cap Value Fund | .30% | .26% | .58% |
Fidelity Mid Cap Value Fund | .30% | .26% | .52% |
Fidelity Large Cap Growth Fund | .30% | .26% | .58% |
Fidelity Mid Cap Growth Fund | .30% | .26% | .46% |
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation(FDC), an affiliate of FMR, 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 and the total amounts paid to and retained by FDC were as follows:
Fidelity Large Cap Value Fund | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 14,716 | $ 3,419 |
Class T | .25% | .25% | 29,520 | 209 |
Class B | .75% | .25% | 20,952 | 15,912 |
Class C | .75% | .25% | 8,540 | 4,769 |
| | | $ 73,728 | $ 24,309 |
Fidelity Mid Cap Value Fund | | | | |
Class A | 0% | .25% | $ 9,176 | $ 3,141 |
Class T | .25% | .25% | 10,994 | 355 |
Class B | .75% | .25% | 17,435 | 13,285 |
Class C | .75% | .25% | 16,086 | 12,118 |
| | | $ 53,691 | $ 28,899 |
Fidelity Large Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,502 | $ 246 |
Class T | .25% | .25% | 2,248 | 460 |
Class B | .75% | .25% | 2,797 | 2,331 |
Class C | .75% | .25% | 4,188 | 3,019 |
| | | $ 10,735 | $ 6,056 |
Fidelity Mid Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,756 | $ 245 |
Class T | .25% | .25% | 1,796 | 463 |
Class B | .75% | .25% | 2,959 | 2,452 |
Class C | .75% | .25% | 3,852 | 3,025 |
| | | $ 10,363 | $ 6,185 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Large Cap Value Fund | Retained
by FDC |
Class A | $ 18,265 |
Class T | 4,391 |
Class B * | 1,096 |
Class C * | 11 |
| $ 22,763 |
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows: - continued
Fidelity Mid Cap Value Fund | Retained
by FDC |
Class A | $ 22,621 |
Class T | 5,951 |
Class B* | 2,448 |
Class C* | 137 |
| $ 31,157 |
Fidelity Large Cap Growth Fund | |
Class A | $ 4,515 |
Class T | 1,123 |
Class B* | 509 |
Class C* | 62 |
| $ 6,209 |
Fidelity Mid Cap Growth Fund | |
Class A | $ 6,603 |
Class T | 1,049 |
Class B* | 962 |
Class C* | 165 |
| $ 8,779 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc.(FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Prior to January 1, 2008, Fidelity Service Company, Inc. (FSC), also an affiliate of FMR, was the Fund's transfer agent. For the period, the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
Fidelity Large Cap Value Fund | Amount | % of
Average
Net Assets* |
Class A | $ 20,036 | .34 |
Class T | 20,697 | .35 |
Class B | 7,804 | .37 |
Class C | 2,694 | .31 |
Large Cap Value | 3,716,520 | .23 |
Institutional Class | 944 | .23 |
| $ 3,768,695 | |
Fidelity Mid Cap Value Fund | | |
Class A | $ 10,910 | .30 |
Class T | 6,730 | .31 |
Class B | 5,278 | .30 |
Class C | 5,017 | .31 |
Mid Cap Value | 2,206,272 | .24 |
Institutional Class | 1,803 | .30 |
| $ 2,236,010 | |
Fidelity Large Cap Growth Fund | | |
Class A | $ 1,787 | .30 |
Class T | 1,353 | .31 |
Class B | 833 | .30 |
Class C | 1,224 | .29 |
Large Cap Growth | 529,155 | .31 |
Institutional Class | 416 | .20 |
| $ 534,768 | |
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Mid Cap Growth Fund | Amount | % of
Average
Net Assets* |
Class A | $ 2,094 | .30 |
Class T | 1,136 | .32 |
Class B | 899 | .30 |
Class C | 1,151 | .30 |
Mid Cap Growth | 1,196,809 | .29 |
Institutional Class | 225 | .17 |
| $ 1,202,314 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were as follows:
| Amount |
Fidelity Large Cap Value Fund | $ 18,780 |
Fidelity Mid Cap Value Fund | 12,752 |
Fidelity Large Cap Growth Fund | 13,318 |
Fidelity Mid Cap Growth Fund | 10,529 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily Loan Balance | Weighted
Average Interest Rate | Interest
Expense |
Fidelity Large Cap Value Fund | Borrower | $ 6,183,857 | 4.35% | $ 5,226 |
Fidelity Mid Cap Value Fund | Borrower | $ 5,637,000 | 5.27% | $ 4,946 |
7. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $4.2 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 is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Large Cap Value Fund | $ 3,040 |
Fidelity Mid Cap Value Fund | 1,696 |
Fidelity Large Cap Growth Fund | 343 |
Fidelity Mid Cap Growth Fund | 824 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, each applicable Fund receives collateral(in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Annual Report
8. Security Lending - continued
Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Large Cap Growth Fund | | |
Large Cap Growth | 1.00% | $ 58,552 |
In addition, FMR voluntarily agreed to reimburse a portion of certain fund's existing class' operating expenses. During the period, this reimbursement reduced certain fund's existing class' expenses by the following amounts:
| Reimbursement
from adviser |
Fidelity Large Cap Value Fund | |
Large Cap Value | $ 85,974 |
Fidelity Mid Cap Value Fund | |
Mid Cap Value | $ 85,078 |
Fidelity Large Cap Growth Fund | |
Large Cap Growth | $ 25,900 |
Fidelity Mid Cap Growth Fund | |
Mid Cap Growth | $ 84,552 |
In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service Arrangements | Transfer
Agent
expense
reduction |
Fidelity Large Cap Value Fund | $ - | $ - |
Large Cap Value | - | 50,587 |
Institutional Class | - | 50 |
Fidelity Mid Cap Value Fund | - | - |
Class A | - | 31 |
Class B | - | 9 |
Mid Cap Value | - | 19,810 |
Institutional Class | - | 70 |
Fidelity Large Cap Growth Fund | - | - |
Large Cap Growth | - | 13,456 |
Fidelity Mid Cap Growth Fund | 1,543 | - |
Mid Cap Growth | - | 27,293 |
10. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Notes to Financial Statements - continued
10. Other - continued
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds. FMR also reimbursed the related legal expenses, which are recorded in the accompanying Statement of Operations as an expense reduction.
Subsequent to period end, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid each fund the following amounts:
Fidelity Large Cap Value Fund | $ 12,127 |
Fidelity Mid Cap Value Fund | $ 23,107 |
Fidelity Large Cap Growth Fund | $ 14,058 |
Fidelity Mid Cap Growth Fund | $ 16,394 |
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | |
From net investment income | | |
Class A | $ 75,483 | $ - |
Class T | 44,031 | - |
Class B | 824 | - |
Class C | 4,115 | - |
Large Cap Value | 14,152,017 | 10,401,399 |
Institutional Class | 10,129 | - |
Total | $ 14,286,599 | $ 10,401,399 |
From net realized gain | | |
Class A | $ 372,920 | $ - |
Class T | 317,190 | - |
Class B | 97,442 | - |
Class C | 51,607 | - |
Large Cap Value | 89,854,195 | 14,021,724 |
Institutional Class | 40,324 | - |
Total | $ 90,733,678 | $ 14,021,724 |
Fidelity Mid Cap Value Fund | | |
From net investment income | | |
Class A | $ 18,691 | $ - |
Class T | 5,836 | - |
Class B | 259 | - |
Class C | 66 | - |
Mid Cap Value | 3,005,000 | 2,949,768 |
Institutional Class | 7,163 | - |
Total | $ 3,037,015 | $ 2,949,768 |
From net realized gain | | |
Class A | $ 176,774 | $ - |
Class T | 106,263 | - |
Class B | 46,244 | - |
Class C | 67,330 | - |
Mid Cap Value | 36,700,729 | 13,997,322 |
Institutional Class | 43,114 | - |
Total | $ 37,140,454 | $ 13,997,322 |
Annual Report
11. Distributions to Shareholders - continued
Distributions to shareholders of each class were as follows: - continued
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Growth Fund | | |
From net investment income | | |
Large Cap Growth | $ - | $ 137,207 |
From net realized gain | | |
Class A | $ 123,133 | $ - |
Class T | 101,048 | - |
Class B | 40,430 | - |
Class C | 75,734 | - |
Large Cap Growth | 18,196,705 | 3,644,497 |
Institutional Class | 35,354 | - |
Total | $ 18,572,404 | $ 3,644,497 |
Fidelity Mid Cap Growth Fund | | |
From net realized gain | | |
Class A | $ 100,774 | $ - |
Class T | 34,957 | - |
Class B | 25,358 | - |
Class C | 40,118 | - |
Mid Cap Growth | 21,697,261 | 5,089,264 |
Institutional Class | 11,029 | - |
Total | $ 21,909,497 | $ 5,089,264 |
A Distributions for Class A,T,B,C and Institutional are for the period February 13, 2007(commencement of sale of shares) to January 31, 2008.
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 1,045,290 | - | $ 16,232,942 | $ - |
Reinvestment of distributions | 29,393 | - | 423,574 | - |
Shares redeemed | (352,749) | - | (5,365,826) | - |
Net increase (decrease) | 721,934 | - | $ 11,290,690 | $ - |
Class T | | | | |
Shares sold | 935,752 | - | $ 14,740,653 | $ - |
Reinvestment of distributions | 24,935 | - | 359,076 | - |
Shares redeemed | (518,994) | - | (7,932,251) | - |
Net increase (decrease) | 441,693 | - | $ 7,167,478 | $ - |
Class B | | | | |
Shares sold | 315,386 | - | $ 4,951,665 | $ - |
Reinvestment of distributions | 6,739 | - | 97,191 | - |
Shares redeemed | (184,721) | - | (2,835,906) | - |
Net increase (decrease) | 137,404 | - | $ 2,212,950 | $ - |
Class C | | | | |
Shares sold | 138,185 | - | $ 2,136,503 | $ - |
Reinvestment of distributions | 3,506 | - | 50,496 | - |
Shares redeemed | (52,323) | - | (788,391) | - |
Net increase (decrease) | 89,368 | - | $ 1,398,608 | $ - |
Annual Report
Notes to Financial Statements - continued
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund - continued | | | | |
Large Cap Value | | | | |
Shares sold | 52,779,386 | 72,550,724 | $ 813,954,360 | $ 1,029,577,278 |
Reinvestment of distributions | 7,056,478 | 1,672,345 | 102,030,422 | 23,955,243 |
Shares redeemed | (40,898,915) | (25,616,795) | (619,081,485) | (368,491,524) |
Net increase (decrease) | 18,936,949 | 48,606,274 | $ 296,903,297 | $ 685,040,997 |
Institutional Class | | | | |
Shares sold | 92,735 | - | $ 1,397,015 | $ - |
Reinvestment of distributions | 3,477 | - | 50,127 | - |
Shares redeemed | (17,951) | - | (257,652) | - |
Net increase (decrease) | 78,261 | - | $ 1,189,490 | $ - |
Fidelity Mid Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 615,995 | - | $ 10,540,942 | $ - |
Reinvestment of distributions | 11,024 | - | 178,558 | - |
Shares redeemed | (132,358) | - | (2,195,988) | - |
Net increase (decrease) | 494,661 | - | $ 8,523,512 | $ - |
Class T | | | | |
Shares sold | 325,063 | - | $ 5,643,056 | $ - |
Reinvestment of distributions | 6,694 | - | 108,412 | - |
Shares redeemed | (84,728) | - | (1,422,111) | - |
Net increase (decrease) | 247,029 | - | $ 4,329,357 | $ - |
Class B | | | | |
Shares sold | 204,574 | - | $ 3,623,364 | $ - |
Reinvestment of distributions | 2,791 | - | 45,364 | - |
Shares redeemed | (120,358) | - | (2,068,797) | - |
Net increase (decrease) | 87,007 | - | $ 1,599,931 | $ - |
Class C | | | | |
Shares sold | 168,571 | - | $ 2,987,730 | $ - |
Reinvestment of distributions | 3,136 | - | 50,659 | - |
Shares redeemed | (61,027) | - | (991,710) | - |
Net increase (decrease) | 110,680 | - | $ 2,046,679 | $ - |
Mid Cap Value | | | | |
Shares sold | 34,123,012 | 26,022,900 | $ 603,742,926 | $ 415,931,492 |
Reinvestment of distributions | 2,338,406 | 1,003,867 | 38,409,538 | 16,337,499 |
Shares redeemed | (27,133,004) | (10,884,934) | (462,055,715) | (173,050,014) |
Net increase (decrease) | 9,328,414 | 16,141,833 | $ 180,096,749 | $ 259,218,977 |
Institutional Class | | | | |
Shares sold | 102,472 | - | $ 1,790,525 | $ - |
Reinvestment of distributions | 3,101 | - | 50,277 | - |
Shares redeemed | (9,162) | - | (148,581) | - |
Net increase (decrease) | 96,411 | - | $ 1,692,221 | $ - |
Fidelity Large Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,474 | - | $ 1,900,337 | $ - |
Reinvestment of distributions | 10,979 | - | 116,895 | - |
Shares redeemed | (44,281) | - | (486,246) | - |
Net increase (decrease) | 132,172 | - | $ 1,530,986 | $ - |
Class T | | | | |
Shares sold | 167,227 | - | $ 1,920,600 | $ - |
Reinvestment of distributions | 9,490 | - | 101,048 | - |
Shares redeemed | (65,269) | - | (790,917) | - |
Net increase (decrease) | 111,448 | - | $ 1,230,731 | $ - |
Annual Report
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Class B | | | | |
Shares sold | 55,847 | - | $ 636,287 | $ - |
Reinvestment of distributions | 3,795 | - | 40,430 | - |
Shares redeemed | (4,405) | - | (49,003) | - |
Net increase (decrease) | 55,237 | - | $ 627,714 | $ - |
Class C | | | | |
Shares sold | 106,310 | - | $ 1,230,146 | $ - |
Reinvestment of distributions | 6,439 | - | 68,402 | - |
Shares redeemed | (16,516) | - | (191,737) | - |
Net increase (decrease) | 96,233 | - | $ 1,106,811 | $ - |
Large Cap Growth | | | | |
Shares sold | 5,794,783 | 10,973,541 | $ 66,845,422 | $ 124,315,764 |
Reinvestment of distributions | 1,665,396 | 318,299 | 17,914,862 | 3,701,456 |
Shares redeemed | (7,903,937) | (9,222,108) | (90,877,571) | (102,538,999) |
Net increase (decrease) | (443,758) | 2,069,732 | $ (6,117,287) | $ 25,478,221 |
Institutional Class | | | | |
Shares sold | 38,550 | - | $ 453,557 | $ - |
Reinvestment of distributions | 3,006 | - | 32,121 | - |
Shares redeemed | (2,488) | - | (28,969) | - |
Net increase (decrease) | 39,068 | - | $ 456,709 | $ - |
Fidelity Mid Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,234 | - | $ 2,326,735 | $ - |
Reinvestment of distributions | 7,218 | - | 97,305 | - |
Shares redeemed | (13,557) | - | (186,849) | - |
Net increase (decrease) | 158,895 | - | $ 2,237,191 | $ - |
Class T | | | | |
Shares sold | 54,813 | - | $ 796,065 | $ - |
Reinvestment of distributions | 2,601 | - | 34,957 | - |
Shares redeemed | (8,726) | - | (121,838) | - |
Net increase (decrease) | 48,688 | - | $ 709,184 | $ - |
Class B | | | | |
Shares sold | 35,917 | - | $ 516,488 | $ - |
Reinvestment of distributions | 1,882 | - | 25,182 | - |
Shares redeemed | (3,583) | - | (47,283) | - |
Net increase (decrease) | 34,216 | - | $ 494,387 | $ - |
Class C | | | | |
Shares sold | 59,795 | - | $ 849,458 | $ - |
Reinvestment of distributions | 2,811 | - | 37,643 | - |
Shares redeemed | (4,934) | - | (66,440) | - |
Net increase (decrease) | 57,672 | - | $ 820,661 | $ - |
Mid Cap Growth | | | | |
Shares sold | 7,994,956 | 24,363,804 | $ 114,388,509 | $ 336,430,868 |
Reinvestment of distributions | 1,580,341 | 357,726 | 21,334,599 | 4,986,704 |
Shares redeemed | (15,751,578) | (18,209,467) | (217,016,915) | (243,991,431) |
Net increase (decrease) | (6,176,281) | 6,512,063 | $ (81,293,807) | $ 97,426,141 |
Institutional Class | | | | |
Shares sold | 14,080 | - | $ 199,943 | $ - |
Reinvestment of distributions | 816 | - | 11,029 | - |
Net increase (decrease) | 14,896 | - | $ 210,972 | $ - |
A Share transactions for class A,T,B,C and Institutional are for the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
Annual Report
Report of Independent Registered
Public Accounting Firm
To the Trustees of Fidelity Devonshire Trust and the Shareholders of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund (funds of Fidelity Devonshire Trust) at January 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Devonshire Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 24, 2008
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 374 funds advised by FMR or an affiliate. Mr. Curvey oversees 369 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (77) |
| Year of Election or Appointment: 1985 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related. |
James C. Curvey (72) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (59) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (71) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (67) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (61) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (63) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (68) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007). |
Advisory Board Members and Executive Officers**:
Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Arthur E. Johnson (61) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related. |
Alan J. Lacy (54) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History. |
Peter S. Lynch (64) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Joseph Mauriello (63) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
David M. Thomas (58) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (57) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005). |
Kimberley H. Monasterio (44) |
| Year of Election or Appointment: 2007 President and Treasurer of the funds. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Walter C. Donovan (45) |
| Year of Election or Appointment: 2007 Vice President of the funds. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005). |
Bruce T. Herring (42) |
| Year of Election or Appointment: 2006 Vice President of the funds. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Eric D. Roiter (59) |
| Year of Election or Appointment: 2001 Secretary of the funds. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
John B. McGinty, Jr. (45) |
| Year of Election or Appointment: 2008 Assistant Secretary of the funds. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of the funds. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of the funds. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (60) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of the funds. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the funds. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (38) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the funds. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the funds. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (54) |
| Year of Election or Appointment: 2004 Assistant Treasurer of the funds. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Paul M. Murphy (60) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the funds. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007). |
Gary W. Ryan (49) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the funds. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended January 31, 2008, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Large Cap Value Fund | $53,592,103 |
Fidelity Mid Cap Value Fund | $30,917,128 |
Fidelity Large Cap Growth Fund | $9,534,777 |
Fidelity Mid Cap Growth Fund | $25,157,607 |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| March,
2007 | December,
2007 |
Fidelity Large Cap Value Fund | | |
Class A | 45% | 100% |
Class T | 45% | 100% |
Class B | 45% | 100% |
Class C | 45% | 100% |
Fidelity Mid Cap Value Fund | | |
Class A | 26% | 100% |
Class T | 26% | 100% |
Class B | 26% | 0% |
Class C | 26% | 0% |
Fidelity Large Cap Growth Fund | | |
Class A | 91% | 18% |
Class T | 91% | 18% |
Class B | 91% | 21% |
Class C | 91% | 20% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| March,
2007 | December,
2007 |
Fidelity Large Cap Value Fund | | |
Class A | 45% | 100% |
Class T | 45% | 100% |
Class B | 45% | 100% |
Class C | 45% | 100% |
Fidelity Mid Cap Value Fund | | |
Class A | 26% | 100% |
Class T | 26% | 100% |
Class B | 26% | 0% |
Class C | 26% | 0% |
Fidelity Large Cap Growth Fund | | |
Class A | 92% | 19% |
Class T | 92% | 20% |
Class B | 92% | 22% |
Class C | 92% | 21% |
The fund will notify shareholders in January 2009 of amounts for use in preparing 2008 income tax returns.
Annual Report
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations
Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ALMC-UANN-0308
1.863127.100
Fidelity Advisor Large Cap Value
Institutional Class
Fidelity Advisor Mid Cap Value
Institutional Class
Fidelity Advisor Large Cap Growth
Institutional Class
Fidelity Advisor Mid Cap Growth
Institutional Class
Funds
Annual Report
January 31, 2008
(2_fidelity_logos) (Registered_Trademark)
Each Institutional Class
listed above is a class of
Fidelity® Large Cap Value,
Fidelity Mid Cap Value,
Fidelity Large Cap Growth, and
Fidelity Mid Cap Growth
Funds
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") 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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(Photograph of Edward C. Johnson 3d.)
Dear Shareholder:
Stocks got off to a poor start in 2008, while investment-grade bonds and money markets showed positive returns, once again underscoring the importance of a diversified portfolio. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (August 1, 2007 to January 31, 2008).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Fidelity Large Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 946.40 | $ 6.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | | | |
Actual | $ 1,000.00 | $ 944.70 | $ 7.35 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | | | |
Actual | $ 1,000.00 | $ 943.10 | $ 9.80 |
HypotheticalA | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | | | |
Actual | $ 1,000.00 | $ 943.20 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Large Cap Value | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.27 |
HypotheticalA | $ 1,000.00 | $ 1,020.82 | $ 4.43 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 948.00 | $ 4.22 |
HypotheticalA | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
Fidelity Mid Cap Value Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 912.50 | $ 5.54 |
HypotheticalA | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007
to January 31, 2008 |
Class T | | | |
Actual | $ 1,000.00 | $ 911.80 | $ 6.79 |
HypotheticalA | $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.09 |
HypotheticalA | $ 1,000.00 | $ 1,015.68 | $ 9.60 |
Class C | | | |
Actual | $ 1,000.00 | $ 909.00 | $ 9.24 |
HypotheticalA | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Mid Cap Value | | | |
Actual | $ 1,000.00 | $ 913.40 | $ 4.05 |
HypotheticalA | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 913.70 | $ 4.34 |
HypotheticalA | $ 1,000.00 | $ 1,020.67 | $ 4.58 |
Fidelity Large Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 955.40 | $ 5.91 |
HypotheticalA | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | | | |
Actual | $ 1,000.00 | $ 955.60 | $ 7.30 |
HypotheticalA | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | | | |
Actual | $ 1,000.00 | $ 952.20 | $ 9.74 |
HypotheticalA | $ 1,000.00 | $ 1,015.22 | $ 10.06 |
Class C | | | |
Actual | $ 1,000.00 | $ 953.00 | $ 9.65 |
HypotheticalA | $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Large Cap Growth | | | |
Actual | $ 1,000.00 | $ 956.60 | $ 4.78 |
HypotheticalA | $ 1,000.00 | $ 1,020.32 | $ 4.94 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 958.20 | $ 4.10 |
HypotheticalA | $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Fidelity Mid Cap Growth Fund | | | |
Class A | | | |
Actual | $ 1,000.00 | $ 909.40 | $ 5.29 |
HypotheticalA | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class T | | | |
Actual | $ 1,000.00 | $ 905.80 | $ 6.58 |
HypotheticalA | $ 1,000.00 | $ 1,018.30 | $ 6.97 |
Class B | | | |
Actual | $ 1,000.00 | $ 904.90 | $ 8.79 |
HypotheticalA | $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Class C | | | |
Actual | $ 1,000.00 | $ 904.20 | $ 8.88 |
HypotheticalA | $ 1,000.00 | $ 1,015.88 | $ 9.40 |
Mid Cap Growth | | | |
Actual | $ 1,000.00 | $ 909.50 | $ 3.75 |
HypotheticalA | $ 1,000.00 | $ 1,021.27 | $ 3.97 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 909.60 | $ 3.32 |
HypotheticalA | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period).
Annual Report
| Annualized
Expense Ratio |
Fidelity Large Cap Value Fund | |
Class A | 1.25% |
Class T | 1.50% |
Class B | 2.00% |
Class C | 1.97% |
Large Cap Value | .87% |
Institutional Class | .86% |
Fidelity Mid Cap Value Fund | |
Class A | 1.15% |
Class T | 1.41% |
Class B | 1.89% |
Class C | 1.92% |
Mid Cap Value | .84% |
Institutional Class | .90% |
Fidelity Large Cap Growth Fund | |
Class A | 1.20% |
Class T | 1.48% |
Class B | 1.98% |
Class C | 1.96% |
Large Cap Growth | .97% |
Institutional Class | .83% |
Fidelity Mid Cap Growth Fund | |
Class A | 1.10% |
Class T | 1.37% |
Class B | 1.83% |
Class C | 1.85% |
Mid Cap Growth | .78% |
Institutional Class | .69% |
Annual Report
Fidelity Advisor Large Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class B | -4.45% | 14.09% | 7.81% |
A From November 15, 2001.
B The initial offering of Institutional Class shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Value, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Large Cap Value Fund - Institutional Class on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Value Index performed over the same period. The initial offering of Institutional Class took place on February 13, 2007. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Large Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity Advisor Large Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Advisor Large Cap Value's Class A, Class T, Class B and Class C shares (excluding sales charges) all finished about even with or slightly ahead of the Russell 1000® Value Index, which was off 5.38%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among banks and real estate investment trusts (REITs). Favorable industry weightings within the weak financials and consumer discretionary sectors also added value, as did good stock picking in health care and pockets of information technology. Underweighting diversified financials giant Citigroup and domestic banking firm Wachovia added to relative performance, as both stocks fared poorly within an environment of deteriorating business fundamentals for financials. Among other strong contributors were Cummins, a diesel engine manufacturer, and CF Industries, an out-of-index company that produces fertilizer products. On the flip side, relative results were held back by unfavorable stock picks in consumer staples - especially among food retailers - energy and the transportation industry. Among the biggest detractors were Tyson Foods, a large processor of poultry and meat products, and YRC Worldwide, a transportation company. Underweighting such strong-performing energy stocks as Occidental Petroleum also hurt. Tyson, YRC and Occidental were no longer in the portfolio at period end.
For the year, Advisor Large Cap Value's Institutional Class shares finished ahead of the Russell 1000® Value Index, which was off 5.38%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among banks and real estate investment trusts (REITs). Favorable industry weightings within the weak financials and consumer discretionary sectors also added value, as did good stock picking in health care and pockets of information technology. Underweighting diversified financials giant Citigroup and domestic banking firm Wachovia added to relative performance, as both stocks fared poorly within an environment of deteriorating business fundamentals for financials. Among other strong contributors were Cummins, a diesel engine manufacturer, and CF Industries, an out-of-index company that produces fertilizer products. On the flip side, relative results were held back by unfavorable stock picks in consumer staples - especially among food retailers - energy and the transportation industry. Among the biggest detractors were Tyson Foods, a large processor of poultry and meat products, and YRC Worldwide, a transportation company. Underweighting such strong-performing energy stocks as Occidental Petroleum also hurt. Tyson, YRC and Occidental were no longer in the portfolio at period end.
The views expressed above reflect those of the portfolio manager only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 4.3 | 4.5 |
AT&T, Inc. | 3.8 | 3.8 |
General Electric Co. | 3.4 | 3.0 |
ConocoPhillips | 3.1 | 0.0 |
JPMorgan Chase & Co. | 3.0 | 3.0 |
American International Group, Inc. | 2.7 | 2.3 |
Chevron Corp. | 2.7 | 2.5 |
Bank of America Corp. | 2.4 | 2.4 |
Altria Group, Inc. | 2.3 | 1.8 |
Verizon Communications, Inc. | 2.2 | 2.3 |
| 29.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.7 | 31.7 |
Energy | 15.6 | 14.0 |
Industrials | 10.6 | 10.7 |
Consumer Staples | 8.5 | 7.3 |
Health Care | 7.6 | 7.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.7% | | | Stocks 99.7% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
* Foreign investments | 5.3% | | **Foreign investments | 2.0% | |
Annual Report
Fidelity Large Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.3% |
Automobiles - 0.5% |
General Motors Corp. (d) | 283,401 | | $ 8,023,082 |
Hotels, Restaurants & Leisure - 2.0% |
McDonald's Corp. | 557,500 | | 29,854,125 |
Household Durables - 0.3% |
Whirlpool Corp. | 56,000 | | 4,766,160 |
Internet & Catalog Retail - 0.3% |
Expedia, Inc. (a) | 198,600 | | 4,571,772 |
Leisure Equipment & Products - 0.4% |
Eastman Kodak Co. | 261,400 | | 5,209,702 |
Media - 1.2% |
Liberty Media Corp. - Capital
Series A (a) | 64,300 | | 6,919,966 |
Viacom, Inc. Class B (non-vtg.) (a) | 296,500 | | 11,492,340 |
| | 18,412,306 |
Multiline Retail - 0.7% |
Macy's, Inc. | 387,800 | | 10,718,792 |
Specialty Retail - 0.8% |
Home Depot, Inc. | 414,300 | | 12,706,581 |
Textiles, Apparel & Luxury Goods - 1.1% |
NIKE, Inc. Class B (d) | 255,700 | | 15,792,032 |
TOTAL CONSUMER DISCRETIONARY | | 110,054,552 |
CONSUMER STAPLES - 8.5% |
Beverages - 1.1% |
Molson Coors Brewing Co. Class B | 392,400 | | 17,528,508 |
Food & Staples Retailing - 2.9% |
BJ's Wholesale Club, Inc. (a) | 147,100 | | 4,771,924 |
Kroger Co. | 621,500 | | 15,817,175 |
Safeway, Inc. | 267,700 | | 8,296,023 |
SUPERVALU, Inc. | 484,600 | | 14,567,076 |
| | 43,452,198 |
Food Products - 0.3% |
Del Monte Foods Co. | 459,500 | | 4,121,715 |
Household Products - 1.9% |
Procter & Gamble Co. | 433,300 | | 28,576,135 |
Tobacco - 2.3% |
Altria Group, Inc. | 450,000 | | 34,119,000 |
TOTAL CONSUMER STAPLES | | 127,797,556 |
ENERGY - 15.6% |
Energy Equipment & Services - 1.9% |
National Oilwell Varco, Inc. (a) | 232,500 | | 14,003,475 |
Transocean, Inc. (a) | 112,200 | | 13,755,720 |
| | 27,759,195 |
Oil, Gas & Consumable Fuels - 13.7% |
Chevron Corp. | 482,300 | | 40,754,350 |
ConocoPhillips | 574,900 | | 46,175,968 |
|
| Shares | | Value |
Exxon Mobil Corp. | 744,700 | | $ 64,342,081 |
Hess Corp. | 265,100 | | 24,079,033 |
Marathon Oil Corp. | 308,900 | | 14,471,965 |
Valero Energy Corp. | 274,801 | | 16,265,471 |
| | 206,088,868 |
TOTAL ENERGY | | 233,848,063 |
FINANCIALS - 30.7% |
Capital Markets - 6.5% |
GLG Partners, Inc. (a)(d) | 1,247,500 | | 14,708,025 |
Goldman Sachs Group, Inc. | 143,200 | | 28,750,264 |
Janus Capital Group, Inc. (d) | 575,300 | | 15,538,853 |
Lehman Brothers Holdings, Inc. (d) | 459,300 | | 29,473,281 |
State Street Corp. | 120,500 | | 9,895,460 |
| | 98,365,883 |
Commercial Banks - 3.8% |
Associated Banc-Corp. | 181,900 | | 5,125,942 |
PNC Financial Services Group, Inc. | 113,200 | | 7,428,184 |
Regions Financial Corp. (d) | 222,500 | | 5,615,900 |
Wachovia Corp. | 507,800 | | 19,768,654 |
Wells Fargo & Co. | 359,100 | | 12,212,991 |
Zions Bancorp | 132,200 | | 7,236,628 |
| | 57,388,299 |
Consumer Finance - 0.9% |
Capital One Financial Corp. (d) | 252,700 | | 13,850,487 |
Diversified Financial Services - 6.7% |
Bank of America Corp. | 813,700 | | 36,087,595 |
Citigroup, Inc. | 546,460 | | 15,421,101 |
JPMorgan Chase & Co. | 947,400 | | 45,048,870 |
MSCI, Inc. Class A | 115,197 | | 3,798,045 |
| | 100,355,611 |
Insurance - 10.5% |
ACE Ltd. | 281,000 | | 16,393,540 |
American International Group, Inc. | 742,300 | | 40,945,268 |
Assurant, Inc. | 142,600 | | 9,253,314 |
Axis Capital Holdings Ltd. | 226,400 | | 9,065,056 |
Endurance Specialty Holdings Ltd. | 252,800 | | 10,243,456 |
Loews Corp. | 357,400 | | 16,687,006 |
PartnerRe Ltd. | 157,400 | | 12,478,672 |
Prudential Financial, Inc. | 255,600 | | 21,564,972 |
RenaissanceRe Holdings Ltd. | 215,900 | | 12,304,141 |
W.R. Berkley Corp. | 284,000 | | 8,593,840 |
| | 157,529,265 |
Real Estate Investment Trusts - 2.0% |
Annaly Capital Management, Inc. | 716,400 | | 14,127,408 |
Boston Properties, Inc. | 77,000 | | 7,077,840 |
ProLogis Trust | 91,600 | | 5,436,460 |
Public Storage | 46,700 | | 3,654,275 |
| | 30,295,983 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.3% |
Astoria Financial Corp. | 167,400 | | $ 4,549,932 |
TOTAL FINANCIALS | | 462,335,460 |
HEALTH CARE - 7.6% |
Biotechnology - 1.0% |
Biogen Idec, Inc. (a) | 239,600 | | 14,603,620 |
Health Care Equipment & Supplies - 0.5% |
Baxter International, Inc. | 118,200 | | 7,179,468 |
Health Care Providers & Services - 1.8% |
Humana, Inc. (a) | 169,900 | | 13,642,970 |
Medco Health Solutions, Inc. (a) | 275,400 | | 13,792,032 |
| | 27,435,002 |
Life Sciences Tools & Services - 1.4% |
Charles River Laboratories International, Inc. (a) | 160,000 | | 9,936,000 |
Invitrogen Corp. (a) | 127,800 | | 10,948,626 |
| | 20,884,626 |
Pharmaceuticals - 2.9% |
Johnson & Johnson | 349,000 | | 22,077,740 |
Pfizer, Inc. | 960,700 | | 22,470,773 |
| | 44,548,513 |
TOTAL HEALTH CARE | | 114,651,229 |
INDUSTRIALS - 10.6% |
Aerospace & Defense - 3.2% |
Honeywell International, Inc. | 94,300 | | 5,570,301 |
Northrop Grumman Corp. | 165,400 | | 13,126,144 |
Raytheon Co. | 170,600 | | 11,112,884 |
The Boeing Co. | 212,800 | | 17,700,704 |
| | 47,510,033 |
Airlines - 0.5% |
Northwest Airlines Corp. (a) | 193,200 | | 3,614,772 |
UAL Corp. | 121,400 | | 4,607,130 |
| | 8,221,902 |
Commercial Services & Supplies - 0.6% |
Allied Waste Industries, Inc. (a) | 920,000 | | 9,062,000 |
Construction & Engineering - 1.4% |
KBR, Inc. (a) | 488,600 | | 15,434,874 |
URS Corp. (a) | 133,200 | | 5,847,480 |
| | 21,282,354 |
Industrial Conglomerates - 3.4% |
General Electric Co. | 1,424,000 | | 50,423,840 |
Machinery - 1.2% |
AGCO Corp. (a) | 127,000 | | 7,647,940 |
Cummins, Inc. | 220,900 | | 10,665,052 |
| | 18,312,992 |
|
| Shares | | Value |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 266,933 | | $ 3,982,640 |
TOTAL INDUSTRIALS | | 158,795,761 |
INFORMATION TECHNOLOGY - 3.1% |
Computers & Peripherals - 1.6% |
Hewlett-Packard Co. | 147,600 | | 6,457,500 |
International Business Machines Corp. | 124,200 | | 13,331,628 |
Western Digital Corp. (a) | 176,300 | | 4,663,135 |
| | 24,452,263 |
Electronic Equipment & Instruments - 0.8% |
Tyco Electronics Ltd. | 337,100 | | 11,397,351 |
IT Services - 0.5% |
Accenture Ltd. Class A | 215,500 | | 7,460,610 |
Software - 0.2% |
Oracle Corp. (a) | 172,000 | | 3,534,600 |
TOTAL INFORMATION TECHNOLOGY | | 46,844,824 |
MATERIALS - 4.1% |
Chemicals - 2.2% |
Celanese Corp. Class A | 164,400 | | 6,112,392 |
CF Industries Holdings, Inc. | 76,500 | | 8,180,145 |
Chemtura Corp. | 1,255,300 | | 8,410,510 |
The Mosaic Co. (a) | 108,600 | | 9,883,686 |
| | 32,586,733 |
Containers & Packaging - 0.6% |
Ball Corp. | 91,600 | | 4,203,524 |
Owens-Illinois, Inc. (a) | 94,300 | | 4,752,720 |
| | 8,956,244 |
Metals & Mining - 1.3% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 104,800 | | 9,330,344 |
United States Steel Corp. | 99,300 | | 10,139,523 |
| | 19,469,867 |
TOTAL MATERIALS | | 61,012,844 |
TELECOMMUNICATION SERVICES - 6.0% |
Diversified Telecommunication Services - 6.0% |
AT&T, Inc. | 1,480,362 | | 56,979,133 |
Verizon Communications, Inc. | 842,100 | | 32,707,164 |
| | 89,686,297 |
UTILITIES - 6.2% |
Electric Utilities - 1.7% |
Entergy Corp. | 112,000 | | 12,116,160 |
PPL Corp. | 179,000 | | 8,756,680 |
Reliant Energy, Inc. (a) | 255,100 | | 5,425,977 |
| | 26,298,817 |
Gas Utilities - 1.0% |
Energen Corp. | 244,700 | | 15,391,630 |
Common Stocks - continued |
| Shares | | Value |
UTILITIES - continued |
Independent Power Producers & Energy Traders - 2.4% |
Constellation Energy Group, Inc. | 92,200 | | $ 8,663,112 |
Mirant Corp. (a) | 324,700 | | 11,961,948 |
NRG Energy, Inc. (a) | 382,800 | | 14,772,252 |
| | 35,397,312 |
Multi-Utilities - 1.1% |
Public Service Enterprise Group, Inc. | 170,100 | | 16,329,600 |
TOTAL UTILITIES | | 93,417,359 |
TOTAL COMMON STOCKS (Cost $1,476,386,384) | 1,498,443,945 |
Money Market Funds - 5.2% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 9,464,505 | | 9,464,505 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 69,571,507 | | 69,571,507 |
TOTAL MONEY MARKET FUNDS (Cost $79,036,012) | 79,036,012 |
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,555,422,396) | | 1,577,479,957 |
NET OTHER ASSETS - (4.9)% | | (74,027,771) |
NET ASSETS - 100% | $ 1,503,452,186 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 625,964 |
Fidelity Securities Lending Cash Central Fund | 89,576 |
Total | $ 715,540 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $42,711,239 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $69,644,477) - See accompanying schedule: Unaffiliated issuers (cost $1,476,386,384) | $ 1,498,443,945 | |
Fidelity Central Funds (cost $79,036,012) | 79,036,012 | |
Total Investments (cost $1,555,422,396) | | $ 1,577,479,957 |
Receivable for investments sold | | 23,766,119 |
Receivable for fund shares sold | | 2,565,058 |
Dividends receivable | | 1,696,869 |
Distributions receivable from Fidelity Central Funds | | 33,811 |
Prepaid expenses | | 4,921 |
Total assets | | 1,605,546,735 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,494,925 | |
Payable for fund shares redeemed | 7,847,405 | |
Accrued management fee | 720,873 | |
Distribution fees payable | 6,898 | |
Other affiliated payables | 363,497 | |
Other payables and accrued expenses | 89,444 | |
Collateral on securities loaned, at value | 69,571,507 | |
Total liabilities | | 102,094,549 |
| | |
Net Assets | | $ 1,503,452,186 |
Net Assets consist of: | | |
Paid in capital | | $ 1,523,198,617 |
Undistributed net investment income | | 4,864,259 |
Accumulated undistributed net realized gain (loss) on investments | | (46,668,251) |
Net unrealized appreciation (depreciation) on investments | | 22,057,561 |
Net Assets | | $ 1,503,452,186 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering
Price Class A:
Net Asset Value and redemption price per share ($9,774,232 ÷ 721,934 shares) | | $ 13.54 |
| | |
Maximum offering price per share (100/94.25 of $13.54) | | $ 14.37 |
Class T:
Net Asset Value and redemption price per share ($5,975,654 ÷ 441,693 shares) | | $ 13.53 |
| | |
Maximum offering price per share (100/96.50 of $13.53) | | $ 14.02 |
Class B:
Net Asset Value and offering price per share ($1,859,809 ÷ 137,404 shares)A | | $ 13.54 |
| | |
Class C:
Net Asset Value and offering price per share ($1,208,181 ÷ 89,368 shares)A | | $ 13.52 |
| | |
Large Cap Value:
Net Asset Value, offering price and redemption price per share ($1,483,574,281 ÷ 109,324,284 shares) | | $ 13.57 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,060,029 ÷ 78,261 shares) | | $ 13.54 |
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.
Annual Report
Fidelity Large Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 32,039,820 |
Interest | | 4,832 |
Income from Fidelity Central Funds (including $89,576 from security lending) | | 715,540 |
Total income | | 32,760,192 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,024,987 | |
Performance adjustment | 288,595 | |
Transfer agent fees | 3,768,695 | |
Distribution fees | 73,728 | |
Accounting and security lending fees | 507,630 | |
Custodian fees and expenses | 37,007 | |
Independent trustees' compensation | 5,753 | |
Registration fees | 122,860 | |
Audit | 60,620 | |
Legal | 7,461 | |
Interest | 5,226 | |
Miscellaneous | 53,563 | |
Total expenses before reductions | 13,956,125 | |
Expense reductions | (136,896) | 13,819,229 |
Net investment income (loss) | | 18,940,963 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 18,026,031 |
Change in net unrealized appreciation (depreciation) on investment securities | | (121,407,791) |
Net gain (loss) | | (103,381,760) |
Net increase (decrease) in net assets resulting from operations | | $ (84,440,797) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 18,940,963 | $ 9,973,926 |
Net realized gain (loss) | 18,026,031 | 34,353,479 |
Change in net unrealized appreciation (depreciation) | (121,407,791) | 98,674,962 |
Net increase (decrease) in net assets resulting from operations | (84,440,797) | 143,002,367 |
Distributions to shareholders from net investment income | (14,286,599) | (10,401,399) |
Distributions to shareholders from net realized gain | (90,733,678) | (14,021,724) |
Total distributions | (105,020,277) | (24,423,123) |
Share transactions - net increase (decrease) | 320,162,513 | 685,040,997 |
Redemption fees | - | 21,396 |
Total increase (decrease) in net assets | 130,701,439 | 803,641,637 |
| | |
Net Assets | | |
Beginning of period | 1,372,750,747 | 569,109,110 |
End of period (including undistributed net investment income of $4,864,259 and undistributed net investment income
of $274,346, respectively) | $ 1,503,452,186 | $ 1,372,750,747 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .12 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.88) |
Distributions from net investment income | (.12) |
Distributions from net realized gain | (.87) |
Total distributions | (.99) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.04)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.22% A |
Expenses net of fee waivers, if any | 1.22% A |
Expenses net of all reductions | 1.22% A |
Net investment income (loss) | .81% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 9,774 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .08 |
Net realized and unrealized gain (loss) | (1.01) |
Total from investment operations | (.93) |
Distributions from net investment income | (.08) |
Distributions from net realized gain | (.87) |
Total distributions | (.95) |
Net asset value, end of period | $ 13.53 |
Total Return B,C | (6.34)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | .56% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 5,976 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the sales charges.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (1.00) |
Total from investment operations | (.99) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.87) |
Total distributions | (.88) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (6.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | .04% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,860 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .01 |
Net realized and unrealized gain (loss) | (.98) |
Total from investment operations | (.97) |
Distributions from net investment income | (.05) |
Distributions from net realized gain | (.87) |
Total distributions | (.92) |
Net asset value, end of period | $ 13.52 |
Total Return B,C | (6.61)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | 1.94% A |
Expenses net of fee waivers, if any | 1.94% A |
Expenses net of all reductions | 1.94% A |
Net investment income (loss) | .09% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,208 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not include the effect of the contingent deferred sales charge.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Value
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 | $ 8.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .18 | .16 | .17 | .09 E | .09 |
Net realized and unrealized gain (loss) | (.80) | 1.80 | 1.87 | 1.47 | 2.47 |
Total from investment operations | (.62) | 1.96 | 2.04 | 1.56 | 2.56 |
Distributions from net investment income | (.13) | (.13) | (.11) | (.05) | (.09) |
Distributions from net realized gain | (.87) | (.26) | (.35) | (.11) | - |
Total distributions | (1.00) | (.39) | (.46) | (.16) | (.09) |
Redemption fees added to paid in capital B | - | - G,H | - G | - G | - G |
Net asset value, end of period | $ 13.57 | $ 15.19 | $ 13.62 | $ 12.04 | $ 10.64 |
Total Return A | (4.39)% | 14.63% | 17.09% | 14.68% | 31.44% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .86% | .89% | .89% | 1.07% | 1.45% |
Expenses net of fee waivers, if any | .85% | .89% | .89% | 1.07% | 1.20% |
Expenses net of all reductions | .85% | .89% | .84% | 1.05% | 1.18% |
Net investment income (loss) | 1.18% | 1.10% | 1.32% | .79% E | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,483,574 | $ 1,372,751 | $ 569,109 | $ 177,004 | $ 25,168 |
Portfolio turnover rate D | 204% | 164% | 175% | 170% | 72% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H The redemption fee was eliminated during the year January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 15.41 |
Income from Investment Operations | |
Net investment income (loss) D | .17 |
Net realized and unrealized gain (loss) | (1.02) |
Total from investment operations | (.85) |
Distributions from net investment income | (.15) |
Distributions from net realized gain | (.87) |
Total distributions | (1.02) |
Net asset value, end of period | $ 13.54 |
Total Return B,C | (5.82)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .85% A |
Expenses net of fee waivers, if any | .85% A |
Expenses net of all reductions | .84% A |
Net investment income (loss) | 1.19% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,060 |
Portfolio turnover rate F | 204% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Mid Cap Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class B | -7.70% | 15.63% | 10.37% |
A From November 15, 2001.
B The initial offering of Institutional Class shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Value, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Mid Cap Value Fund - Institutional Class on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period. The initial offering of Institutional Class took place on February 13, 2007. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Mid Cap Value Fund
Management's Discussion of Fund Performance
Comments from Bruce Dirks, Portfolio Manager of Fidelity Advisor Mid Cap Value Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the year, Advisor Mid Cap Value's Class A, Class T, Class B and Class C shares (excluding sales charges) all finished slightly ahead of the benchmark Russell Midcap® Value Index, which declined 8.73%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among bank and asset management companies. Favorable industry weightings within the weak financials and consumer discretionary sectors also added value. Good stock picking in materials, energy and the equipment/services group of health care also helped. Among the fund's strongest contributors for the period were CF Industries, an out-of-index company that produces fertilizer products; Cummins, a diesel engine manufacturer; Annaly Capital Management, a real estate investment trust that owned AAA-rated mortgages; and National Oilwell Varco, an energy services contractor. Conversely, relative results were held back by some unfavorable stock selection decisions in the utilities, consumer staples and consumer discretionary sectors. The fund's poorest performers included transportation firm YRC Worldwide; original equipment manufacturer TRW Automotive; and photographic imaging company Eastman Kodak. YRC and TRW were no longer held at period end.
For the year, Advisor Mid Cap Value Fund's Institutional Class shares finished slightly ahead of the benchmark Russell Midcap® Value Index, which declined 8.73%. (For specific class-level results, please refer to the performance section of this report.) During a volatile period for equities, especially late in the period, the fund outperformed its benchmark in part due to solid stock selection in pockets of the financials sector - mainly among bank and asset management companies. Favorable industry weightings within the weak financials and consumer discretionary sectors also added value. Good stock picking in materials, energy and the equipment/services group of health care also helped. Among the fund's strongest contributors for the period were CF Industries, an out-of-index company that produces fertilizer products; Cummins, a diesel engine manufacturer; Annaly Capital Management, a real estate investment trust that owned AAA-rated mortgages; and National Oilwell Varco, an energy services contractor. Conversely, relative results were held back by some unfavorable stock selection decisions in the utilities, consumer staples and consumer discretionary sectors. The fund's poorest performers included transportation firm YRC Worldwide; original equipment manufacturer TRW Automotive; and photographic imaging company Eastman Kodak. YRC and TRW were no longer held at period end.
The views expressed above reflect those of the portfolio manager only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
10.Fidelity Mid Cap Value Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Hess Corp. | 2.5 | 2.3 |
Edison International | 2.1 | 1.5 |
Everest Re Group Ltd. | 1.8 | 0.0 |
Annaly Capital Management, Inc. | 1.7 | 0.8 |
Boston Properties, Inc. | 1.7 | 0.0 |
Questar Corp. | 1.7 | 0.0 |
Axis Capital Holdings Ltd. | 1.6 | 0.8 |
Assurant, Inc. | 1.6 | 1.2 |
PartnerRe Ltd. | 1.6 | 1.2 |
Energen Corp. | 1.6 | 1.8 |
| 17.9 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.0 | 29.5 |
Utilities | 14.0 | 12.5 |
Consumer Discretionary | 13.1 | 13.1 |
Industrials | 10.4 | 10.7 |
Energy | 8.1 | 7.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.7% | | | Stocks 99.4% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 0.6% | |
* Foreign investments | 13.1% | | **Foreign investments | 4.2% | |
Annual Report
Fidelity Mid Cap Value Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 13.1% |
Diversified Consumer Services - 0.5% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 50,800 | | $ 4,050,792 |
Hotels, Restaurants & Leisure - 1.1% |
Burger King Holdings, Inc. | 303,600 | | 7,999,860 |
Household Durables - 2.3% |
Leggett & Platt, Inc. (d) | 296,500 | | 5,639,430 |
Whirlpool Corp. (d) | 133,500 | | 11,362,185 |
| | 17,001,615 |
Internet & Catalog Retail - 1.2% |
Expedia, Inc. (a) | 242,600 | | 5,584,652 |
Liberty Media Corp. - Interactive
Series A (a) | 239,500 | | 3,810,445 |
| | 9,395,097 |
Leisure Equipment & Products - 1.4% |
Eastman Kodak Co. (d) | 534,300 | | 10,648,599 |
Media - 2.1% |
E.W. Scripps Co. Class A | 181,100 | | 7,374,392 |
Liberty Media Corp. - Capital
Series A (a) | 74,900 | | 8,060,738 |
| | 15,435,130 |
Specialty Retail - 2.6% |
Abercrombie & Fitch Co. Class A | 96,200 | | 7,666,178 |
AutoZone, Inc. (a) | 48,200 | | 5,826,416 |
RadioShack Corp. | 136,800 | | 2,373,480 |
TJX Companies, Inc. | 125,600 | | 3,963,936 |
| | 19,830,010 |
Textiles, Apparel & Luxury Goods - 1.9% |
Crocs, Inc. (a)(d) | 219,600 | | 7,639,884 |
Jones Apparel Group, Inc. (d) | 399,000 | | 6,703,200 |
| | 14,343,084 |
TOTAL CONSUMER DISCRETIONARY | | 98,704,187 |
CONSUMER STAPLES - 7.1% |
Beverages - 1.9% |
Coca-Cola Enterprises, Inc. | 311,600 | | 7,188,612 |
Molson Coors Brewing Co. Class B | 168,900 | | 7,544,763 |
| | 14,733,375 |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a)(d) | 170,600 | | 5,534,264 |
Safeway, Inc. | 259,000 | | 8,026,410 |
SUPERVALU, Inc. | 239,600 | | 7,202,376 |
| | 20,763,050 |
Food Products - 2.2% |
Corn Products International, Inc. | 136,600 | | 4,617,080 |
Dean Foods Co. | 158,400 | | 4,435,200 |
Del Monte Foods Co. | 316,300 | | 2,837,211 |
Tyson Foods, Inc. Class A | 308,000 | | 4,389,000 |
| | 16,278,491 |
|
| Shares | | Value |
Personal Products - 0.2% |
Estee Lauder Companies, Inc. Class A | 44,100 | | $ 1,861,020 |
TOTAL CONSUMER STAPLES | | 53,635,936 |
ENERGY - 8.1% |
Energy Equipment & Services - 4.8% |
Helmerich & Payne, Inc. | 206,500 | | 8,098,930 |
Nabors Industries Ltd. (a) | 152,100 | | 4,140,162 |
National Oilwell Varco, Inc. (a) | 121,000 | | 7,287,830 |
Patterson-UTI Energy, Inc. (d) | 450,800 | | 8,826,664 |
Superior Energy Services, Inc. (a) | 74,400 | | 2,982,696 |
Tidewater, Inc. | 81,800 | | 4,332,128 |
| | 35,668,410 |
Oil, Gas & Consumable Fuels - 3.3% |
Frontline Ltd. (NY Shares) | 137,300 | | 5,844,861 |
Hess Corp. (d) | 211,800 | | 19,237,794 |
| | 25,082,655 |
TOTAL ENERGY | | 60,751,065 |
FINANCIALS - 30.0% |
Capital Markets - 3.0% |
GLG Partners, Inc. (a)(d) | 756,200 | | 8,915,598 |
Janus Capital Group, Inc. (d) | 352,500 | | 9,521,025 |
MF Global Ltd. | 151,200 | | 4,543,560 |
| | 22,980,183 |
Commercial Banks - 3.5% |
Associated Banc-Corp. | 277,700 | | 7,825,586 |
BOK Financial Corp. | 71,195 | | 3,878,704 |
East West Bancorp, Inc. (d) | 188,900 | | 4,544,934 |
Synovus Financial Corp. | 219,900 | | 2,904,879 |
Zions Bancorp | 125,800 | | 6,886,292 |
| | 26,040,395 |
Diversified Financial Services - 0.6% |
MSCI, Inc. Class A | 136,800 | | 4,510,296 |
Insurance - 13.9% |
ACE Ltd. | 158,000 | | 9,217,720 |
Allied World Assurance Co. Holdings Ltd. | 147,800 | | 7,039,714 |
Assurant, Inc. | 187,200 | | 12,147,408 |
Axis Capital Holdings Ltd. | 308,900 | | 12,368,356 |
CNA Financial Corp. | 189,800 | | 6,451,302 |
Endurance Specialty Holdings Ltd. | 286,800 | | 11,621,136 |
Everest Re Group Ltd. | 133,100 | | 13,534,939 |
PartnerRe Ltd. | 152,100 | | 12,058,488 |
RenaissanceRe Holdings Ltd. | 197,800 | | 11,272,622 |
W.R. Berkley Corp. | 303,200 | | 9,174,832 |
| | 104,886,517 |
Real Estate Investment Trusts - 7.0% |
Annaly Capital Management, Inc. | 658,200 | | 12,979,704 |
Boston Properties, Inc. | 138,600 | | 12,740,112 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Colonial Properties Trust (SBI) | 97,800 | | $ 2,409,792 |
Kimco Realty Corp. | 198,300 | | 7,101,123 |
ProLogis Trust | 155,700 | | 9,240,795 |
Public Storage | 73,700 | | 5,767,025 |
Taubman Centers, Inc. | 47,400 | | 2,377,110 |
| | 52,615,661 |
Thrifts & Mortgage Finance - 2.0% |
Astoria Financial Corp. | 262,500 | | 7,134,750 |
Washington Federal, Inc. | 323,700 | | 7,904,754 |
| | 15,039,504 |
TOTAL FINANCIALS | | 226,072,556 |
HEALTH CARE - 2.3% |
Health Care Equipment & Supplies - 0.3% |
Kinetic Concepts, Inc. (a)(d) | 41,100 | | 2,045,958 |
Health Care Providers & Services - 0.5% |
Humana, Inc. (a) | 42,500 | | 3,412,750 |
Life Sciences Tools & Services - 1.2% |
Charles River Laboratories International, Inc. (a) | 74,200 | | 4,607,820 |
Invitrogen Corp. (a) | 54,600 | | 4,677,582 |
| | 9,285,402 |
Pharmaceuticals - 0.3% |
Watson Pharmaceuticals, Inc. (a) | 85,000 | | 2,219,350 |
TOTAL HEALTH CARE | | 16,963,460 |
INDUSTRIALS - 10.4% |
Aerospace & Defense - 1.7% |
DRS Technologies, Inc. | 88,400 | | 4,744,428 |
L-3 Communications Holdings, Inc. | 72,500 | | 8,035,175 |
| | 12,779,603 |
Airlines - 0.8% |
Northwest Airlines Corp. (a) | 152,600 | | 2,855,146 |
UAL Corp. | 75,800 | | 2,876,610 |
| | 5,731,756 |
Building Products - 0.6% |
Lennox International, Inc. | 126,800 | | 4,711,888 |
Commercial Services & Supplies - 2.2% |
Allied Waste Industries, Inc. (a) | 700,300 | | 6,897,955 |
R.R. Donnelley & Sons Co. | 267,200 | | 9,322,608 |
| | 16,220,563 |
Construction & Engineering - 1.7% |
KBR, Inc. (a) | 309,000 | | 9,761,310 |
URS Corp. (a) | 69,800 | | 3,064,220 |
| | 12,825,530 |
|
| Shares | | Value |
Industrial Conglomerates - 0.6% |
McDermott International, Inc. (a) | 94,500 | | $ 4,458,510 |
Machinery - 2.5% |
AGCO Corp. (a) | 106,000 | | 6,383,320 |
Cummins, Inc. | 117,300 | | 5,663,244 |
Ingersoll-Rand Co. Ltd. Class A | 168,400 | | 6,655,168 |
| | 18,701,732 |
Road & Rail - 0.3% |
Hertz Global Holdings, Inc. (a) | 160,200 | | 2,390,184 |
TOTAL INDUSTRIALS | | 77,819,766 |
INFORMATION TECHNOLOGY - 6.4% |
Communications Equipment - 0.7% |
Juniper Networks, Inc. (a) | 195,900 | | 5,318,685 |
Computers & Peripherals - 2.2% |
NCR Corp. (a) | 422,600 | | 9,077,448 |
Western Digital Corp. (a) | 278,300 | | 7,361,035 |
| | 16,438,483 |
Electronic Equipment & Instruments - 1.4% |
Avnet, Inc. (a) | 152,500 | | 5,430,525 |
Ingram Micro, Inc. Class A (a) | 173,400 | | 3,083,052 |
Jabil Circuit, Inc. | 174,200 | | 2,308,150 |
| | 10,821,727 |
Semiconductors & Semiconductor Equipment - 1.6% |
Atmel Corp. (a) | 1,316,800 | | 4,161,088 |
MEMC Electronic Materials, Inc. (a) | 25,000 | | 1,786,500 |
Novellus Systems, Inc. (a) | 111,700 | | 2,653,992 |
Varian Semiconductor Equipment Associates, Inc. (a) | 109,100 | | 3,514,111 |
| | 12,115,691 |
Software - 0.5% |
Compuware Corp. (a) | 405,900 | | 3,450,150 |
TOTAL INFORMATION TECHNOLOGY | | 48,144,736 |
MATERIALS - 6.8% |
Chemicals - 3.1% |
Celanese Corp. Class A | 146,800 | | 5,458,024 |
CF Industries Holdings, Inc. | 57,100 | | 6,105,703 |
Chemtura Corp. (d) | 867,400 | | 5,811,580 |
The Mosaic Co. (a) | 71,200 | | 6,479,912 |
| | 23,855,219 |
Containers & Packaging - 1.9% |
Ball Corp. | 85,100 | | 3,905,239 |
Owens-Illinois, Inc. (a) | 91,500 | | 4,611,600 |
Smurfit-Stone Container Corp. (a)(d) | 603,500 | | 5,727,215 |
| | 14,244,054 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Metals & Mining - 1.8% |
Cleveland-Cliffs, Inc. (d) | 42,700 | | $ 4,348,568 |
United States Steel Corp. | 88,000 | | 8,985,680 |
| | 13,334,248 |
TOTAL MATERIALS | | 51,433,521 |
TELECOMMUNICATION SERVICES - 1.5% |
Diversified Telecommunication Services - 1.5% |
Embarq Corp. | 116,500 | | 5,277,450 |
Qwest Communications International, Inc. | 1,043,800 | | 6,137,544 |
| | 11,414,994 |
UTILITIES - 14.0% |
Electric Utilities - 4.6% |
Allegheny Energy, Inc. | 123,300 | | 6,755,607 |
Edison International | 305,600 | | 15,940,096 |
Reliant Energy, Inc. (a) | 558,600 | | 11,881,422 |
| | 34,577,125 |
Gas Utilities - 3.3% |
Energen Corp. | 191,700 | | 12,057,930 |
Questar Corp. | 247,300 | | 12,590,043 |
| | 24,647,973 |
Independent Power Producers & Energy Traders - 4.2% |
Constellation Energy Group, Inc. | 103,700 | | 9,743,652 |
Mirant Corp. (a) | 315,100 | | 11,608,284 |
NRG Energy, Inc. (a) | 268,200 | | 10,349,838 |
| | 31,701,774 |
Multi-Utilities - 1.9% |
CMS Energy Corp. | 583,000 | | 9,135,610 |
OGE Energy Corp. | 162,500 | | 5,318,625 |
| | 14,454,235 |
TOTAL UTILITIES | | 105,381,107 |
TOTAL COMMON STOCKS (Cost $760,656,463) | 750,321,328 |
Money Market Funds - 10.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 3.79% (b) | 5,496,422 | | $ 5,496,422 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 74,160,825 | | 74,160,825 |
TOTAL MONEY MARKET FUNDS (Cost $79,657,247) | 79,657,247 |
TOTAL INVESTMENT PORTFOLIO - 110.3% (Cost $840,313,710) | | 829,978,575 |
NET OTHER ASSETS - (10.3)% | | (77,171,615) |
NET ASSETS - 100% | $ 752,806,960 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 394,997 |
Fidelity Securities Lending Cash Central Fund | 169,409 |
Total | $ 564,406 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 86.9% |
Bermuda | 11.3% |
Cayman Islands | 1.2% |
Others (individually less than 1%) | 0.6% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $31,051,104 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $73,863,006) - See accompanying schedule: Unaffiliated issuers (cost $760,656,463) | $ 750,321,328 | |
Fidelity Central Funds (cost $79,657,247) | 79,657,247 | |
Total Investments (cost $840,313,710) | | $ 829,978,575 |
Receivable for investments sold | | 20,806,082 |
Receivable for fund shares sold | | 2,652,227 |
Dividends receivable | | 223,102 |
Distributions receivable from Fidelity Central Funds | | 36,747 |
Prepaid expenses | | 2,661 |
Other receivables | | 46 |
Total assets | | 853,699,440 |
| | |
Liabilities | | |
Payable for investments purchased | $ 20,180,467 | |
Payable for fund shares redeemed | 5,956,855 | |
Accrued management fee | 312,903 | |
Distribution fees payable | 5,417 | |
Other affiliated payables | 203,019 | |
Other payables and accrued expenses | 72,994 | |
Collateral on securities loaned, at value | 74,160,825 | |
Total liabilities | | 100,892,480 |
| | |
Net Assets | | $ 752,806,960 |
Net Assets consist of: | | |
Paid in capital | | $ 788,210,259 |
Undistributed net investment income | | 1,465,714 |
Accumulated undistributed net realized gain (loss) on investments | | (26,533,878) |
Net unrealized appreciation (depreciation) on investments | | (10,335,135) |
Net Assets | | $ 752,806,960 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($7,444,673 ÷ 494,661 shares) | | $ 15.05 |
| | |
Maximum offering price per share (100/94.25 of $15.05) | | $ 15.97 |
Class T:
Net Asset Value and redemption price per share ($3,714,323 ÷ 247,029 shares) | | $ 15.04 |
| | |
Maximum offering price per share (100/96.50 of $15.04) | | $ 15.59 |
Class B:
Net Asset Value and offering price per share ($1,304,436 ÷ 87,007 shares)A | | $ 14.99 |
| | |
Class C:
Net Asset Value and offering price per share ($1,657,889 ÷ 110,680 shares)A | | $ 14.98 |
| | |
Mid Cap Value:
Net Asset Value, offering price and redemption price per share ($737,234,029 ÷ 48,847,921 shares) | | $ 15.09 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,451,610 ÷ 96,411 shares) | | $ 15.06 |
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.
Annual Report
Fidelity Mid Cap Value Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 11,189,048 |
Interest | | 8,457 |
Income from Fidelity Central Funds (including $169,409 from security lending) | | 564,406 |
Total income | | 11,761,911 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,084,079 | |
Performance adjustment | (317,451) | |
Transfer agent fees | 2,236,010 | |
Distribution fees | 53,691 | |
Accounting and security lending fees | 315,091 | |
Custodian fees and expenses | 28,074 | |
Independent trustees' compensation | 3,227 | |
Registration fees | 145,678 | |
Audit | 58,698 | |
Legal | 4,195 | |
Interest | 4,946 | |
Miscellaneous | 29,800 | |
Total expenses before reductions | 7,646,038 | |
Expense reductions | (105,134) | 7,540,904 |
Net investment income (loss) | | 4,221,007 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | (3,216,421) |
Change in net unrealized appreciation (depreciation) on investment securities | | (85,150,820) |
Net gain (loss) | | (88,367,241) |
Net increase (decrease) in net assets resulting from operations | | $ (84,146,234) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,221,007 | $ 2,688,685 |
Net realized gain (loss) | (3,216,421) | 24,851,516 |
Change in net unrealized appreciation (depreciation) | (85,150,820) | 43,131,851 |
Net increase (decrease) in net assets resulting from operations | (84,146,234) | 70,672,052 |
Distributions to shareholders from net investment income | (3,037,015) | (2,949,768) |
Distributions to shareholders from net realized gain | (37,140,454) | (13,997,322) |
Total distributions | (40,177,469) | (16,947,090) |
Share transactions - net increase (decrease) | 198,288,449 | 259,218,977 |
Redemption fees | 47,852 | 33,264 |
Total increase (decrease) in net assets | 74,012,598 | 312,977,203 |
| | |
Net Assets | | |
Beginning of period | 678,794,362 | 365,817,159 |
End of period (including undistributed net investment income of $1,465,714 and undistributed net investment income
of $375,291, respectively) | $ 752,806,960 | $ 678,794,362 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | .03 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.75) |
Distributions from net investment income | (.06) |
Distributions from net realized gain | (.77) |
Total distributions | (.83) |
Net asset value, end of period | $ 15.05 |
Total Return B,C,D | (10.28)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.14% A |
Expenses net of fee waivers, if any | 1.14% A |
Expenses net of all reductions | 1.13% A |
Net investment income (loss) | .16% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 7,445 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.02) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.78) |
Distributions from net investment income | (.04) |
Distributions from net realized gain | (.77) |
Total distributions | (.81) |
Net asset value, end of period | $ 15.04 |
Total Return B,C,D | (10.46)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.39% A |
Expenses net of fee waivers, if any | 1.39% A |
Expenses net of all reductions | 1.39% A |
Net investment income (loss) | (.10)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,714 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.76) |
Total from investment operations | (1.86) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.99 |
Total Return B,C,D | (10.88)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.89% A |
Expenses net of fee waivers, if any | 1.89% A |
Expenses net of all reductions | 1.89% A |
Net investment income (loss) | (.59)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,304 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) E | (.10) |
Net realized and unrealized gain (loss) | (1.77) |
Total from investment operations | (1.87) |
Distributions from net investment income | (.01) |
Distributions from net realized gain | (.77) |
Total distributions | (.78) |
Net asset value, end of period | $ 14.98 |
Total Return B,C,D | (10.94)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.90% A |
Expenses net of fee waivers, if any | 1.90% A |
Expenses net of all reductions | 1.90% A |
Net investment income (loss) | (.60)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,658 |
Portfolio turnover rate G | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Value
Years ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 | $ 8.85 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .08 | .09 | .16 E | .08 | .06 |
Net realized and unrealized gain (loss) | (1.34) | 1.98 | 2.59 | 2.10 | 3.45 |
Total from investment operations | (1.26) | 2.07 | 2.75 | 2.18 | 3.51 |
Distributions from net investment income | (.06) | (.09) | (.10) | (.04) | (.04) |
Distributions from net realized gain | (.77) | (.45) | (1.15) | (.32) | - |
Total distributions | (.83) | (.54) | (1.24) H | (.36) | (.04) |
Redemption fees added to paid in capital B,G | - | - | - | - | - |
Net asset value, end of period | $ 15.09 | $ 17.18 | $ 15.65 | $ 14.14 | $ 12.32 |
Total Return A | (7.67)% | 13.48% | 19.97% | 17.75% | 39.69% |
Ratios to Average Net Assets C,F | | | | | |
Expenses before reductions | .83% | .84% | .86% | .91% | 1.07% |
Expenses net of fee waivers, if any | .82% | .84% | .86% | .91% | 1.07% |
Expenses net of all reductions | .82% | .84% | .81% | .90% | 1.05% |
Net investment income (loss) | .47% | .56% | 1.08% E | .59% | .55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 737,234 | $ 678,794 | $ 365,817 | $ 153,231 | $ 95,797 |
Portfolio turnover rate D | 264% | 187% | 207% | 196% | 97% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
H Total distributions of $1.24 per share is comprised of distributions from net investment income of $0.95 and distributions from net realized gain of $1.145 per share.
Financial Highlights - Institutional Class
Years ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 17.63 |
Income from Investment Operations | |
Net investment income (loss) D | .07 |
Net realized and unrealized gain (loss) | (1.78) |
Total from investment operations | (1.71) |
Distributions from net investment income | (.09) |
Distributions from net realized gain | (.77) |
Total distributions | (.86) |
Net asset value, end of period | $ 15.06 |
Total Return B,C | (10.06)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .89% A |
Expenses net of fee waivers, if any | .89% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .41% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,452 |
Portfolio turnover rate F | 264% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Large Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class B | -7.18% | 10.77% | 2.36% |
A From November 15, 2001.
B The initial offering of Institutional Class shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Large Cap Growth, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Large Cap Growth Fund - Institutional Class on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period. The initial offering of Institutional Class took place on February 13, 2007. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Large Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Edward Best, Portfolio Manager of Fidelity Advisor Large Cap Growth Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months ending January 31, 2008, the fund's Class A, Class T, Class B and Class C shares (excluding sales charges) trailed the 0.51% gain of the Russell 1000® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor security selection in consumer discretionary, information technology and industrials accounted for the majority of the fund's underperformance compared with the index. Within consumer discretionary, the fund was hurt most by unproductive picks within the retailing and homebuilding segments. Consumer electronics retailer RadioShack and discount retailer Big Lots fell on investors' concerns about the companies' ability to weather recessionary concerns and a weak U.S. consumer. Pharmaceuticals company Sepracor suffered due to a change in Medicare reimbursement for one of its top-selling patented drugs. Airlines US Airways and AMR Corp. - parent company of American Airlines - underperformed due to increased pressure from rising energy prices. The fund's positions in homebuilders KB Home, Ryland Group, D.R. Horton and Lennar, all of which I sold when I took over the fund in June, also held back performance. While our overall stock picking within industrials detracted, stock selection within the sector's capital goods segment actually helped the fund. Specifically, Manitowoc, a major supplier of lifting equipment to the global construction industry, aided performance. Also within capital goods, defense contractor Lockheed Martin benefited from an increase in U.S. defense spending. Stock selection among health care names was positive as well. Pharmaceutical company Biogen Idec gained on news of the re-launch of its multiple sclerosis drug, Tysabri. While stock selection in technology hurt overall, there were some contributors. Apple advanced as the stock did well on the success of its iPod, iPhone and iMac products. Software developer Microsoft also aided performance. By the end of the period, I sold US Airways, AMR Corp., RadioShack, Big Lots, Sepracor and Apple to take advantage of other opportunities in the market.
For the 12 months ending January 31, 2008, the fund's Institutional Class shares trailed the 0.51% gain of the Russell 1000® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor security selection in consumer discretionary, information technology and industrials accounted for the majority of the fund's underperformance compared with the index. Within consumer discretionary, the fund was hurt most by unproductive picks within the retailing and homebuilding segments. Consumer electronics retailer RadioShack and discount retailer Big Lots fell on investors' concerns about the companies' ability to weather recessionary concerns and a weak U.S. consumer. Pharmaceuticals company Sepracor suffered due to a change in Medicare reimbursement for one of its top-selling patented drugs. Airlines US Airways and AMR Corp. - parent company of American Airlines - underperformed due to increased pressure from rising energy prices. The fund's positions in homebuilders KB Home, Ryland Group, D.R. Horton and Lennar, all of which I sold when I took over the fund in June, also held back performance. While our overall stock picking within industrials detracted, stock selection within the sector's capital goods segment actually helped the fund. Specifically, Manitowoc, a major supplier of lifting equipment to the global construction industry, aided performance. Also within capital goods, defense contractor Lockheed Martin benefited from an increase in U.S. defense spending. Stock selection among health care names also was positive. Pharmaceutical company Biogen Idec gained on news of the re-launch of its multiple sclerosis drug, Tysabri. While stock selection in technology hurt overall, there were some contributors. Apple advanced as the stock did well on the success of its iPod, iPhone and iMac products. Software developer Microsoft also aided performance. By the end of the period, I sold US Airways, AMR Corp., RadioShack, Big Lots, Sepracor, and Apple to take advantage of other opportunities in the market.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Large Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Microsoft Corp. | 5.0 | 5.0 |
Exxon Mobil Corp. | 4.4 | 1.6 |
Oracle Corp. | 4.1 | 0.0 |
The Boeing Co. | 3.9 | 0.0 |
Cisco Systems, Inc. | 3.8 | 2.4 |
Bristol-Myers Squibb Co. | 3.6 | 0.0 |
Accenture Ltd. Class A | 3.3 | 3.3 |
NIKE, Inc. Class B | 3.3 | 0.0 |
NYMEX Holdings, Inc. | 3.1 | 0.0 |
Kroger Co. | 3.0 | 3.1 |
| 37.5 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.0 | 26.9 |
Health Care | 16.8 | 16.2 |
Industrials | 14.2 | 14.2 |
Consumer Discretionary | 11.9 | 13.5 |
Consumer Staples | 10.9 | 9.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 99.4% | | | Stocks 99.8% | |
| Short-Term
Investments and
Net Other Assets 0.6% | | | Short-Term
Investments and
Net Other Assets 0.2% | |
* Foreign investments | 4.4% | | **Foreign
investments | 5.5% | |
Annual Report
Fidelity Large Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.9% |
Auto Components - 1.6% |
The Goodyear Tire & Rubber Co. (a) | 99,300 | | $ 2,499,381 |
Diversified Consumer Services - 1.2% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 22,600 | | 1,802,124 |
Hotels, Restaurants & Leisure - 2.6% |
McDonald's Corp. | 74,200 | | 3,973,410 |
Media - 2.3% |
Regal Entertainment Group Class A (d) | 189,300 | | 3,509,622 |
Specialty Retail - 0.9% |
Gamestop Corp. Class A (a) | 27,400 | | 1,417,402 |
Textiles, Apparel & Luxury Goods - 3.3% |
NIKE, Inc. Class B | 79,900 | | 4,934,624 |
TOTAL CONSUMER DISCRETIONARY | | 18,136,563 |
CONSUMER STAPLES - 10.9% |
Beverages - 5.0% |
Pepsi Bottling Group, Inc. | 114,200 | | 3,979,870 |
PepsiCo, Inc. | 52,500 | | 3,579,975 |
| | 7,559,845 |
Food & Staples Retailing - 3.0% |
Kroger Co. | 181,400 | | 4,616,630 |
Food Products - 2.4% |
Kellogg Co. | 77,200 | | 3,697,880 |
Household Products - 0.5% |
Energizer Holdings, Inc. (a) | 8,300 | | 777,046 |
TOTAL CONSUMER STAPLES | | 16,651,401 |
ENERGY - 7.9% |
Energy Equipment & Services - 0.9% |
Baker Hughes, Inc. | 5,700 | | 370,101 |
Nabors Industries Ltd. (a) | 24,400 | | 664,168 |
Schlumberger Ltd. (NY Shares) | 5,000 | | 377,300 |
| | 1,411,569 |
Oil, Gas & Consumable Fuels - 7.0% |
Exxon Mobil Corp. | 78,000 | | 6,739,200 |
Sunoco, Inc. | 13,000 | | 808,600 |
Valero Energy Corp. | 53,000 | | 3,137,070 |
| | 10,684,870 |
TOTAL ENERGY | | 12,096,439 |
FINANCIALS - 7.5% |
Capital Markets - 4.4% |
Charles Schwab Corp. | 198,200 | | 4,419,860 |
Northern Trust Corp. | 30,900 | | 2,266,824 |
| | 6,686,684 |
|
| Shares | | Value |
Diversified Financial Services - 3.1% |
NYMEX Holdings, Inc. (d) | 41,700 | | $ 4,795,500 |
TOTAL FINANCIALS | | 11,482,184 |
HEALTH CARE - 16.8% |
Biotechnology - 1.2% |
Biogen Idec, Inc. (a) | 29,300 | | 1,785,835 |
Health Care Equipment & Supplies - 2.8% |
Baxter International, Inc. | 69,700 | | 4,233,578 |
Health Care Providers & Services - 9.2% |
Aetna, Inc. | 86,000 | | 4,580,360 |
Express Scripts, Inc. (a) | 11,400 | | 769,386 |
Medco Health Solutions, Inc. (a) | 35,200 | | 1,762,816 |
UnitedHealth Group, Inc. | 47,700 | | 2,425,068 |
WellPoint, Inc. (a) | 57,800 | | 4,519,960 |
| | 14,057,590 |
Pharmaceuticals - 3.6% |
Bristol-Myers Squibb Co. | 234,400 | | 5,435,736 |
TOTAL HEALTH CARE | | 25,512,739 |
INDUSTRIALS - 14.2% |
Aerospace & Defense - 5.6% |
Lockheed Martin Corp. | 5,900 | | 636,728 |
Precision Castparts Corp. | 16,900 | | 1,923,220 |
The Boeing Co. | 71,500 | | 5,947,370 |
| | 8,507,318 |
Commercial Services & Supplies - 3.9% |
Allied Waste Industries, Inc. (a) | 460,200 | | 4,532,970 |
HNI Corp. (d) | 15,400 | | 518,364 |
Manpower, Inc. | 15,300 | | 860,778 |
| | 5,912,112 |
Construction & Engineering - 2.7% |
Fluor Corp. | 7,500 | | 912,525 |
Shaw Group, Inc. (a) | 13,800 | | 779,700 |
URS Corp. (a) | 54,700 | | 2,401,330 |
| | 4,093,555 |
Industrial Conglomerates - 0.8% |
McDermott International, Inc. (a) | 24,500 | | 1,155,910 |
Machinery - 1.2% |
AGCO Corp. (a) | 8,700 | | 523,914 |
Cummins, Inc. | 16,500 | | 796,620 |
Manitowoc Co., Inc. | 15,400 | | 587,048 |
| | 1,907,582 |
TOTAL INDUSTRIALS | | 21,576,477 |
INFORMATION TECHNOLOGY - 26.0% |
Communications Equipment - 3.8% |
Cisco Systems, Inc. (a) | 236,300 | | 5,789,350 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 0.5% |
Lexmark International, Inc. Class A (a) | 1,400 | | $ 50,694 |
Western Digital Corp. (a) | 29,000 | | 767,050 |
| | 817,744 |
Electronic Equipment & Instruments - 0.5% |
National Instruments Corp. | 27,400 | | 735,964 |
IT Services - 6.2% |
Accenture Ltd. Class A | 143,600 | | 4,971,432 |
Mastercard, Inc. Class A (d) | 7,000 | | 1,449,000 |
The Western Union Co. | 135,200 | | 3,028,480 |
| | 9,448,912 |
Semiconductors & Semiconductor Equipment - 2.2% |
MEMC Electronic Materials, Inc. (a) | 12,500 | | 893,250 |
NVIDIA Corp. (a) | 82,500 | | 2,028,675 |
Texas Instruments, Inc. | 12,000 | | 371,160 |
| | 3,293,085 |
Software - 12.8% |
Autodesk, Inc. (a) | 76,100 | | 3,131,515 |
BMC Software, Inc. (a) | 74,200 | | 2,377,368 |
Microsoft Corp. | 233,200 | | 7,602,320 |
Oracle Corp. (a) | 306,900 | | 6,306,795 |
| | 19,417,998 |
TOTAL INFORMATION TECHNOLOGY | | 39,503,053 |
MATERIALS - 3.0% |
Chemicals - 2.0% |
Air Products & Chemicals, Inc. | 4,200 | | 378,084 |
E.I. du Pont de Nemours & Co. | 10,100 | | 456,318 |
Monsanto Co. | 12,800 | | 1,439,232 |
Praxair, Inc. | 4,700 | | 380,277 |
The Mosaic Co. (a) | 4,000 | | 364,040 |
| | 3,017,951 |
Metals & Mining - 1.0% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 8,400 | | 747,852 |
Newmont Mining Corp. | 7,100 | | 385,814 |
Southern Copper Corp. | 4,400 | | 412,896 |
| | 1,546,562 |
TOTAL MATERIALS | | 4,564,513 |
|
| Shares | | Value |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
Crown Castle International Corp. (a) | 10,700 | | $ 387,233 |
UTILITIES - 0.9% |
Electric Utilities - 0.9% |
Exelon Corp. | 18,300 | | 1,394,277 |
TOTAL COMMON STOCKS (Cost $156,064,347) | 151,304,879 |
Money Market Funds - 6.4% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 1,837,290 | | 1,837,290 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 7,887,500 | | 7,887,500 |
TOTAL MONEY MARKET FUNDS (Cost $9,724,790) | 9,724,790 |
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $165,789,137) | | 161,029,669 |
NET OTHER ASSETS - (5.8)% | | (8,892,495) |
NET ASSETS - 100% | $ 152,137,174 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 60,857 |
Fidelity Securities Lending Cash Central Fund | 56,422 |
Total | $ 117,279 |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $7,837,041 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $7,883,516) - See accompanying schedule: Unaffiliated issuers (cost $156,064,347) | $ 151,304,879 | |
Fidelity Central Funds (cost $9,724,790) | 9,724,790 | |
Total Investments (cost $165,789,137) | | $ 161,029,669 |
Receivable for investments sold | | 18,559,475 |
Receivable for fund shares sold | | 222,238 |
Dividends receivable | | 82,079 |
Distributions receivable from Fidelity Central Funds | | 4,743 |
Prepaid expenses | | 514 |
Receivable from investment adviser for expense reductions | | 25,900 |
Total assets | | 179,924,618 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,486,946 | |
Payable for fund shares redeemed | 257,786 | |
Accrued management fee | 52,051 | |
Distribution fees payable | 1,918 | |
Other affiliated payables | 48,536 | |
Other payables and accrued expenses | 52,707 | |
Collateral on securities loaned, at value | 7,887,500 | |
Total liabilities | | 27,787,444 |
| | |
Net Assets | | $ 152,137,174 |
Net Assets consist of: | | |
Paid in capital | | $ 162,808,253 |
Accumulated undistributed net realized gain (loss) on investments | | (5,911,611) |
Net unrealized appreciation (depreciation) on investments | | (4,759,468) |
Net Assets | | $ 152,137,174 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,302,425 ÷ 132,172 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/94.25 of $9.85) | | $ 10.45 |
Class T:
Net Asset Value and redemption price per share ($1,097,491 ÷ 111,448 shares) | | $ 9.85 |
| | |
Maximum offering price per share (100/96.50 of $9.85) | | $ 10.21 |
Class B:
Net Asset Value and offering price per share ($543,149 ÷ 55,237 shares)A | | $ 9.83 |
| | |
Class C:
Net Asset Value and offering price per share ($944,595 ÷ 96,233 shares)A | | $ 9.82 |
| | |
Large Cap Growth:
Net Asset Value, offering price and redemption price per share ($147,863,609 ÷ 14,947,307 shares) | | $ 9.89 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($385,905 ÷ 39,068 shares) | | $ 9.88 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 1,475,584 |
Interest | | 922 |
Income from Fidelity Central Funds (including $56,422 from security lending) | | 117,279 |
Total income | | 1,593,785 |
| | |
Expenses | | |
Management fee
Basic fee | $ 979,536 | |
Performance adjustment | 37,062 | |
Transfer agent fees | 534,768 | |
Distribution fees | 10,735 | |
Accounting and security lending fees | 70,624 | |
Custodian fees and expenses | 18,147 | |
Independent trustees' compensation | 638 | |
Registration fees | 103,527 | |
Audit | 55,247 | |
Legal | 928 | |
Miscellaneous | 11,842 | |
Total expenses before reductions | 1,823,054 | |
Expense reductions | (97,947) | 1,725,107 |
Net investment income (loss) | | (131,322) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | 10,237,592 |
Change in net unrealized appreciation (depreciation) on investment securities | | (21,747,840) |
Net gain (loss) | | (11,510,248) |
Net increase (decrease) in net assets resulting from operations | | $ (11,641,570) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (131,322) | $ 26,323 |
Net realized gain (loss) | 10,237,592 | 4,571,573 |
Change in net unrealized appreciation (depreciation) | (21,747,840) | (297,654) |
Net increase (decrease) in net assets resulting from operations | (11,641,570) | 4,300,242 |
Distributions to shareholders from net investment income | - | (137,207) |
Distributions to shareholders from net realized gain | (18,572,404) | (3,644,497) |
Total distributions | (18,572,404) | (3,781,704) |
Share transactions - net increase (decrease) | (1,164,336) | 25,478,221 |
Redemption fees | - | 5,257 |
Total increase (decrease) in net assets | (31,378,310) | 26,002,016 |
| | |
Net Assets | | |
Beginning of period | 183,515,484 | 157,513,468 |
End of period | $ 152,137,174 | $ 183,515,484 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.03) |
Net realized and unrealized gain (loss) | (.72) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (6.99)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.20% A |
Expenses net of fee waivers, if any | 1.20% A |
Expenses net of all reductions | 1.20% A |
Net investment income (loss) | (.29)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,302 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.06) |
Net realized and unrealized gain (loss) | (.69) |
Total from investment operations | (.75) |
Distributions from net realized gain | (1.25) |
Net asset value, end of period | $ 9.85 |
Total Return B,C,D | (7.05)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.47% A |
Expenses net of fee waivers, if any | 1.47% A |
Expenses net of all reductions | 1.47% A |
Net investment income (loss) | (.56)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,097 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.12) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.82) |
Distributions from net realized gain | (1.20) |
Net asset value, end of period | $ 9.83 |
Total Return B,C,D | (7.62)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.99% A |
Expenses net of fee waivers, if any | 1.99% A |
Expenses net of all reductions | 1.99% A |
Net investment income (loss) | (1.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 543 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net investment income (loss) E | (.11) |
Net realized and unrealized gain (loss) | (.70) |
Total from investment operations | (.81) |
Distributions from net realized gain | (1.22) |
Net asset value, end of period | $ 9.82 |
Total Return B,C,D | (7.54)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.96% A |
Expenses net of fee waivers, if any | 1.96% A |
Expenses net of all reductions | 1.96% A |
Net investment income (loss) | (1.05)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 945 |
Portfolio turnover rate G | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Large Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 | $ 6.93 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.01) | - H | .02 E | (.01) F | (.01) |
Net realized and unrealized gain (loss) | (.77) | .37 | 1.87 | .97 | 2.29 |
Total from investment operations | (.78) | .37 | 1.89 | .96 | 2.28 |
Distributions from net investment income | - | (.01) | - | - | - |
Distributions from net realized gain | (1.25) | (.26) | (.24) | - | - |
Total distributions | (1.25) | (.27) | (.24) | - | - |
Redemption fees added to paid in capital B | - | - H,I | - H | - H | - H |
Net asset value, end of period | $ 9.89 | $ 11.92 | $ 11.82 | $ 10.17 | $ 9.21 |
Total Return A | (7.26)% | 3.20% | 18.66% | 10.42% | 32.90% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | 1.03% | 1.10% | 1.12% | 1.30% | 1.53% |
Expenses net of fee waivers, if any | .99% | 1.00% | 1.00% | 1.20% | 1.20% |
Expenses net of all reductions | .98% | .99% | .94% | 1.13% | 1.18% |
Net investment income (loss) | (.07)% | .02% | .15% E | (.07)% F | (.15)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 147,864 | $ 183,515 | $ 157,513 | $ 49,453 | $ 23,079 |
Portfolio turnover rate D | 428% | 189% | 268% | 274% | 81% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
F Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.32)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The redemption fee was eliminated during the year ended January 31, 2007.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 11.85 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) | (.70) |
Distributions from net realized gain | (1.27) |
Net asset value, end of period | $ 9.88 |
Total Return B,C | (6.64)% |
Ratios to Average Net Assets D,E | |
Expenses before reductions | .88% A |
Expenses net of fee waivers, if any | .88% A |
Expenses net of all reductions | .88% A |
Net investment income (loss) | .03% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 386 |
Portfolio turnover rate F | 428% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Advisor Mid Cap Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class B | -9.62% | 13.21% | 5.09% |
A From November 15, 2001.
B The initial offering of Institutional Class shares took place on February 13, 2007. Returns prior to February 13, 2007 are those of Mid Cap Growth, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Mid Cap Growth Fund - Institutional Class on November 15, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period. The initial offering of Institutional Class took place on February 13, 2007. See above for additional information regarding the performance of Institutional Class.
Annual Report
Fidelity Advisor Mid Cap Growth Fund
Management's Discussion of Fund Performance
Comments from Patrick Venanzi, Portfolio Manager of Fidelity Advisor Mid Cap Growth Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
The fund's Class A, Class T, Class B and Class C shares (excluding sales charges) lagged behind the -1.03% return for the Russell Midcap® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor stock selection in consumer discretionary, industrials, materials and consumer staples hurt the most. While the fund struggled to keep pace with the index for most of the period, stock selection in energy and health care helped limit some of the downside. Within industrials, the fund's overweighting in transportation stocks, specifically in the airlines, detracted from performance. Our holdings in US Airways and AMR Corp., the parent company of American Airlines, suffered from rising energy costs. Overweighted holdings in the consumer durables and apparel segment - primarily the homebuilders - also took a bite out of fund performance. D.R. Horton, Ryland Group, KB Home and Lennar were particularly hard hit as the U.S. residential real estate market continued to slow down. I sold D.R. Horton, Ryland Group and Lennar. On the positive side, energy services company National Oilwell Varco was the fund's biggest contributor. Another contributor was the fund's out-of-index position in consumer electronics giant Apple, which continued to gain from strong sales of its iPod, iPhone and iMac product lines. I sold the fund's position in Apple to lock in profits. Heavy-lifting equipment and crane manufacturer Manitowoc advanced due to the continuing worldwide build-out of commercial and industrial infrastructure. I also sold this position by the end of the period. BE Aerospace, which makes products for aircraft cabin interiors, also contributed, as investors expressed confidence in the company's new contracts to supply airline carriers that are upgrading their fleets. Lastly, MEMC Electronic Materials, which produces silicon wafers, helped as well.
For the year, the fund's Institutional Class shares lagged behind the -1.03% return for the Russell Midcap® Growth Index. (For specific class-level results, please refer to the performance section of this report.) Poor stock selection in consumer discretionary, industrials, materials and consumer staples hurt the most. While the fund struggled to keep pace with the index for most of the period, stock selection in energy and health care helped limit some of the downside. Within industrials, the fund's overweighting in transportation stocks, specifically in the airlines, detracted from performance. Our holdings in US Airways and AMR Corp., the parent company of American Airlines, suffered from rising energy costs. Overweighted holdings in the consumer durables and apparel segment - primarily the homebuilders - also took a bite out of fund performance. D.R. Horton, Ryland Group, KB Home and Lennar were particularly hard hit as the U.S. residential real estate market continued to slow down. I sold D.R. Horton, Ryland Group and Lennar. On the positive side, energy services company National Oilwell Varco was the fund's biggest contributor. Another contributor was the fund's out-of-index position in consumer electronics giant Apple, which continued to gain from strong sales of its iPod, iPhone and iMac product lines. I sold the fund's position in Apple to lock in profits. Heavy-lifting equipment and crane manufacturer Manitowoc advanced due to the continuing worldwide build-out of commercial and industrial infrastructure. I also sold this position by the end of the period. BE Aerospace, which makes products for aircraft cabin interiors, also contributed, as investors expressed confidence in the company's new contracts to supply airline carriers that are upgrading their fleets. Lastly, MEMC Electronic Materials, which produces silicon wafers, helped as well.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Mid Cap Growth Fund
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PPL Corp. | 1.4 | 0.7 |
Southwestern Energy Co. | 1.4 | 0.3 |
Constellation Energy Group, Inc. | 1.3 | 1.0 |
National Oilwell Varco, Inc. | 1.3 | 3.9 |
Align Technology, Inc. | 1.1 | 0.0 |
Centex Corp. | 1.1 | 0.0 |
TranS1, Inc. | 1.0 | 0.0 |
Polycom, Inc. | 0.9 | 0.0 |
Intuitive Surgical, Inc. | 0.9 | 0.0 |
Northwest Airlines Corp. | 0.9 | 0.0 |
| 11.3 | |
Top Five Market Sectors as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 19.8 | 19.0 |
Industrials | 17.1 | 16.1 |
Health Care | 16.6 | 12.9 |
Consumer Discretionary | 14.1 | 17.6 |
Energy | 11.6 | 10.9 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008* | As of July 31, 2007** |
| Stocks 100.2% | | | Stocks 97.8% | |
| Short-Term
Investments and
Net Other Assets(dagger) (0.2)% | | | Short-Term
Investments and
Net Other Assets 2.2% | |
* Foreign
investments | 11.7% | | **Foreign investments | 2.1% | |
(dagger) Short-Term Investments
and Net Other Assets
are not included in the pie chart. | | | | |
Annual Report
Fidelity Mid Cap Growth Fund
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 100.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 14.1% |
Automobiles - 0.3% |
Renault SA | 7,300 | | $ 833,337 |
Diversified Consumer Services - 1.1% |
American Public Education, Inc. | 7,200 | | 283,752 |
Apollo Group, Inc. Class A (non-vtg.) (a) | 8,200 | | 653,868 |
DeVry, Inc. | 19,000 | | 1,048,610 |
Regis Corp. | 56,400 | | 1,428,612 |
| | 3,414,842 |
Hotels, Restaurants & Leisure - 2.1% |
Bally Technologies, Inc. (a) | 20,200 | | 962,328 |
Boyd Gaming Corp. | 66,400 | | 1,774,872 |
Buffalo Wild Wings, Inc. (a) | 8,400 | | 211,428 |
Burger King Holdings, Inc. | 54,789 | | 1,443,690 |
Gaylord Entertainment Co. (a) | 29,700 | | 866,943 |
Papa John's International, Inc. (a) | 26,100 | | 660,069 |
Peet's Coffee & Tea, Inc. (a) | 7,000 | | 153,580 |
Starwood Hotels & Resorts Worldwide, Inc. | 5,400 | | 244,350 |
| | 6,317,260 |
Household Durables - 2.1% |
Centex Corp. (d) | 116,700 | | 3,241,926 |
KB Home | 100 | | 2,750 |
Newell Rubbermaid, Inc. | 15,100 | | 364,212 |
Pulte Homes, Inc. | 33,500 | | 547,390 |
Whirlpool Corp. | 25,700 | | 2,187,327 |
| | 6,343,605 |
Internet & Catalog Retail - 1.2% |
Blue Nile, Inc. (a) | 17,400 | | 961,350 |
Expedia, Inc. (a) | 10,600 | | 244,012 |
Priceline.com, Inc. (a) | 21,099 | | 2,289,663 |
| | 3,495,025 |
Leisure Equipment & Products - 0.7% |
Hasbro, Inc. | 12,400 | | 322,028 |
Leapfrog Enterprises, Inc. Class A (a) | 36,300 | | 236,313 |
Mattel, Inc. | 53,533 | | 1,124,728 |
Nikon Corp. | 14,000 | | 381,830 |
| | 2,064,899 |
Media - 2.7% |
Cablevision Systems Corp. - NY Group Class A (a) | 30,300 | | 711,444 |
DISH Network Corp. Class A (a) | 13,057 | | 368,730 |
E.W. Scripps Co. Class A | 35,800 | | 1,457,776 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 94,000 | | 2,095,260 |
Regal Entertainment Group Class A | 87,100 | | 1,614,834 |
SR Teleperformance SA | 44,300 | | 1,386,369 |
The Walt Disney Co. | 11,700 | | 350,181 |
Time Warner, Inc. | 21,600 | | 339,984 |
| | 8,324,578 |
|
| Shares | | Value |
Multiline Retail - 0.1% |
Dollar Tree Stores, Inc. (a) | 14,300 | | $ 400,543 |
Specialty Retail - 3.2% |
Abercrombie & Fitch Co. Class A | 5,100 | | 406,419 |
Advance Auto Parts, Inc. | 30,500 | | 1,088,240 |
Asbury Automotive Group, Inc. | 13,100 | | 185,758 |
AutoZone, Inc. (a) | 8,800 | | 1,063,744 |
Gamestop Corp. Class A (a) | 5,400 | | 279,342 |
Group 1 Automotive, Inc. | 8,700 | | 230,028 |
Home Depot, Inc. | 19,700 | | 604,199 |
Lumber Liquidators, Inc. | 3,400 | | 30,260 |
OfficeMax, Inc. | 49,800 | | 1,233,546 |
Ross Stores, Inc. | 36,300 | | 1,058,145 |
Tween Brands, Inc. (a)(d) | 44,700 | | 1,431,741 |
Urban Outfitters, Inc. (a) | 28,800 | | 835,200 |
Williams-Sonoma, Inc. | 49,500 | | 1,330,560 |
Zumiez, Inc. (a) | 3,500 | | 67,305 |
| | 9,844,487 |
Textiles, Apparel & Luxury Goods - 0.6% |
Coach, Inc. (a) | 13,000 | | 416,650 |
Deckers Outdoor Corp. (a) | 2,800 | | 339,472 |
Lululemon Athletica, Inc. | 15,700 | | 532,073 |
Under Armour, Inc. Class A (sub. vtg.) (a) | 16,000 | | 644,000 |
| | 1,932,195 |
TOTAL CONSUMER DISCRETIONARY | | 42,970,771 |
CONSUMER STAPLES - 3.4% |
Beverages - 0.1% |
Coca-Cola Femsa SA de CV sponsored ADR | 7,200 | | 338,040 |
Food & Staples Retailing - 1.3% |
CVS Caremark Corp. | 14,600 | | 570,422 |
Performance Food Group Co. (a) | 48,000 | | 1,518,240 |
Safeway, Inc. | 25,200 | | 780,948 |
Sysco Corp. | 42,100 | | 1,223,005 |
| | 4,092,615 |
Food Products - 1.5% |
Campbell Soup Co. | 17,300 | | 546,853 |
Marine Harvest ASA (a) | 2,600,000 | | 1,400,493 |
McCormick & Co., Inc. (non-vtg.) | 55,300 | | 1,864,716 |
Seaboard Corp. | 370 | | 475,543 |
Wm. Wrigley Jr. Co. | 3,000 | | 172,290 |
| | 4,459,895 |
Household Products - 0.4% |
Energizer Holdings, Inc. (a) | 13,300 | | 1,245,146 |
Personal Products - 0.1% |
Estee Lauder Companies, Inc. Class A | 8,900 | | 375,580 |
TOTAL CONSUMER STAPLES | | 10,511,276 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - 11.6% |
Energy Equipment & Services - 5.0% |
Atwood Oceanics, Inc. (a) | 21,000 | | $ 1,744,890 |
Cameron International Corp. (a) | 31,700 | | 1,276,242 |
Diamond Offshore Drilling, Inc. | 16,700 | | 1,885,931 |
Grey Wolf, Inc. (a) | 297,600 | | 1,773,696 |
Nabors Industries Ltd. (a) | 35,000 | | 952,700 |
National Oilwell Varco, Inc. (a) | 65,120 | | 3,922,178 |
North American Energy Partners, Inc. (a) | 14,200 | | 170,116 |
Ocean RIG ASA (a)(d) | 114,500 | | 787,337 |
Smith International, Inc. | 23,900 | | 1,295,619 |
Transocean, Inc. (a) | 10,961 | | 1,343,819 |
| | 15,152,528 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 21,500 | | 719,390 |
Arch Coal, Inc. | 15,700 | | 690,800 |
Boardwalk Pipeline Partners, LP | 5,700 | | 177,156 |
Canadian Natural Resources Ltd. | 10,100 | | 646,227 |
Chesapeake Energy Corp. | 46,600 | | 1,734,918 |
CONSOL Energy, Inc. | 35,300 | | 2,576,900 |
Copano Energy LLC | 4,900 | | 173,166 |
Denbury Resources, Inc. (a) | 65,700 | | 1,662,210 |
Energy Transfer Equity LP | 5,200 | | 171,652 |
Foundation Coal Holdings, Inc. | 7,000 | | 366,100 |
Frontier Oil Corp. | 38,100 | | 1,343,787 |
Holly Corp. | 28,601 | | 1,384,860 |
OPTI Canada, Inc. (a) | 80,400 | | 1,325,913 |
Petrobank Energy & Resources Ltd. (a) | 7,000 | | 351,761 |
Southwestern Energy Co. (a) | 76,100 | | 4,254,751 |
Tesoro Corp. | 22,400 | | 874,720 |
Valero Energy Corp. | 100 | | 5,919 |
Western Refining, Inc. | 44,460 | | 949,221 |
Williams Companies, Inc. | 27,100 | | 866,387 |
| | 20,275,838 |
TOTAL ENERGY | | 35,428,366 |
FINANCIALS - 9.2% |
Capital Markets - 2.6% |
Franklin Resources, Inc. | 23,600 | | 2,459,828 |
KBW, Inc. (a) | 6,300 | | 187,173 |
Legg Mason, Inc. | 14,500 | | 1,044,000 |
MF Global Ltd. | 73,200 | | 2,199,660 |
SEI Investments Co. | 67,400 | | 1,866,980 |
T. Rowe Price Group, Inc. | 3,300 | | 166,947 |
| | 7,924,588 |
Commercial Banks - 1.5% |
Bank of Yokohama Ltd. | 84,000 | | 544,305 |
Chiba Bank Ltd. | 52,000 | | 384,877 |
Chuo Mitsui Trust Holdings, Inc. | 55,000 | | 377,598 |
Mitsubishi UFJ Financial Group, Inc. | 70,000 | | 691,600 |
Shinsei Bank Ltd. | 117,000 | | 534,769 |
|
| Shares | | Value |
Shizuoka Bank Ltd. | 40,000 | | $ 439,763 |
Sumitomo Mitsui Financial Group, Inc. | 100 | | 788,113 |
Tokyo Tomin Bank Ltd. | 20,600 | | 572,491 |
UMB Financial Corp. | 7,600 | | 320,188 |
| | 4,653,704 |
Consumer Finance - 0.4% |
Cash America International, Inc. | 37,100 | | 1,206,121 |
Diversified Financial Services - 1.5% |
CME Group, Inc. | 800 | | 495,120 |
IntercontinentalExchange, Inc. (a) | 9,400 | | 1,315,624 |
MSCI, Inc. Class A | 11,800 | | 389,046 |
NYMEX Holdings, Inc. | 18,400 | | 2,116,000 |
Osaka Securities Exchange Co. Ltd. | 64 | | 346,092 |
| | 4,661,882 |
Insurance - 0.9% |
Assurant, Inc. | 19,400 | | 1,258,866 |
CNA Financial Corp. | 11,480 | | 390,205 |
CNinsure, Inc. ADR | 44,000 | | 472,560 |
LandAmerica Financial Group, Inc. | 4,900 | | 255,584 |
Philadelphia Consolidated Holdings Corp. (a) | 9,600 | | 343,680 |
Stewart Information Services Corp. | 1,100 | | 37,653 |
| | 2,758,548 |
Real Estate Investment Trusts - 1.5% |
Annaly Capital Management, Inc. | 124,000 | | 2,445,280 |
MFA Mortgage Investments, Inc. | 189,300 | | 1,930,860 |
| | 4,376,140 |
Thrifts & Mortgage Finance - 0.8% |
People's United Financial, Inc. | 58,700 | | 991,443 |
Washington Federal, Inc. | 55,900 | | 1,365,078 |
| | 2,356,521 |
TOTAL FINANCIALS | | 27,937,504 |
HEALTH CARE - 16.6% |
Biotechnology - 3.5% |
Alexion Pharmaceuticals, Inc. (a) | 18,500 | | 1,208,420 |
Amylin Pharmaceuticals, Inc. (a) | 74,607 | | 2,212,098 |
Biogen Idec, Inc. (a) | 26,400 | | 1,609,080 |
Cephalon, Inc. (a) | 11,300 | | 741,619 |
Genentech, Inc. (a) | 8,000 | | 561,520 |
Gilead Sciences, Inc. (a) | 41,362 | | 1,889,830 |
Theravance, Inc. (a)(d) | 127,038 | | 2,506,460 |
| | 10,729,027 |
Health Care Equipment & Supplies - 5.8% |
Abiomed, Inc. (a) | 25,000 | | 377,500 |
Align Technology, Inc. (a)(d) | 283,984 | | 3,345,332 |
American Medical Systems Holdings, Inc. (a) | 90,000 | | 1,286,100 |
Conceptus, Inc. (a) | 158,500 | | 2,580,380 |
Hillenbrand Industries, Inc. | 13,300 | | 687,876 |
Hologic, Inc. (a) | 14,000 | | 901,040 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - continued |
Intuitive Surgical, Inc. (a) | 11,000 | | $ 2,794,000 |
Inverness Medical Innovations, Inc. (a) | 3,000 | | 135,150 |
Mindray Medical International Ltd. sponsored ADR | 10,000 | | 341,000 |
NxStage Medical, Inc. (a) | 14,100 | | 171,174 |
Regeneration Technologies, Inc. (a) | 215,000 | | 1,720,000 |
TranS1, Inc. (d) | 213,000 | | 3,107,670 |
Varian Medical Systems, Inc. (a) | 5,300 | | 275,547 |
| | 17,722,769 |
Health Care Providers & Services - 2.4% |
athenahealth, Inc. (d) | 49,400 | | 1,551,160 |
Brookdale Senior Living, Inc. (d) | 11,000 | | 245,520 |
Coventry Health Care, Inc. (a) | 5,500 | | 311,190 |
Express Scripts, Inc. (a) | 28,600 | | 1,930,214 |
Health Net, Inc. (a) | 10,300 | | 478,847 |
Henry Schein, Inc. (a) | 5,473 | | 318,145 |
MWI Veterinary Supply, Inc. (a) | 8,000 | | 305,840 |
Pediatrix Medical Group, Inc. (a) | 24,587 | | 1,674,129 |
Psychiatric Solutions, Inc. (a) | 5,900 | | 178,003 |
VCA Antech, Inc. (a) | 10,200 | | 394,332 |
| | 7,387,380 |
Health Care Technology - 1.0% |
Cerner Corp. (a) | 43,200 | | 2,263,680 |
MedAssets, Inc. | 7,900 | | 159,185 |
TriZetto Group, Inc. (a) | 38,900 | | 759,328 |
| | 3,182,193 |
Life Sciences Tools & Services - 2.0% |
Affymetrix, Inc. (a)(d) | 60,600 | | 1,215,636 |
Applera Corp. - Applied Biosystems Group | 30,000 | | 945,900 |
Charles River Laboratories International, Inc. (a) | 19,700 | | 1,223,370 |
Covance, Inc. (a) | 1,800 | | 149,688 |
PAREXEL International Corp. (a) | 10,000 | | 544,100 |
Pharmaceutical Product Development, Inc. | 30,200 | | 1,309,472 |
Thermo Fisher Scientific, Inc. (a) | 12,770 | | 657,527 |
| | 6,045,693 |
Pharmaceuticals - 1.9% |
Allergan, Inc. | 20,400 | | 1,370,676 |
BioForm Medical, Inc. (d) | 186,481 | | 1,305,367 |
Perrigo Co. | 15,700 | | 484,188 |
Renovo Group PLC (a) | 342,000 | | 920,384 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 22,300 | | 1,026,692 |
XenoPort, Inc. (a) | 8,600 | | 527,696 |
| | 5,635,003 |
TOTAL HEALTH CARE | | 50,702,065 |
|
| Shares | | Value |
INDUSTRIALS - 17.1% |
Aerospace & Defense - 1.0% |
BE Aerospace, Inc. (a) | 21,444 | | $ 827,953 |
Goodrich Corp. | 19,900 | | 1,244,745 |
Spirit AeroSystems Holdings, Inc.
Class A (a) | 31,700 | | 875,554 |
| | 2,948,252 |
Air Freight & Logistics - 0.2% |
United Parcel Service, Inc. Class B | 6,400 | | 468,224 |
Airlines - 2.3% |
AMR Corp. (a) | 103,000 | | 1,435,820 |
Continental Airlines, Inc. Class B (a) | 63,900 | | 1,738,719 |
Northwest Airlines Corp. (a) | 146,700 | | 2,744,757 |
US Airways Group, Inc. (a) | 89,200 | | 1,231,852 |
| | 7,151,148 |
Building Products - 0.3% |
Ameron International Corp. | 8,000 | | 718,800 |
Universal Forest Products, Inc. | 6,000 | | 217,200 |
| | 936,000 |
Commercial Services & Supplies - 5.1% |
Advisory Board Co. (a) | 2,600 | | 165,672 |
American Reprographics Co. (a) | 46,200 | | 726,726 |
Copart, Inc. (a) | 33,984 | | 1,389,266 |
Corporate Executive Board Co. | 9,400 | | 540,970 |
Corrections Corp. of America (a) | 94,182 | | 2,499,590 |
Fuel Tech, Inc. (a) | 35,600 | | 677,824 |
GeoEye, Inc. (a) | 15,000 | | 524,400 |
IHS, Inc. Class A (a) | 11,500 | | 712,310 |
InnerWorkings, Inc. (a) | 12,000 | | 166,200 |
Manpower, Inc. | 45,400 | | 2,554,204 |
Republic Services, Inc. | 56,600 | | 1,698,000 |
The Geo Group, Inc. (a) | 54,600 | | 1,306,032 |
Waste Connections, Inc. (a) | 45,600 | | 1,329,696 |
Waste Management, Inc. | 34,400 | | 1,115,936 |
| | 15,406,826 |
Construction & Engineering - 0.7% |
Chicago Bridge & Iron Co. NV
(NY Shares) | 4,900 | | 218,001 |
Fluor Corp. | 7,500 | | 912,525 |
Grupo Acciona SA | 2,000 | | 509,808 |
Quanta Services, Inc. (a) | 20,000 | | 438,400 |
| | 2,078,734 |
Electrical Equipment - 3.9% |
Belden, Inc. | 7,000 | | 296,100 |
Energy Conversion Devices, Inc. (a)(d) | 57,020 | | 1,316,022 |
Evergreen Solar, Inc. (a) | 154,800 | | 1,887,012 |
First Solar, Inc. (a) | 10,300 | | 1,872,231 |
JA Solar Holdings Co. Ltd. ADR | 16,000 | | 813,280 |
Nexans SA | 19,800 | | 2,188,427 |
Q-Cells AG (a) | 6,000 | | 564,589 |
Sunpower Corp. Class A (a)(d) | 35,400 | | 2,445,786 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Electrical Equipment - continued |
Superior Essex, Inc. (a) | 13,100 | | $ 315,055 |
Vestas Wind Systems AS (a) | 2,800 | | 271,999 |
| | 11,970,501 |
Machinery - 1.3% |
AGCO Corp. (a) | 20,600 | | 1,240,532 |
GEA Group AG (a) | 32,000 | | 988,991 |
Ingersoll-Rand Co. Ltd. Class A | 18,000 | | 711,360 |
Terex Corp. (a) | 17,100 | | 1,004,796 |
| | 3,945,679 |
Marine - 0.4% |
Ultrapetrol (Bahamas) Ltd. (a) | 70,100 | | 1,125,105 |
Road & Rail - 1.7% |
J.B. Hunt Transport Services, Inc. (d) | 56,100 | | 1,744,710 |
Knight Transportation, Inc. | 102,900 | | 1,765,764 |
Landstar System, Inc. | 36,500 | | 1,826,095 |
| | 5,336,569 |
Trading Companies & Distributors - 0.2% |
Genesis Lease Ltd. ADR | 31,600 | | 635,160 |
TOTAL INDUSTRIALS | | 52,002,198 |
INFORMATION TECHNOLOGY - 19.8% |
Communications Equipment - 2.0% |
Ciena Corp. (a) | 15,000 | | 406,950 |
CommScope, Inc. (a) | 11,700 | | 518,895 |
Corning, Inc. | 22,000 | | 529,540 |
Juniper Networks, Inc. (a) | 64,700 | | 1,756,605 |
Polycom, Inc. (a) | 111,000 | | 2,802,750 |
| | 6,014,740 |
Computers & Peripherals - 1.7% |
Brocade Communications Systems, Inc. (a) | 226,602 | | 1,561,288 |
Diebold, Inc. | 28,644 | | 741,307 |
NCR Corp. (a) | 61,600 | | 1,323,168 |
Western Digital Corp. (a) | 54,600 | | 1,444,170 |
| | 5,069,933 |
Electronic Equipment & Instruments - 1.6% |
Agilent Technologies, Inc. (a) | 8,700 | | 295,017 |
Avnet, Inc. (a) | 17,300 | | 616,053 |
Bell Microproducts, Inc. (a) | 29,818 | | 156,843 |
Comverge, Inc. | 6,100 | | 113,704 |
Flextronics International Ltd. (a) | 51,100 | | 597,870 |
Ingram Micro, Inc. Class A (a) | 30,700 | | 545,846 |
Itron, Inc. (a) | 24,000 | | 1,977,600 |
Jabil Circuit, Inc. | 47,300 | | 626,725 |
| | 4,929,658 |
Internet Software & Services - 2.8% |
Akamai Technologies, Inc. (a) | 16,800 | | 507,360 |
DealerTrack Holdings, Inc. (a) | 23,600 | | 636,256 |
|
| Shares | | Value |
Dice Holdings, Inc. | 258,600 | | $ 1,649,868 |
DivX, Inc. (a) | 50,000 | | 712,500 |
Internet Brands, Inc. Class A | 30,979 | | 239,158 |
Omniture, Inc. (a) | 85,700 | | 2,118,504 |
Online Resources Corp. (a) | 89,800 | | 916,858 |
The Knot, Inc. (a) | 49,700 | | 727,608 |
ValueClick, Inc. (a) | 44,100 | | 962,703 |
| | 8,470,815 |
IT Services - 1.1% |
Cognizant Technology Solutions Corp. Class A (a) | 72,700 | | 2,028,330 |
CyberSource Corp. (a) | 38,000 | | 636,500 |
Mastercard, Inc. Class A | 3,800 | | 786,600 |
| | 3,451,430 |
Semiconductors & Semiconductor Equipment - 7.4% |
Altera Corp. | 93,000 | | 1,570,770 |
Applied Materials, Inc. | 125,400 | | 2,247,168 |
ARM Holdings PLC sponsored ADR | 23,600 | | 167,088 |
ASML Holding NV (NY Shares) (a) | 20,000 | | 531,800 |
Broadcom Corp. Class A (a) | 66,500 | | 1,468,320 |
Cypress Semiconductor Corp. (a) | 62,200 | | 1,321,750 |
FormFactor, Inc. (a) | 21,063 | | 510,146 |
Himax Technologies, Inc. sponsored ADR | 285,100 | | 1,405,543 |
Hittite Microwave Corp. (a) | 12,400 | | 493,768 |
Intersil Corp. Class A | 31,400 | | 723,142 |
Lam Research Corp. (a) | 46,500 | | 1,785,135 |
LDK Solar Co. Ltd. Sponsored ADR (d) | 19,800 | | 697,950 |
Marvell Technology Group Ltd. (a) | 122,180 | | 1,450,277 |
MEMC Electronic Materials, Inc. (a) | 18,500 | | 1,322,010 |
Microchip Technology, Inc. | 35,500 | | 1,132,805 |
Miraial Co. Ltd. | 15,900 | | 386,547 |
National Semiconductor Corp. | 53,000 | | 976,790 |
Skyworks Solutions, Inc. (a)(d) | 124,700 | | 1,003,835 |
Teradyne, Inc. (a) | 5,400 | | 59,238 |
Varian Semiconductor Equipment Associates, Inc. (a) | 63,800 | | 2,054,998 |
Xilinx, Inc. | 61,200 | | 1,338,444 |
| | 22,647,524 |
Software - 3.2% |
Activision, Inc. (a) | 25,100 | | 649,337 |
Citrix Systems, Inc. (a) | 12,000 | | 415,440 |
CompuGROUP Holding AG (a) | 33,000 | | 622,352 |
Concur Technologies, Inc. (a) | 53,300 | | 1,868,698 |
FactSet Research Systems, Inc. | 6,000 | | 335,580 |
Jack Henry & Associates, Inc. | 53,300 | | 1,310,114 |
Microsoft Corp. | 20,800 | | 678,080 |
Nintendo Co. Ltd. | 400 | | 197,600 |
Nuance Communications, Inc. (a) | 87,000 | | 1,382,430 |
Shanda Interactive Entertainment Ltd. sponsored ADR (a) | 17,900 | | 492,071 |
SPSS, Inc. (a) | 9,000 | | 297,450 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Take-Two Interactive Software, Inc. (a)(d) | 61,650 | | $ 1,013,526 |
THQ, Inc. (a) | 33,800 | | 608,738 |
| | 9,871,416 |
TOTAL INFORMATION TECHNOLOGY | | 60,455,516 |
MATERIALS - 3.1% |
Chemicals - 0.2% |
FMC Corp. | 11,300 | | 600,708 |
Construction Materials - 0.5% |
Martin Marietta Materials, Inc. (d) | 13,800 | | 1,693,536 |
Containers & Packaging - 0.4% |
Smurfit-Stone Container Corp. (a) | 39,600 | | 375,804 |
Temple-Inland, Inc. | 39,600 | | 742,500 |
| | 1,118,304 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 19,542 | | 1,375,757 |
Barrick Gold Corp. | 6,900 | | 356,224 |
Century Aluminum Co. (a) | 14,000 | | 727,860 |
Newmont Mining Corp. | 10,000 | | 543,400 |
Nucor Corp. | 22,200 | | 1,283,160 |
Randgold Resources Ltd. sponsored ADR | 5,800 | | 276,718 |
RTI International Metals, Inc. (a) | 23,140 | | 1,278,485 |
| | 5,841,604 |
Paper & Forest Products - 0.1% |
Glatfelter | 12,400 | | 179,304 |
TOTAL MATERIALS | | 9,433,456 |
TELECOMMUNICATION SERVICES - 1.3% |
Wireless Telecommunication Services - 1.3% |
American Tower Corp. Class A (a) | 52,705 | | 1,978,019 |
NII Holdings, Inc. (a) | 48,691 | | 2,077,158 |
| | 4,055,177 |
UTILITIES - 4.0% |
Electric Utilities - 2.1% |
Allegheny Energy, Inc. | 17,600 | | 964,304 |
Enernoc, Inc. | 14,300 | | 504,075 |
|
| Shares | | Value |
Entergy Corp. | 4,500 | | $ 486,810 |
PPL Corp. | 89,800 | | 4,393,015 |
| | 6,348,204 |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 79,400 | | 1,514,952 |
Clipper Windpower PLC (a) | 2,400 | | 28,693 |
Constellation Energy Group, Inc. | 42,800 | | 4,021,488 |
Ormat Technologies, Inc. | 3,800 | | 165,186 |
| | 5,730,319 |
TOTAL UTILITIES | | 12,078,523 |
TOTAL COMMON STOCKS (Cost $305,398,397) | 305,574,852 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 3.79% (b) | 2,288,816 | | 2,288,816 |
Fidelity Securities Lending Cash Central Fund, 3.84% (b)(c) | 10,764,675 | | 10,764,675 |
TOTAL MONEY MARKET FUNDS (Cost $13,053,491) | 13,053,491 |
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $318,451,888) | | 318,628,343 |
NET OTHER ASSETS - (4.5)% | | (13,583,264) |
NET ASSETS - 100% | $ 305,045,079 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 442,525 |
Fidelity Securities Lending Cash Central Fund | 313,679 |
Total | $ 756,204 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 88.3% |
Japan | 1.8% |
Bermuda | 1.7% |
France | 1.5% |
Cayman Islands | 1.3% |
Others (individually less than 1%) | 5.4% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending January 31, 2009 approximately $18,706,577 of losses recognized during the period November 1, 2007 to January 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2008 |
Assets | | |
Investment in securities, at value (including securities loaned of $10,830,743) - See accompanying schedule: Unaffiliated issuers (cost $305,398,397) | $ 305,574,852 | |
Fidelity Central Funds (cost $13,053,491) | 13,053,491 | |
Total Investments (cost $318,451,888) | | $ 318,628,343 |
Cash | | 944,763 |
Receivable for investments sold | | 60,992,695 |
Receivable for fund shares sold | | 386,427 |
Dividends receivable | | 50,720 |
Distributions receivable from Fidelity Central Funds | | 53,069 |
Prepaid expenses | | 1,182 |
Other receivables | | 2,063 |
Total assets | | 381,059,262 |
| | |
Liabilities | | |
Payable for investments purchased | $ 23,187,980 | |
Payable for fund shares redeemed | 41,783,947 | |
Accrued management fee | 108,332 | |
Distribution fees payable | 1,571 | |
Other affiliated payables | 110,841 | |
Other payables and accrued expenses | 56,837 | |
Collateral on securities loaned, at value | 10,764,675 | |
Total liabilities | | 76,014,183 |
| | |
Net Assets | | $ 305,045,079 |
Net Assets consist of: | | |
Paid in capital | | $ 319,016,951 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,150,236) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 178,364 |
Net Assets | | $ 305,045,079 |
Statement of Assets and Liabilities - continued
| January 31, 2008 |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,936,249 ÷ 158,895 shares) | | $ 12.19 |
| | |
Maximum offering price per share (100/94.25 of $12.19) | | $ 12.93 |
Class T:
Net Asset Value and redemption price per share ($591,188 ÷ 48,688 shares) | | $ 12.14 |
| | |
Maximum offering price per share (100/96.50 of $12.14) | | $ 12.58 |
Class B:
Net Asset Value and offering price per share ($413,537 ÷ 34,216 shares)A | | $ 12.09 |
| | |
Class C:
Net Asset Value and offering price per share ($697,298 ÷ 57,672 shares)A | | $ 12.09 |
| | |
Mid Cap Growth:
Net Asset Value, offering price and redemption price per share ($301,224,741 ÷ 24,671,114 shares) | | $ 12.21 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($182,066 ÷ 14,896 shares) | | $ 12.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Growth Fund
Financial Statements - continued
Statement of Operations
| Year ended January 31, 2008 |
| | |
Investment Income | | |
Dividends | | $ 2,094,532 |
Interest | | 386 |
Income from Fidelity Central Funds (including $313,679 from security lending) | | 756,204 |
Total income | | 2,851,122 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,332,314 | |
Performance adjustment | (430,070) | |
Transfer agent fees | 1,202,314 | |
Distribution fees | 10,363 | |
Accounting and security lending fees | 170,995 | |
Custodian fees and expenses | 18,214 | |
Independent trustees' compensation | 1,531 | |
Registration fees | 100,229 | |
Audit | 56,662 | |
Legal | 2,290 | |
Miscellaneous | 25,324 | |
Total expenses before reductions | 3,490,166 | |
Expense reductions | (113,488) | 3,376,678 |
Net investment income (loss) | | (525,556) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 13,581,162 | |
Foreign currency transactions | 16,150 | |
Total net realized gain (loss) | | 13,597,312 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (50,635,596) | |
Assets and liabilities in foreign currencies | 1,909 | |
Total change in net unrealized appreciation (depreciation) | | (50,633,687) |
Net gain (loss) | | (37,036,375) |
Net increase (decrease) in net assets resulting from operations | | $ (37,561,931) |
Statement of Changes in Net Assets
| Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (525,556) | $ (1,458,396) |
Net realized gain (loss) | 13,597,312 | (4,757,238) |
Change in net unrealized appreciation (depreciation) | (50,633,687) | 5,161,873 |
Net increase (decrease) in net assets resulting from operations | (37,561,931) | (1,053,761) |
Distributions to shareholders from net realized gain | (21,909,497) | (5,089,264) |
Share transactions - net increase (decrease) | (76,821,412) | 97,426,141 |
Redemption fees | 26,012 | 46,437 |
Total increase (decrease) in net assets | (136,266,828) | 91,329,553 |
| | |
Net Assets | | |
Beginning of period | 441,311,907 | 349,982,354 |
End of period | $ 305,045,079 | $ 441,311,907 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.35) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.19 |
Total Return B,C,D | (9.95)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.10% A |
Expenses net of fee waivers, if any | 1.10% A |
Expenses net of all reductions | 1.10% A |
Net investment income (loss) | (.41)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,936 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class T
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.09) |
Net realized and unrealized gain (loss) | (1.31) |
Total from investment operations | (1.40) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.14 |
Total Return B,C,D | (10.30)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.36% A |
Expenses net of fee waivers, if any | 1.36% A |
Expenses net of all reductions | 1.36% A |
Net investment income (loss) | (.68)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 591 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.16) |
Net realized and unrealized gain (loss) | (1.29) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 414 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
Financial Highlights - Class C
Year ended January 31, | 2008 H |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net investment income (loss) E | (.15) |
Net realized and unrealized gain (loss) | (1.30) |
Total from investment operations | (1.45) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.09 |
Total Return B,C,D | (10.65)% |
Ratios to Average Net Assets F,I | |
Expenses before reductions | 1.85% A |
Expenses net of fee waivers, if any | 1.85% A |
Expenses net of all reductions | 1.85% A |
Net investment income (loss) | (1.16)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 697 |
Portfolio turnover rate G | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Mid Cap Growth
Year ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 | $ 7.32 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.02) | (.04) | .01 E | (.03) F | (.07) |
Net realized and unrealized gain (loss) | (1.29) | .15 | 3.09 | 1.15 | 3.38 |
Total from investment operations | (1.31) | .11 | 3.10 | 1.12 | 3.31 |
Distributions from net realized gain | (.79) | (.18) | (.30) | (.17) | - |
Redemption fees added to paid in capital B,H | - | - | - | - | - |
Net asset value, end of period | $ 12.21 | $ 14.31 | $ 14.38 | $ 11.58 | $ 10.63 |
Total Return A | (9.68)% | .80% | 27.15% | 10.55% | 45.22% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | .83% | 1.02% | 1.04% | 1.02% | 1.25% |
Expenses net of fee waivers, if any | .81% | 1.00% | 1.00% | 1.02% | 1.20% |
Expenses net of all reductions | .81% | .99% | .95% | .99% | 1.16% |
Net investment income (loss) | (.12)% | (.33)% | .07% E | (.31)% F | (.77)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 301,225 | $ 441,312 | $ 349,982 | $ 77,658 | $ 60,660 |
Portfolio turnover rate D | 245% | 178% | 173% | 220% | 94% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%.
F Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.44)%.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
Financial Highlights - Institutional Class
Year ended January 31, | 2008 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 14.33 |
Income from Investment Operations | |
Net realized and unrealized gain (loss) D | (1.32) |
Distributions from net realized gain | (.79) |
Net asset value, end of period | $ 12.22 |
Total Return B,C | (9.74)% |
Ratios to Average Net Assets E,H | |
Expenses before reductions | .72% A |
Expenses net of fee waivers, if any | .72% A |
Expenses net of all reductions | .72% A |
Net investment income (loss) | (.03)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 182 |
Portfolio turnover rate F | 245% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2008
1. Organization.
Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund(the Funds) are funds of Fidelity Devonshire Trust(the trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended(the 1940 Act), as an open-end management company organized as a Massachusetts business trust. The Funds offer Class A, Class T, Class B, Class C, Institutional Class and Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth shares, respectively, 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. The Funds commenced sale of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class of each Fund was designated Large Cap Value, Mid Cap Value, Large Cap Growth and Mid Cap Growth, respectively, on February 13, 2007. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. Certain Funds investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company(FMR) and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc.(FIMM), an affiliate of FMR.
A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued and net asset value(NAV) per share is calculated(NAV calculation) as of the close of business of the New York Stock Exchange(NYSE), normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because each Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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 for processing shareholder transactions 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes(FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. 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 recorded on the ex-dividend date. Income dividends 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 generally accepted accounting principles. In addition, certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal
Income Tax
Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
Fidelity Large Cap Value Fund | $ 1,571,171,429 | $ 98,475,075 | $ (92,166,547) | $ 6,308,528 |
Fidelity Mid Cap Value Fund | 844,773,929 | 42,574,804 | (57,370,158) | (14,795,354) |
Fidelity Large Cap Growth Fund | 166,610,940 | 4,786,892 | (10,368,163) | (5,581,271) |
Fidelity Mid Cap Growth Fund | 319,883,846 | 21,520,033 | (22,775,536) | (1,255,503) |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
January 31, 2008 | | | |
| Ordinary
Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 37,304,898 | $ 67,715,379 | $ 105,020,277 |
Fidelity Mid Cap Value Fund | 10,958,373 | 29,219,096 | 40,177,469 |
Fidelity Large Cap Growth Fund | 6,193,151 | 12,379,253 | 18,572,404 |
Fidelity Mid Cap Growth Fund | - | 21,909,497 | 21,909,497 |
January 31, 2007 | | | |
| Ordinary Income | Long-term
Capital Gains | Total |
Fidelity Large Cap Value Fund | $ 17,006,124 | $ 7,416,999 | $ 24,423,123 |
Fidelity Mid Cap Value Fund | 7,722,049 | 9,225,041 | 16,947,090 |
Fidelity Large Cap Growth Fund | 1,920,898 | 1,860,806 | 3,781,704 |
Fidelity Mid Cap Growth Fund | 2,544,632 | 2,544,632 | 5,089,264 |
Short-Term Trading (Redemption) Fees. Shares held in the Fidelity Mid Cap Value Fund and Fidelity Mid Cap Growth Fund less than 30 days are subject to a redemption fee equal to 0.75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Funds and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission(the SEC) which permits certain Funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. Certain Funds may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Each applicable Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement(including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases($) | Sales($) |
Fidelity Large Cap Value Fund | 3,485,833,978 | 3,246,788,832 |
Fidelity Mid Cap Value Fund | 2,520,812,788 | 2,356,094,981 |
Fidelity Large Cap Growth Fund | 745,952,270 | 764,990,241 |
Fidelity Mid Cap Growth Fund | 995,464,036 | 1,090,139,044 |
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee for the funds is subject to a performance adjustment(up to a maximum ± .20% of each applicable Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on each applicable Fund's relative investment performance of the asset-weighted return of all
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
classes as compared to an appropriate benchmark index. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets, including the performance adjustment, if applicable was as follows:
| Individual Rate | Group Rate | Total |
Fidelity Large Cap Value Fund | .30% | .26% | .58% |
Fidelity Mid Cap Value Fund | .30% | .26% | .52% |
Fidelity Large Cap Growth Fund | .30% | .26% | .58% |
Fidelity Mid Cap Growth Fund | .30% | .26% | .46% |
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation(FDC), an affiliate of FMR, 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 and the total amounts paid to and retained by FDC were as follows:
Fidelity Large Cap Value Fund | Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 14,716 | $ 3,419 |
Class T | .25% | .25% | 29,520 | 209 |
Class B | .75% | .25% | 20,952 | 15,912 |
Class C | .75% | .25% | 8,540 | 4,769 |
| | | $ 73,728 | $ 24,309 |
Fidelity Mid Cap Value Fund | | | | |
Class A | 0% | .25% | $ 9,176 | $ 3,141 |
Class T | .25% | .25% | 10,994 | 355 |
Class B | .75% | .25% | 17,435 | 13,285 |
Class C | .75% | .25% | 16,086 | 12,118 |
| | | $ 53,691 | $ 28,899 |
Fidelity Large Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,502 | $ 246 |
Class T | .25% | .25% | 2,248 | 460 |
Class B | .75% | .25% | 2,797 | 2,331 |
Class C | .75% | .25% | 4,188 | 3,019 |
| | | $ 10,735 | $ 6,056 |
Fidelity Mid Cap Growth Fund | | | | |
Class A | 0% | .25% | $ 1,756 | $ 245 |
Class T | .25% | .25% | 1,796 | 463 |
Class B | .75% | .25% | 2,959 | 2,452 |
Class C | .75% | .25% | 3,852 | 3,025 |
| | | $ 10,363 | $ 6,185 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Large Cap Value Fund | Retained
by FDC |
Class A | $ 18,265 |
Class T | 4,391 |
Class B * | 1,096 |
Class C * | 11 |
| $ 22,763 |
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows: - continued
Fidelity Mid Cap Value Fund | Retained
by FDC |
Class A | $ 22,621 |
Class T | 5,951 |
Class B* | 2,448 |
Class C* | 137 |
| $ 31,157 |
Fidelity Large Cap Growth Fund | |
Class A | $ 4,515 |
Class T | 1,123 |
Class B* | 509 |
Class C* | 62 |
| $ 6,209 |
Fidelity Mid Cap Growth Fund | |
Class A | $ 6,603 |
Class T | 1,049 |
Class B* | 962 |
Class C* | 165 |
| $ 8,779 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc.(FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Prior to January 1, 2008, Fidelity Service Company, Inc. (FSC), also an affiliate of FMR, was the Fund's transfer agent. For the period, the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
Fidelity Large Cap Value Fund | Amount | % of
Average
Net Assets* |
Class A | $ 20,036 | .34 |
Class T | 20,697 | .35 |
Class B | 7,804 | .37 |
Class C | 2,694 | .31 |
Large Cap Value | 3,716,520 | .23 |
Institutional Class | 944 | .23 |
| $ 3,768,695 | |
Fidelity Mid Cap Value Fund | | |
Class A | $ 10,910 | .30 |
Class T | 6,730 | .31 |
Class B | 5,278 | .30 |
Class C | 5,017 | .31 |
Mid Cap Value | 2,206,272 | .24 |
Institutional Class | 1,803 | .30 |
| $ 2,236,010 | |
Fidelity Large Cap Growth Fund | | |
Class A | $ 1,787 | .30 |
Class T | 1,353 | .31 |
Class B | 833 | .30 |
Class C | 1,224 | .29 |
Large Cap Growth | 529,155 | .31 |
Institutional Class | 416 | .20 |
| $ 534,768 | |
Annual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
Fidelity Mid Cap Growth Fund | Amount | % of
Average
Net Assets* |
Class A | $ 2,094 | .30 |
Class T | 1,136 | .32 |
Class B | 899 | .30 |
Class C | 1,151 | .30 |
Mid Cap Growth | 1,196,809 | .29 |
Institutional Class | 225 | .17 |
| $ 1,202,314 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were as follows:
| Amount |
Fidelity Large Cap Value Fund | $ 18,780 |
Fidelity Mid Cap Value Fund | 12,752 |
Fidelity Large Cap Growth Fund | 13,318 |
Fidelity Mid Cap Growth Fund | 10,529 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or
Lender | Average Daily Loan Balance | Weighted
Average Interest Rate | Interest
Expense |
Fidelity Large Cap Value Fund | Borrower | $ 6,183,857 | 4.35% | $ 5,226 |
Fidelity Mid Cap Value Fund | Borrower | $ 5,637,000 | 5.27% | $ 4,946 |
7. Committed Line of Credit.
Certain Funds participate with other funds managed by FMR in a $4.2 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 is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Large Cap Value Fund | $ 3,040 |
Fidelity Mid Cap Value Fund | 1,696 |
Fidelity Large Cap Growth Fund | 343 |
Fidelity Mid Cap Growth Fund | 824 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, each applicable Fund receives collateral(in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Annual Report
8. Security Lending - continued
Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Fidelity Large Cap Growth Fund | | |
Large Cap Growth | 1.00% | $ 58,552 |
In addition, FMR voluntarily agreed to reimburse a portion of certain fund's existing class' operating expenses. During the period, this reimbursement reduced certain fund's existing class' expenses by the following amounts:
| Reimbursement
from adviser |
Fidelity Large Cap Value Fund | |
Large Cap Value | $ 85,974 |
Fidelity Mid Cap Value Fund | |
Mid Cap Value | $ 85,078 |
Fidelity Large Cap Growth Fund | |
Large Cap Growth | $ 25,900 |
Fidelity Mid Cap Growth Fund | |
Mid Cap Growth | $ 84,552 |
In addition, through arrangements with each applicable Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service Arrangements | Transfer
Agent
expense
reduction |
Fidelity Large Cap Value Fund | $ - | $ - |
Large Cap Value | - | 50,587 |
Institutional Class | - | 50 |
Fidelity Mid Cap Value Fund | - | - |
Class A | - | 31 |
Class B | - | 9 |
Mid Cap Value | - | 19,810 |
Institutional Class | - | 70 |
Fidelity Large Cap Growth Fund | - | - |
Large Cap Growth | - | 13,456 |
Fidelity Mid Cap Growth Fund | 1,543 | - |
Mid Cap Growth | - | 27,293 |
10. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Notes to Financial Statements - continued
10. Other - continued
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds. FMR also reimbursed the related legal expenses, which are recorded in the accompanying Statement of Operations as an expense reduction.
Subsequent to period end, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid each fund the following amounts:
Fidelity Large Cap Value Fund | $ 12,127 |
Fidelity Mid Cap Value Fund | $ 23,107 |
Fidelity Large Cap Growth Fund | $ 14,058 |
Fidelity Mid Cap Growth Fund | $ 16,394 |
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | |
From net investment income | | |
Class A | $ 75,483 | $ - |
Class T | 44,031 | - |
Class B | 824 | - |
Class C | 4,115 | - |
Large Cap Value | 14,152,017 | 10,401,399 |
Institutional Class | 10,129 | - |
Total | $ 14,286,599 | $ 10,401,399 |
From net realized gain | | |
Class A | $ 372,920 | $ - |
Class T | 317,190 | - |
Class B | 97,442 | - |
Class C | 51,607 | - |
Large Cap Value | 89,854,195 | 14,021,724 |
Institutional Class | 40,324 | - |
Total | $ 90,733,678 | $ 14,021,724 |
Fidelity Mid Cap Value Fund | | |
From net investment income | | |
Class A | $ 18,691 | $ - |
Class T | 5,836 | - |
Class B | 259 | - |
Class C | 66 | - |
Mid Cap Value | 3,005,000 | 2,949,768 |
Institutional Class | 7,163 | - |
Total | $ 3,037,015 | $ 2,949,768 |
From net realized gain | | |
Class A | $ 176,774 | $ - |
Class T | 106,263 | - |
Class B | 46,244 | - |
Class C | 67,330 | - |
Mid Cap Value | 36,700,729 | 13,997,322 |
Institutional Class | 43,114 | - |
Total | $ 37,140,454 | $ 13,997,322 |
Annual Report
11. Distributions to Shareholders - continued
Distributions to shareholders of each class were as follows: - continued
Years ended January 31, | 2008 A | 2007 |
Fidelity Large Cap Growth Fund | | |
From net investment income | | |
Large Cap Growth | $ - | $ 137,207 |
From net realized gain | | |
Class A | $ 123,133 | $ - |
Class T | 101,048 | - |
Class B | 40,430 | - |
Class C | 75,734 | - |
Large Cap Growth | 18,196,705 | 3,644,497 |
Institutional Class | 35,354 | - |
Total | $ 18,572,404 | $ 3,644,497 |
Fidelity Mid Cap Growth Fund | | |
From net realized gain | | |
Class A | $ 100,774 | $ - |
Class T | 34,957 | - |
Class B | 25,358 | - |
Class C | 40,118 | - |
Mid Cap Growth | 21,697,261 | 5,089,264 |
Institutional Class | 11,029 | - |
Total | $ 21,909,497 | $ 5,089,264 |
A Distributions for Class A,T,B,C and Institutional are for the period February 13, 2007(commencement of sale of shares) to January 31, 2008.
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 1,045,290 | - | $ 16,232,942 | $ - |
Reinvestment of distributions | 29,393 | - | 423,574 | - |
Shares redeemed | (352,749) | - | (5,365,826) | - |
Net increase (decrease) | 721,934 | - | $ 11,290,690 | $ - |
Class T | | | | |
Shares sold | 935,752 | - | $ 14,740,653 | $ - |
Reinvestment of distributions | 24,935 | - | 359,076 | - |
Shares redeemed | (518,994) | - | (7,932,251) | - |
Net increase (decrease) | 441,693 | - | $ 7,167,478 | $ - |
Class B | | | | |
Shares sold | 315,386 | - | $ 4,951,665 | $ - |
Reinvestment of distributions | 6,739 | - | 97,191 | - |
Shares redeemed | (184,721) | - | (2,835,906) | - |
Net increase (decrease) | 137,404 | - | $ 2,212,950 | $ - |
Class C | | | | |
Shares sold | 138,185 | - | $ 2,136,503 | $ - |
Reinvestment of distributions | 3,506 | - | 50,496 | - |
Shares redeemed | (52,323) | - | (788,391) | - |
Net increase (decrease) | 89,368 | - | $ 1,398,608 | $ - |
Annual Report
Notes to Financial Statements - continued
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Fidelity Large Cap Value Fund - continued | | | | |
Large Cap Value | | | | |
Shares sold | 52,779,386 | 72,550,724 | $ 813,954,360 | $ 1,029,577,278 |
Reinvestment of distributions | 7,056,478 | 1,672,345 | 102,030,422 | 23,955,243 |
Shares redeemed | (40,898,915) | (25,616,795) | (619,081,485) | (368,491,524) |
Net increase (decrease) | 18,936,949 | 48,606,274 | $ 296,903,297 | $ 685,040,997 |
Institutional Class | | | | |
Shares sold | 92,735 | - | $ 1,397,015 | $ - |
Reinvestment of distributions | 3,477 | - | 50,127 | - |
Shares redeemed | (17,951) | - | (257,652) | - |
Net increase (decrease) | 78,261 | - | $ 1,189,490 | $ - |
Fidelity Mid Cap Value Fund | | | | |
Class A | | | | |
Shares sold | 615,995 | - | $ 10,540,942 | $ - |
Reinvestment of distributions | 11,024 | - | 178,558 | - |
Shares redeemed | (132,358) | - | (2,195,988) | - |
Net increase (decrease) | 494,661 | - | $ 8,523,512 | $ - |
Class T | | | | |
Shares sold | 325,063 | - | $ 5,643,056 | $ - |
Reinvestment of distributions | 6,694 | - | 108,412 | - |
Shares redeemed | (84,728) | - | (1,422,111) | - |
Net increase (decrease) | 247,029 | - | $ 4,329,357 | $ - |
Class B | | | | |
Shares sold | 204,574 | - | $ 3,623,364 | $ - |
Reinvestment of distributions | 2,791 | - | 45,364 | - |
Shares redeemed | (120,358) | - | (2,068,797) | - |
Net increase (decrease) | 87,007 | - | $ 1,599,931 | $ - |
Class C | | | | |
Shares sold | 168,571 | - | $ 2,987,730 | $ - |
Reinvestment of distributions | 3,136 | - | 50,659 | - |
Shares redeemed | (61,027) | - | (991,710) | - |
Net increase (decrease) | 110,680 | - | $ 2,046,679 | $ - |
Mid Cap Value | | | | |
Shares sold | 34,123,012 | 26,022,900 | $ 603,742,926 | $ 415,931,492 |
Reinvestment of distributions | 2,338,406 | 1,003,867 | 38,409,538 | 16,337,499 |
Shares redeemed | (27,133,004) | (10,884,934) | (462,055,715) | (173,050,014) |
Net increase (decrease) | 9,328,414 | 16,141,833 | $ 180,096,749 | $ 259,218,977 |
Institutional Class | | | | |
Shares sold | 102,472 | - | $ 1,790,525 | $ - |
Reinvestment of distributions | 3,101 | - | 50,277 | - |
Shares redeemed | (9,162) | - | (148,581) | - |
Net increase (decrease) | 96,411 | - | $ 1,692,221 | $ - |
Fidelity Large Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,474 | - | $ 1,900,337 | $ - |
Reinvestment of distributions | 10,979 | - | 116,895 | - |
Shares redeemed | (44,281) | - | (486,246) | - |
Net increase (decrease) | 132,172 | - | $ 1,530,986 | $ - |
Class T | | | | |
Shares sold | 167,227 | - | $ 1,920,600 | $ - |
Reinvestment of distributions | 9,490 | - | 101,048 | - |
Shares redeemed | (65,269) | - | (790,917) | - |
Net increase (decrease) | 111,448 | - | $ 1,230,731 | $ - |
Annual Report
12. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
Years ended January 31, | 2008 A | 2007 | 2008 A | 2007 |
Class B | | | | |
Shares sold | 55,847 | - | $ 636,287 | $ - |
Reinvestment of distributions | 3,795 | - | 40,430 | - |
Shares redeemed | (4,405) | - | (49,003) | - |
Net increase (decrease) | 55,237 | - | $ 627,714 | $ - |
Class C | | | | |
Shares sold | 106,310 | - | $ 1,230,146 | $ - |
Reinvestment of distributions | 6,439 | - | 68,402 | - |
Shares redeemed | (16,516) | - | (191,737) | - |
Net increase (decrease) | 96,233 | - | $ 1,106,811 | $ - |
Large Cap Growth | | | | |
Shares sold | 5,794,783 | 10,973,541 | $ 66,845,422 | $ 124,315,764 |
Reinvestment of distributions | 1,665,396 | 318,299 | 17,914,862 | 3,701,456 |
Shares redeemed | (7,903,937) | (9,222,108) | (90,877,571) | (102,538,999) |
Net increase (decrease) | (443,758) | 2,069,732 | $ (6,117,287) | $ 25,478,221 |
Institutional Class | | | | |
Shares sold | 38,550 | - | $ 453,557 | $ - |
Reinvestment of distributions | 3,006 | - | 32,121 | - |
Shares redeemed | (2,488) | - | (28,969) | - |
Net increase (decrease) | 39,068 | - | $ 456,709 | $ - |
Fidelity Mid Cap Growth Fund | | | | |
Class A | | | | |
Shares sold | 165,234 | - | $ 2,326,735 | $ - |
Reinvestment of distributions | 7,218 | - | 97,305 | - |
Shares redeemed | (13,557) | - | (186,849) | - |
Net increase (decrease) | 158,895 | - | $ 2,237,191 | $ - |
Class T | | | | |
Shares sold | 54,813 | - | $ 796,065 | $ - |
Reinvestment of distributions | 2,601 | - | 34,957 | - |
Shares redeemed | (8,726) | - | (121,838) | - |
Net increase (decrease) | 48,688 | - | $ 709,184 | $ - |
Class B | | | | |
Shares sold | 35,917 | - | $ 516,488 | $ - |
Reinvestment of distributions | 1,882 | - | 25,182 | - |
Shares redeemed | (3,583) | - | (47,283) | - |
Net increase (decrease) | 34,216 | - | $ 494,387 | $ - |
Class C | | | | |
Shares sold | 59,795 | - | $ 849,458 | $ - |
Reinvestment of distributions | 2,811 | - | 37,643 | - |
Shares redeemed | (4,934) | - | (66,440) | - |
Net increase (decrease) | 57,672 | - | $ 820,661 | $ - |
Mid Cap Growth | | | | |
Shares sold | 7,994,956 | 24,363,804 | $ 114,388,509 | $ 336,430,868 |
Reinvestment of distributions | 1,580,341 | 357,726 | 21,334,599 | 4,986,704 |
Shares redeemed | (15,751,578) | (18,209,467) | (217,016,915) | (243,991,431) |
Net increase (decrease) | (6,176,281) | 6,512,063 | $ (81,293,807) | $ 97,426,141 |
Institutional Class | | | | |
Shares sold | 14,080 | - | $ 199,943 | $ - |
Reinvestment of distributions | 816 | - | 11,029 | - |
Net increase (decrease) | 14,896 | - | $ 210,972 | $ - |
A Share transactions for class A,T,B,C and Institutional are for the period February 13, 2007 (commencement of sale of shares) to January 31, 2008.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Devonshire Trust and the Shareholders of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Large Cap Value Fund, Fidelity Mid Cap Value Fund, Fidelity Large Cap Growth Fund and Fidelity Mid Cap Growth Fund (funds of Fidelity Devonshire Trust) at January 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Devonshire Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 24, 2008
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for James C. Curvey, each of the Trustees oversees 374 funds advised by FMR or an affiliate. Mr. Curvey oversees 369 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (77) |
| Year of Election or Appointment: 1985 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related. |
James C. Curvey (72) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (59) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (71) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (67) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (61) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (63) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (68) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007). |
Advisory Board Members and Executive Officers**:
Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Arthur E. Johnson (61) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related. |
Alan J. Lacy (54) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History. |
Peter S. Lynch (64) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Joseph Mauriello (63) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
David M. Thomas (58) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (57) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005). |
Kimberley H. Monasterio (44) |
| Year of Election or Appointment: 2007 President and Treasurer of the funds. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Walter C. Donovan (45) |
| Year of Election or Appointment: 2007 Vice President of the funds. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005). |
Bruce T. Herring (42) |
| Year of Election or Appointment: 2006 Vice President of the funds. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Eric D. Roiter (59) |
| Year of Election or Appointment: 2001 Secretary of the funds. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
John B. McGinty, Jr. (45) |
| Year of Election or Appointment: 2008 Assistant Secretary of the funds. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of the funds. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of the funds. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (60) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of the funds. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the funds. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (38) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the funds. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the funds. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (54) |
| Year of Election or Appointment: 2004 Assistant Treasurer of the funds. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Paul M. Murphy (60) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the funds. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007). |
Gary W. Ryan (49) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the funds. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended January 31, 2008, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Large Cap Value Fund | $53,592,103 |
Fidelity Mid Cap Value Fund | $30,917,128 |
Fidelity Large Cap Growth Fund | $9,534,777 |
Fidelity Mid Cap Growth Fund | $25,157,607 |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| March,
2007 | December,
2007 |
Fidelity Large Cap Value Fund | | |
Institutional Class | 45% | 100% |
Fidelity Mid Cap Value Fund | | |
Institutional Class | 26% | 100% |
Fidelity Large Cap Growth Fund | | |
Institutional Class | 91% | 17% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| March,
2007 | December,
2007 |
Fidelity Large Cap Value Fund | | |
Institutional Class | 45% | 100% |
Fidelity Mid Cap Value Fund | | |
Institutional Class | 26% | 100% |
Fidelity Large Cap Growth Fund | | |
Institutional Class | 92% | 19% |
The fund will notify shareholders in January 2009 of amounts for use in preparing 2008 income tax returns.
Annual Report
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations
Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
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ALMCI-UANN-0308
1.863130.100
Fidelity®
Utilities
Fund
Annual Report
January 31, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
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 (search for "proxy voting guidelines") 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.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks got off to a poor start in 2008, while investment-grade bonds and money markets showed positive returns, once again underscoring the importance of a diversified portfolio. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended January 31, 2008 | Past 1
year | Past 5
years | Past 10
years |
Fidelity® Utilities Fund | 0.24% | 17.20% | 5.58% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Utilities Fund on January 31, 1998. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Douglas Simmons, Portfolio Manager of Fidelity® Utilities Fund
Many measures of the U.S. stock market retreated into negative territory for the 12 months ending January 31, 2008, felled by the subprime mortgage loan crisis, a housing market slowdown, rising inflation and a potential recession. Making matters worse was the subprime-related spillover into the credit markets, which caused liquidity to tighten significantly and led to downward revisions in economic growth expectations for 2008. The Federal Reserve Board sought to ease the credit crunch, cutting a key short-term interest rate five times during the past year. Despite the Fed's efforts, the Standard & Poor's 500SM Index fell 6.00% in January alone - its worst first month of the year since 1990 - and dropped 2.31% for the 12 months overall. The technology-heavy NASDAQ Composite® Index had its weakest January on record since its 1971 inception, and fell 2.35% during the past year. The bellwether Dow Jones Industrial AverageSM managed a modest increase of 2.56% for the period overall, but the small-cap-oriented Russell 2000® Index declined 9.79%.
For the 12 months that ended January 31, 2008, the fund returned 0.24%, outperforming the -1.03% return of the Russell 3000® Utilities Index. Overweighting the independent power producer/energy trading group had a positive influence on the fund's relative performance, as did strong stock selection among multi-utilities. Underweighting electric utilities detracted. Top contributions came from underweighting wireless telecommunication services provider Sprint Nextel, and from the positive performance of the fund's investments in Maryland-based independent power producer/energy trader Constellation Energy Group, multi-utility Public Service Enterprise Group, located in New Jersey, and Pennsylvania-domiciled electric utility PPL - and an out-of-benchmark position in independent power producer Reliant Energy, based in Houston and no longer held by the fund at period end. Detractors included underweighted positions in two stocks that performed well - Florida-based electric utility FPL Group and wireless telecom services provider Alltel, the latter of which was acquired. An investment in wireless telecom firm NII Holdings also dampened relative returns, as did an underweighting in electric utility Duke Energy - located in North Carolina and no longer held - during the second half of the period.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2007 to January 31, 2008).
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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a share-holder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Annual Report
Investments - continued
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.
| Beginning
Account Value
August 1, 2007 | Ending
Account Value
January 31, 2008 | Expenses Paid
During Period*
August 1, 2007 to January 31, 2008 |
Actual | $ 1,000.00 | $ 943.50 | $ 4.11 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
* Expenses are equal to the Fund's annualized expense ratio of .84%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
AT&T, Inc. | 23.5 | 24.3 |
Verizon Communications, Inc. | 10.7 | 11.4 |
Exelon Corp. | 6.2 | 4.5 |
AES Corp. | 5.4 | 4.3 |
Comcast Corp. Class A | 4.9 | 6.4 |
PPL Corp. | 4.8 | 2.8 |
Constellation Energy Group, Inc. | 4.6 | 3.2 |
Public Service Enterprise Group, Inc. | 3.7 | 4.3 |
American Electric Power Co., Inc. | 2.8 | 2.2 |
Entergy Corp. | 2.8 | 2.8 |
| 69.4 | |
Top Five Industries as of January 31, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Diversified Telecommunication Services | 37.7 | 40.8 |
Electric Utilities | 27.2 | 17.4 |
Independent Power Producers & Energy Traders | 12.3 | 13.8 |
Multi-Utilities | 9.0 | 9.8 |
Media | 4.9 | 6.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2008 * | As of July 31, 2007 ** |
| Stocks 98.1% | | | Stocks 99.9% | |
| Short-Term
Investments and
Net Other Assets 1.9% | | | Short-Term
Investments and
Net Other Assets 0.1% | |
* Foreign investments | 0.0% | | ** Foreign investments | 0.3% | |
Annual Report
Investments January 31, 2008
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 4.9% |
Media - 4.9% |
Comcast Corp. Class A (a) | 3,338,598 | | $ 60,629 |
ENERGY - 1.4% |
Oil, Gas & Consumable Fuels - 1.4% |
Spectra Energy Corp. | 765,600 | | 17,486 |
FINANCIALS - 0.2% |
Diversified Financial Services - 0.2% |
Hicks Acquisition Co. I, Inc. unit | 293,900 | | 2,924 |
INFORMATION TECHNOLOGY - 0.2% |
IT Services - 0.2% |
NeuStar, Inc. Class A (a) | 74,600 | | 2,216 |
TELECOMMUNICATION SERVICES - 40.7% |
Diversified Telecommunication Services - 37.7% |
AT&T, Inc. | 7,515,563 | | 289,275 |
Embarq Corp. | 181,700 | | 8,231 |
Level 3 Communications, Inc. (a) | 1,851,900 | | 6,371 |
Qwest Communications International, Inc. | 2,077,300 | | 12,215 |
Time Warner Telecom, Inc. Class A (sub. vtg.) (a) | 550,600 | | 9,624 |
Verizon Communications, Inc. | 3,395,241 | | 131,871 |
Windstream Corp. | 608,920 | | 7,070 |
| | 464,657 |
Wireless Telecommunication Services - 3.0% |
Leap Wireless International, Inc. (a) | 63,300 | | 2,617 |
NII Holdings, Inc. (a) | 209,300 | | 8,929 |
Sprint Nextel Corp. | 1,790,847 | | 18,858 |
Telephone & Data Systems, Inc. | 120,596 | | 6,360 |
| | 36,764 |
TOTAL TELECOMMUNICATION SERVICES | | 501,421 |
UTILITIES - 50.7% |
Electric Utilities - 27.2% |
Allegheny Energy, Inc. | 463,500 | | 25,395 |
American Electric Power Co., Inc. | 807,900 | | 34,602 |
Edison International | 458,100 | | 23,894 |
Entergy Corp. | 312,302 | | 33,785 |
Exelon Corp. | 1,005,809 | | 76,633 |
FirstEnergy Corp. | 386,800 | | 27,548 |
FPL Group, Inc. | 495,100 | | 31,924 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Electric Utilities - continued |
Great Plains Energy, Inc. | 115,500 | | $ 3,220 |
Northeast Utilities | 187,300 | | 5,192 |
Pepco Holdings, Inc. | 232,000 | | 5,907 |
PPL Corp. | 1,216,727 | | 59,522 |
Sierra Pacific Resources | 288,200 | | 4,314 |
Westar Energy, Inc. | 117,600 | | 2,865 |
| | 334,801 |
Gas Utilities - 1.9% |
Equitable Resources, Inc. | 96,200 | | 5,363 |
Questar Corp. | 216,700 | | 11,032 |
Southern Union Co. | 254,700 | | 6,923 |
| | 23,318 |
Independent Power Producers & Energy Traders - 12.3% |
AES Corp. (a) | 3,457,384 | | 65,967 |
Constellation Energy Group, Inc. | 601,663 | | 56,532 |
Mirant Corp. (a) | 308,473 | | 11,364 |
NRG Energy, Inc. (a) | 448,600 | | 17,311 |
| | 151,174 |
Multi-Utilities - 9.0% |
Ameren Corp. | 63,700 | | 2,854 |
CenterPoint Energy, Inc. | 444,300 | | 7,113 |
CMS Energy Corp. | 1,339,300 | | 20,987 |
Integrys Energy Group, Inc. | 97,100 | | 4,721 |
Public Service Enterprise Group, Inc. | 471,372 | | 45,252 |
Sempra Energy | 319,300 | | 17,849 |
Xcel Energy, Inc. | 618,370 | | 12,856 |
| | 111,632 |
Water Utilities - 0.3% |
Aqua America, Inc. | 165,764 | | 3,304 |
TOTAL UTILITIES | | 624,229 |
TOTAL COMMON STOCKS (Cost $1,165,253) | 1,208,905 |
Money Market Funds - 1.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 3.79% (b)
(Cost $15,197) | 15,197,095 | | $ 15,197 |
TOTAL INVESTMENT PORTFOLIO - 99.3% (Cost $1,180,450) | | 1,224,102 |
NET OTHER ASSETS - 0.7% | | 8,413 |
NET ASSETS - 100% | $ 1,232,515 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 1,220 |
Fidelity Securities Lending Cash Central Fund | 155 |
Total | $ 1,375 |
Income Tax Information |
At January 31, 2008, the fund had a capital loss carryforward of approximately $210,412,000 of which $199,347,000 and $11,065,000 will expire on January 31, 2011 and 2012, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | January 31, 2008 |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,165,253) | $ 1,208,905 | |
Fidelity Central Funds (cost $15,197) | 15,197 | |
Total Investments (cost $1,180,450) | | $ 1,224,102 |
Receivable for investments sold | | 19,791 |
Receivable for fund shares sold | | 668 |
Dividends receivable | | 4,975 |
Distributions receivable from Fidelity Central Funds | | 15 |
Prepaid expenses | | 4 |
Other receivables | | 35 |
Total assets | | 1,249,590 |
| | |
Liabilities | | |
Payable for investments purchased | $ 14,643 | |
Payable for fund shares redeemed | 1,389 | |
Accrued management fee | 655 | |
Other affiliated payables | 278 | |
Other payables and accrued expenses | 110 | |
Total liabilities | | 17,075 |
| | |
Net Assets | | $ 1,232,515 |
Net Assets consist of: | | |
Paid in capital | | $ 1,418,736 |
Undistributed net investment income | | 1,887 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (231,760) |
Net unrealized appreciation (depreciation) on investments | | 43,652 |
Net Assets, for 64,858 shares outstanding | | $ 1,232,515 |
Net Asset Value, offering price and redemption price per share ($1,232,515 ÷ 64,858 shares) | | $ 19.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended January 31, 2008 |
Investment Income | | |
Dividends | | $ 37,582 |
Interest | | 11 |
Income from Fidelity Central Funds | | 1,375 |
Total income | | 38,968 |
| | |
Expenses | | |
Management fee
Basic fee | $ 7,519 | |
Performance adjustment | 1,812 | |
Transfer agent fees | 3,289 | |
Accounting and security lending fees | 516 | |
Custodian fees and expenses | 32 | |
Independent trustees' compensation | 6 | |
Registration fees | 66 | |
Audit | 63 | |
Legal | 12 | |
Interest | 76 | |
Miscellaneous | 55 | |
Total expenses before reductions | 13,446 | |
Expense reductions | (52) | 13,394 |
Net investment income (loss) | | 25,574 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 158,456 | |
Foreign currency transactions | (1) | |
Total net realized gain (loss) | | 158,455 |
Change in net unrealized appreciation (depreciation) on: Investment securities | | (143,736) |
Net gain (loss) | | 14,719 |
Net increase (decrease) in net assets resulting from operations | | $ 40,293 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
January 31,
2008 | Year ended
January 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 25,574 | $ 24,313 |
Net realized gain (loss) | 158,455 | 110,048 |
Change in net unrealized appreciation (depreciation) | (143,736) | 183,257 |
Net increase (decrease) in net assets resulting
from operations | 40,293 | 317,618 |
Distributions to shareholders from net investment income | (28,120) | (19,332) |
Share transactions
Proceeds from sales of shares | 637,065 | 930,039 |
Reinvestment of distributions | 25,789 | 17,712 |
Cost of shares redeemed | (1,077,520) | (639,834) |
Net increase (decrease) in net assets resulting from share transactions | (414,666) | 307,917 |
Total increase (decrease) in net assets | (402,493) | 606,203 |
| | |
Net Assets | | |
Beginning of period | 1,635,008 | 1,028,805 |
End of period (including undistributed net investment income of $1,887 and undistributed net investment income of $4,355, respectively) | $ 1,232,515 | $ 1,635,008 |
Other Information Shares | | |
Sold | 30,728 | 53,456 |
Issued in reinvestment of distributions | 1,227 | 1,027 |
Redeemed | (51,842) | (36,363) |
Net increase (decrease) | (19,887) | 18,120 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended January 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.29 | $ 15.44 | $ 13.28 | $ 11.73 | $ 9.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .32 | .33 | .22 | .30 E | .21 |
Net realized and unrealized gain (loss) | (.24) F | 3.77 | 2.20 | 1.54 | 2.30 |
Total from investment operations | .08 | 4.10 | 2.42 | 1.84 | 2.51 |
Distributions from net investment income | (.37) | (.25) | (.26) | (.29) | (.22) |
Net asset value, end of period | $ 19.00 | $ 19.29 | $ 15.44 | $ 13.28 | $ 11.73 |
Total Return A | .24% | 26.77% | 18.37% | 15.85% | 26.91% |
Ratios to Average Net Assets C,G | | | | | |
Expenses before reductions | .82% | .85% | .87% | .89% | .75% |
Expenses net of fee waivers, if any | .82% | .85% | .87% | .89% | .75% |
Expenses net of all reductions | .82% | .84% | .84% | .85% | .73% |
Net investment income (loss) | 1.56% | 1.92% | 1.54% | 2.49%E | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 1,233 | $ 1,635 | $ 1,029 | $ 937 | $ 864 |
Portfolio turnover rate D | 56% | 104% | 66% | 57% | 21% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.12 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.48%.
F 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.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended January 31, 2008
(Amounts in thousands except ratios)
1. Organization.
Fidelity Utilities Fund (the Fund) is a non-diversified fund of Fidelity Devonshire Trust (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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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 for processing shareholder transactions 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 may 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
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3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation, foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 136,238 |
Unrealized depreciation | (113,933) |
Net unrealized appreciation (depreciation) | 22,305 |
Undistributed ordinary income | 1,926 |
Capital loss carryforward | (210,412) |
| |
Cost for federal income tax purposes | $ 1,201,797 |
The tax character of distributions paid was as follows:
| January 31, 2008 | January 31, 2007 |
Ordinary Income | $ 28,120 | $ 19,332 |
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the
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4. Operating Policies - continued
Repurchase Agreements - continued
collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $897,238 and $1,287,759, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .20% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .15% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .57% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, 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 annual rate of .20% of average net assets. Prior to January 1, 2008 Fidelity Service Company, Inc. (FSC), also an affiliate of FMR was the Fund's transfer agent.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11 for the period.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,362 | 4.93% | $ 49 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $155.
Annual Report
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. 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. The average daily loan balance during the period for which loans were outstanding amounted to $11,505. The weighted average interest rate was 5.54%. The interest expense amounted to $27 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $2 for the period. In addition, through arrangements with the Fund's transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $49, respectively.
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds. FMR also reimbursed the related legal expenses, which are recorded in the accompanying Statement of Operations as an expense reduction.
Subsequent to period end, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $81.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
11. Other - continued
of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Devonshire Trust and the Shareholders of Fidelity Utilities Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Utilities Fund (a fund of Fidelity Devonshire Trust) at January 31, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Utilities Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at January 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
March 24, 2008
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 374 funds advised by FMR or an affiliate. Mr. Curvey oversees 369 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (77) |
| Year of Election or Appointment: 1985 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related. |
James C. Curvey (72) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-
present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (59) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (71) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (67) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (61) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (63) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-
1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (68) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007). |
Advisory Board Members and Executive Officers**:
Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Arthur E. Johnson (61) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr.
Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related. |
Name, Age; Principal Occupation |
Alan J. Lacy (54) |
| Year of Election or Appointment: 2008 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History. |
Peter S. Lynch (64) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-
present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Joseph Mauriello (63) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-
2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
David M. Thomas (58) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (57) |
| Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Devonshire Trust. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006, 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005). |
Kimberley H. Monasterio (44) |
| Year of Election or Appointment: 2007 President and Treasurer of Utilities. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Brian B. Hogan (43) |
| Year of Election or Appointment: 2007 Vice President of Utilities. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager. |
Eric D. Roiter (59) |
| Year of Election or Appointment: 1998 Secretary of Utilities. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-
present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
John B. McGinty, Jr. (45) |
| Year of Election or Appointment: 2008 Assistant Secretary of Utilities. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Utilities. Mr. Ganis also serves as AML officer of the other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Utilities. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (60) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Utilities. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-
present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Utilities. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (38) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Utilities. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Utilities. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (54) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Utilities. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Paul M. Murphy (60) |
| Year of Election or Appointment: 2007 Assistant Treasurer of Utilities. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007). |
Gary W. Ryan (49) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Utilities. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions
A total of 0.18% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed in April, July, October, and December during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2009 of amounts for use in preparing 2008 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
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Colorado
281 East Flatiron Circle
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Connecticut
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Delaware
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Florida
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4400 N. Federal Highway
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4671 Town Center Parkway
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8880 Tamiami Trail, North
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230 Royal Palm Way
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1502 N. Westshore Blvd.
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Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
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Illinois
One North LaSalle Street
Chicago, IL
401 North Michigan Avenue
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One Skokie Valley Road
Highland Park, IL
1415 West 22nd Street
Oak Brook, IL
15105 S LaGrange Road
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1572 East Golf Road
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Indiana
4729 East 82nd Street
Indianapolis, IN
8480 Keystone Crossing
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
200 Endicott Street
Danvers, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
405 Cochituate Road
Framingham, MA
551 Boston Turnpike
Shrewsbury, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
30200 Northwestern Hwy.
Farmington Hills, MI
43420 Grand River Avenue
Novi, MI
Minnesota
7740 France Avenue South
Edina, MN
8342 3rd Street North
Oakdale, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
501 Route 73 South
Marlton, NJ
150 Essex Street
Millburn, NJ
35 Morris Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New Mexico
2261 Q Street NE
Albuquerque, NM
New York
1130 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
1800 Crocker Road
Westlake, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
10 Memorial Boulevard
Providence, RI
Tennessee
3018 Peoples Street
Johnson City, TN
7628 West Farmington Blvd.
Germantown, TN
2035 Mallory Lane
Franklin, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
1701 Lake Robbins Drive
The Woodlands, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
10500 NE 8th Street
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
16020 West Bluemound Road
Brookfield, WI
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research (U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
UIF-UANN-0308
1.789258.105
Item 2. Code of Ethics
As of the end of the period, January 31, 2008, Fidelity Devonshire Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees.
For the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for the Fidelity Equity-Income Fund, Fidelity Large Cap Growth Fund, Fidelity Large Cap Value Fund, Fidelity Mid Cap Growth Fund, Fidelity Mid Cap Value Fund and Fidelity Utilities Fund (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.
Fund | 2008A | 2007A |
Fidelity Equity-Income Fund | $221,000 | $211,000 |
Fidelity Large Cap Growth Fund | $49,000 | $48,000 |
Fidelity Large Cap Value Fund | $52,000 | $50,000 |
Fidelity Mid Cap Growth Fund | $50,000 | $49,000 |
Fidelity Mid Cap Value Fund | $51,000 | $50,000 |
Fidelity Utilities Fund | $54,000 | $56,000 |
All funds in the Fidelity Group of Funds audited by PwC | $14,300,000 | $13,800,000 |
A | Aggregate amounts may reflect rounding. |
(b) Audit-Related Fees.
In each of the fiscal years ended January 31, 2008 and January 31, 2007 the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Fund | 2008A | 2007A |
Fidelity Equity-Income Fund | $0 | $0 |
Fidelity Large Cap Growth Fund | $0 | $0 |
Fidelity Large Cap Value Fund | $0 | $0 |
Fidelity Mid Cap Growth Fund | $0 | $0 |
Fidelity Mid Cap Value Fund | $0 | $0 |
Fidelity Utilities Fund | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Billed By | 2008A | 2007A |
PwC | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(c) Tax Fees.
In each of the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.
Fund | 2008A | 2007A |
Fidelity Equity-Income Fund | $3,900 | $4,800 |
Fidelity Large Cap Growth Fund | $3,200 | $2,900 |
Fidelity Large Cap Value Fund | $3,200 | $2,900 |
Fidelity Mid Cap Growth Fund | $3,200 | $2,900 |
Fidelity Mid Cap Value Fund | $3,200 | $2,900 |
Fidelity Utilities Fund | $3,200 | $3,800 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2008A | 2007A |
PwC | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) All Other Fees.
In each of the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the funds is shown in the table below.
Fund | 2008A | 2007A |
Fidelity Equity-Income Fund | $18,800 | $19,400 |
Fidelity Large Cap Growth Fund | $1,100 | $1,200 |
Fidelity Large Cap Value Fund | $1,900 | $1,700 |
Fidelity Mid Cap Growth Fund | $1,300 | $1,400 |
Fidelity Mid Cap Value Fund | $1,500 | $1,400 |
Fidelity Utilities Fund | $2,000 | $1,900 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2008A | 2007A |
PwC | $220,000 | $125,000 |
A | Aggregate amounts may reflect rounding. |
Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.
(e) (1) | Audit Committee Pre-Approval Policies and Procedures: |
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.
All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.
(e) (2) | Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: |
Audit-Related Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
Tax Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended January 31, 2008 and January 31, 2007 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
(f) Not applicable.
(g) For the fiscal years ended January 31, 2008 and January 31, 2007, the aggregate fees billed by PwC of $1,560,000A and $1,300,000A for non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.
| 2008A | 2007A |
Covered Services | $265,000 | $170,000 |
Non-Covered Services | $1,295,000 | $1,130,000 |
A | Aggregate amounts may reflect rounding. |
(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the funds, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of 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. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Devonshire Trust
By: | /s/Kimberley Monasterio |
| Kimberley Monasterio |
| President and Treasurer |
| |
Date: | March 28, 2008 |
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/Kimberley Monasterio |
| Kimberley Monasterio |
| President and Treasurer |
| |
Date: | March 28, 2008 |
By: | /s/Joseph B. Hollis |
| Joseph B. Hollis |
| Chief Financial Officer |
| |
Date: | March 28, 2008 |
